Bolivia - Santa Cruz Water Supply and Sewerage Project

Document of FILE COPY The World Bank FOR OFMICIAL USE ONLY Report No. P-2573-BO REPORT AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT TO THE REPUBLIC OF BOLIVIA FOR A SANTA CRUZ WATER SUPPLY AND SEWERAGE PROJECT June 28, 1979 This docnmet ba a rostited iddbuon an may be med by recipients oy in the perfornwe of their fdicil dutks. Its conent may not onhrwie be dbcloed witut World Dak authoiatIon.  CURRENCY EQUIVALENTS Currency Unit = Bolivian Peso ($b) US$1 = $b20.0O $b1 = US$0.05 WEIGHTS AND MEASURES Metric System GLOSSARY OF ABBREVIATIONS COMIBOL - Corporacion Minera de Bolivia CORPAGUAS - Corporacion de Agua y Saneamiento DIU - Direccion de Infraestructura Urbana DSA - Division de Saneamiento Ambiental IDB - Inter-American Development Bank MUV - Ministerio de Urbanismo y Vivienda PAHO - Pan American Health Organization SAGUAPAC - Servicios de Agua Potable y Alcantarillado de Santa Cruz USAID - United States Agency for International Development WHO - World Health Organization FISCAL YEAR January 1 to December 31  FOR OFFICIAL USE ONLY BOLIVIA SANTA CRUZ WATER SUPPLY AND SEWERAGE PROJECT CREDIT AND PROJECT SUMN.IRY Borrower: The Republic of Bolivia Beneficiary: Servicios de Agua Potable y Alcantarillado de Santa Cruz (SAGUAPAC) Amount: US$9.0 million Terms: Standard Relending Terms: 20 years including 5 years of grace at 0.75% per annum during the grace period and 7.9% per annum thereafter. After the grace period, SAGIJAPAC will effectively pay the Borrower 5% per annum and retain the remaining 2.9% per annum as a grant to capitalize a revolving fund for in-house plumbing and lot lines. Project Description: The project would (i) help :improve the health and sanitary conditions of the city of Santa Cruz de la Sierra by pro- viding water supply services to about 108,000 inhabitants and sewerage facilities to about 66,000 inhabitants, about one-third of whom are expected to be the urban poor; and (ii) strengthen SAGUAPAC's management, organization and planning capacity. The project consists of: (a) expan- sion of the water supply system comprising the cornstruction of a pumping station of about 300 liters per second capacity in the northeast wellfield of the city and instal- lation of about 200 kilometers of distribution lines and about 20,000 metered connections; (b) the expansion of the sanitary sewer system including the construction of a sewer treatment plant with about 25 hectares of oxidation ponds and associated pumping station and emissary, construction of about 4,450 meters of trunk sewer and installation of 60 kilometers of sewer lines and lateral sewers and about 10,000 new house connections; (c) installation of in-house plumbing and lot lines; (d) data processing and laboratory and communications equipment and vehicles needed for (a) and (b) above; and (e) technical assistance for determining the future major sources of water supply for Santa Cruz, improving SAGUAPAC's organization, manage- ment and planning and the training of SAGUAPAC's staff. The works to be built are technically simple and offer limited risks. Financial risks are minimized by the commit- ment by the Santa Cruz Development Corporation to provide its share of the project cost, and the Government's approval of SAGUAPAC's new tariff and revenue package. 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.  -2- 1969/71, when political instability led to declining private investment and deteriorating public finances. The deterioration of public finances reflected a structural problem in the economy. Bolivia's public sector is proportionately one of the largest in South America and a source of livelihood for a sizeable segment of the population. With scarce employment opportunities in the private sector, pressures to expand public employment proved difficult to resist. Large expenditures on wages and salaries, combined with a weak tax system, have limited the resources available for public investment. Moreover, the inability of the public sector to generate adequate savings limited its capacity to utilize available external capital assistance effectively. 5. From mid-1971 to mid-1978, political stability and the Government's encouragement of private sector investment raised hopes for a more rapid pace of economic development. In addition, during the early 1970s Bolivia's exports of petroleum increased considerably, and it was generally expected that this upward trend would continue in the future. Public investment and external lending decisions were largely based on this expectation which seemed reasonable at the time. The Government launched an ambitious public investment program financed largely through external borrowing, expecting to have no difficulty servicing the loans out of future petroleum revenues. Petroleum exports began to decline, however, in 1975, because of insufficient output in the face of rapidly rising internal demand. Through 1976 this decline was largely offset by increased exports of natural gas to Argentina, but in 1977 petroleum exports dropped to a point where current earnings from all hydro- carbon exports declined. At the end of 1978 petroleum exports came to a virtual halt. As a result, Bolivia has become even more dependent on exports of minerals, mainly of tin. 6. Since most of the ongoing public investment projects were initiated when petroleum prospects seemed favorable, they cannot now be stopped without economic loss. The Government has therefore tried to make up the export shortfall through additional external borrowing. As a consequence, Bolivia's public debt outstanding and disbursed increased rapidly; the end-1978 estimate is US$1.8 billion. As a result of increased borrowing from commercial banks and suppliers, the structure of the external debt has worsened; the grant element of new loans fell from 40% in 1974 to 16% in 1978. Recent Economic Performance and Prospects 7. The Bolivian economy is going through a very difficult phase. The overall public deficit has increased from about 1% of GDP in 1974 to 11-12% in 1978. The current account deficit of the balance of payments has widened from 5.3% of GDP in 1974 to 8.4% in 1978. 1/ During the last two years, the rate of GDP growth has been declining and the rate of inflation has been acceler- ating. According to the La Paz consumer price index (the only official price index in Bolivia), prices increased by 10% in 1978; estimates made by the Central Bank indicate an inflation rate of about 19%. Indications are that the rate of inflation has been increasing further in 1979. The new Government 1/ These figures are but orders of magnitude because the statistics on which they are based suffer from considerable error, but they are indicative of a serious deterioration.  is expected to take measures in order to bring the rate of inflation down to an average of about 15% over the next years, the same as the average during 1970-1977. 8. The service on external debt now absorbs about 30% of exports of goods and services. This ratio cannot be expected to improv, during the next few years and will probably fluctuate around 35%, an undesirable figure for a country so dependent on a single export, tin, which is characterized by wide fluctuations in demand and price. The country's balance-of-payments prospects are not encouraging for the immediate future. The volume of mineral exports has been stagnating and even with production-stimulating changes in mining taxes no sharp increase in volume is to be expected during 1979 and 1980. However, a more favorable environment for private mining enterprises, modern- ization investment in the Bolivian Mining Corporation, and greater exploration efforts could bring about substantial increases in output and exports in the medium term. Non-traditional exports account for a small share of all exports and while encouragement is also required in this area, favorable effects will only affect exports significantly in the longer term. 9. Bolivia's most promising export potential lies in natural gas. Exports to Argentina are expected to increase as additional pumps begin to operate on the pipeline during 1979. The construction of a natural gas pipe- line to Brazil could improve Bolivia's balance-of-payments position substan- tially. A letter of intent has been signed by the Bolivian and Brazilian Governments, laying down the principles regarding the pipeline. While further studies are required to prove the existence of sufficient gas reserves, once this is done the way would be open for an increase in total exports in the order of 25-30% in the mid-1980s. The petroleum situation is less clear; exports cannot be expected to resume on a substantial scale before additional reserves are confirmed. 10. In sum, while Bolivia's medium-term export prospects are moderately favorable if efforts are made to promote them, it is difficult to see much scope for improvement during the next two to three years. The vagaries of international mineral prices will continue to have a decisive effect on the country's export earnings during that time. 11. The main internal cause of financial strain is the weak position of the principal state enterprises. Foremost among them is the State Petro- leum Corporation (YPFB), whose finances have been damaged by the Government policy to maintain domestic prices of petroleum products at a fraction of the world market level. Since YPFB is also one of the largest taxpayers in Bolivia, its financial weakness is reflected in Central Government revenue shortfalls. Other state corporations such as COMIBOL, which owns and operates the country's major mines, and ENAF, the State Smelting Corporation, which has embarked on a large-scale investment effort, have large overall deficits caused by considerable investment expenditures, low productivity and/or inappropriate wage policies, rather than depressed prices. The financial situation of the railroads has deteriorated because of the severe damage resulting from the recent floods. As noted above, because many of these investments are already well advanced, it is unrealistic to expect a drastic decline in expenditure in less than two to three years; nor would such a decline be rational when many projects are expected to show satisfactory rates  - 4 - of return once they are completed. As on-going investment projects are gradually completed it should become possible to reduce the amounts spent and to bring public investment into line with the country's public savings and export capacity. 12. A new Government is scheduled to take office in August 1979. The present administration considers itself a caretaker; this is the main reason why some of the remedial actions that the present financial situation requires have not been taken yet. The administration is fully aware of the seriousness of the situation and has outlined elements of a stabilization program aimed at reducing the public deficit, narrowing down the balance-of-payments deficit on current account, and restricting external borrowing. The major measures contemplated are a much needed increase in the domestic price of petroleum products and a series of tax and tariff adjustments. For the reasons outlined above, and because of the temporary character of the present Government, significant improvement cannot be expected before late summer at the earliest. 13. Bolivia's creditworthiness for lending on conventional terms is limited at present. Emphasis should be given to projects in the hydrocarbon sector with a clearly identifiable effect on production for export. Because of the need to improve Bolivia's debt management--and the reluctance of commer- cial lenders to increase their exposure in the country--Bolivia will have to limit its foreign borrowing to priority projects and make maximum use of soft- term lending from international and bilateral institutions to get through the difficult next two or three years. We are following economic developments very closely and are engaged in a detailed and frank dialogue with the Bolivian authorities with a view to assisting them during the difficult situation. PART II - BANK GROUP OPERATIONS IN BOLIVIA 14. Although Bolivia is an original member of the Bank, it did not obtain any Bank Group financing until 1964. Because of Bolivia's restricted capacity to service external debt, Bank Group financing was, except for a US$23.25 million Gas Pipeline loan, exclusively on IDA terms until Bolivia started to export small quantities of natural gas and petroleum. In view of promising prospects for rapid expansion, Bolivia was graduated from IDA in 1975. In 1978, however, it became apparent that the expectations of large petroleum exports, and with it dynamic economic development, would not materialize. Starting with the Ulla Ulla rural development project, financed in equal shares on Bank and IDA terms, Bolivia was made a blend country. Bolivia's economic situation has deteriorated significantly since then; petroleum production has declined and the country is expected to become a net importer in the near future. Development is still seriously constrained by the dual structure of the economy; a large part of the population continues to live in extreme poverty. Limited creditworthiness and low per capita income qualify Bolivia for IDA eligibility. To date, the Bank and IDA have approved 23 operations (10 credits and 12 loans and one blend operation) for Bolivia amounting to US$313.8 million, of which 8 have been fully disbursed. 15. Bank Group lending to Bolivia has assisted in the development of infrastructure and social sectors. In the agricultural sector (7 operations amounting to US$45.2 million), the Bank Group has helped the Government to  - 5 - develop a viable livestock industry, to increase agricultural production, to improve living conditions on the Altiplano and to promote the development of the alpaca/llama industry; efforts to strengthen the Agricultural Bank of Bolivia have met with limited success. In the power sector, through 5 operations amounting to US$53.4 million, the Bank Group has been instrumental in modernizing the sector, expanding electricity supply, improving the quality of service and setting up a regulatory agency and a public power company, which has been operated in an efficient and financially sound manner. In the transportation sector, Bank Group assistance to the railways (3 operations amounting to US$75.0 million of which US$3.3 million were cancelled) has helped to improve the railways' quality of management, efficiency of operations and financial condition; a US$23.3 million loan was made for the construction of a gas pipeline from the Santa Cruz area to the border with Argentina; a US$25.0 million loan for an aviation development project is assisting Bolivia's efforts to develop hitherto isolated areas by providing safe and efficient freight and passenger transportation; a US$25.0 million loan for a highway maintenance project is helping Bolivia protect its investments in highways. In the mining sector, 3 operations amounting to US$28.2 million have aimed at increased exploration and production and improved sectoral coordination. A US$11.5 million loan for a water supply and sewerage project, of which US$6.3 million was cancelled as two cities withdrew from the project, is improving services in 70 rural communities. A US$15 million loan for an education and vocational training project is assisting Bolivia to develop its human resources in a more effective way. A US$17 million loan is helping Bolivia to improve the living conditions of the urban poor in the city of La Paz. 16. Because of the narrow scope for private investment, IFC became active in Bolivia only in 1973 through an investment of US$400,000 in a firm producing cables and plastic products. Two IFC investments since then have contributed to the establishment of a local market for long-term securities: an equity participation of up to US$550,000 in Banco Industrial S.A. (BISA) in conjunc- tion with a Bank loan of US$10.0 million for the same institution to assist in financing medium-sized industrial and mining enterprises, and US$337,500 in Banco Hipotecario Nacional to assist in the development of mortgage banking. Annex II contains a summary statement of the status of Bank loans, IDA credits and IFC investments in Bolivia as of April 30, 1979, and notes on the execution of ongoing projects. 17. Bank Group lending to Bolivia during the recent past has been sup- portive of a broadly based Government effort to expand and upgrade Bolivia's economic and social infrastructure. Until recently, the Government had established an excellent record in providing the required local funds; in general, projects have been adequately carried out. However, the recent deterioration in the public finances and the balance of payments have made it necessary to reexamine Bank Group lending objectives. Special efforts will be made in supporting projects that would help Bolivia to increase exports. In the longer run, Bank Group volume and composition of lending will depend on the measures taken by the Government to raise additional revenues, stabilize the economy and improve the balance of payments.  - 6 - 18. For the period 1974-77, total official development assistance to Bolivia has been as follows: Bank, US$192.0 million; IDA, US$13.7 million; Inter-American Development Bank (IDB), US$188.8 million; US Agency for Inter- national Development US$157.5 million; other, US$203.3 million. Net of undisbursed balances, Bolivia's debt to the Bank and IDA in 1978 represented 7.2% of its public debt. Bank and IDA's share of the Bolivian debt service was 3% in 1977. PART III - THE WATER SUPPLY AND SEWERAGE SECTOR General 19. Bolivia's population in 1976 was estimated at 4.8 million, growing at a rate of 2.6% per year. About 42% of the population lives in urban areas, defined as communities of 2,000 people and over; the urban population is growing at a rate of 3.9% per year. Water supply is available to 38% of the urban population through house connections and to 10% through public stand- pipes; only 6% of the rural population has access to public water supply of proven quality. Public sewerage is available to 20% of the urban population; it is virtually unavailable in rural areas. The quality of the water supply is often low even in urban areas as water chlorination is not widely used. The unavailability of adequate water supply and sewerage for the majority of the population is reflected in the high mortality rate due to diarrhea and enteric diseases of 87/100,000, one of the highest rates in Latin America. Sector Organization and Finances 20. Responsibility for policy formulation and implementation in the water supply and sewerage sector rests with the Ministry of Public Health and the Ministry of Housing and Urban Affairs (MWUV). The Ministry of Public Health, through its Division of Environmental Sanitation (DSA), is respon- sible for providing water and sewerage services to communities with less than 2,000 inhabitants; and the MUV through its Water Corporation (CORPAGUAS), to communities between 200 and 10,000 inhabitants. The large level of unsatis- fied demand has permitted both institutions to carry out programs without duplication of efforts. The Departmental Development Corporations are also important in the financing and construction of water supply facilities, espe- cially for small communities. In each department, except Pando, municipal entities are responsible for the provision of water supply and sewerage services in the departmental capital. In the departments of Beni and Tarija, each urban community has a water supply entity. The Bolivian Mining Corporation, the Bolivian Armed Forces and the National Community Development Service also construct minor works for village water supply and sanitation. 21. Sector institutions, particularly those serving the rural areas, are weak in terms of management, finances and long-term planning. Operations and maintenance are inadequate. Staffing is generally sufficient although efficiency is affected by high staff turnover caused by low salaries, and lack of experience in project preparation and evaluation.  22. Investments in the sector have not kept pace with the growth of the population. Coverage of water supply and sewerage services, expressed as a percentage of population served to total population, has fallen since 1950. Loss of potential revenues because of lack of adequate water metering, high levels of unaccounted-for water and low tariffs have made the sector dependent on Government contributions to cover operational deficits. Investments for expansion of services have been financed mainly by multinational agencies and bilateral donors which provided about US$100 million equivalent in grants and loans during the last twelve years mostly at concessionary terms. Government has not coordinated this financing very well. Its own contributions for sector expansions have been modest and on an ad hoc basis, mostly in response to foreign loan proposals or local political pressures. 23. In an effort to strengthen the sector financially, the Government established in 1974 a system of national standards for tariff classifica- tion and a new rate structure, which would enable the smaller communities to recover at least operating and maintenance costs and larger communities operating, maintenance and financial costs. The system was revised in 1976 and a National Tariff Council was established under the MUV. Local political considerations, however, have affected adversely its implementation. 24. The Government intends to improve progressively the coverage and quality of the water supply and sewerage services throughout the country. The Government is aware that these improvements are not likely to be realized unless the institutional deficiencies and financial constraints in the sector are overcome, as is evident from the failure of the ongoing 1976-80 plan to expand water supply and sewerage services. The MUV has been assigned responsibility to prepare a national development plan for the expansion of water supply and sewerage services during the 1980s. A strong Government commitment to promote and complete the plan will be required to bring about improvements in the sector. Bank Group Role in the Sector 25. The proposed project would be the second Bank Group operation in the water supply and sewerage sector in Bolivia. The first one was the Urban and Rural Water Supply and Sewerage Project for which a Bank loan of US$11.5 million was signed on October 15, 1978 (Loan 1324-BO). The loan financed (a) the design and construction of water supply systems in 70 rural communities; (b) improvement and expansion of water supply systems in Potosi; (c) improvement and expansion of the water supply and sewerage system of Sucre; and (d) technical assistance to the Government and the three executing agencies charged with the carrying out of the project. By mid-1977 it became apparent that the loan funds allocated to Sucre and Potosi would not be used because of the cities' reluctance to raise tariffs as covenanted in the loan documents, and the prospect of obtaining funds on concessionary terms from other sources. Consequently, and as requested by Government, US$6.29 million of the loan was cancelled in December 1978. In spite of initial delays, the rural component of the project is being carried out satisfactorily by CORPAGUAS. A WHO/IBRD mission visited Bolivia in December 1978 and updated the water supply and sewerage sector report prepared by the two institutions in 1975. A further updating of the sector study is being carried out with funds provided in the ongoing Bank financed water supply and sewerage project (Loan 1324-BO).  - 8 - PART IV - THE PROJECT Background 26. The Government originally requested that the Bank assist in the financing of the urgently needed expansion of the water supply and sewerage system of the city of Santa Cruz de la Sierra (Santa Cruz) by transferring the funds allocated to the cities of Potosi and Sucre in Loan 1324-BO. However, following a preliminary evaluation of SAGUAPAC, the entity responsible for water supply and sewerage in the city of Santa Cruz, and discussions with the Government, it was determined that a separate project would suit better the objectives of strengthening SAGUAPAC's finances and operation. The water supply component of the project was prepared by SAGUAPAC's staff; the sewerage component is the first stage of the Santa Cruz sewerage master plan prepared by the consulting firm of F.A. Kocks A.G. (Germany). The project was appraised by a Bank mission which visited Bolivia in November 1978. A report entitled Santa Cruz Water Supply and Sewerage Project, Staff Appraisal Report No. 2409c-BO, dated May 29, 1979 is being distributed separately to the Executive Directors. A credit and project summary is presented in Annex III. Negotiations took place in Washington from May 7 - 11, 1979. The Bolivian delegation was headed by Mr. Alfonso Criales and SAGUAPAC was represented by Mr. Constantino Weise, General Manager. 27. Santa Cruz is the capital of the Department of Santa Cruz and the second largest city in Bolivia, with an estimated population of 280,800 in 1978. The city had been growing at nearly 11% until recently as a result of rapid in-migration of people seeking increased employment opportunities. The growth seems to have declined to about 7% in the last two years. Santa Cruz is the administrative, financial and educational center for a vast region of great agricultural potential and of oil and gas production, and by 1990, its population is expected to reach 650,000 inhabitants. Demand for public services, including water supply and sewerage, is growing rapidly. 28. Santa Cruz uses groundwater resources which, at the present rate of consumption and population growth, will be developed to their capacity by 1986. New and ample sources of both surface and groundwater are available at varying distances from the city. The extent and yield of these sources, however, need to be evaluated before a decision can be made on which sources to develop next. SAGUAPAC would hire before July 31, 1980 qualified consul- tants on terms and conditions satisfactory to IDA, to carry out such evaluation (Section 2.02(ii) of the draft Project Agreement). Although present water quality is adequate, about 8% is not chlorinated, posing a potential health hazard. In a few parts of the city, water pressure is insufficient during hours of peak consumption. Unaccounted-for water is 50% of all water produced. Public water supply is available to 82% of the population; and the remainder of the population relies on shallow wells and street vendors. 29. Sewage from the present system, serving about 33% of the population, is treated in oxidation ponds before it is discharged into the Pirai River. The ponds are overloaded and need to be expanded. However, the treatment is still of adequate quality and the effluent discharge has not damaged the ecology of the Pirai River. The majority of the population uses septic  tanks, soakage pits or sanitary latrines. In general, these alternatives have given satisfactory results and have not yet affected the groundwater discharge. To ensure that raw sewage does not become a health hazard in areas without d public sewer sys(-La and that adequate dispu-i means are used, SAGUAPAC would prepare by December 31, 1980 a preventive program for IDA review and approval, and woul,d carry oujt the program t'erearcer So,tion 3.07 of the draft Project Agreement). Project Objectives and Description 30. The overall objective of the project is (i) to improve the health and environmental conditions of the inhabitants of Santa Cruz by expanding the city's water supply and sanitary sewerage facilities, and (ii) to strengthen SAGUAPAC's management and organization by the provision of technical assistance and the training of SAGUAPAC's staff. In addition, it is expected that the actions to be taken for the institutional and financial strengthening of SAGUAPAC would have a demonstration effect on other water and sewerage com- panies, thus furthering the Government's objectives in strengthening the sector as a whole. 31. The project consists of: (a) water supply works (LAP IBRD 14126) comprising (i) the construction of a pumping station of about 300 liters per second capacity in a well field located northeast of the city including two concrete storage tanks with a capacity of about 4,000 cubic meters each; and (ii) the installation of about 200 km of distribution lines and about 20,000 metered connections; (b) sewerage system works (MAP IBRD 14127) comprising (i) the con- struction of a sewerage treatment plant with about 25 hectares of oxidation ponds and related pumping station and emissary; and (ii) the installation of about 4.5 km of trunk sewer and about 60 km of sewer lines; (c) installation of lot lines (connections) and in-house plumbing facilities; (d) procurement of data processing, laboratory and communications equipment and vehicles; and (e) technical assistance comprising (i) cdetermination of new sources of water supply, (ii) improvement of SAGUAPAC's organization and management, (iii) development of SAGUJAPAC's engineering and planning units, and (iv) training of personnel. 32. The project would provide public water supply to about 108,000 people and improve existing service to about 22,0O0 people. About one third of the beneficiaries are estimated to be the urban poor. By the end of the project in 1983, public water supply coverage in Santa Cruz is expected to reach 85%. Water pressures would be stabilized during peak consumption hours. Metering of house connections would reduce unaccounted-for water from 50% to 27% in 1983. Sewerage services would be provided to about 66,000 people; the service level is expected to reach 40% in 1983. The proposed ground water sources are the  - 10 - closest available; the water requires no treatment other than chlorination. The cost of installing minimum household plumbing (kitchen and sanitary fixtures) combined with connection fees are currently estimated at about US$450, which is expensive for most low-income households. Since there is no financing available, many low income families are unable to benefit even from the existing water supply and sewerage system. Hence, a revolving fund to finance in-house plumbing and lot lines (paragraph 41) would benefit about 1,500-2,000 households per year most of which belong to the lowest income groups. The Santa Cruz Water Supply and Sewerage Company (SAGUAPAC) 33. SAGUAPAC is an autonomous public enterprise under the jurisdiction of the Ministry of Housing and Urban Affairs. It was established by the Government in 1973 and began its operations in September 1975. It took over the water supply and sewerage system built by the Santa Cruz Development Corporation (Corporation) with the help of IDB. Transformation of SAGUAPAC into a cooperative, based on a recent organization study carried out by the Corporation, and in accordance with the Government policy for decentrali- zation, is expected shortly. The change would give SAGUAPAC more autonomy and is not expected to affect adversely the project execution. 34. SAGUAPAC is managed by a six member Board of Directors, chaired by the President of the Corporation; other members are representatives of MUV, the municipality of Santa Cruz, the Ministry of Public Health, private businesses and consumers, with the General Manager serving as secretary. The General Manager, assisted by the Technical Manager and the Administrative Manager, is responsible for day-to-day operations. He is designated by the Minister of Housing and Urban Affairs from a list of three candidates presented by the Board. SAGUAPAC would consult with IDA before changing its General Manager (Section 3.04 of the Draft Project Agreement). 35. SAGUAPAC's management is competent and its professional staff is adequate. SAGUAPAC has about 160 employees, or 4.9 employees for 1,000 con- nections, which compares well with other Latin American utilities. Since 1977, 30% of SAGUAPAC's personnel received training at various levels. A study for improving organization and management has been recently carried out and is being reviewed by a committee which would propose company policies on recruitment, salary scales and promotion, and prepare a manual of functions. SAGUAPAC would present a statement on its personnel policies to IDA for review by December 31, 1979 (Section 3.05 (a)(i) of the draft Project Agreement). Until recently, planning and engineering was carried out for SAGUAPAC by the Corpora- tion. As a condition of credit effectiveness, SAGUAPAC would establish plan- ning and engineering units with functions satisfactory to IDA (Section 3.06 of the draft Project Agreement and Section 5.01(b) of the draft Development Credit Agreement). 36. SAGUAPAC's accounting system is satisfactory, although its fixed assets have not yet been properly valued, distorting the balance sheets; a competent consultant has been retained to study this matter. SAGUAPAC would value its fixed assets by November 30, 1979 and, at the end of each fiscal year thereafter, revalue them in accordance with principles and procedures satisfactory to IDA (Section 4.03 of the draft Project Agreement). Billing and collection is satisfactory with  - 11 - only 10% of the bills outstanding more than 60 days. SAGUAPAC would ensure that accounts receivable for its water and sewerage services would not exceed an average of two months' billings (Section 4.07 of the draft Project Agreement). 37. SAGUAPAC's accounts are audited adequately by qualified independent auditors. Internal auditing is adequate with the auditing group reporting to the General Manager. SAGUAPAC would send to IDA, for review by March 31, 1980, a statement on its internal auditing procedures and corresponding manuals (Section 3.05(a)(ii) of the draft Project Agreement). Project Execution 38. The project would be carried out by SAGUAPAC with the assistance of qualified consultants. The installation of in-house plumbing and lot lines would be contracted by the consumers and supervised by SAGUAPAC. Final engineering designs for the project works are practically completed. As a condition of credit effectiveness, SAGUAPAC would contract (a) about 36 man-months of engineering consultants on terms and conditions satisfactory to IDA to prepare the bidding documents, to help in bid evaluation and to super- vise construction; and (b) about 14 man-months of management consultants to help improve its organization and management (Section 2.02 of the draft Project Agreement and Section 5.01(c) of the draft Development Credit Agree- ment). The works under the project are expected to be completed by the end of 1982. During project execution, SAGUAPAC would provide IDA quarterly progress reports on its operating and financial performance. 39. To assist in its program of institutional strengthening and to prepare the water resource studies, SAGUAPAC would contract, on terms and conditions satisfactory to IDA, (a) by January 1, 1980, engineering consultants (6 man-months) to assist in developing the engineering and planning units; and (b) by July 31, 1980, consultants (30 man-months) to carry out the study for determining the next major sources of water supply for Santa Cruz (Section 2.02(ii) of the draft Project Agreement). In total, about 80 man-months of consultant services are foreseen at an average cost of US$5,000 per man-month. By December 31, 1979, SAGUAPAC would furnish for IDA approval, a three year training program to be initiated by March 31, 1980 (Section 2.03 of the draft Project Agreement). Project Cost and Financing Plan 40. The estimated cost of the project is US$16.0 million including contingencies, with a foreign exchange component of US$6.2 million. The costs are based on June 1978 contract prices updated by SAGUAPAC to December 1978. Physical contingencies have been estimated at 15% of base cost (US$1.7 million) and price contingencies at 15% per year for local costs and 7% per year for foreign costs (US$3.5 million). 41. The project would be financed by the proposed IDA credit (52%), by SAGUAPAC's internal cash generation (30%) and by the grant from the Santa Cruz Development Corporation (18%). Formal agreement between the Corporation and SAGUAPAC whereby the Corporation would contribute US$2.5 million, in accordance with a schedule agreeable to IDA, would be a condition of loan effectiveness (Section 5.01(e) of the draft Development Credit Agreement). The proposed IDA credit is expected to finance the foreign exchange costs and US$2.8 million of  - 12 - local costs. Financing of local costs is justified in light of Bolivia's poverty and the need to help meet the country's external capital requirements. Proceeds from the IDA credit would be relent to SAGUAPAC through a subsidiary loan agreement between the Borrower and SAGUAPAC to be executed as a conditioni of credit effectiveness (Section 5.01(a) of the draft Development Credit Agreement). The Borrower would relend to SAGUAPAC in peso equivalent of US dollar for 20 years including 5 years of grace with interest at 0.75% per annum during the grace period and 7.9% per annum thereafter (Section 3.01(b) of the draft Development Credit Agreement). SAGUAPAC would assume the foreign exchange risk. After the grace period, SAGUAPAC would effectively pay the Borrower 5% per annum and retain the remaining 2.9% per annum as a grant from the Government to capitalize a revolving fund to help new low-income cosumers to finance the installation of in-house plumbing and lot lines (Section 3.01 (b) of the draft Credit Agreement and Section 2.05 (c) (iii) of the draft Project Agreement). SAGUAPAC would service the entire US$9 million including US$2.0 million that would be used to set up the revolving fund. SAGUAPAC would establish the aforementioned revolving fund on terms and conditions satisfactory to IDA by January 1, 1980 and deposit an initial amount of US$50,000 equivalent (Section 2.05(a) of the draft Project Agreement). The beneficiaries would repay SAGUAPAC in less than ten years and at a minimum of 12% per annum interest rate on the unpaid balance (Section 2.05(b) of the draft Project Agreement). The interest rate would be slightly negative in real terms com- pared to the expected average rate of inflation during 1979-83; it would be justified in view of the objective of the revolving fund to benefit low-income families. SAGUAPAC would review the interest rate from time to time, and if necessary, would adjust the rate in order to maintain, along with other resources which would become available for the fund, the dollar value of the proceeds of the IDA Credit used to set up the fund (Section 2.05 (d) of the draft Project Agreement). Financial Position 42. SAGUAPAC's original assets (US$14.5 million) were financed by contributions of US$8.7 million from the Corporation and a loan of US$5.8 million in 1968 from IDB to the Corporation. The Corporation has agreed to continue servicing the IDB loan. From the start of its operations, SAGUAPAC's revenues have been insufficient to cover its operating costs, mostly because of delays in implementing approved tariff levels. As a condition of credit effectiveness, SAGUAPAC would implement water and sewerage charges in pesos of US$0.175 equivalent ($b3.50) per cubic meter and take all steps necessary to enable it to collect fixed charges for water supply and sewerage services in the case of new service connections (Section 5.01(d) of the draft Development Credit Agreement and Section 4.05 of the draft Project Agreement). 43. In September 1978, SAGUAPAC hired a consultant to carry out a tariff study based on socio-economic grounds and consumption patterns. On the basis of the study, differential tariffs with five principal categories: residential, commercial, residential/commercial, industrial and official have been designed. Five subcategories for residential and residential/ commercial categories have been established in accordance with their co sump- tion level. The minimum monThly water consumption would vary from 15 m for residential category to 30 m for industrial. The average revenue from water and sewerage charges under the new tariff system, approved by the National  - 13 - Tariff Council, would be increased by 67% over the present level to $b5.00/m3 by June 30, 1980 (Section 4.04(a) of the draft Project Agreement). Revenues per cubic meter sold are expected to increase by 22% per year in nominal terms or about 6% per year in real terms during 1979-1983. Operating costs are expected to increase by about 10% per year. 44. The financial projections have been based on the assumption that the proposed revenue package would be implemented as stated above. SAGUAPAC would adjust its tariffs so as to attain annual rates of return on revalued fixed assets of 1.5% in 1980, 5.0% in 1981, 5.5% in 1982, and 6% thereafter (Section 4.04(b) of the draft Project Agreement). During the construction period the debt equity ratio would remain below 26% and the current ratio at about 4:1. Until the Closing Date of the Project (June 30, 1983), SAGUAPAC would not undertake any investment, other than those included in the project, of over US$0.5 million without prior consultation with IDA (Section 4.06 of the draft Project Agreement). Procurement and Disbursement 45. Contracts for equipment and materials would be awarded through international competitive bidding according to IDA guidelines. Local manufac- turers would be accorded a margin of preference of 15% of the c.i.f. price or the actual import tariff, whichever is lower. Contracts for civil works estimated to cost less than US$100,000 and contracts for equipment and materials estimated to cost less than US$50,000, up to an aggregate amount of US$1,000,000, would be awarded on the basis of local bidding procedures acceptable to IDA. Minor civil works contracts of less than US$10,000 up to an aggregate amount of US$200,000 for the installation of sewerage and water supply distribution lines would be awarded after obtaining price quotations from registered local contractors. Installation of in-house plumbing and lot lines would be carried out by local contractors contracted by individual households and approved by SAGUAPAC. It is expected that most of the civil works contracts would be won by local firms and most of the equipment and materials supply contracts by foreign firms. After considering a number of alternatives, it was determined that the purchase for US$320,000 of the computer now being leased by SAGUAPAC would be the most economical. 46. Disbursements of the IDA credit would be for 35% of civil works expenditures; 100% of foreign expenditures for directly imported equipment, materials and vehicles; and 40% of local expenditures for locally procured goods; 100% of expenditures for in-house plumbing and lot lines; and 100% of expenditures for technical assistance and consultants. Retroactive financing of up to US$300,000 is considered for expenditures after January 1, 1979, for the hiring of consultants (US$50,000) and the purchase of data processing equipment (US$250,000). The credit is expected to be fully disbursed by June 30, 1983. Benefits and Risks 47. The rate of return, calculated on the basis of increased revenues from the water supply and sewerage components, which account for 72% of the total project cost, is 12%. The cost of the technical assistance component, which is designed to improve SAGUAPAC's performance, has been included in the calculation. The use of a shadow exchange rate of 1.25 and a shadow price  - 14 - factor for unskilled labor of 0.80 would decrease the rate of return to about 10%. Both the water supply and sewerage components are least-cost solutions. The proposed ground water sources are the closest ones to Santa Cruz and require no treatment other than chlorination. In view of the rapid growth and increasing density of the population of Santa Cruz, the water borne sewerage with oxidation ponds is the safest least-cost method compared to septic tanks or soakage pits. The project is expected to yieid a number of benefits whose value cannot be quantified such as better overall living standards for the people of Santa Cruz, prevention of water borne diseases, general public health improvements, water pollution control and the improvement in the management, operation and planning capacity of SAGUAPAC. 48. Under the project, by 1983, about 108,300 inhabitants of Santa Cruz would receive access to safe, reliable water supply and about 22,000 people would benefit from increased reliability of existing water supply. The proposed project also constitutes the first phase of the Master Sewerage Expansion Plan and would provide access to the sewerage system to about 66,000 people. About one-third of the population to benefit from the project are estimated to be the urban poor. Also, since Santa Cruz relies heavily on ground water resources for its water supply, the project is urgently needed to reduce the risk of contamination by untreated sewage. 49. An innovative feature of the project, which would help low-income people to overcome the high costs of initial connection and in-house plumbing, is the establishment of the revolving fund for in-house plumbing and lot connections. About 8,000 households are expected to utilize this fund during the project period; it would assist low income households which would other- wise not be able to afford connections to SAGUAPAC's expanded system. SAGUAPAC's past performance in obtaining payments on time (and the punctuality of its residential customers in making service payments) indicate that with careful monitoring of installation costs and terms of financing, SAGUAPAC would be able to ensure the continuity of the fund. 50. By promoting the orderly expansion of the vital physical infrastruc- ture for Santa Cruz, the project would help increase the absorptive capacity of the city for additional in-migration. The city is the most important growth pole of Bolivia and would be the staging area for the planned export of natural gas to Brazil and the stepped-up program for oil and gas exploration. It is also the marketing center for the vast agricultural hinterland of the Bolivian lowlands. The provision of safe water supply and basic sanitation in the medium- and long-term would be necessary if Santa Cruz is to continue serving as the development hub of Bolivia. 51. The works to be built are technically simple and offer limited risks. Financial risks are minimized by the commitment by the Development Corporation to provide its share of the construction cost and the approval by the National Tariff Council of a new tariff and revenue package. Management and organiza- tion of SAGUAPAC would be strengthened by a carefully planned technical assistance program provided under the project, consisting of consultant services and the training of SAGUAPAC's staff.  - 15 - PART V - LEGAL INSTRUMENTS AND AUTHORITY 52. The draft Development Credit Agreement between the Republic of Bolivia and the Association, the draft Project Agreement between the Associa- tion and Servicios de Agua Potable y AlcantariLllado de Santa uruz (SAGUAPAC), and the Report of the Recommendation of the Committee provided for in Article V, Section 1(d) of the Association's Articles of Agreement are being distrib- uted to the Executive Directors separately. Special conditions of the project are listed in Section III of Annex III. Additional conditions of effectiveness would be that: (a) SAGUAPAC has established planning and engineering units with functions satisfactory to IDA (para. 35); (b) SAGUAPAC has contracted (i) engineering consultants to prepare the bidding documents, to help in bid evaluation and to supervise construction; and (ii) management consultants to help improve its management and organization (para. 38); (c) the Santa Cruz Development Corporation and SAGUAPAC have executed an agreement whereby the Corporation would provide US$2.5 million to help finance the project in accordance with a schedule acceptable to IDA (para. 41); (d) the Borrower and SAGUAPAC have executed the Subsidiary Loan Agreement (para. 41); and (e) SAGUAPAC has implemented water supply and sewerage charges in pesos of US$0.175 equivalent ($b3.50) per cubic meter and has taken all steps necessary to collect fixed charges for new service connections (para. 42). 53. I am satisfied that the proposed credit would comply with the Articles of Agreement of the Association. PART VI - RECOMMENDATION 54. I recommend that the Executive Directors approve the proposed credit. Robert S. HlcNamara President Attachments June 28, 1979 Washington, D.C.  - 16 - ANNEX I Page 1 of 6 BOLIVIA - SOCIAL INDICATORS DATA SHEET RIERENCE GrOUPS (ADJUSTED AERAGES LAND AREA (THOUSAND SQ. KM.) BOLIVIA - MOST RECEMT ESTIATE) TOTAL 1098.6 SAME SAME NUT HIGHER AGRICULTURAL 304.4 MOST RECENT GROGRAPHIC INCOME INCOME 1960 lb 1970 /b ESTIMATE lb REGION /c GROUP /d GROUP /e GNP PER CAPITA (US$) 210.0 330.0 610.0 1074.6 430.3 926.1 ENERGY CONSUMPTION PER CAPITA (KILOGRAMS OF COAL EQUIVALENT) 147.0 229.0 318.0 943.1 262.1 730.7 POPULATION AND VITAL STATISTICS POPULATION, MID-YEAR (MILLIONS) 3.3 4.3 5.2/f URBAN POPULATION (PERCENT OF TOTAL) 24.0 28.1 30.3 59.3 24.6 49.0X POPULATION PROJECTIONS POPULATION IN YEAR 2000 (MILLIONS) 9.0 STATIONARY POPULATION (MILLIONS) 19.0 YEAR STATIONARY POPULATION IS REACHED 2100 POPULATION DENSITY PER SQ- KM. 3.0 4.0 5.0 23.5 45.3 44.6 PER SQ. EM. AGRICULTURAL LAND 11.0 14.0 17.0 80.5 149.0 140.7 POPULATION AGE STRUCTURE (PERCENT) 0-14 YRS. 43.0 43.1 43.0 40.9 45.2 41.3 15-64 YRS. 54.0 54.0 54.0 54.4 51.9 55.3 65 YRS. AND ABOVE 3.0 2.9 3.0 3.9 2.8 3.5 POPULATION GROWTH RATE (PERCENT) TOTAL 2.1 2.6 2.6 2.4 2.7 2.4 URBAN 3.6 4.1 4.2 3.7 4.3 4.5 CRUDE BIRTH RATE (PER THOUSAND) 48.0 47.0 44.0 32.8 39.4 31.1 CRUDE DEATH RATE (PER THOUSAND) 23.0 19.0 15.0 8.5 11.7 9.2 GROSS REPRODUCTION RATE .. 2.8 3.2 2.4 2.7 2.2 FAMILY PLANNING ACCEPTORS, ANNUAL (THOUSANDS) .. .. 7.6 USERS (PERCENT OF MARRIED WOMEN) .. .. .. 17.7 13.2 ' 34.7 FOOD AND NUTRITION INDEX OF FOOD PRODUCTION PER CAPITA (1969-71-100) 81.7 101.0 108.0 99.4 99.6 104.4 PER CAPITA SUPPLY OF CALORIES (PERCENT OF REQUIREMENTS) 69.0 76.0 77.0 107.0 94.7 105.0 PROTEINS (GRAMS PER DAY) 43.0 46.0 48.5 60.4 54.3 64.4 OF WHICH ANIMAL AND PULSE 13.3/& 14.0 14.4 28.3 17.4 23.5 CHILD (AGES 1-4) MORTALITY RATE 36.0 27.0 22.0 6.7 11.4 8.6 HEALTH LIFE EXPECTANCY AT BIRTH (YEARS) 43.0 48.0 52.0 63.6 54.7 60.2 INFANT MORTALITY RATE (PER THOUSAND) .. .. 158.0 76.1 68.1 46.7 ACCESS TO SAFE WATER (PERCENT OF POPULATION) TOTAL .. 33.0 34.0 63.4 34.4 60.8 URBAN .. 92.0 81.0 79.5 57.9 75.7 RURAL .. 2.0 6.0 38.6 21.2 40.0 ACCESS TO EXCRETA DISPOSAL (PERCENT OF POPULATION) TOTAL .. 12.0 .. 58.8 40.8 46.0 URBAN .. 25.0 .. 77.8 71.3 46.0 RURAL .. 4.0 9.0 24.5 27.7 22.5 POPULATION PER PHYSICIAN 3900.0 2300.0 2120.0 1841.9 6799.4 2262.4 POPULATION PER NURSING PERSON .. 2730.0 3520.0 933.7 1522.1 1195.4 POPULATION PER HOSPITAL BED TOTAL 580.0 510.0 .. 563.4 726.5 453.4 URBAN .. 200.0 .. 279.4 272.7 253.1 RURAL .. 2400.0 .. 1140.9 1404.4 2732.4 ADMISSIONS PER HOSPITAL BED .. .. .. 25.7 27.5 22.1 HOUSING AVERAGE SIZE OF HOUSEHOLD TOTAL .. .. .. 5.0 5.4 5.3 URBAN .. .. . 4.8 5.1 5.2 RURAL .. .. .. 5.3 5.5 5.4 AVERAGE NUMBER OF PERSONS PER ROOM TOTAL .. .. .. 1.3 .. 1.9 URBAN .. .. .. 1.3 .. 1.6 RURAL .. .. .. 1.5 .. 2.5 ACCESS TO ELECTRICITY (PERCENT OF DWELLINGS) TOTAL 22.0/h .. . 54.3 28.1 50.0 URBAN 76.0/h .. .. 80.1 45.1 71.7 RURAL 8.0/h .. .. 14.2 9.9 17.3  - 17 - ANNEX I BOLIVIA - SOCIAL INDICATORS DATA SHEET Page 2 of 6 REFERENCE GROUPS (ADJUSTED AlERA.ES BOLIVIA - MOST RECENT ESTIMATE) - SAME SAME NEXT HIGHER MOST RECENT GEOGRAPHIC INCOME INCOME 1960 lb 1970 /b ESTIMIATE /b REGION /c GROUP /d GIOUP /e EDUCATION ADJUSTED ENROLLMENT RATIOS PRIMARY: TOTAL 64.0 68.0 80.0 107.3 82.7 102.5 MALE 78.0 80.0 88.0 109.1 87.3 108.6 FEMALE 50.0 56.0 72.0 107.4 75.8 97.1 SECONDARY: TOTAL 12.0 21.0 32.0 40.5 21.4 33.5 MALE 13.0 24.0 36.0 40.4 33.0 38.4 FEMALE 9.0 18.0 27.0 39.0 15.5 30.7 VOCATIONAL ENROL. (Z OF SECONDARY) 14.0 .. ,. 18.5 9.8 11.5 PUPIL-TEACHER RATIO PRIMARY 27.0 27.0 23.0 37.1 34.1 35.8 SECONDARY 13.0 17.0 .. 17.9 23.4 22.9 ADULT LITERACY RATE (PERCENT) 38.8 40.0 63.0 77.4 54.0 64.0 CONSUMPTION PASSENGER CARS PER THOUSAND POPULATION 3.0 4.0 1,6 29.1 9.3 13.5 RADIO RECEIVERS PER THOUSAND POPULATION 73.0 82.0 74.0 172.1 76.9 122.7 TV RECEIVERS PER THOUSAND POPULATION .. .. .. 67.9 13.5 38.3 NEWSPAPER ("DAILY GENERAL INTEREST") CIRCULATION PER THOUSAND POPULATION 27.0 42.0 35.0 76.1 i8.3 40.0 CINEMA ANNUAL ATTENDANCE PER CAPITA .. .. .. 4.2 2.5 3.7 LABOR FORCE TOTAL LABOR FORCE (THOUSANDS) 2000.0/i 2300.0 2500.0 FEMALE (PERCENT) 18.9/i 19.5 20.4 21.5 29.2 25.0 AGRICULTURE (PERCENT) 61.0 65.0 51.0 30.2 62.7 43.5 INDUSTRY (PERCENT) 18.1 21.1 23.0 23.8 11.9 21.5 PARTICIPATION RATE (PERCENT) TOTAL 34.1 33.2 33.0 30.9 37.1 33.5 MALE 56.0 53.7 52.7 47.3 48.8 48.0 FEMALE 12.7 12.9 13.4 13.3 20.4 16.8 ECONOMIC DEPENDENCY RATIO 0.9/i 0.9 1.0 1.5 1.4 1.4 INCOME DISTRIBUTION PERCENT OF PRIVATE INCOME RECEIVED BY HIGHEST 5 PERCENT OF HOUSEHOLDS .. 36.O/1 *- 23.7 15.2 20.8 HIGHEST 20 PERCENT OF HOUSEHOLDS .. 59.0 *- 58.7 48.2 52.1 LOWEST 20 PERCENT OF hOUSEHOLDS .. 4.OJI *- 2.9 6.3 3.9 LOWEST 40 PERCENT OF HOUSEHOLDS .. 13.07: .. 9.9 16.3 12.6 POVERTY TARGET GROUPS ESTIMATED ABSOLUTE POVERTY INCOME LEVEL (US$ PER CAPITA) URBAN .. .. .. 265.6 241.3 270.0 RURAL .. .. 134.0 185.1 136.6 183.3 ESTIMATED RELATIVE POVERTY INCOME LEVEL (US$ PER CAPITA) URBAN .. ,. 105.0 396.3 179.7 282.5 RURAL .. .. 75.0 308.1 103.7 248.9 ESTIMATED POPULATION BELOW ABSOLUTE POVERTY INCOME LEVEL (PERCENT) URBAN .. . .. 35 .2 24 .8 20 .5 RURAL .. .. 85.0 46.6 37.5 35.3 Not available Not applicable. NOTES /a The adjusted group averages for each indicator are populatio.n-weighted geometric means, excluding the ettreme values of the indicator and the most populated country in each group. Coverage of countries among the indicators depends on availability of data and is not uniform. /b Unless otherwise noted, data for 1960 refer to any year between 1959 and 1961; for 1970, between 1969 and 1971; and for Most Recent Estimate, between 1974 and 1977. /c Latin America & Caribbean; /d Lower Middle Income ($281-550 per capita, 1976); /e Intermediate Middle Income (5551-1135 per capita, 1976); /f Provisional 1976 population census gives estimate of 4.647 million; /g Av. 1961-65; /h 1963; /i 1965; /] Population. May, 1979  - 18 - ANNEX I IXFOXMS aSOCrA nMZATMSPage 3 of 6 Motes, AlthOt4h th. dota are dreo fen. so-,oo g.noroly Jodgo the -t .ntbooetton mam e!i.ble, It ohouU .10. ho noted that thY my7 not be wert..- tilnly o."rable bet.*.. o the latk of tema.41eid definitiomum cod amewmets md by difforat tmmett0im Lo ool1"ieotr the dot.. Th. dot. Ow., soeethoom., uoof.l to 4.0.01k. owdoo of Lonod tdlot.tm to.., ad M-cm.utOimm,o ou.rti Ols dif 00000.00, boon --otImm. Th. o4.llgi.uALTJogLU fo oath faindltOr an0 4Pv.IAtf..wI9htmd eOWTI* shw eotlediss tb. extrm nele. of the ImAlestaw ad the wsnt popolat.d ooa'I. logroeq.ToDM to 1.0k of dots, . B mWQr*W of 011 loI&tO"tr for toPitol 2"71" Oil I tootot aNd of todIooiooe of Amoe. to otor 0.4 0000000 diopol 0000100,& lomom dioorIhotio ond P-nory fo other oitov Xrooq. ore Pepo16tio.-neightd I.amatio --m CitbOt 0010100 of the ewto no.. rAd Lo t RA 10004q.h)0O00o0t tOeIfoitteoqotq-o1.wn.d It-r-I I"Z.1t_I ad t-W -11 -Wt"' P-Pprieto ad 05.1sf -ootdbatpono ((OPPt CAtPTA ,,(S) - CNtP por -spit. 001.. t OoOrrmt -ort poioeo, p-.atj,mL.01O1eR divided by obo of pr-oticiog phy.l- os_olatd3 -7 a 000010nthod 00 WOrld Iank 00tl0 (1975-77 boof.). . -Li "'irifR -?0 nd.l .! hoboo ot osiveroity 1-,1. 1960. 1970, 004 1977 d.ts. leooineo oeO t00-Ppllo divid*d by .-"r of praoticio1 %enotead m lgoot oeo Promttic-1 nro. d .,.etoton ooe E th C IOtPTIOIO PEt CAPITA ;.- -Iou Mao piPto of oomfoi.1 -nrgy (.-I boootn 00 oOio hod - toto. ra.ndf.l-oulto (ot, .0 Lgote,pooot.ntra o d hydo- olsndootO. eo.adro)diid by their. Iop iooo of bopitto1 bod olotoi iyl 0 klOramm of to.oovlntpowptt1L0 90ooloblo to poblio d0 privato 1-n1o .0d opeoLiai d hoepit.1 end o- and 976 t01. hbhilit.tim oont.r.. H_opit.l. 00 ..t.blielinot. poonantly otoffod by 007.10 ltV'IAL STATISTICS st boo:t o.phymiia.- E.t.oIh-Io t. p-oodieo pri-cip.11y X -di0010 Tots! PIP, io. d'yO ottoo -A fJoly 1; 1960, 1970, . d 000 . -id01.d.. to.!l honpft.l, bhw.or, 100104. h.olth ..d -di- 7977 doto. cel ostor. not ~~~~~~~~psenontly ot.ff.d by o phy.iota (but by o nodio o- Orbr oo!oiorlorOntoftot.!! - tio ofort to totOl popolotion; ltn 000 idwtf., eto.. hich offor i.-patI..t so- -od.tlno diforotdoiwtioOoforaorooo ny -fot op-rbility of dot. rvd iia 00 fndo oiito -nt1t0 .O . r 1960, 1970 end 1975 dot.I.. o.d 1..igg gr honoitobahd - 10t01 oob.r of odojolo- to or d !-h-orin Poou!Oi!Ow PwoiootiaO ~~~~~~~fr-n bhPitelo divided by 060 .-ot. of bod.. porlotow n Yor 000- Curroow p:p.otiot proJootion oro bo...d a 197 toe!poplotooby Ego .nd .e .0.4~ th.ir nooItylo ond fortiliry LIDI -o,oiog life ootaoo brth oro o oith oo-trye pe cpio A'hotehoLd nootr o. f o ru 0bdvdoeet br iioqurt.ro I=000 1-on, od fenl lieoPotry -tbili.ig or 77.5 70000. .0d their 0.10 -.01.. A b0r400 or 1041Cr n.y or ny not bo teoodod it rh. Orpor-nter for fertlItyr t. h. ay. 3 10001. oeae h.01 600 ld1 for et.ttotol.. Prp-00.. lofro Iitoy,rtodio tojLno101.8p faity pln... 1~p- A-or..o -b., of tarm-n nor roon -toa.ob.. end 005.1 .- nrOge os 100000.Vo,,coo,oy t tto g.optd -t of then. 9 -bhi..IOt of por.-o par rot. i .11, urb.n, od rtor.1 -oopL.d ooetnado!lg. .ooli .od frut trn.fo m~cti0 pUtpO 0. r.Pertivoly. "Pllg 0140noposot t u. 0 uwouid pro toe ow flt _tOtOt his In ochlved only oft fertility roto tots1, orbo.. ..d .rul dwol log rP. ti-ly. 801 oo t to oL__ttO Iw of _ni,t wof p-od-utlo 00t0, 060 00th oorr, lw f 00oo epacs tsef oatl. b.Stoti-nry Popolti- EDUCATI0ON doe as ot osto onrho0.01 ofrhoproScto hbr-otriotlc. ofto 441-.d00 -..oIm rti.. pop!elooitoho100 200 008 ho ot of40110 o fetlt rto primaryob~ . -1 to..osoed f-1ol - Cr0.0. .oe. 0.10 so. d foeoetil rrpl-a-rioothbo. no0of0,1 goood ho.rimry oo!a.pdr.n1iotof Ofpof-eilitoro to ,.OOotioo foooo ogahod - Th. y.orov h- totr oPoolo- o-hoo-1-o popoo!r-ot wotol'fl!d11iloneo -!yorht door oitv boo hoov. rest hod. a~~~~~~~~~~~~~~d j.-td for dlfforont lewtho of primary odO...tiflfocotrto !h foro!OttOtO densityutloorool edocotiononroilnent n.y excod 100 pe ..ort sito000 opb .re forsq An -918-vOr op plolo Po q..000 ktilonOtor (100 h-ctaro.) 60100 1or d06 ,0 ho fii!ecoloo of total 0000. 500004000~~~~11-1. -ch-o - -1.t ol ..d1fI.o! - C-p.ootd 00 abov. -ocvdor od,ts- Potto.Inoaorcoi.ori Lnd- sp-td -osboto for sorl-to-tr iseod t!.t teoi. 00I t foor yr- of opprovod priosry otrt t;Pr-id-, -L0 i. gonra vooiowol or :ehorp Oritg,to in for pop1Io. o!o of rooltonalourotre(rron)- hlde (0.14 y ...) oobit00 12 t- 17 yoc foo ooro.1todoo g00oo 0 ...or -11, -1td.d. (15-6 yea,'. od rtiro 76!yeorosod ver)so prcooooeo00 ad- .o.tioulerOio (0t.00 t0 of -oodlryl V- V ti-1. i-otitoft-o iw-bod. voo pooiSlot. 160,1970 .nd 1977 d.0.. toitl.iotd_orio!j orohrLoon.hn pwooidptdtt' r ioOo!.too gowt oat (nrconl -tota! - A-w..l growth Iat.. of ttl depootnen oft00c040d7 l tttione ,.Id-y ooltoOfr19550-., 1960-70, owd 1970-77. ui-eoo o L rnr. tand eeooodorE - fore trd-wt. -rrolld 10 Ovololo gowh 00 (Frerc t)--orbo-A-wwu.. Igothb rOe f 000-rioyso - 040 1pri..dry, yoothr 00. otirhroe po,uiotfor 1950-60. 1960O-70,..od 1970-75. eproioy 100010. .I d".db - --fI-h-i - 00o, rotorhouol - o a 711- birth. per .....oootd of AdoIt litt....acros topatO-.t) - LI Oeroteodu1to (oh!l to rood 008 onto, a ..7or ....o!oolor 1960. 190 s-d I977 d_t.opar ...togo of tots! odo1t popoolotiw ogod 15 y..rt 0..dorr crode de0th r.to por Ahood 00.1. I4d00h p00 thosowd of eid- ,vo pooltio ~19600, 1970 -od1977 dat.ZC.ItTO Inhr ool ord-ol pe io If 0:he eporioo-o pr ...o-oge- oting Ie. hwo..prelo7otoe ooueoe oroosdnltr tyvlti fotlltv 000. oooly fi-r-yoe- ovrooe digo Lw 1960, vohiole.. th _ d.-b --,.dil.r 19(7. sod 9757. 0.d.41 oeor foot th-ooed Alloeio)- typos of 000010000. too r.d10 Foo _l 01 nntnOacc.tort -001 tosod) to.! botr f!hodsne00 ,-r.1 pob1it par ohonoord of ptpo!etiow; -ocldso un1icowoed pl-oRon Pror, tf-ot: do te foo re--t yeo- 00y 00 ho cp.r.rblo etow .- --oOtrie 'sool otoow ....eu o pr--n 0 f.0r1i4d P.--gOOtO.O Of h.ltehd to eino wsrrod ooo ofthtd-hoori.E 000 (15-46 o-re who ooe hirtb-tOot-1 TV roce.i-or. oor oowosd top iet!Iot - T r-ci-or tor br-dreot to got-1o d-t- 11 tarIe 000 oea - rop. public per thono... pouM lw ewld.. 001 i--d TV 000 ieO o o, 000 A00 NL7RfilotIU 2il 10- 00000000 1%-Trtooto 1000 t poooOd o Tull - how th.ff r.gocro s lOd- of food trod-ci.. . 0 -ft.00 99-1e0)-Iwo 00 Per cOeito 0iw of "doily 0000051 i.t.r..tw....popr". 4d0f0400d perIodi.al publi- oool rdooo of a food -seroitfo -P-oo-ino euclod.. ..d ond -otio devotd pri.srily --rcodlog geocro1 .no. It Le cownidered (t d -odtoow -sed-r ynsr V.01 Co-moditocrr pOli,ry io-do ho "doily' if i0nptor u brut Loot titn.ow -uwl -.0 go.or.n in--ed of suar) 'hich =0 edIbto owd.ttLooutriew- Clo.- .-..oL .Ottendao- 00r -pit. 000 yor -B ...d o oh' no r of 01tk00, -f rfte 08ttoretio ) A&gr:X-sw prduotto- of ... h-..Itdt01 dorli.g Oh. yeor, ilotdiog oonnloet dieiwcfot. 04-bl (Or 010 uplrof alrlo eonto of --ni= -sft) - Coput-d fr- potdon -olshtoppllet -opPintdOertit pris00~ lo1ut bo ""KIr"'hjTrifo- (thoooaod.) - Ec--i.ttuly -rti- p-roow, i-I.dtli -rsd -oPor... drane 0 to. N(00 toppli.. -ot Iod onloto feed. 0.0 furOoeood o-piyod but. 00m oooioe, 000d000e. 000i Dflol- qoOtltrt'tod n (odprocosto d I..... J0 d lboiuto. R 10 noroocuote r o prblo ooroaruoro rotto td by FA0 b6.0.4d0- phy.iOlOiO-l 00040 for nor- Fonut (,0000..1 t F- roat Iobor fornee -P-oeta 00 001 Isorfote oos ooioo' 0.8 tolI o-id-itbno i "'lortwol tnowoooo body g iolur .. tot) - Lambor force Lw f. wiwg, tor-try. h-t001w owd fthieln .000.oeod oodorfoto of I-osO , ond 11boiog IS per- o protog 1: tota 1., 0 000. 000 foruoOsrVoot-oh loe.tda,(000) - Labo force inL ow. rtrooot owfr"lo n 010nttp.ply of food pr doy. N., -opply' of fodIs dot10 0 PnIi.tO"iwn01-111 0. a mt-PotIOlOn 0000. eqoronotttooallrouort - otsbIohs.d by USDA provide 0 rtvt atooo "0doetr!,nb ndrn labr 000000.- L btonoioao of6 000 ftoa protolo pre doy .04 20 iram. peonoo o 0f,nb 0 oso ouoiw00olaooopciOy 0) oto. endpolo prtoi, 0!ohih 10100 etnoldho 0100! prtoi. 160, 970ood 975dotO 1960 00 1970prOi-dOt1w75oedfltttn ,h .... ottdordo 00 IOwer Oh., (ho- f( 00 f I 000.7 proteIn sod 7_ oran of _n oo p F.or, go..... frro ol, pne y00-e 30000000 of who p.pIwoltio, end long tIm tr.wd. ofO stitoete PettoIlaplti 000010 uotr s s.wlol sod ouluo - Protin oupply of fond Otnf .edoo ai ato0 Ouaiw ne Vsdti.o or d_rt_d (o nlI~ -04 poltOti coo roowper do.r. ebr forc to ogo grfp of 15_64 000.. 00118d (sue 1.4, 000.! ito t ..0 ...... do A ...ol d-htb P'r th..o- - 10C000 DISTRIBUTIONO 00l01 p tog dooro t80. d-ri-d 000 ittO tobirO. . f cOt, ri-hto 20 c pe-o obohoi,ost .t drcen. od) ro-redObopohrrr 100200 oof Voot-ho1do. bir000cat a l,o (ooO- u-OorOo. f roar of lItfe rn-it- 1oo5 btt 960. (57 od(r s (00107Y T11GET 40000 rote ...0 oouad, - -coogi d-,h, of Oofo.- -d.r0 Etlootod aboolot -- 000 -0boon leve (1,) Peos Itta,-o-b-o sod -00 ocero of o per- ,oto o tj,iro Abooloto povewy Into- l-1 l 10 tOo 10000- leoI o!o h!rh .101-,1 Oo to o af cate (_00000 f roolaiov - to-el -rban ..sd ror1-I ooor ltton,il d.q.-t die, pl-o --otolo - o-food rqieeoo( 0 ote fp-ople rrl orso.ad ro..I) art rostoleocc....tn tndto oPPL to'totld-s orod oroc00000 owtdht tOl,ted robt! P:oo rooro iwnn 00 10000007-.Oe 0 00 ,r8.uoi 00.11.00peroso,of choir reup-o 10 Oolt- o. pero-e1 1r00 0( 000007. rb-t 10007 it dorlod toeh' 00"I - 0,n oot00000,oi, o.ooatoor--odp-oo toroted onoont 0fo 00neo 1 11s7000r( ng r000 lig In b Orhse-. 7100r, 7, . -ooop,oieeda oolooioreool 'Itton-o r o.ato belo hcoo,h- t HCt oosoloi niet..r 0 0o000.:idrroi -roo r...sheroootldol Iur1Pe,ood ppoaiorf0*7o0I .t,pO,'(0 0' ..e __hooldooor.rtobod :ornt too,17o Lt0' <ro (al, etrlo dtO (siyo- red oooo.o,loo ro)rifc0.O0 P, .. .... h, J- h, f-J1, -d, L-7~~~~~~~~~~~~~~~i, -d00 00,i 0  -19- ANNEX I Page 4 of 6 BOLIVIA: BALANCE OF PAYMENTS, EXTERNAL ASSISTANCE AND DEB7 (Current US dollars millions) Actual Pruvisional Proiected 1972 1973 1974 1975 1976 1977 1980 1985 A. Sum-nary Of balance of payments tnpnrtn (inc1. NFS) -260.6 -309.2 -485.1 -667.3 -711.2 -827.9 -1,167.8 -2,066.3 Enports (incl. NFS) 224.7 297.2 627.6 527.8 637.1 721.1 1,023,3 1.9I1.9 Resource bala-ce - 35.9 - 12.0 142.5 -139.5 - 74.1 -106.B _ 144.5 - 146.9 PactFor income - 21.8 - 22.9 - 37.2 - 31.4 - 41.2 92.4 - 146.8 - 264.0 Net interest paymentn 13.4) (_ 18.70) - 19.6) (- 25.9) (_ 37.1) C 54.1i l- 135.0) (- 247.8) Other fact crartor r i oae (oer) l- 8.4) C- 4.9) 9 - 17.6) (- 5.5) (. 4.1 (- 38.3) C- 11.8) (- 16.2) Current trac . fer (net) 13.4 15.4 13.7 13.1 14.0 15.0 24.8 33.3 Current account balaoce - 44.3 - 19.5 119.0 -157.8 -101.3 - 164.2 - 266.5 - 377.6 DiBeet foreign investent - 13.4 4.6 16.7 53.4 12.1 11.0 15.3 17.8 Official capital grunts 8.0 10.0 9.0 10.5 .. .. 20.4 20.0 Pnblic 6LT I.anns Disbursem.ents 122.5 37.0 108.0 150.4 292.2 427.5 446.2 685.9 Bepayssants - 28.4 - 30.3 - 30.7 - 56.6 269.7 83.5 - 173.l - 286-6 Net disb-raonst 94.1 6.7 37.3 93.0 222.5 344.0 273.1 399.3 Other long-tnrm loans tjbulrn_etn 17.7 24.0 14.2 16.4 25.0 25.0 29.0 33.0 Repaymensts - 2.- - 7,6 - 15.1 - 18.2 . 23.0 - 24.0 - 27.0 - 31.0 Non dishbrsenents 15.1 16.4 - 0.9 - 1.8 2.0 1.0 2.0 2.0 Capital transuctionso.r.s. - 40.9 - 32.1 - 89.6 - 42.5 - 74.0 -163.4 - 18.6 - 24.8 Change in set ro-eserv - 18.6 13.9 -111.5 44.4 - 61.3 - 8.4 - 23.6 - 36.7 Grants and louancuarit-ett Total M9LT Ionn 179.9 78.9 172.4 397.5 461.0 587.9 509.1 747.5 IBRD - - - 32.0 68.0 92.0 80.0 89.9 1DA 8.0 6.0 6.2 7.5 . - 10.0 Othbr snltiloteral 27.0 11.2 35.0 104.6 80.4 15.3 95.0 95.0 Governments 71.7 34.1 60.8 109.3 43.8 177.2 55.0 61.3 loppli-r 43.0 16.6 13.8 44.2 46.3 55.5 50.0 75.7 ?ioanolul institutiovs 423.1 9.9 56.0 09.3 222.5 225.7 199.1 405.6 Oth-r 10.0 1.1 0.6 10,6 - 22.2 20.0 20.0 C. Memoruodun ites Grant elemnt of total co-sit-snts (.) 32.2 36.5 39.7 19,0 19.2 13.9 Average i--ernt (7) 4.9 4.9 5.6 6.6 6.9 7.2 Ovorage muculity (yeacs) 19.2 22.0 25.6 17.6 15.0 12.4 Actual debt ou'tsotding Yublic enternal Proviional on leo. 31, 1977 debt cod debt service 1974 1975 1976 1977 D. External debt Disbur-ed only Percent IBRD 42.1 3.1 A. Medium- and tour-ben debt (disbaraed oslv) 7DA 54.8 4.1 Other -iltilatenal 94.7 7.0 Total debt outstanding (DOI end of prriod) 691.6 778.0 1,003.8 1,347.8 Go-ennm04cs 554.7 37.4 Includiog ndisbursed 889.4 1,206.8 1,585,9 2,089.8 Suppliers 89.9 6.7 Public debt -erice 68.0 80.2 104.6 135.6 Financial is onn 438.8 32.6 In oes t 17.3 23.5 34.8 51.8 Bonds 69.8 5.2 Public debt ntt 53.e3 2.9 B. Debt burden Total public M&LT debt 1,347.8 IDD,O Debt serv-ce ratio 10.8 15.2 16.4 18.8 E. Debt profile Debt service ratio /1 13.6 16.2 17.1 24.1 Debt service/GDP 3.1 3.2 3.5 3.8 Total debt servce 1978-80/ tutal DO0 ond of 1977 65.6 C. Terms Internat on DOD/DOD 2.5 3.0 3.5 3.8 D. Derendenco ratios for M6LT debt .roas disburement/imports (inl. ofs) 22.3 22.5 41.1 51.6 Net trans fer/imports (incl. cfs) 7.8 10,2 26.1 35.0 Net tracs fer/gros disbuceenrat 34.9 45.1 63.4 67.8 E. Exposure TERD DOD5/total DOD 3.0 2.7 3.1 3 Bank fro-p diob/tanal BOO 8.9 9.0 8.4 7.2 1B3D debt service/total debt service 5.0 2.0 3.6 2.9 Bank group debt service/total debt uerviao 5.4 2.6 4.2 3.4 71 -oclodiog net ditett i-nvestent income.  -DO0- _ANNOX I Page 9 of 6 BOLIVIA: ECONOMIC DEVOOLOPOIENT DATA (A, ,utst US$ million) Actual Proisional P-o7-tcd 1970- 197u- 197'- 1980- Na soul Aco,7Ott ~~~~~~~~~~~~~~L1974 1975 1976 1977 1-980 1995 1 974 1977 1980 1985 1974 1977 1990 1995 Covta-- 1977 PrAi- uifMilli.n US$ Growh fat As_Parcoo of GOY 3,7051 3-,021 3,412 3,560 4,105 5,347 t.3 5.3 5.0 35 .3 99.7 100.0 1l21.2 100.1 fr-r:-rnucr-d,, ( - 3 -139 '73 C -5 48 4 - - - - t.3 0.0 - 1.2 - 0.1 ret ons -- n 3,061 3,063 3,339 3 , 564 4,091 5,343 7 .2 5.1 4.6 5.7 100.1 100.0 130.0 100.0 5- 71 740 326 337 1,213 70 12.9 1 5 . 3 16.9 23.02 03.0 22.7 6.crr,0'710i177un0447 capt(ir4, -443 -~~~ ~ ~~~~~~536 -463 -721 LI27 -1,2 14.9 - 1.0 4.0 6.5 -24.3 -20.2 -20.1 -21.1 Otsrn 76~~~~~~~~~~~~~~~~~~~17 146 134 107 116 86 - - - - '. 5 -3.C 2.9 -16 7,1 .75 207 ,7 3,442 4,7 3.1 7 5 . 0 9.1 75.5 93.0 64.3 92.7, 70(7. 0777777 167 966 ~~~~ ~~~ ~~~~~644 70 76 1009 6.7 6.1 2.6 6,0 16. 13.6 19s 1~9. 740 520 460 519 69 972 16.0 - 7.7 7.1l 7.6 24.1l 16.6 15. 17.3 7-7-7 --<70 79 434 311 53 76 09 -17. . 77 23. 149 13. 10. A--ul Ijcu u1 Curr- PIoo,..r.nrc Ot1Incz P,-dl 52.7 6?.5~~~t> 67.?. 64 .9 37.0 1 59 .2 2 3.17 '.2 11.9 11.5 12.2 6.9 8.7 6.6 -&- 7 377 7.0.7 5 6 .0 61.8 113.7 276.1 40.0 17.9 21.4 13.0 0.6 . 10.6 11.2 F-I, 4,D ~~~ ~ ~~~~~~~772 6.1 0.2 77 .0 21.9 30.1 i5.- 17.3 1-l.0 0.6 7.9 1.0 1.2 I'll - I li j t . 1~1, - 92.( 1389. ~ 273.7, 29.6~ 419.4 19.4 22.5 7Q~7 10.7, 26.91 29.,2 077- 29.6- 'Pi , I-, 2 2 ~~~~~~~~~3.,7 235.7 207. 377. 6992 27.9 14.7 12. 13.1 41. 366 36.2 3.7 ___________________ 52.7 60.~~~~~~~~~~~~~~~~~~17,4 117.4 162.2 207. 0. 4. 11.4 12.7 10.0 16.7 156 15.5 ci ,oor('7stJ'.c(pOtt( 7.70. ~~~~~0.0 02.9 637.6 733.9 1,042.5 7,855.7 22.6 76.3 12.6 12.2 100.2 0. 0. 0. 00--7 361.6 177"3 3869 6 513.6 675.2 1,311.5 16.7 11.4 9.5 74.0616 7. 39 92 005.4 1685 1875.4 7234.9 239.6 4629.9 10. 1. 3. 2436.4~ 00.6) 26.0 24.6 76~1 (31 (640 07 77.7' '794: 7692 64.9 7.7 6217 17.6' IT7.7 731 '78972.2 46. 906.7 915.0 7,731.4 31.6 3.4 12.2 13.6 109.2 159.0 70 100.0 undo 6~~~~~~~~~~ ~~~6.37 1 8 170.0~ 117~7 799.6 69.7770.0 174.9 164 701.4 70. 3.5 9. 7.771. 71(7 ~~~~~~92.2 700 ~ q ."0:6 140 157.0 007l(Add '(747 Any al On- - '1977 P,ui00 cod E-h.ono R-tt _rA-u- A-Osl Orooc, Rutn Ao P-rrnn f Tota 1970 16-5 9 1927 1960 1995 15' 59 622 T2 7275 891 5.0 3.0 4.9 4.5 10.2 17.4 1773 1. 77777 77777 .~~~~~~~~~~ 9~00 913 960 1,010 i1.162 1,304 7.2 3.9 49 631. 28.3 292 20. 7 29 1 736 7.645 1.934 Zi_2 5 2_9 52 6t 6.6 52 5.6 52.3 So 3 54.5 65.2 --l 3~~~~~~~~~~,257 3 ,201 2,4~12 3,564 4,129 5 ,3407 6.3 5.3 9.0 3 .3 100.0 Io0 T20Th 100.0 0.744 07007(o ~~~~~~~~~~~~~~~~~~~P--nn f0 GDP Detil on As Percent of 0071 ((r7--t I n.,0 172 1 1271 1976 13~77 Public irto 0s(--a PIanO 13.71 13.7I 73.5 7269 loatsrPrna 976-80 7444045 ncpnodir77roo ~~~~~ ~~~~17.6 10.' 11.6 10.3 Agrit-lfur 9.6 7.dg-r40, -(Oi.g 2.3 2.5 1.6 2.4 MhInig a-d hydro-abon 23.4 .. ..04447i7o9.3 5.5 7.3 . Iod-str,c_droPe 5. Pith7 (lor (017I.147014 6.9 179 3. 11.3 Trn or.n tonoiolo 19.0O Pohli r evc n ool577c22.2 70 (trnoonOsOci(..ro ~~ ~ ~~ ~~~107 197 1926 1977 -72700,--it-S 1 . 9. . 9.3 A. Pnr-On of T-Ia -t707 -t i- 025 1. 2C 572 Oioa2ELu LI -19T 80 2407-r -0m, - 29C 24 20 8 25.0 Privat secto 30.0 119 7~~~~~~~~~~~~~~~~~~~. 302~ 3.? raaotrs 31.2 Or-c (47047 oooonccrcrru 100~~~Loo0 122 2 172 0 122.0 ?,,bli usco 39.0 S--ctd T,,di2t7rt190 17- 9 1985- 22176 09 ~~~~~~~~~~~~~~~~~~~23.63 3.90 HA 13.0 4~~~.0 -067u -t(00 c7(27 407 .20 .b For --r a0-p. co. W-rkor 1,, Thocos-ida 1 ~ Tccal Iror - oat.II.. ~1 Added err orker 0(r (0577 r ~~~~~~~~~~~~~~~T ~ R76 7179 1 97 1976 6 172 196 97 1976 37~~~~~~6. . 39 49 97 30.9 702> r7 00(1777cc us~~ ~ ~~~ ~ ~~~~~~ ~~~~~~ ~~~~~~~ ~~~~~.0 3.4 2,422 2.540 203.0 102.3 One 92~~~~~~~~~~~~~~~~~~~~~~~~~~8 22 2.034 2,_06 241.O 199. .o.o1 7~~~~~~~~~~~~~~~~~,0q 257 c. 00.2 3.7 7,1- 1,3356 TO02.0 T 700.  ANNEX I - 21 - Page 6 of 6 CONTRACTED PUBLIC AND PUBLICLY GUARANTEED EXTERNAL DEBT, 1969-1977 (US$ millions) 1969 1970 1971 1972 1973 1974 1975 1976 1977' International Organizations 39.1 6.9 26.8 35.0 17.2 41.2 144.1 148.4 107.3 CAF - - 0.1 2.0 1.2 - 38.1 6.7 1.7 TBRD 23.3 - - - - - 32.0 68.0 92.0 IDA 7.4 1.4 6.8 8.0 6.0 6.2 7.5 - _ TDB 8.5 5.5 19.9 25.0 10.0 35.0 66.5 73.7 13.6 Governments 30.0 17.2 35.2 71.7 34.1 60.8 109.3 43.8 177.2 Argentina 3.2 14.3 4.3 4.2 3.4 2.9 3.4 4.6 50.0 Czechoslovakia - - 3.9 1.4 - - - 0.3 - Germany F.R. 1.7 1.4 - - - 28.6 - 5.2 21.7 United Kingdom 1.4 - - 6.8 - - 1.0 k- - USA 22.7 1.5 25.3 40.0 26.5 28.8 26.9 26.3 75.5 USSR - - - 15.9 - - 0.5 5.2 16.6 Others 1.0 - 1.7 3.4 4.2 0.5 77.5 2.2 13.4 Suppliers' credits 11.5 1,6 3.9 40.1 16.6 13.8 44.2 46.3 55.5 Argentina - - 1.6 5.1 5.9 1.6 1.7 0,3 1.9 Belgium - - - - 5.8 0.1 - - - Canada - - - - 3 1.9 Denmark 0.7 1.3 - 0.8 0.2 0.2 4.9i - - Germany F.R. 3.9 0.3 - - - - 13.6 2.8 1.3 Israel - - - - - - 5.5 - - Italy 2.1 - - 26.6 - - - - - Japan - - 2.0 6.4 - - 10.8 19.5 10,3 Spain 3.3 - - - - - - - - USA - - - 1.1 0.9 1.9 2.4 25.2 Others 1.5 - 0.3 0.1 0.1 8.1 5.3 23.7 16.8 Private Banks 1.3 - 23.3 23.1 9.9 56.0 89.3 222.5 225,7 Brazil - - 12.0 7.9 4.7 13.5 - 13.7 7.7 USA 1.3 - 10,0 12.8 1.5 34.3 63.9 146.2 159.8 Others - - 1.3 2.4 3.7 8.2 25.4 62,6 58.2 Other 14.1 4.1 0,1 10.0 0.4 0.6 10.6 - 22.2 Nationalization (US ) - 78,6 - - 0.7 - - - - Total 2 96.2 108.4 89,3 179.9 78.9 172.4 397,5 461,0 587.9 /1 Provisional /2 Net of adjustments and cancellations. Source: Central Bank, TBRD Social and Economic Data Division.  - 22 - ANNEX II Page 1 of 4 THE STATUS OF BANK GROUP OPERATIONS IN BOLIVIA A. STATEMENT OF BANK LOANS AND IDA CREDITS (As of April 30, 1979) -------- US$ million Loan or (Amount less cancellations) Credit # Year Borrower Purpose Bank IDA Undisbursed Fully disbursed loans and credits 23.3 44.6 261 1971 Bolivia Livestock 6.8 0.8 455 1974 Bolivia Mining/Manufacturing 6.2 0.8 561 1975 Bolivia Agriculture 7.5 3.2 762 1978 Bolivia Ulla Ulla Development 9.0 8.4 1121 1975 ENFE Railways 28.7 0.1 1211 1976 Bolivia Rural Development 9.5 7.6 1238 1976 ENDE IV Power 25.0 7.4 1290 1976 Bolivia Mining/Manufacturing 10.0 8.1 1324 1976 Bolivia Water Supply and Sewerage 5.2 3.5 1331 1976 Bolivia Small-Scale Mining 12.0 11.0 1404 1977 Bolivia Education and Voca- tional Training 15.0 12.9 1422 1977 ENFE Third Railway 35.0 21.0 1423 1977 AASANA Aviation 25.0 23.0 1489 1977 Bolivia Urban Development 17.0 16.8 1510 1978 Bolivia Ulla Ulla Development 9.0 9.0 1587 1978 Bolivia Highway Maintenance 25.0 _ 25.0 Total 239.7 74.1 of which has been repaid 7.5 0.9 Total now outstanding 232.2 73.2 Amount sold 0.1 - of which has been repaid - 0.1 - Total now held by Bank 232.1 73.2 158.6  - 23 - ANNEX II Page 2 of 4 B. STATEMENT OF IFC INVESTMENTS (As of April 30, 1979) Fiscal Amount in US$ million Year Obligator Type of Business Loan Equity Total 1973 Plasmar, S.A. Cables and Plastic Product 0.3 0.1 0.4 1976 Banco Hipotecario Nacional Capital Market 0.3 0.3 1976 Banco Industrial S.A. Development Financing 0.6 0.6 1978 Molino Andino S.R.L. Plastic Products 2.3 - 2.3 Total 2.6 1.0 3.6 Repaid, cancelled or sold 1.2 0.4 1.6 Held by IFC 1.4 0.6 2.0 C. PROJECTS IN EXECUTION Credit 261-BO - Third Livestock Development Project, US$6.8 million, June 23, 1971; Effective Date: September 15, 1971; Closing Date: December 31, 1979. The credit portion of the project has been almost fully disbursed; only about US$800,000 including about US$400,000 for technical assistance remains to be disbursed and the credit should be fully disbursed by the Closing Date. Credit 455-BO - Mining Credit Project, US$6.2 million, January 18, 1974; Effective Date: June 18, 1974; Closing Date: June 30, 1979. The project is proceeding satisfactorily and the credit should be fully disbursed by the Closing Date or shortly thereafter. Credit 561-BO - Agricultural Credit I, US$7.5 million, June 20, 1975; Effective Date: December 15, 1975; Closing Date: March 31, 1981. Funds originally allocated for cattle are fully committed; credit demand for grape production has been as anticipated, whereas demand for sheep, annual crops and sugarcane has been less than anticipated. Demand for sheep and annual crops funds is expected to accelerate but the demand for sugarcane is not expected to materialize in the near future. Loan 1121-BO - Second Railway Project, US$28.7 million, June 5, 1975; Effective Date: August 6, 1975; Closing Date: December 31, 1979. Project progress has been satisfactory with performance targets either having been attained or exceeded. The loan is now almost fully committed.  - 24 - ANNEX II Page 3 of 4 Loan 1211-BO - Ingavi Rural Development Project, US$9.5 million, March 8, 1976; Effective Date: October 7, 1976; Closing Date: June 30, 1982. There have been delays in the implementation of some components of the project. Corrective measures have been taken and the project is now proceeding satisfactorily. Loan 1238-BO - Fourth ENDE Power Project, US$25 million, June 2, 1976; Effective Date: August 23, 1976; Closing Date: June 30, 1980. The project has recently been delayed somewhat by poor performance of local contractors and difficulties experienced in the transportation of a major equipment component. Overall progress of the project has been satisfactorily. Loan 1290-BO - Banco Industrial Mining and Industrial Credit Project, US$10 million, October 15, 1976; Effective Date: April 14, 1977; Closing Date: December 31, 1980. After initial delays, the project is now proceeding satisfactorily. Loan 1324-BO - Urban and Rural Communities Water Supply and Sewerage Project; US$11.5 million, October 15, 1976; Effective Date: December 10, 1976; Closing Date: June 30, 1981. The Government has requested that the water supply and sewerage investments for the cities of Sucre and Potosi be cancelled inasmuch as these cities are not prepared to proceed- without substantial Government subsidies. In spite of initial delays, the rural component of the project is now proceeding satisfactorily. Loan 1331-BO - Small-Scale Mining Development Project, US$12 million, October 15, 1976; Effective Date: July 15, 1977; Closing Date: December 31, 1980. Due to institutional and managerial problems, the preparation of subprojects was delayed about 15 months. To facilitate loan utilization a number of measures were taken in mid 1978; the first disbursement under the credit component was authorized November 1978. Loan 1404-BO - Education and Vocational Training Project, US$15 million, May 11, 1977; Effective Date: September 7, 1977; Closing Date: December 31, 1981. The project has experienced some initial delays but is now proceeding satisfactorily.  - 25 - ANNEX II Page 4 of 4 Loan 1422-BO - Third Railway Project, US$35 million, June 6, 1977; Effective Date: September 29, 1977; Closing Date: December 31, 1981. The progress of the project has been seriously impaired by recent heavy rains and extensive floodings. A reduction in the project scope is expected as the railways have to divert funds to repair damages. The Bank is discussing with Government on how best to proceed. Loan 1423-BO - Aviation Development Project; US$25 million, June 9, 1977; Effective Date: September 29, 1977; Closing Date: June 30, 1983. The project has been delayed by about nine months because of poor weather conditions and management changes. Most components are now proceeding satisfactorily. Loan 1489-BO - Urban Development Project, US$9 million, November 30, 1977; Effective Date: June 22, 1978; Closing Date: June 30, 1983. The project has been delayed nine months because of slow processing of subsidiary loan agreements. Most components are now proceeding satis- factorily. Loan 1510-BO and Credit 762-BO - Ulla Ulla Development Project, US$9 million each, April 6, 1978; Effective Date: July 31, 1978; Closing Date: June 30, 1983. The project is proceeding as scheduled. Loan 1587-BO - Highway Maintenance Project, US$25 million, July 10, 1978; Effective Date: October 4, 1978; Closing Date: December 31, 1983. Initiation of the maintenance works delayed six months because beneficiary has to concentrate on emergency measures to repair damages to road system, caused by heavy rains and extensive flooding. No further delays are expected.  - 26 - ANNEX III Page 1 of 2 BOLIVIA SANTA CRUZ WATER SUPPLY AND SEWERAGE PROJECT SUPPLEMENTARY DATA PROJECT SHEET Section I - Timetable of Key Events (a) Time taken to prepare project: 2 years (b) Agency which prepared the project: SAGUAPAC (c) First presentation to IDA: August 1977 (d) First IDA mission to review project: December 1977 (e) Departure of appraisal mission: December 1978 (f) Completion of negotiations: May 11, 1979 (g) Planned Date of Effectiveness: October 1979 Section II - Special IDA Implementation Actions None Section III - Special Conditions SAGUAPAC agreed: to consult with IDA before changing its General Manager (para. 34); to prepare a statement on its personnel policies by December 31, 1979 for review by IDA (para. 35); to value its fixed assets by November 30, 1979 and, at the end of each fiscal year thereafter, revalue its fixed assets in accordance with principles and procedures satisfactory to IDA (para. 36); to establish, by January 1, 1980, a revolving fund to finance the cost of in-house plumbing and lot lines (para. 41); to review the interest rate from time to time, and to adjust it if necessary, in order to maintain, along with other resources which would become available to the fund, the dollar value of the proceeds of the IDA credit used to set up the fund (para. 41); and to adjust its tariffs so as to attain annual rates of return on revalued fixed assets of 1.5% in 1980, 5.0% in 1981, 5.5% in 1982, 6% thereafter (para. 44). The Following are Conditions of Credit Effectiveness (a) SAGUAPAC has established planning and engineering units with functions satisfactory to IDA (para. 35). (b) SAGUAPAC has contracted: (i) engineering consultants to IDA to prepare the bidding documents, to help in bid evaluation and to supervise construction; and (ii) management consultants to help improve its management and organization (para. 38).  - 27 - ANNEX III Page 2 of 2 (c) SAGUAPAC and the Corporation have entered into a contractual agreement whereby the Corporation would contribute US$2.5 million equivalent to finance the project in accordance with a schedule acceptable to IDA (para. 41). (d) The Borrower and SAGUAPAC have executed a subsidiary Loan Agreement satisfactory to IDA (para. 41). (e) SAGUAPAC has obtained revenues in pesos of US$0.175 equivalent ($b3.50) per cubic meter from water supply and sewerage charges and taken all steps necessary to collect fix charges for new service connections (para. 42).   IBRD 14126 MARCH 1979 * I *L. P..~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~s LO - ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~~~~~~~~~~/iO IN D U 5 T R I A L~~~~~~~~~~ ). 4. 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