Sri Lanka - Colombo Environmental Improvement Project

Document of The World Bank FOR OFFICIAL USE ONLY Report No. P-6632-CE MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT I-N AN AMOUNT EQUIVALENT TO SDR 24.8 MILLION TO THE DEMOCRATIC SOCIALIST REPUBLIC OF SRI LANKA FOR A COLOMBO ENVIRONMENTAL IMPROVEMENT PROJECT JUNE 2, 1995 This document has a restricted distribution and may be used by recipients only in the performance of their offcial duties. Its contents may not otherwise be disclosed w/ithout World Bank; authorization.  CURRENCY EQUIVALENTS (as of May 1995) Currency Unit Sri Lankan Rupee (SIlRs) US$ 1.0 = SLRs 50.00 SLRs 1.0 = US$ 0.02 WEIGHTS AND MEASURES 1 meter (m) = 3.28 feet (ft) 1 kilometer (km) = 0.621 mile 1 square meter (m2) = 10.76 square feet 1 cubic meter (m3) = 35.31 cubic feet 1 hectare (ha) = 2.47 acres ABBREVIATIONS AND ACRONYMS BOO/BOT - Build, Operate and Own/Build, Operate and Transfer CEA - Central Environmental Authority CMA - Colombo Metropolitan Area CMC - Colombo Municipal Council EMS - Environmental Management Strategy GOSL - Government of Sri Lanka NEAP - National Environmental Action Plan NWSDB - National Water Supply and Drainage Board UDA - Urban Development Authority Borrower's Fiscal Year January 1 to December 31  FOR OFFICIAL USE ONLY SRI LANKA COLOMBO ENVIRONMENTAL IMPROVEMENT PROJECT Credit and Project Summary Borrower: Democratic Socialist Republic of Sri Lanka Beneficiaries: Colombo Municipal Council (CMC) National Water Supply and Drainage (NWSDB) Urban Development Authority (UDA) Amount: SDR 24.8 million (US$39.0 million equivalent) Terms: Standard, with 40 years maturity Onlending Terms: The Government of Sri Lanka (GOSL) would onlend part of the credit proceeds to CMC and NWSDB on a variable rate basis equal to at least the average weighted deposit rate on interest bearing deposits of domestic commercial banks and adjustable every six months, repayable over 20 years, including 6 years of grace. GOSL would bear the foreign exchange risk. Financing Plan: Local Foreign Total (-- US$ million --) IDA 18.1 20.9 39.0 GOSL 10.0 - 10.0 Total z2. 2Q,2 490 Economic Rate of Return: Not applicable. Poverty Category: Not applicable. Staff Appraisal Report: Report No. 12878-CE Map: IBRD 26954 This document has a restricted distribution and may be used by recipients only in the perfomance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  4  MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT TO THE DEMOCRATIC SOCIALIST REPUBLIC OF SRI LANKA FOR A COLOMBO ENVIRONMENTAL IMPROVEMENT PROJECT 1. I submit for your approval the following memorandum and recommendaton on a proposed development credit to the Democratic Socialist Republic of Sri Lanka for SDR 24.8 million (US$39.0 million equivalent) to help finance a Colombo Environmental Improvement Project. The proposed credit would be on standard IDA terms, with a maturity of 40 years. Part of the proceeds of the credit would be onlent to the Colombo Municipal Council (CMC) and the National Water Supply and Drainage Board (NWSDl) for 20 years, including six years of grace, on a variable interest rate basis not below the average weighted deposit rate on interest bearing deposits of domestic commercial banks and adjustable every six months. The Government of Sri Lanka (GOSL) would bear the foreign exchange risk. 2. Background. Sri Lanka has a richly varied natural resource base, a moderately expanding population covered by extensive social services and an adult literacy rate of almost 90%. With such an economic infrastructure and human resource base, GOSL is gearing up to propel the economy into the mainstream of growth by fostering private sector-led and environmentally friendly industrial growth, stimulating agriculture to diversify into new crops and export-oriented products, and consolidating Sri Lanka's natural, strategic position by developing the Colombo port into a competitive regional transshipment center. 3. The Colombo Metropolitan Area (CMA), which comprises the Colombo Municipal Council (CMC) and 30 other local authorities in the Colombo, Kalutara and Gampaha Districts of the Western Province, is the most developed region in Sri Lanka. With over four million inhabitants, the CMA contains a quarter of Sri Lanka's total population, accounts for above 70% of the country's industrial activities, and generates over 40% of the island's gross domestic product. This concentration of population, industrial and commercial activities in about 5% of the total land area of Sri Lanka, places a severe strain on the existing municipal infrastructure. Notwithstanding GOSL's preference for a more balanced regional development, most of the new industrial growth can be expected to be sited in the CMA, which is already bearing the brunt of existing urban and industrial pollution. 4. With the foresight that Sri Lanka has the opportunity to pursue economic (levelopment in an ecologically sensitive manner, GOSL has taken a series of legislative initiatives toward protecting the environment. The National Environmental Act of 1980 establishes a. comprehensive national environmental policy. In 1982, GOSL created the Central  -2 - Environmental Authority (CEA) with policy and regulatory functions. Under the National Environmental (Amendment) Act of 1988, three new instruments were introduced for enhancing environmental protection; these are the requirement of Initial Environmental Examination and Environmental Impact Assessment for approval of projects, the designation of environmental protection areas, and the environmental protection license scheme to enforce industrial effluents discharge standards. 5. To set a framework for tackling priority environmental issues, GOSL with IDA's assistance prepared a National Environmental Action Plan (NEAP) in 1991. Many of the actions in the NEAP are directed to address the pollution problems and environmental degradation in the CMA; these include the deteriorating quality of surface and groundwater, pollution from the use of open dumps for solid and hazardous wastes, and degradation of the area's water bodies caused by uncontrolled discharge of domestic and industrial wvastewaters. Beira Lake, a distinctive landmark in the center of Colombo and once an economic and aesthetic asset, is now a polluted water body and a public health hazard. Industrial wastewater pollution has been especially severe in the Ratmalana/Moratuwa area south of Colombo where the Lunawa Lagoon, which supported a significant fisheries industry a decade ago, is totally devoid of aquatic life today. Stemming from the NEAP and with the assistance of international consultants engaged under the IDA-executed Metropolitan Environmental Improvement Program, the preparation of an Environmental Management Strategy (EMS) and Action Plan for Greater Colombo was completed in 1994. The proposed project is based on the prioritized actions in the Colombo EMS. 6. 7hile the existing legislation covers the entire range of environmental concerns, there is a lack of implementation and enforcement. Apart from the shortage of funds for investment in urban infrastructure, the lack of institutional capabilities at the CEA to enforce the existing regulations and standards, and insufficient local government attention to adequate cost recovery measures are constraints to implementing environmental management programs. To help address the above constraints, the proposed project would assist the CMC and other local authorities to operationalize sound solid waste management systems and seek private sector participation under concession arrangements. The project would also provide technical assistance to strengthen UDA's capability in integrated urban planning, with a particular focus on environmental planning and management. Institution-building technical assistance to CEA would be provided under the proposed Sri Lanka Environmental Action I Project which is under preparation. 7. Rationale for IDA Involvement. The proposed operation is consistent with IDA's country assistance strategy for Sri Lanka. The strategy discussed by the Board of Executive Directors on December 10, 1992 seeks and supports reforms by GOSL to (a) improve the climate for private initiatives and for export growth and diversification; (b) improve public sector management of human and physical resources with a view to preserving the country's outstanding social achievements and encouraging private sector participation; and (c) strengthen public finances through containment of current expenditures and a more rapid divestiture of Government holdings in public enterprises. The strategy also supports programs that contribute to improved environmental management and long-term sustainable economic  -3 - development, particularly through lending support in urban infrastructure. The proposed project responds to GOSL's priority for addressing growing environmental problems related to the concentration of economic activity in and around Colombo. The project complements and reinforces the Bank group operations such as the Colombo Urban Transport Project (Cr. 2495- CE) and the proposed Sri Lanka Environmental Action I Project in their institutional support for key agencies involved in environmental protection activities. The project would also support GOSL's effort to seek private participation in delivering urban infrastructure services under Build, Operate and Own (BOO) and concession contracts. IDA is well-placed to provide assistance because of its involvement in the formulation of the NEAP and Colombo EMS and its ability to catalyze, through policy dialogue with GOSL and project financing, the implementation of interventions needed to improve waste management and safeguard the environment. 8. Project Objectives. The overall objective of the project is to contribute to a sustainable environment for the long term economic and social development of the CMA. Soecific objectives of the project are to: (a) improve municipal solid waste management and services in the CMC and participating local authorities; (b) reduce wastewater pollution in the Beira Lake catchment area and selected industrialized zones; (c) develop the capabilities of local governments and institutions to plan and manage municipal services in a sustainable, environmentally beneficial manner; and (d) assist in mobilizing private participation in the development and operations of urban infrastructure services. 9. Project Description. To achieve the project objectives, the project consists of the following components: (a) municipal solid waste management comprising: (i) construction of a sanitary landfill of 3.5 million cubic meters capacity to replace open dumps -- operation of the landfill will be contracted out to a private sector operator; (ii) provision of equipment for safe collection, transport and disposal of clinica' wastes generated in the CMA; and (iii) technical assistance to CMC and other local authorities in the CMA for contracting out solid waste collection services and for developing a long term solid waste disposal strategy; (b) industrial wastewater pollution abatement for (i) construction of sewer networks in the two industrialized areas, Ratmalana and Ekala/Ja-Ela, to collect and carry industrial and domestic wastewaters to two separate wastewater treatment plants to be built and operated by private investors; anc (ii) technical assistance for the solicitation and evaluation of BOO/BOT proposals for the two wastewater treatment plants mentioned above; (c) Beira Lake catchment pollution control for (i) connection of wastewater outlets to the sewerage system, rehabilitation of pumping stations and addition of a sewer line; and (ii) technical assistance for formulating further restoration measures for the lake;  - 4 - (d) institution building technical assistance to UDA for strengthening its capabilities in integrated urban planning, including support for the establishment of a geographic information system for Greater Colombo, and consultancy services for updating the Colombo Development Master Plan and preparing a Trincomalee regional infrastructure development plan; and (e) project implementation support consultancy services. 10. The project cost is estimated at US$49.0 million equivalent, with a foreign exchange component of US$20.9 million equivalent (43%) and taxes and duties estimated at about US$4.6 million equivalent. IDA will finance US$39.0 million equivalent (100% of the foreign exchanges and 64% of the local costs). A breakdown of project costs and the financing plan are shown in Schedule A. Amounts and methods of procurement and of disbursement, and the disbursement schedule are shown in Schedule B. A timetable of key project processing events and the status of Bank Group operations in Sri Lanka are presented in Schedules C and D, respectively. A map is also attached. The Staff Appraisal Report, No. 12878-CE, dated June 2, 1995, is being distributed separately. 11. Project Implementation. Project implementation responsibilities rest with CMC for the municipal solid waste management component, with NWSDB for the wastewater collection systems at Ratmalana and Ekala/Ja-Ela, and with UDA for the Beira Lake catchment pollution control and institution-building technical assistance. The credit proceeds would be passed on to CMC, NWSDB and UDA under separate Project Implementation Agreements to be executed between GOSL and each of the above agencies. Consultants from reputable international engineering firms will be engaged to assist in carrying out procurement and construction supervision. Taking into account the lack of local expertise in modem sanitary landfills, construction and operation of the landfill will be procured through two separate but linked contracts. One contract (Contract A) comprises detailed design and phased construction of the landfill site and other associated facilities, and procurement of mobile equipment required for the landfill operation; the second contract (Contract B) will commence once initial construction is complete and the site is ready to receive wastes and will include operation of the landfill site and progressive restoration of the finished surface. These two contracts will be tendered under one package and awarded at the same time to the same contractor following international competitive bidding (ICB) procedures. The proposed credit would finance Contract A only; CMC and other participating local authorities would jointly meet the operating costs of the landfill under Contract B subject to the contractor's meeting industry standard efficiency norms. 12. To enhance public participation and support for the project implementation, UDA will carry out an environmental public awareness program under the project; also, a Public Consultation Panel comprising five representatives from citizens' groups including non- governmental organizations and four representatives from the concerned Government agencies has been established. The composition of the panel, its terms of reference and modality of operations have been agreed with IDA. The panel will invite public comments through  - 5 - organized forums, conduct semi-annual review of project progress and make recommendations to the project implementing agencies. 13. The project implementation is starting and is given top prionrty by GOSL. Prequalification of contractors for the landfill contracts is now underway; contracts are expected to be awarded by March 1996. Terms of reference and shortlists for project implementation support consultancies were agreed and proposals invited; consultants are to be appointed by October 1995. 14. Project Sustainabilitv. The project is designed to enhance the environment of the CMA. The public awareness program and consultation process will continue throughout the project implementation period to maximize the project results. These, together with the cost recovery mechanisms agreed under the project, will ensure project sustainability 15. Agreed Actions. During negotiations agreements were reached with GCSL and project implementing agencies as follows: (a) CMC and other local authorities using the landfill will: (i) open smcd maintain an escrow account with a financial intermediary for the purpose of making payments to the landfill operator; (ii) commencing at least three inonths prior to the date when the site is ready to receive wastes, make monthly deposits into the escrow account based on the projected tonnages of wastes and the cost- sharing formula agreed by CMC and participating local authorities; and (iii) maintain the balance in the escrow account at a level sufficient tc cover three months of the operating expenses of the landfill; (b) commencing January 1, 1996, CMC and NWSDB will establish a dedicated source of funding for the operations of the Colombo sewerage system satisfactory to IDA; and (c) GOSL will: (i) cause to be completed by June 30, 1997 an industrial effluent discharge standards compliance program for the industries in Ratmalana and Ekala/Ja-Ela; and (ii) arrange funds from alternative sources for the construction of the two wastewater treatment plants in the event that private sector interest fails to materialize. 16. On actions to be completed before credit effectiveness, (a) CMC will appoint a supervisory consultant for the solid waste management component; (b) NWSDB/UDA will appoint consultants for design and construction supervision of the wastewater collection systems and the Beira Lake catchment area sewerage works; and (c) NWSDB will appoint a consultant to assist with the solicitation and evaluation of BOO/BOT proposals for the wastewater treatment plants. 17. Environmental Aspects. Because the project involves construction of a major sanitary landfill, it is a category A project under IDA's Operational Directive for environmental  -6 - screening. As part of the project preparation, a full environmental impact assessment (EIA) of the proposed sanitary landfill was prepared by international consultants on behalf of the Borrower in accordance with IDA's guidelines. The landfill site at Welisara was chosen from a shortlist of six sites after detailed evaluation. Located approximately 10 km north of Colombo, the landfill site covers approximately 50 hectares. The area is not suitable for cropping because of salinity and does not contain flora and fauna of ecological significance. More than 90% of the required land is owned by GOSL; population displacement by the landfill is minimal, involving only one family who has accepted the compensation package for resettlement. Potential significant negative environmental impacts pertain to surface/ground water contamination which may be caused by improper handling of waste construction materials during construction of the landfill site or escape of leachate during operation. The ELA fully addresses these potential impacts and recommends appropriate mitigation measures. The design of the landfill will incorporate a range of environmental protection measures to ensure that development and operation of the landfill site does not result in unacceptable residual impact on the surrounding environment. The proposed credit includes financing of potable water supply and other infrastructure for the local community residing adjacent to the landfill site. 18. Project Benefits. The project addresses underlying causes of environmenta degradation in the CMA and will benefit over 3 million people who reside in or commute to the project area. The replacement of open dumps with a controlled sanitary landfill will eliminate contamination of surface and ground water from open dump seepage or leachates, improve urban environmental conditions and landscape aesthetics. Improved management of hospital wastes through specialized collection and safe disposal will lower public health impacts of uncontrolled disposal of infectious and pathological wastes. The two industrial areas at Ratmalana and Ekala/Ja-Ela account for about 60% of water-polluting industries in the CMA; the project-supported sewerage investments would therefore lead to a significant reduction in the overall pollution contribution of the industrial sector and a general improvement in the population health in the areas concerned. The interventions in the Beira Lake catchment will help reduce associated environmental and health hazards and open the way for environmentally sustainable development of the lake's surrounding area in the longer term. Besides the above direct benefits, the project would serve to catalyze private participation in the delivery of critical urban infrastructure services traditionally undertaken by the public sector. This is expected to contribute to increased service coverage, improved service quality and efficiency. The project would also have a significant demonstration effect to sensitize other urban authorities to adopt better managed and environmentally sound wastes management systems. 19. Since the project has significant environmental and social benefits which are not easily quantifiable, a rate of return calculated based on the magnitude of cost recovery would not measure the economic merit of the project; thus, no attempt has been made in this regard. Instead, using a cost effectiveness approach, the project's physical investments have been subjected to systematic comparisons of alternatives in terms of capital and recurrent costs, suitability under local conditions, institutional requirements and environmental impacts. The selected alternatives would effectively integrate both environmental and economic objectives, and contribute to enhancing public health and  - 7 - productivity. The cost recovery measures adopted under the project and private sector participation in the provision and operation of wastes management services would lead to a minimal fiscal impact on GOSL's budgetary resources and ensure project sustainability. The project design incorporates monitoring indicators of both physical progress and developmental impact. 20. Project Risks. Potential project risks are: (a) shortfalls in cost recovery to sustain the operations of the project supported investments; (b) weak enforcement of industrial wastewater discharge standards, which would reduce pressure on industries to utilize the joint wastewater collection and treatment systems; and (c) lack of adequate response from the pr.vate sector for the two wastewater treatment plants. These risks have been recognized and agreement has been reached on specific actions to minimize their impact (para 15). 21. Recommendation. I am satisfied that the proposed development credit wVould comply with the Articles of Agreement of Association and recommend that the Executive Directors approve the proposed credit. James D. Wolfensohn President Attachments Washington, D.C. JUNE 2, 1995   9- Schedule A SRI LANKA COLOMBO ENVIRONMENTAL IMPROVEMENT PROJECT Estimated Costs and Financing Plan (US$ million) Estimated Costs:' Local Foreign Total Municipal Solid Waste Management 5.8 6.7 12.5 Wastewater Collection Systems 6.7 2.4 9.1 Beira Lake Catchment Pollution Control 7.2 2.8 10.0 Technical Assistance 2.6 4.9 7.5 Base Cost 22.3 16.8 39.1 Physical Contingencies 3.3 2.4 5.7 Price Contingencies 2.5 1.7 4.2 Total Project Cost i. 29 49A0 Financing Plan: Local Foreign Total IDA 18.1 20.9 39.0 GOSL 10.0 - 10.0 Total 281 20 49Q Including taxes and duties equivalent to US$4.6 million.  -10- Schedule B Page 1 of 2 SRI LANKA COLOMBO ENVIRONMENTAL IMPROVEMENT PROJECT Procurement Methods and Disbursements (US$ million) - Procurement Methods - Project Elements ICB LCB Other NkBF Total Landfill and Compost Plant 14.4 14.4 (11.4) (11.4) Works Wastewater Collection Systems 11.4 11.4 (8.5) (8.5) Beira Lake Catchment Pollution Control 12.9 12.9 (9.6) (9.6) Community Infrastructure 0.9 0.9 (0.6) (0.6) Equipment 2.4 2.4 (1.9) (1.9) Consultancy Services, Mass Media and Trainin Project Implementation Support 3.7 3.7 (3.7) (3.7) Capacity Building 1.0 1.0 (1.0) (1.0) Studies 1.1 1.1 (1. 1) (1. 1) Public Awareness Program 0.5 0.5 (0.5) (0.5) Project Preparation Advance 0.7 0.7 (0.7) (0.7) Total 41.1 7.9 49.0 (31.4) (7.6) (39.0) Note: Figures in parentheses are respective amounts financed by the credit.  - 11 - Schedule B Page 2 of 2 Disbursements Category Amount Percentage of Expenditures Amount SDR to be Financed US$ million Equivalent Equivalent (1) Landfill and Compost Plant 6,550,000 100% of foreign 10.3 (Turnkey Contract) expenditures and 70% of local expenditures (2) Beira Lake Sewerage Works 5,470,000 100% of foreign 8.6 expenditures and 70% of local expenditures (3) Sewer Networks 4,830,000 100% of foreign 7.6 expenditures and 70% of local expenditures (4) Other Civil Works 320,000 70% 0.5 (5) Goods 1,140,000 100% of foreign 1.8 expenditures, 100% of local expenditures (ex-factory costs) and 70% of local expenditures for other items procured locally (6) Consultants' Services, Mass 3,690,000 100% 5.8 Media and Training (7) Refunding of Preparation 450,000 0.7 Advance (8) Unallocated 2.350.000 3.7 Total 24.800.000 39.0 Estimated IDA Disbursements: IDA Fiscal Year FY96 FY97 FY98 FY99 FY2000 FY2001 (US$ million) Annual 3.0 7.0 8.5 8.5 8.5 3.5 Cumulative 3.0 10.0 18.5 27.0 35.5 39.0  - 12- Schedule C SRI LANKA COLOMBO ENVIRONMENTAL IMPROVEMENT PROJECT Timetable of Key Project Processing Events (a) Time taken to prepare the project: Three years (b) Prepared by: Government with assistance of foreign/local consultants and IDA (c) First IDA mission: June 1992 (d) Appraisal mission: September 1994 (e) Negotiations: May 1995 (t) Planned date of effectiveness: October 1995  - 13 - Scnedule D Page 1 of 2 THE STATUS OF BANK GROUP OPERATIONS IN SRI LANKA A. STATEMENT OF BANK LOANS AND IDA CREDITS (As of March 31,1995) Amount in US$ million (less ^ancellations) Loan or Fiscal Undis- Credit No. Year Borrower Purpose Bank IDA bursed 12 Loans and 48 credits have been fully disbursed 131.13 922.71 Of which SECALs, SALs and Program Loans /a 112.38 Cr. 1697-LK 1986 Sri Lanka Municipal Management 13.00 4.38 Cr. 1698-LK 1986 Sri Lanka Second Vocational Training 11.54 3.97 Cr. 1700-LK 1986 Sri Lanka Water Supply and Sanitation 37.00 7.02 Cr. 1776-LK 1987 Sri Lanka Agriculture Research 18.60 9.43 Cr. 1903-LK 1988 Sri Lanka Health & Population 12.75 5.40 Cr. 1909-LK 1988 Sri Lanka 2nd Smallholder Rubber Rehab 23.50 14.46 Cr. 1948-LK 1989 Sri Lanka Third Industrial Development 43.80 3.50 Cr. 2043-LK 1989 Sri Lanka Forestry II 13.39 9.03 Cr. 2072-LK 1990 Sri Lanka General Education 49.00 35.19 Cr. 2183-LK 1991 Sri Lanka 3rd Roads S2.50 35.63 Cr. 2185-LK 1991 Sri Lanka Public Manuf. Enter. Adjust. 1 20.00 3.75 Cr. 2231-LK 1991 Sri Lanka Poverty Alleviation 57.50 48.68 Cr. 2249-LK 1991 Sri Lanka Telecoms II 57.00 48.23 Cr. 2250-LK 1991 Sri Lanka SMI IV 45.00 24.96 Cr. 2260-LK 1991 Sri Lanka Irrigation Rehab. 29.60 29.97 Cr. 2297-LK 1992 Sri Lanka 2nd Power Distribution 50.00 50.38 Cr. 2380-LK 1992 Sri Lanka Second Agric. Extension 14.34 13.97 Cr. 2442-LK 1993 Sri Lanka Community Water Supply/Sanit. 4.30 21.99 Cr. 2484-LK 1993 Sri Lanka Private Finance Dev. S0.00 47.89 Cr. 2495-LK 1993 Sri Lanka Colombo Urban Transport. !0.00 19.10 Total 131.13 1665.53 /b 436.93 /b Of which has been repaid 95.38 39.42 Total now held by Bank and IDA 35.75 1626.11 Amount sold 3.59 Of which repaid 3.59 Total undisbursed 436.93 /a Approved during or after FY80. /b The principal amounts of IDA credits are shown in US Dollar equivalent at date of negotiations, as shown in the President's Report. Undisbursed amounts shown in US Dollar equivalent are valued at the exchange rate applicable on the date of this statement. In some cases, therefore, the undisbursed balance indicates a dollar amount greater than the original principal credit amount expressed in dollars. Indicates SAL/SECAL or Program Loan.  - 14- Schedule D Page 2of2 THE STATUS OF BANK GROUP OPERATIONS IN SRI LANKA B. STATEMENT OF IFC INVESTMENTS (As of March 31, 1995) Amount ($millions) Date Borrower Purpose Loan Equity Total 1970 Pearl Textile Mills, Ltd. Textiles 1.50 0.45 1.95 1978/80/83 Development Finance Development Financing 0.45 0.45 1978/81 Bank of Ceylon Capital Markets 7.00 7.00 1979 Mikechris Industries General Manufacturing 0.89 0.09 0.98 1979/81 Ceylon Synthetic Textile Textiles 1.88 0.54 2.42 1980/84/85 Lanka Orix Leasing Capital Markets 3.00 0.34 3.34 1981 Taj Lanka Hotels Limited Tourism 8.20 0.70 8.90 1988 Union Assurance Limited Capital Markets 0.98 0.98 1992 C.K.N. Fund Management Financial Services 0.06 0.06 1992 Pyramid Unit Trust Financial Services 0.25 0.25 1994 Lanka Cellular Services Industrial Services 2.03 2.03 Total Gross Commitments 22.47 5.89 28.36 Less Cancellations, Termination Exchanges Adjustments, Prepayments and Sales Writeoffs and Sales 20.67 1.93 22.60 Total Commitments now held by IFC 1.80 3.96 5.76 Total Undisbursed (including participants' portion) 0.00  roch,>t- z A, CTA.,~~~~~~~~~~~~~~~~~~~~~~~~~~~~". . d. A7.__ _ _ _ 7 55' \0 I I NegomboS~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~1 .6, 0 V X~ w~ ~ ~ ~ ~~ G INI B H-.6 K. Kolb 00'mscvc \ Oft. A*T W d - Gp /- 5~~~ ~ ~ 1 5'oa y) 0 5o LAK IA \ / ~