Argentina - Second Municipal Development Project

Document of The World Bank FOR OFFICIAL USE ONLY Repot No. P-6447-AR MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMFNT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN IN AN AMOUNT EQUIVALENT TO US$210 MILLION TO THE ARGENTINE REPUBLIC FOR A SECOND MUNICIPAL DEVELOPMENT PROJECT MARCH 6, 1995 This document has a restricted distribution and may be used bv recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS Currency Unit - Peso (Arg$) EXCHANGE RATE Arg$1 = US$1 WEIGHTS AND MEASURES Metric System FISCAL YEAR January i - December 31 ABBREVIATIONS AND ACRONYMS CCU - Central Coordinating Unit (Unidad de Coordinaci6n Central) GDP - Gross Domestic Product IDB - Inter-American Development Bank IS - Institutional Strengthening PCR - Project Completion Report PEU - Provincial Executing Unit POM - Project Operations Manual PPAR - Project Performance Audit Report  ARGENTINA FOR OFFICIAL USE ONLY SECOND MUNICIPAL DEVELOPMENT PROJECT LOAN AND PROJECT SUMMIARY Borrower: Argentine Republic. Implementing Agencies: Provinces of Buenos Aires, Catamarca, C6rdoba, Corrientes, Formosa, La Rioja, La Pampa, Mendoza, Misiones, Neuquen, Santa Cruz, Santa Fe and Tierra del Fuego; and the eligible municipalities in these provinces. Beneficiaries: Approximately 900 municipalities in 13 provinces. Poverty: Not applicable. Amount: US$210 million equivalent (including up to US$21 million in retroactive financing). Terms: Repayment in 15 years at the Bank's standard variable interest rate, including 5 years of grace. Commitment Fee: 0.75 percent on undisbursed loan balances, beginning 60 days after signing, less any waiver. Onlending Terms: All proceeds of the loan would be onlent to provincial governments from the Central Govemment under the same terms and conditions as the Bank loan. The provinces would assume the cross-currency exchange risk and would pay a onetime service charge of up to 2.5 percent of the loan amount to cover the costs of a Central Coordinating Unit. With the exception of amounts up to 5 percent of the loan, which may be used by the provinces to finance technical assistance, all proceeds of the Bank loan would be onlent from provinces to municipalities in US dollars and on harder terms, with a maximum of 10 years repayment, including up to one year of grace, and a spread of at least 1.5 percentage points over the interest rate paid by provinces to the Central Government. Financing Plan: See Schedule A. Rate of Return: 19.7% for an estimated 54 percent of total project cost. This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  - ii - Staff Appraisal Report: No. 13600-AR, dated March 6, 1995. Map: IBRD No. 26342.  MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN TO THE ARGENTINE REPUBLIC FOR A SECOND MUNICIPAL DEVELOPMENT PROJECT 1. I submit for your approval the following memorandum and recommendation on a proposed loan to the Argentine Republic for the equivalent of US$210 million to help finance municipal development in 13 provinces of Argentina. The loan would be at the Bank's standard variable interest rate, with a maturity of 15 years including 5 years of grace. Proceeds of the loan would be onlent to the participating provinces, who would in turn onlend to municipalities. Background 2. The municipal public sector in Argentina is large and growing rapidly. Municipal expenditures currently represent about 3.5 percent of GDP, and transfers from the provinces to the municipalities have doubled since 1991, increasing from US$1.4 billion to US$2.8 billion in 1993. These provincial to municipal transfers represented about 1 percent of national GDP and 11 percent of total provincial spending in 1993, ranking second only to salaries. Argentina's current macroeconomic strategy ensures that the importance of the municipal public sector will continue to grow. 3. The Government of Argentina's macroeconomic strategy is founded on efficient, equitable, and fiscally responsible federalism. Thus, responsibility for the provision of many services has been decentralized to the provinces which, in turn, have decentralized services to municipalities, if they can provide the service more efficiently. The growing responsibilities of the municipalities mean that improvements in the efficiency, equity, and fiscal discipline of the municipal public sector are increasingly urgent and important issues in the overall macroeconomic strategy of the country. 4. The municipal sector's development objectives are primarily linked to enhanced resource mobilization for needed public investments and increased public sector efficiency to reduce deficit financing and inflationary pressures. An effective way to meet these objectives is to transfer, to the maximum extent possible, the full financing burden for public investments and recurrent costs to their direct beneficiaries. By doing so, municipal governments may contribute substantially to national macroeconomic objectives. 5. To effectively mobilize resources, municipal governments must improve their capacity to plan, program and budget for capital improvement programs, as well as for operation and maintenance of facilities. The three key issues that must be addressed are how to: (a) achieve greater predictability of, and control over, the volume of annual transfers to the provinces and municipalities; (b) achieve better public responsibility for the resources transferred; and (c) encourage provincial and local government efficiency reforms in areas such as planning, budgeting and financial programming.  - 2 - 6. The above issues and objectives are all linked to the issue of accountability. The provincial-municipal transfer systems are often neither transparent nor predictable, and sometimes have the effect of rewarding poor fiscal performance. The result is limited incentives for provincial and municipal authorities to confront their citizens with the costs of their preferences. 7. Argentina suffers from a large infrastructure deficit, which has adversely affected the quality of the urban environment and the productivity of economic activity. Estimated potential demand for municipal infrastructure in the 13 proposed provinces is currently US$1.3 billion. A pilot Municipal Development Project was approved in 1988 (Loan 2920-AR) and was designed primarily to help municipalities mobilize resources to meet demands for municipal infrastructure in a sustainable and fiscally sound manner. This first operation has been highly successful, and is expected to be completed on schedule by mid-1995. The proposed project would be an extension of the first project, with similar conditions and development objectives. 8. As requested by the Government, the proposed project would be carried out in 13 provinces (Buenos Aires, Catamarca, C6rdoba, Corrientes, Formosa, La Rioja, La Pampa, Mendoza, Misiones, Neuquen, Santa Cruz, Santa Fe and Tierra del Fuego). A similar project would be implemented simultaneously in the remaining provinces with IDB financing. In the four largest provinces (Buenos Aires, Mendoza, C6rdoba and Santa Fe), the Bank and the IDB would have complementary municipal infrastructure financing, with the Bank financing subprojects costing up to US$2.0 million and the IDB financing those costing more. Both programs have been closely coordinated and would be consistent in their respective terms and conditions. Project Objectives 9. The project's general objective would be to contribute to more effective public sector management at the provincial and municipal levels through improved financing mechanisms for municipal investments. It is also designed to achieve more effective fiscal federalism by strengthening the municipalities' capacity to assume the responsibilities being transferred to them. Specific objectives would be to: (a) mobilize external and internal resources in a fiscally responsible and non-inflationary manner to financejustified municipal investments - particularly those contributing to productive activities; (b) strengthen municipalities' capacity to plan, finance and execute cost-effective capital improvements; and (c) strengthen the institutional capacity of municipalities and provinces to manage their resources more effectively and to increase the efficiency of service delivery. Project Description 10. The project would consist of three main components: (a) the provision of basic municipal infrastructure (81 percent of total project cost), primarily small and simple investments designed to achieve an adequate and efficient level of municipal services;  - 3 - (b) a program of institutional strengthening (6 percent of total project cost), primarily in key areas such as municipal finance, management, planning, administration, and the quality of municipal service delivery; and (c) project administration, monitoring and auditing (13 percent of total project cost), including semi-annual project performance reviews and annual financial audits. 11. Eligibility criteria for provinces, municipalities, and subprojects would assure that the above components contribute to the project's objectives. Provinces would have to be in compliance with the fiscal conditionality established in the Provincial Development Project (Loan 3280-AR) and have a transparent revenue sharing (coparticipaci6n) law, satisfactory to the Bank, that transfers sufficient funds from provinces to municipalities to guarantee municipal loans. All municipalities would be eligible to participate in the institutional strengthening component of the project. In order to receive credit for financing municipal infrastructure investments, however, municipalities would have to meet creditworthiness criteria (current account equilibrium and debt capacity). These criteria reward municipalities in provinces with better transfer systems, since municipalities in these provinces could have higher current revenues (own-source plus automatic revenue sharing) and higher debt service capacity, hence, greater access to project funds. Given the potential demand for basic infrastructure financing, this could induce municipalities to work with provincial governments to improve the municipalities' share in the provincial revenue-sharing systems. 12. Subproject eligibility criteria would be defined in the Project Operations Manual (POM) so as to ensure that: (a) incremental resources mobilized through the project would be used in a fiscally responsible and non-inflationary way; (b) participating municipalities would be financially strengthened; and (c) subprojects would technically, economically, financially, and environmentally sound. Cost recovery is essential to all three of these criteria. A fundamental condition would therefore be that at least 65 percent of the total cost of the aggregate investments in a municipality in a given year be recovered from payments to the municipality by direct beneficiaries (e.g., betterment levies, connection fees, user charges, sales, concessions and rents). 13. In order to maintain effective implementation, the bulk of the Basic Municipal Infrastructure component would be for relatively small municipal investments, such as street paving, public lighting, and small extensions of water and sewerage systems. Preference would be given to such smaller investments, the processing of which would follow simplified evaluation and review procedures. Project Implementation 14. Implementation arrangements would essentially follow those used for the first project, with responsibilities for execution concentrated in each of the provinces' Provincial Executing Units (PEUs). The PEUs would be supported by a Central Coordinating Unit (CCU) with limited control functions. The main functions of the CCU would be to facilitate (but not control) the work of the PEUs, to manage the Special Account, to handle prior review request, and to act as a focal point for the necessary interaction with the Bank (e.g., disbursement requests,  - 4 - prior review requests, audit reports and progress reports). It would also review, and provide an independent opinion on, the semi-annual performance reports provided by each participating province. The only "regulatory' function of the CCU would be to review the processing of larger and more complex investments, and oversee the provincial institutional strengthening (IS) programs. 15. Bank funds would be onlent by the Borrower to municipalities (through the respective provinces) according to conditions and procedures defined in provincial Subsidiary Loan and municipal Subloan Agreements. There would be no Central Government counterpart funds under the project. Municipalities would cover all costs of their infrastructure and most IS expenditures, and provinces would cover their own IS programs and a portion of the municipalities' IS programs if necessary. The vast majority of the contracting procured under the project would be from the private sector. Project Sustainability 16. Based on the experiences of the first municipal development project, municipalities are expected to be fully capable of repaying the borrowed funds. Nevertheless, repayment would be guaranteed through the revenue-sharing (coparticipaci6n) funds to municipalities controlled by provinces. Strict eligibility criteria would be applied regarding cost recovery, and only subprojects with a reasonable probability of success would be accepted. In the five provinces which participated in the first Municipal Development Project, these criteria have been incorporated into institutional practices. The recovered monies would flow into revolving municipal development funds for future expansions of this program as an interim means of providing for capital investments until municipalities are able to access capital markets on a competitive basis. Lessons Learned from Previous Bank Involvement 17. The first Municipal Development Project for Argentina was a pilot project covering five provinces. To make it operational in the economically and financially unstable environment prevailing at the time of approval (1988), it was designed with only a few, simple yet effective fiscal conditions. Despite a slow start caused by the macroeconomic conditions of 1988-1990, the project is now expected to be completed within the original time frame and to accomplish its objectives. The project has been successful in contributing to the fiscal performance of the participating municipalities, in providing useful operational experiences, in introducing Bank policies and procedures, and in building a strong pipeline of subprojects in the participating provinces. The experiences and the lessons learned in these five provinces were used to design the new project. Rationale for Bank Involvement 18. As shown in the last Country Assistance Strategy (presented on March 1, 1994, Report P-6161-AR), the Bank has been, and remains, a strong supporter of the ambitious Argentine reform program. The Bank's strategy is to continue to assist in consolidating the macroeconomic reforms and deepening their impact by strengthening institutions, as well as providing for investment in infrastructure that has deteriorated due to long periods of  underinvestment. The Second Municipal Development project is fully consistent with this strategy. First, it would strengthen institutions in the municipal public sector. Second, by encouraging municipalities to invest wisely with increased cost recovery from final beneficiaries, the project would mobilize urgently needed municipal infrastructure in an efficient and non- inflationary manner that supports the macroeconomic reforms. 19. The project would build on the success of the first Municipal Development Project and complement the ongoing Provincial Development Project, which provides assistance to the Government in provincial fiscal matters. The project would also complement the objectives of the pending Provincial Reform Loan by providing stronger municipal infrastructure and institutions. The Bank's involvement in these projects has added a degree of rigor and discipline not achieved before in the management of public expenditures at provincial and municipal levels. The Bank has also become a clearinghouse for best practices and lessons learned in the sector. The Government now wishes to expand the municipal development project to additional provinces and municipalities, extending to them the economic and fiscal stability which has, in large part, been restored at the national level and in some provinces. At the same time, it wishes to continue meeting urgent municipal infrastructure needs. Agreed Actions 20. During negotiations, assurances were obtained as follows: (a) from the Central Government that: (i) all of the proceeds of the Bank loan would be onlent to eligible provinces in accordance with allocation criteria acceptable to the Bank under terms and conditions equivalent to the Bank loan, with each participating province's revenue sharing serving as a guarantee for repayment of subloans; (ii) it would establish and provide adequate support and staffing to the CCU to provide overall project implementation supervision; and (b) that the Central Government would cause the provincial governments to: (i) establish, adequately staff and otherwise support the PEUs; (ii) contribute to the financial support of the CCU; (iii) submit timely, annual investment program proposals for Bank review and approval; (iv) approve and carry out the program in accordance with the POM; (v) furnish semi-annual performance evaluations, reporting on the compliance with all agreements under the project; and (vi) carry out all environmental protection measures. 21. Prior to loan effectiveness: (a) the Bank would have accepted: (i) the POM; (ii) terms of reference for semi-annual performance reviews; and (iii) the CCU staffing plans; (b) the Central Government would have entered into a Subsidiary Loan Agreement with at least one province; and (c) the province referred to in (b) above would have also: (i) established and adequately staffed its PEU; (ii) agreed to adhere to international procurement criteria; and (iii) present the environmental procedures and responsibilities to be followed in accordance with the POM. Environmental Aspects 22. The proposed project is classified as category B for environmental purposes. In the majority of subprojects, especially given that preference would be given to small and simple investments, the environmental impact is expected to be neutral or positive. However, irrespective of their size, all investments would comply fully and be consistent with Bank  - 6 - policies and conditions on the environment, including the preparation of environmental impact statements whenever required. Explicit conditions would be defined in the POM. Program Objective Categories 23. Municipalities play a key role in providing infrastructure that is vital to environmental quality and social services that benefit lower-income groups. Thus, increasing municipal managerial capacity and basic infrastructure would contribute indirectly to the improvement of the environment and the reduction of poverty. Participatory Approach 24. The project was designed with input from the provinces and municipalities that participated in the first Municipal Development project, and has a high degree of participation. Each municipality (the project's beneficiaries) would be responsible for creating its own priorities for local infrastructure development within the scope of the project. Municipalities could participate as much or as little as they like. Project Benefits 25. The project would strengthen the fiscal discipline introduced at the national and provincial levels, and extend it to the municipal level, while providing urgently needed municipal infrastructure. Furthermore, the project would introduce more effective procurement and implementation procedures to a large number of municipalities. While not explicitly designed to do so, the project would also provide substantial benefits to the poor since the infrastructure to be provided would mostly benefit the poor. Risks 26. Risks in this operation would be limited because of the experience gained in the first project and the similarity between the two operations. The main identified risk is the possibility that some provinces may prove ineffective or not continue their interest in the project. To safeguard against this risk, the project would be spread among 13 provinces, five of which (Buenos Aires, C6rdoba, La Pampa, Neuquen and Santa Fe) participated in the first operation and were the main promoters of the new project. Thus, should there be some provinces not interested or capable of fully participating in the project, the large demand for municipal infrastructure and the flexibility built into the design of the procedure for allocating funds would permit shifting loan funds to the provinces with more capacity and interest. No special risks have been identified with regard to financial or technical matters, since most of the investments to be financed - as in the first project - would be small and simple and limited to eligible municipalities. A minor risk is the inclusion in the project of municipalities in areas affected by possible floods. To reduce this risk, municipalities would have to provide, as a prior condition, certifications from the corresponding PEUs that the proposed investments would be in safe areas and were designed in accordance with appropriate standards. (A study is being completed for the Subunidad de Control Contra Emergencias of the Ministry of Interior that will provide guidelines for these areas).  - 7 - Recommendation 27. I am satisfied that the proposed loan would comply with the Articles of Agreement of the Bank, and recommend that the Executive Directors approve it. Sven Sandstr6m Acting President Attachments Washington, D.C. March 6, 1995  - 8 - SCHEDULE A Summary of Costs (in July 1994 US$ million equivalent) Lo- Foreign Total % Municipal Infrastructure 163 80 243 81 Institutional Strengtheming 7 10 17 6 Project Coordination, Monitoring and Auditing 40 -- 40 13 Total Bank Project Cost 210 90 300 Total IDB Project Cost -- --- 300 * Total Program Cost --- --- 600 Fnancing Plan (in July 1994 US$ million equivalent) Local Feign Total % Banlk 120 90 210 35 IDB -- -- 210 35 Municipalities 180 180 30 * Total Financing - 600  - 9 - SCHEDULE B Table 2.4: Procurement Method by Category (in US$ million equivalent) WCB ECR Qeb - 1--Ta3 Civil Works 18 143 18 - 179 (18) (107) (13) - (138) Goods 7 41 7 - 55 (7) (31) (5) - (43) Consulting Services (a) Included in eligible - - 26 - 26 subprojects under project - - (22) - (22) components (a) and (b) (b) For the CCU including - - 6.1 - 6.1 travel and per diem ---(5.2) - (5.2) Auditing Services -- - 1.8 - 1.8 _ _ ~~~~(1-5) - (1.5) Training -- - 0.4 - 0.4 -- - (0.3) - (0.3) Project Administration -- - 31.7 31.7 (0) (0) IDB Project -- 300 300 (0) (0) Total 25 184 59.3 331.7 600 of which IBRD financed (25) (138) (47) (0) (210) * Numbers in parentheses are the amounts financed by IBRD. * Other' includes $25 million for local and international sbopping and employment of consultants in accordance with World Bank guidelines. * NBF = not Bank financed.  - 10- SCHEDULE B Allocation of Loan Proceeds (in US$ million equivalent) Category Amount of. Pe entage of.Expenditares to be Civil Works 122 100% of foreign expenditures and 75% of local expenditures. Goods 39 100% of foreign expenditures and 75% of local expenditures. Consulting Services 27.2 100% of total expenditures. Auditing Services 1.5 100% of total expenditures. Training 0.3 100% of total expenditures. Unallocated 20 100% of total expenditures. Total 210 Bank Loan Disbursement Schedule (in US$ million equivalent) Bank F_scal Year 19 199 199 19 2000 2001 2002 Annual 5 7 23 27 40 70 38 Cumulative 5 12 35 62 102 172 210  - 11 - SCHEDULE C Timetable of Key Project Processing Events Time taken to prepare: 9 months Prepared by: Government of Argentina with Bank assistance from Messrs. Mario Rothschild, David Vetter, Miguel Mercado-Diaz, and Craig Leisher First Bank mission: March 1994 Appraisal mission departure: June 1994 Negotiations: December 1994 Planned date of effectiveness: June 1995 List of relevant PCRs and PPARs: PCR dated December 1994 (Report No. 21582), Honduras Municipal Development Project PPAR dated November 1990 (Report No. 9154), Brazil Parand Market Towns Project OED Report dated June 1994 (Report No. 13117), Twenty Years of Lending for Urban Development, 1972-1992  - 12 - SCHEDULE D THE STATUS OF BANK GROUP OPERATIONS IN ARGENTINA STATEMENT OF BANK LOANS (as of December 31,1994) (USS million) Loan Fiscal AMOUNT (less UNDISBURSED Number Year Borrower Purpose cancellations) Fully disbursed loans (42) 5,033.3 0.0 of which SAL/SECAL/Debt Reduction loans: 2675 1986 Argentina Agriculture Sector 350.0 2815 1987 Argentina Trade Policy 496.0 2996 1989 Argentina Trade Policy II 300.0 3291 1991 Argentina Public Enterprise Reform 300.0 3394 1992 Argentina Public Sector Reform 325.0 3555 1993 Argentina DDSR Support 450.0 3558 1993 Argentina Financial Sector Adjustment 400.0 2641 1986 Argentina Water Supply 44.8 8.8 2854 1987 Argentina Power Distribution 276.0 123.4 2920 1988 Argentina Municipal Development 120.0 14.8 2984 1989 Argentina Social Sector 28.0 0.1 3280 1991 Argentina Provincial Development 200.0 144.4 3281 1991 Argentina Water Supply 100.0 96.2 3292 1991 Argentina PEREL 23.0 1.3 3297 1991 Argentina Agricultural Services 33.5 16.5 3362 1991 Argentina Pub Sectr Reform T.A. 23.0 7.9 3460 1992 Argentina Tax Administration II 20.0 5.9 3520 1993 Argentina Yacyreta II 300.0 49.1 3521 1993 Argentina Flood Rehab 170.0 80.1 *3558 1993 Argentina Pub Enterprise Ref II 300.0 0.03 3611 1993 Argentina Road Maintenance & Rehab 340.0 267.1 3643 1994 Argentina Maternal & Child Health 100.0 90.6 3709 1/ 1994 Argentina Capital Markets 500.0 500.0 3710 1994 Argentina Capital Markets TA 8.5 8.5 3794 2/ 1995 Argentina Secondary Education I 190.0 190.0 TOTAL 7,810.0 of which has been repaid 2,433.4 TOTAL NOW OUTSTANDING 5,376.6 AMOUNT SOLD 12.8 of which has been repaid 12.8 TOTAL NOW HELD BY BANK AND IDA 5.363.8 TOTAL UNDISBURSED _1604.7 *SECAL, SAL or Debt Reduction Loan 1/ Not yet effective 2/ Not yet signed.  - 13 - ARGENTINA STATEMENT OF I11C INVESTMENT'S as d Deneber 31. 19t4 SCHMULE D (US$ U7liona) OridWnJ Gro Commimenfa Held Held by Undisbursed FPcat Yew IFC IFC Parbci - by Partici- (includung Committed Ob4igar Type ad Bsins Loajn Equity pants Tota] FC panto Participants) 1960 a! Acinri SA. Stee Products 2.94 - 073 387 - - - 1980 a! Paplra Rio Parana-aSA. Pulp and Paper 300 - - 3.00 - - - 1961 a! Fad-& SaA. Motor Veh. &Accessories 1 23 - 028 1.50 - - - 1962 au Pasa SAJC Petcochemicals 3 05 - - 3 05 - - - 1965,72 a! C.lulos Argenbna Pulp and Paper 8 25 - 4 25 12.50 - - - 1969 a! Edrtor al Codex SA. Printngand Publqshng 500 1 60 040 700 - - - 1969/75 e' DalmnuSidercaSAIC iron and Steel 14.75 - 225 17.00 - - 1971/73 a! Calera AvelLanrda SA. Cement 5 50 - - 5.50 - - - 1977/84/86.88 Alpargaas SAIC Texbles and Shoes 62 93 500 36.50 104 43 35 92 29 59 1977i85 a! Soyex SA. Food and Food Process 21.00 - - 21.00 - - 1978/81/!8Z'87/93/94 Juan Minebt S.A. Cement 44 00 - 67.50 111.50 9.51 9 29 1978a85/87,88 91 a! Mvassuh S-A. Pulp and Paper 25 65 425 3.00 32 90 - - - 1979/8287T92 a/ Ipako SA. Petrochemicals 21.00 1.15 900 31.15 - - - 197,9183i84 a/ kpasca S.A. Food & Food Process 520 1 61 - 6.81 - - - 1984/86 Petioquimica Cuyo SA. Chemicals & Petrochem. 21.00 400 21.09 48 09 5.28 5 53 - 1988 a/ Atanor SA. Chemirals 7.00 1 00 - 8.00 - - - 1988 Ropasa,'Sadicar Capital Matkets - 0 05 - 0.05 0.05 - - 1986187 Sad&car Capital Markets - 2 00 - 2.00 043 - - 1986 ROB-Cattorini General manufacturing - - 0.00 0.18 - - 1986 ROB-Bonvenuto Food&agribusiness - - - 0.0o - - - 1986 ROB-Boldt Tmber, pulp & paper - - - 0.00 - - 1986 ROB-Cbav. Plast General manufacturing - - - 0.00 - - - 1986 ROB-Cuyo Generalmanufacturing - - - 0.00 - - - 198e ROB-Gaveranto Industrial sryvces - - - 0 00 - - - 1986 ROB-Kiaukol Cement - - - 0.00 - - - 1986 ROB-Labelcor Food & agribusiness - - - 000 - - - 1986 ROB-Longvie Genral manufacturing - - - 0.00 0.90 - - 1986 ROB-Pilaj General manufacturrng - - - 0 00 0.19 - - 1986 ROB-Sudamericana Industrial equipment - - - 0.00 0.21 - - 1986 ROB-SLUrsula Food &agribusiness - - - 0.00 - - - 1986 ROB-Stani Food & agribusiness - - - 0 00 - - - 1986 ROB-Tag. Industril services - - - 0.00 - - - 1986 ROB-06aiio Timber, pulp&paper - - - 000 013 - - 1986 ROB-Piecra Mining - - - 0.00 0 06 1986/89,91 Banco Roberts SA. Capital Markets 28.00 - - 28.00 - 1987 a! GarovaglioyZorraqutn GeneraltManufacturing 13.00 - - 13.00 - 1987/90 Hicka Oil Crude Petrol & Nat. Gas 80.00 - 27.60 107.60 0.76 1987/90/91 Termirnal 6 SA. Port Facilites 12.50 0.00 0.00 12.50 500 1988 a] Asta CAPSALindero Energy 12.38 - - 12.38 - 1986 a] Bridas S-A P.l.C Energy 20.63 - - 20 63 1988 Arcor SAiC General Manufacturing 1200 - - 12.00 2.00 1988 B5N-Colortex Textiles - - - 0 00 0 33 1986 BGN-EsrelLa General Mvanufacturing - - - 0 00 - 1988 BGN-interpack Timber, pulp & paper - - - 0.00 0.50 1988 BGN-Noroeste Food & aribusiness - - - 000 0 17 1988 BGN-Cilsa Texbles - - - 0 00 0 07 1988 BGN-Moldeada Timber-pulp & paper - - - 0 00 0 33 1988 BGN--Oftalmologic Timber-pulp & paper - - - 0.00 - 1986 BGN-SanSebastian Food&agribusiness - - - 0.00 0.33 1988 BGN-Tevycom Industrial equipment - - - 0.00 0.10 1986 BGN-Valley Food&agribusiness - - - 0.00 0.17 1988 BGN-Vandenfil Textiles - - - 0 00 0 17 1988/89 BGN-Flichman General Manufacturing - - - 0 00 0 4 -3 1 988/89 Banco General de Negocos AL Dev. Finanre 20.00 - - 20 00 - - 1988,92 a; Chirete Oil Chemicals & Petrochem. - 6.62 - 6.62 - - 1986892 Banco Rio dc la Plata Capftal Markets 50 00 - - 50 00 35.00 - 7.53 1988193,94 Bung*e Born Food and Food Process 63.00 - 57 50 120 50 19.00 57 53 1988i93 BGN-Longvie General manufacturing - - - 0 00 013 - 1989 a. Argentn. Investment Company SecuriiesiFinancial Inst. - 2.00 - 2 00 - - - 1989 a] Chnh.jas Pebroleum Energy - 4.98 - 4 98 - - 1989 Banco Frances Dev. Finarce 1500 - - 1500 1091 - - 1989 RCB-Carboclor Chemicals & petrochem - - - 000 021 - - 1989 BGN-Cencosud Indusbril swrvices - - - 000 033 - - 1989 RCB-C'ervos Food &agibusiness - - - 000 - - - 1989 ROB-Comesi General manufacturing - - - 0.00 0 75 - - 1989 RCB-Maleic Chemicals & petrochem - - - 000 - - - 1989 ROB-Maltera Food &agribusiness - - - 000 - - - 1989 Com General de Inversones Financiai Services - 0 10 - 0 10 0 01 - - 1989 ROB-Fraccha IndusbrKl services - - - 000 049 - - I989 ROB-Laurl Chemicals & petrochom - - - 000 028 - '989 RCB- nta Textles - - - 000 0 75 - - 1989 RCB-Masoprano Tmber -pulp & paper - - - 000 010 - - 1989 BGN-Parafina Chemicals & petrochem - _ - 000 1 25 - - 1989 BGN -Pastoril Food &agribusiness - - - 000 0.36 - - 989 BGNt1-Geraro Food & agr,business - - 0 00 1 36 - - , 3892 As ra -APCA Energy 50 00 - 43 00 93 00 27 72 32 25 -  - 14- ARGENTINA STAITEMENT OF IFC INVESTMENTrS SCBD D as d4 Decomber 31. 1904 (USS Miions) Origiril Grosa Commlmenbt Hlad Held by Undisbursed Frtual Yer IFC IFC Pwtici- by Partici- Oncluding Committed _ObligOr T__Type of Businrs. Loen Eqtuy panb Tot.] IFC pant Participanta) 1989,93 uBGht-Boltnd Touisn, - - - 0.00 040 - 1990 BGN-Algodonwra Textles - - - 0.W0 0 54 - - 1990 Corp<xecion de Invwrsiones y Prrvatizacion SA Financial Services - 0.08 - 0.08 0 08 - 1 990 BGN -Frogotoba Food & agribusiness - - - 0.00 0.25 - - 1990 BGN-Willmoa Food&agribusiness - - - 0.00 138 - - 19S0,t5 Petroken Petroquimica Chemicals& Petrochem 4000 - 11.00 51.00 3a.87 733 10.00 1991 Banco de Credito Atgenbno Financial Services 1000 - - 10.00 7.88 - - 1091 ROB-Guitfad Textiles - - - 0.00 0 47 - - 1991 ROB-Jugos Fod&A Agribusiness - - - 0.00 033 - - 1991 ROB-Interpack Timber,pulp & paper - - - 0.00 1 00 - - 1991 ROB-Surfactan Chemicals & petrochem - - - 0.00 021 - - 1991 BGN-TBR Industrial equipment - - - 0 00 0 36 - - 19t2 Frigoffico RiopLatense Fed & Aribusiness 12.00 1.00 6.00 19.00 11.33 5.33 2.00 1992 MB.ASociedd de BolsaSA CapitalMarkets - 0.18 - 0.18 0.16 - - 1992 Oleaginosa Oese Sunflower Sed Agribus 20.00 - 15.00 35.00 20.00 13.75 1092 Potisur SM Chemicals & Petrochem. - 7.00 - 7.00 7.00 - - 1992.93 PetooleraArgentre San Jorge Energy 1500 27.00 35.00 77.00 4200 35.00 2037 1993 Alto Parana SA. Tmber, pulp and papwe - - - 0.00 19.47 - - 1993 BEicdeaSAPIC Enwrgy 35.00 15.00 6000 110.00 5000 55.00 1S93 CadipsaSA. Energy 1500 5.00 20.00 40.00 2000 13.00 9.20 1993 BGN-Capri Food &agribusiness - - - 0.00 1.00 - - 1t9t3 ROB-Emprigas Industreilservices - - - 0.00 1.13 - - 1993 Ferroexpreso Pampeano SAC Industial Equipment 13.00 - 2000 33.00 1300 18.53 4.60 1t93 ROB-AJimenbcia Food & agribusiness - - - 0.00 0.83 - - 1993 M"ateriaPampaSA. I Food&Agribusiness 12.00 - 12.00 24.00 1200 12.00 1t993 ROB-Mendoza General manufacturing - - - 0.00 1.13 - - 1993 Nuevo CentralArgentinoSA RailroadEquipment 10.00 3.00 150.0 28.00 13.00 - 19930 4 MolinosRiode LaPlata Food&Agribusiness - 3.00 - 3.00 7.82 - - 19t4 Banco Generalde Negocios Oev. Finarce 15.00 - - 15.00 15.00 - - 1994 CervecriayMaheriaOuimes Food &Agribusiness 1500 - 15.00 30.00 1500 15.00 - 1994 CIA Gen Combustible CrucePetroleum 25.00 15.00 40.00 80.00 40 00 40.00 - 1994 Empresa Distribuidora Industrial Services 45.00 - 128.00 17300 4500 128.00 - 1904 Quitral Chemicals & Petochorm - - - 0.00 - - - 1994 BGN-Ferrum Cement & construc mat - - - 0.00 1.50 - - 1994 Masira-Ahgentna SA. ForestProducts 11.00 - - 11.00 11.00 - - 1994 Arg.Equity Investmert I Limited Financial Services - 4.00 - 4.00 4.00 - - 1994 Yacylec Industrial Sefices 20.00 - 45.00 65.00 20.00 45.00 - 1995 Acertera Food&Agribusiness 15.00 10.00 15.00 40.00 25.00 - 6.90 1995 MastellonelH-rrmanosSA. Food &Agribusiness 40.00 - 35.00 75.00 40.00 - - 1995 Maxirna SA.AFJP Financial Services - 10.19 - 10.19 10.19 - - 1995 La Buenos Aires Vida Financia Services - 2.89 - 2 89 2.89 - 1.42 1995 La Buenos Aires Rebro Financial Services - t.17 - 1.17 1.17 - 0.53 1995 KJeppe/Caldero Food & agribusiness 6.00 - - 600 6.00 - - 1995 Aguas Infrastructure 3800 7.00 134.50 179.50 45.00 - 45.00 1995 Compania Elaboradora de Productos Alimenticios SA. Food & agribusiness 15.0 - 6.00 21.00 15.00 6.00 - 1 995 Roberts Argenbna Investmert Capital Fund (AtCF) Financial Services - 20.00 - 20.00 20.00 - 17.73 1995 Robets Argenbna Investmerit Fund Manager Financial Services - 0.15 - 0.15 0.15 - 013 Toal Gros Cornmitment bl 1055.030 15.00 8aS.60 210t.60 Less: Canceliations, Terminatons, Repayment & Sales 466.86 8.19 35808 8,30.92 Total Comm8nrerit Now Held cI 588.35 152.82 527.52 1,275.68 748.18 527.52 125.42 Pe,nding Commitmerts: Aguas Increase Infrastructure - - 57.50 57.50 Acinda Iron and stel 15.00 10.00 20.00 45.00 Gasinve Infra*sructure - 20 D - 20.00 Nahuelsat Infrastructure 30 00 5 0 - 35.00 Transconor Infras*ucture 25.00 - 80.00 105.00 Tucurman Infrastruecur - 0 30 - 0 30 Socma Holding Company 25 00 15.0 40.00 80.00 sub-total 95 00 50 30 197.50 342 80 Tdal Carribnerrb Held and Pndwiing Coamitrnite 6883.35 210.12 725.02 1.618.48 Total Undabrisod Coenm _nrwt 61.73 54.09 9.60 125.42 a. nestments which have been fully cancelled, terminated. wqrtten-orft, sold, redeemed or repaid. sC Gross Conmm trrents consist do approved and signed projects. ci- reld Comm rments consist cf disbursed and urdisbursed nvestmernts. e, 5 2 mie.on of the S24 mil ion investment approval st pending for syndcrabon  IBRD 26342 70 BOLIVIA / h1| PARAG UAY aSn Saivodor g O~~~~E de Jtjl uy - r XP> e del ~cntiero Reist>< B R A Z I L F Cam%ruc. (D D1 "I } o s 7 eQ~~D Lo Riojo S s LA 2 1 5 NTA{C 30 AN RIOJA FE JUAN CORDOBA Sanuon(D C6rdoba 0 RIGS > ,pn>,*.i . t l ~~~~~Parana v Mendozo