Nepal - Municipal Development and Earthquake Emergency Housing Reconstruction Project

Document of The World Bank FOR OFFICIAL USE ONLY Report No. P-4875-NEP MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT OF SDR 30.9 MILLION TO THE KINGDOM OF NEPAL FOR A MUNICIPAL DEVELOPMENT AND EARTHQUAKE EMERGENCY HOUSING RECONSTRUCTION PROJECT JANUARY 27, 1989 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.  CURRENCY AND EQUIVALENT UNITS Nepalebe Rupee (NR) - 100 paisa US$1 - NRs 24.4 WEIGHTS AND MEASURES 1 meter (m) - 3.28 feet (ft) 1 kilometer (km) - 0.62 mile (mi) 1 hectare (ha) - 2.47 acres (ac) 1 square kilometer (km2) - 247 acres (ac) 1 kilogram (kg) - 2.2046 pounds (lbs)-avoirdupois ABBREVIATIONS BOARD - Town Development Fund Board EEHRC - Earthquake Emergency Housing Reconstruction Component GTZ - German-Agency for Technical Cooperation HMGN - His Majesty's Govermnent of Nepal MDC - Municipal Development Component MHPP - Ministry of Housing and Physical Planning MPLD - Ministry of Panchayat and Local Development NGO - Non-Government Organization UNDP - United Nations Development Programme FISCAL YEAR July 16 - July 15  FOR OFFICIAL USE ONLY NEPAL MUNICIPAL DEVELOPMENT AND EARTHQUAKE EMERGENCY HOUSING RECONSTRUCTION PROJECT Credit and Project Summary Borrower The Kingdom of Nepal Beneficiaries : The Town Development Fund Board (the Board) and town panchayats in Nepal; the Ministry of Housing and Physical Planning (MHPP) and earthquake affected households. Amount . SDR 30.9 million (US$41.5 million equivalent) Terms : Standard, with 40 years' maturity Project Description: The project comprises two distinct streams of investments: the Municipal Development Component (MDC); and the Earthquake Emergency Housing Reconstruction Component (EEHRC). Both components will be coordinated by the Ministry of Housing and Physical Planning. MDC: This component would assist town panchayats to provide infrastructure and municipal services by: (a) establishing the Board, as a pilot operation, which would have a line of credit for financing priority projects; (b) strengthening the Board through technical assistancet and (c) providing technical assistance and training to town panchayats. EEHRC: This component would: (a) assist in the reconstruction of houses damaged in the August 1988 earthquake; and (b) provide longer term technical assistance to (i) mitigate the effects of future disasters; (ii) improve building construction techniques; and (iii) develop a housing strategy. Onlending Terms : MDC: Government to the Board: 3Z p.a. over 25 years including five years' grace period. The Board to town panchayats: (a) for social infrastructure projects, at 8% p.a. for a maximum of 18 ye-ars including a maximum grace period of three years; (b) for revenue-generating projects, at 12% p.a. for a maximum of 12 years including a maximum grace period of two years. EEHRC: Government would pass on the proceeds of the credit to two commercial banks (Nepal Bank, Ltd. and Rastriya Banijya Bank) and the Agriculture Development Bank at 14Z p.a., with a term of eight This document has a restricted distribution and may be used by recipients only in the performance of their official duties. ts contents may not otherwise be disclosed without World Bank authorization.  -ii- years including a two-year grace period on principal. The banks would onlend, nominally, at 19? but require borrowers to repay only at 12, 102 and 15Z depending on loan size. The interest differential would be paid to the banks by Government from its budgetary resources. The Government would bear the foreign exchange risk on MDC and EEHRC. Financing Plan Government USS 4.7 million Town Panchayats 1.8 million UNDP 5.1 million GTZ 1.7 million IDA 41.5 million TOTAL US$54.8 million Economic Rate of Return : Not Applicable Staff Appraisal Report : Report No. 7413-NEP Map : IBRD 20783R  MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT TO THE KINGDOM OF NEPAL FOR A MUNICIPAL DEVELOPMENT AND EARTHQUAKE EMERGENCY HOUSING RECONSTRUCTION PROJECT 1. The following memorandum and recommendation on a proposed development credit to Nepal for SDR 30.9 million (US$41.5 million equivalent) is submitted for approval. The proposed credit would be on standard IDA terms, with 40 years maturity, and would help finance two distinct streams of investments: (a) a municipal development component (MDC); and (b) an earthquake emergency housing reconstruction component (EEHRC). The MDC was appraised in June 1988 as an independent project. The EEHRC was appraised in October 1988, and it was determined that a timely response to the earthquake emergency could best be achieved through appending the EEHRC to the municipal development project. Hence, the combined project has two orientations. However, one ministry would be responsible for coordinating both components. The project would be cofinanced by the United Nations Development Programme (UNDP) which will provide US$5.1 million, and the German Agency for Technical Cooperation (GTZ), about US$1.7 million, both through grants. 2. Urban Sector Backgriund. Nepal's urban population i3 about 1.6 million, approximately 102 of total population, and is growing at about 4% per year. His Majesty's Government of Nepal (HMGN) acknowledges that achieving even minimum levels of service provision in the country's 33 town panchayats (municipalities) will require a scale of investment considerably greater than heretofore, together with major improvements in urban administration. Local governments have long been starved of investment funds (HMGN grants have been reduced by 102 in nominal terms over the last five years); the towns have also lacked the administrative, technical, and financial capacity necessary to cope with rapidly increasing demands on public services. An additional factor bearing on urban management is HMGN's current commitment to promoting the decentralization of planning and development functions from central ministries to lower levels of government. HMGN has accepted that implementing and sustaining a crelible investment program within the decentralization framework would require that, as a necessary first step, the management, finances and operations of the town panchayats be strengthened; only then, will tney be able to make good use of new capital inputs. Accordingly, HMGN has adopted an approach which gives immediate emphasis to management strengthening in the towns. This approach proceeds from the assumption that while structural matters such as town finance legislation and the division of responsibilities between central and local governments need to be addressed over time, significant improvements in managerial performance can be achieved in the short term through a targeted program of technical assistance and training. Support for such a program has been provided over the past three years by UNDP under two phases of the UNDP--financed/World Bank-executed project  - 2 - (NEP/85/010 and NEP/86/021); this project aims to assist the town panchayats deliver and maintain municipal services within the constraints imposed by their current financial and management resources; to improve local financial management and revenite generation; to formulate the institutional and financial framework necessary to justify a subsequent physical investment program; and to develop the investment plans themselves. Results to date have been impressive, and significauc improvements in resource mobilization, operating efficiency and revenue utilization have been demonstrated at the town panchayat level. At the central level, legislative changes have been incorporated in the Bill of Amendment to Townt Panchayat Act 2019 to revise outdated local tax rates, eliminate confusion in the existing legislation, and revamp the structure of town government finances. The Bill was endorsed oy the National Assembly in August 1987, and signed by His Majesty the King in October 1987. 3. Earthquake Emergency Background. An earthquake measuring 6.7 on the Rict.ter scale struck parts of Central and Eastern Nepal on August 21, 1988. Over 720 persons died and extensive damage, estimated at NRs 4.2 billion (US$170 million), occurred to housing, schools, hospitals, public buildings, roads an.d bridges. HMGN mounted a relief operation coordinated by the Ministry for Housing and Physical Planning (MHPP). It included care for the injured, NRs 2,000 for a death, NRs 1,000 for loss of a house, plastic sheets for emergency shelter, cloth and 40 kg of rice per family. This phase has now been completed; the reconstruction phase has commenced on the basis of a comprehensive earthquake reconstruction program. HMGN requested support from the donor community, including road reconstruction from the Asian Development Bank. In addition to this earthquake emergency component for housing--the sector which suffered the heaviest damage under the earthquake--IDA is considering a Government request for reallocating funds under the Primary Education Project (Credit 1463-NEP) for the repair and reconstruction of schools. 4. Rationale for IDA Involvement. The proposed municipal develonment component would represent a logical evolution from IDA's initial focus in infrastructure operations on a single organization dealing with specific subsectors (water supply and transportation) to a broader emphasis on sector policy and public administration issues. IDA has been building on its role as a catalyst for change and as a technical resource in munii. )al wanagement and infrastructure development in Nepal through sector work, project preparation and execution of the UNDP-financed project. IDA is therefore well positioned to assist HMGN in expandi-g the current town panchayat development initiative. The project would al build upon three areas of development policy which the first structural adjustment loan has emphasized as crucial--the rationalization of investment programming, the mobilization of local resources, and the improvement of public administration. For the EEHRC, HMGN requested IDA for emergency assistance following the August 1988 earthquake. The proposed earthquake emergency housing reconstruction component was appraised in October 1988 at the request of HMGN, for emergency assistance.  - 3 - 5. Pro4!ct Objectives. The MDC would draw on the experience of the UNDP-financed/World Bank-executed project and would support the effective planning, delivery, and maintenance of infrastructure and municipal services in town panchayats. It would (a) establish (as a pilot operation) the Town Development Fund Board (the Board), to provide town panchayats with direct access to long-term loan finance in support of their development plans and programs in accordance with HMGN's decentralization policy and its Basic Needs Programme; and (b) strengthen the town panchayats technical, financial and institutional capacity to plan, implement and manage their projects and services through technical assistance and training. The EEHRC would: (a) assist HMGN in its program to reconstruct housing damaged during the earthquake; (b) improve construction standards and develop earthquake resistant features for incorporation in buildings through planning and development control regulations; (c) provide technical assistance and training for the housing sectcr to address longer term needs; and (d) addre_.s the environmental impact relating to the excessive use of timber in buildings and building products manufacture. 6. Project Description. The MDC would include: (a) the financing of the establishment and management costs of the Board during the first three years of operations; (b) a US$11.1 million line of credit to the Board for financing priority social infrastructure and revenue-generating projects in eligible town panchayats; (c) about US$1.7 million grant to the Board for technical assistance and demonstration civil works; (d) technical assistance and training to develop the Board's operations and procedures; (e) equipment for the Board; and (f) technical assistance and training for MPLD, MHPP and the town panchayats. The Board will be responsible for appraising and approving projects on the basis of technical, financial, economic and environmental criteria agreed with IDA. Investments worth about US$15.0 million which are potentially suitable for loan financing have already been identified by the town panchayats. Ten town panchayats presently meet the finan .al eligibility test to quallfy for loans. Town panchayats would be required to provide the necessary land plus at least 1O2 cash cortribution from their own resources. The component, to be carried out over eight years, provides funds for civil works, equipment and materials, consultant services and the establishment and management costs of the Board for the first three years. The total cost of MDC is estimated at US$17.8 million equivalent, with a foreign exchange component of US$10.2 million (57Z). 7. The EEHRC would include: (a) training for about 300 contract staff to facilitate house reconstruction of affected households; (b) house reconstruction loans estimated at NRs 710.0 mJllion (US$29.1 million); (c) 42 demonstration houses, which will show elementary earthquake resistant features; (d) support for non-government organizations (NGOs); (e) production of building materials; (f) grants for low cost sanitation and improved stoves; (g) project management costs; and (h) longer term technical assistance and training to: (i) mitigate the effects of earthquake and other natural disasters; (ii) prepare a national building code incorporating earthquake resistant features; (iii) carry out epicentral and seismic mapping; (iv) develop a housing strategy; (v)  - 4 - develop new building products; (vi) study alternatives to timber in buildings and building products; and (vii) prepare a housing sector project. The house reconstruction loan facility would be sufficient for: (a) 63,000 loans in rural areas with an average size of NRs 8.600; (b) 410 loans in District Headquarters with an average loan size of NRs 18,000; and (c) 2,340 loans for urban areas with an average loan size of NPs 40,000. The loan ceilings would be NRs 10,000, NRs 20,000 and NRs 50,000 for rural, District Headquarters and urban areas, respectively. The Ministry of Finance would pass the proceeds of the credit to. two commercial banks (Nepal Bank, Ltd. and Rastriya Banijya Bank) and the Agriculture Development Bank at 142 p.a. The baniks would, nominally, onlend to affected households at their prevailing interest rate for this type of operation. currently 19Z. The repayment terms to affected householders, however, would be: (a) the first NRs 5,000 at 1I interest p.a., the second NRs 5,000 at 102 interest p.a. and amounts above NRs 10,000 to NRs 50,000 at 152 p.a. Repayments would be spread over eight years with two years grace on repayment of principal and interest on the first NRs 5,000, and two years grace on principal only above NRs 5,000. The government would pay the interest differential to the banks from its budgetary resources. Retroactive financing not exceeding US$6.2 million, or 20? of the credit allocated to this component, from November 1, 1988 is recommended. The total cost of EEHRC is estimated at US$37.0 million equivalent, with a foreign exchange component of US$11.8 million (321). 8. A breakdown of costs and the financing plans for MDC and EEHRC are shown in Schedule A. Amounts and methods of procuremeu4t and of disbursements, and the disbursement schedule, are shown in Schedule B. A timetable of key project processing events and the status of Bank Group operations in Nepal are given in Schedules C and D, respectively. A map is also attached. The Staff Appraisal Report, No. 7413-NEP, dated February 1, 1989, is being distributed concurrently. 9. Agreed Actions/Conditions. HMGN has established the Board through a Formation Order under the Development Board Act 2013, making it a corporate body with financial and legal autonomty. Conditions of effectiveness for MDC would be: (a) approval of the Board's General Policy Statement and Rules and Regulations; (b) appointment of an Executive Director of the Board; (c) authorization or ratification of a subsidiary loan agreement between HMGN and the Board; (d) appointment of a cadre of staff of the Board; (e) effectiveness of the GTZ Agreement; (f) signature of two Project Documents Detween HMGN and UNDP for the provision of technical assistance and training to: (i) the Board; and (ii) MPLD, MHPP and the town panchayats; (g) retention of consultants for the above mentioned technical assistance and training; and (h) payment of NRs 5 million equity contribution to the Board by HMGN. Conditions of effectiveness for EEHRC would be: (a) HMGN entering into financial agreements with the three banks making housing reconstruction loans; and (b) signature of two Project Documents between HMGN and UNDP for (i) the provision of the services of a program advisor to MHPP; and (ii) the longer term technical assistance requirements to mitigate, inter alia, the adverse effects of natural disasters.  10. Benefits. For MDC, three types of benefits are anticipated: those accruing from infrastructural investment, those accruing from _nst- tional reform, and those deriving from the private sector. Though difficult to quantify, relatively high economic returns are expected from the investment components, with substantial commercial, environmental and health benefits. Experience with similar municipal projects elsewhere in the Region indicates that ERRs of about 244 and 182 can be estimated for road and drainage improvement schemes respectively. The establishment of sound fiscal and management discipline and the improved operation/maintenance of physical assets will enhance the value of existing and planned investments, contribute to local autonomy and decision making, and lessen the town panchayats' demands on scarce central government resources. The MDC will also support and develop local consultants' capability in urban development. The EEHRC will help affected householders to reconstruct/rehabilitate their homes. The loan component will directly benefit about 460,000 persons, of whom about 370,000, or 80?, are classified as poor. The other components of EEHRC will confer also, indirectly, benefits to the poor. Initiatives to introduce new building products and Leduce the use of timber in buildings, building products manufaccure and domestic use will slow down deforestation and thus improve the environment. The economic benefits of EEHRC, although not calculated, are likely to be substantial. 11. Risks. The major risks of MDC relate to a possible lessening of HMGN commitment to pursuing the performance-oriented strategy implicit in the component, and to the pervasive difficulty of recruiting and retaining qualified staff at the Board. The establishment of eligibility and appraisal criteria, and guidelines for project financing together with supervision by IDA, strong technical assistance support, and systematic provision of training should minimize the first risk. IDA support for the establishment and management of the Board through t a first three years of its operations would minimize the second risk. The main risk of EEHRC is the potential for default on loan repayment, especially loans to rural households, which cannot be minimized. HMGN would set up a reserve to cover possible defeults on these loans. 12. Recommendation. I am satisfied that the proposed credit would comply with the Articles of Agreement of the Asuociation and recommend that the Executive Directors approve the proposed credit. Barber B. Conable President Attachments Washington, D.C. January 27, 1989  -6- Schedule A Page 1 of 2 NEPAL MUNICIPAL DEVELOPMENT AND EARTHQUAKE EMERGENCY HOUSING RECONSTRUCTION PROJECT Estimated Costs and Fin&ncing Plan Cost MDC Estimated Costs Local Foreign Total -----(US$ million)--- Town Development Fund Board (Board) Establishment and Management of the Board 0.4 0.0 0.4 Investment Projects 6.8 7.8 14.6 Equipment for the Board 0.0 0.2 0.2 Subtotal 7.2 8.0 15.2 Technical Assistance and Training Fot the Board 0.0 0.9 0.9 For Urban Development 0.4 1.3 1.7 Subtotal 0.4 2.2 2.6 Total Project Cost /a 7.6 1.2 17.8 Cost MDC Financing Plan Local Foreign Total -----(US$ million)---- HMGN 1.2 0.0 1.2 Town Panchayats 1.8 0.0 1.8 UNDP 0.4 2.2 2.6 GTZ 0.0 1.7 1.7 IDA 4.2 6.3 10.5 Total 7.6 10.2 17.8 /a Including taxes and duties of US$0.4 million.  -7- Schedule A Page 2 of 2 Cost EEHRC Estimated Costs Local Foreign Total -------(US$ million)---- House Reconstruction Loans 20.8 8.3 29.1 Demonstration Housing and Support to NGOs 0.4 0.2 0.6 Building Materials Production 0.3 0.7 1.0 Grants for Sanitation and Stoves 1.4 0.0 1.4 Project Management 1.7 0.7 2.4 Technical Assistance and Training 0.6 1.9 2.5 Total Project Cost la 25.2 11.8 37.0 Cost EEHRC Financing Plan Local Foreign Total -- (US$ million)---- .JMGN 3.5 3.5 UNDP 0.0 2.5 2.5 IDA 21.7 9.3 31.0 Total 25.2 11.o 37.0 /a Including taxes and duties of US$0.5 million. Cost Project Financing Plan Local Foreign Total (MDC and EEHRC) -------(US$ million)---- HMGN 4.7 0.0 4.7 Town Panchayats 1.8 0.0 1.8 UNDP 0.4 4.7 5.1 GTZ 0.0 1.7 1.7 IDA 25.9 15.6 41.5 Total 32.8 22.0 54.8  -8- Schedule B Page 1 of 2 NEPAL MUNICPAL DEVELOPMENT AND EARTHQUAKE EMERGENCY HOUSING RECONSTRUCTION PROJECT Procurement Method and Disbursements Procurement Method Method Project Component International Prudent LCB Other Total Shopping Shopping Cost -------------------(US$ million)--------------- Establishment and 0.4 0.4 Management of the Board (0.4) (0.4) Project Management (EEHRC) 2.3 2.3 (2.3) (2.3) Investment Projects (MDC) /a 0.9 '11.0 2.7 14.6 (0.9) (8.8) (0.2) (9.9) Home Reconstruction Loans 29.1 29.1 (25.7) (25.7) Demonstration Houses 0.1 0.1 (0.1) (0.1) Building Materials 1.0 1.0 Production (0.9) (0.9) Grants (EEHRC) 1.9 1.9 (1.9) (1.9) Equipment for the Board 0.2 0.2 (0.2) (0.2) Training for Reconstruction 0.1 0.1 (EEHRC) (0.1) (0.1) Technical Assistance lb 5.1 5.1 Total 1.1 1.1 11.1 41.5 54.8 (1.1) (1.0) (8.9) (30.5) (41.5) Note: Figures in parentheses are the respective amounts to be financed by IDA. /a Includes grant from the GTZ, and contributions from HHGN and the Town Panchayats. /b Financed by UNDP.  Schedule B Page 2 of 2 Disbursements Category Amount Proportion (US$ million) (%) Establishment and Management 2.7 100% of expenditures Costs Civil Works (MDC) 7.4 802 of expenditures Civil Works (EEHRC) 0.1 902 of expenditures Equipment and materials 3.4 1002 of foreign expenditures, 1002 (ex-factory) of local expenditures, or 70 of local expenditures Technical Assistance (MDC) 0.2 100% of expenditures House Reconstruction Loans 25.7 85% of sub-loans Grants (NGOs, Sanitation, Stoves) 1.9 1002 of expenditures Training for Reconstruction 0.1 100% of expenditures Total 41.5 100% of expenditures IDA Fiscal Year Estimated IDA Disbursements 89 90 91 92 93 94 95 96 - - - - - - - - - (US$ million)- - - - - - - Annual 0.0 30.3 2.6 2.2 1.6 2.0 1.8 1.0 Cumulative 0.0 30.3 32.9 35.1 36.7 38.7 40.5 41.5  -10- Schedule C NEPAL MUNICIPAL DEVELOPMENT AND EARTHQUAKE EMERGENCY HOUSING RECONSTRUCTION PROJECT Timetable of Key Project Processing Events (a) Time taken to prepare: MDC 14 mcnths EEHRC 3 months (b) Prepared by: MDC Government with UNDP and GTZ assistance EEHRC Government/UNDP assistance (c) First IDA mission: MDC November 1987 EEHRC October 1988 (d) Appraisal mission departure: MDC June 1988 EEHRC October 1988 Ce) Negotiations: January 1989 (f) Planned Date of Effectiveness May 31, 1989 (g) List of relevant PCRs and PPARS: None  Schedule D Page Ilof 2 NEPAL MUNICIPAL DEVELOPMENT AND EARTH UAKE EMERGENCY HOUSING RECONSTRUCTION PROJECT The Status of Bank Group Operations in Nepal A. STATEMENT OF CREDITS a/ b/ (As of September 30, 1988) Amount (less cancellations) --- USS million --- No. Year Borrower Purpose IDA Undisbursed Twenty-three credits fully disbursed 198.1 - 939 1979 Kingdom of Nepal Second Rural Development 11.0 S.4 1008 1980 Kingdom of Nepal Community Forestry 17.0 0.3 1055 1980 Kingdom of Nepal Irrigation (Mahakali) 16.0 1.7 10S9 1981 Kingdom of Nepal Third Water Supply & Sewerage 27.0 0.S 1100 c/ 1981 Kingdom of Nepal Agricultural Ext. A Research 17.5 4.4 1101 cj 1981 Kingdom of Nepal Hill Food Production 8.0 4.1 1198 c 1982 Kingdom of Nepal Second Education 14.3 6.3 1260 c/ 1982 Kingdom of Nepal Petro. Exploration Promotion 7.9 2.5 1316 c/ 1983 Kingdom of Nepal Irrig. VI-Bhairawa Lumbini 16.0 6.5 1339 c/ 1983 Kingdom of Nepal Cash Crop Development 6.0 1.8 1379 c/ 1983 Kingdom of Nepal Technical Assistance II 6.0 2.9 1400 c/ 1984 Kingdom of Nepal Second Forestry 16.0 16.9 1452 S/ 1984 Kingdom of Nepal Karnali Preparation 11.0 4.9 1463 c/ 1984 Kingdom of Nepal Primary Education 12.8 11.2 1478 c/ 1984 Kingdom of Nepal Marsyangdi Hyrdoelectric Pwr. 107.0 89.1 1515 c/ 1985 Kingdom of Nepal Third Highways 47.5 44.9 1534 c/ 1985 Kingdom of Nepal Agricultural Manpower Dev. 8.4 9.7 1535 c/ 1985 Kingdom of Nepal Industrial Development 7.5 5.8 1570 c/ 1985 Kingdom of Nepal Agricultural Extension II 7.2 8.1 1588 cJ 198S Kingdom of Nepal Telecommunication IV 22.0 22.0 1696 c/ 1986 Kingdom of Nepal Cottage and Small Ind. II 10.0 8.9 1715 c/ 1986 Kingdom of Nepal Narayani III Irrigation 24.5 27.3 1727 c/ 1986 Kingdom of Nepal Third Rural Development 19.1 20.5 1769 c/ 1987 Kingdom of Nepal First Struc. Adjustment Cr. 50.0 4.8 1814 c/ 1987 Kingdom of Nepal Sunsari Morang Irrigation II 40.0 37.6 1902 j/ 1988 Kingdom of Nepal Third Technical Assistance 14.4 13.7 1922 d/ 1988 Kingdom of Nepal Road Flood Rehabilitation 15.5 14.4 1924 'i/ 1988 Kingdom of Nepal Mahakali Irrigation II 41.3 38.6 Total 799.0 414.8 of which has been repaid 3.8 Total now outstandina b/ 795.2 Amount sold 0.0 Total now held by IDA 795.5 Total undisbursed 414.8 a/ No Bank loans have been made to Nepal b/ Prior to exchange adjustments. c/ IDA 6th and 7th Replenishment Credits, principal amounts shown in US Dollar equivalent at date of negotiations, as shown in President's Reports, and undisbursed amounts shown in US Dollar equivalents are valued at the exchange rate applicable on the date of this statement. In some cases, therefore, the undisbursed balance indicates a dollar amount greater that the original principal credit amount expressed in dollars. d/ Not yet effective  -12- Schedule D Page 2 of 2 NEPAL MUNICIPAL DEVELOPMENT AND EARTHQUAKE EMERGENCY HOUSING RECONSTRUCTION PROJECT B. STATEMENT OF IFC INVESTMENTS (As of September 30, 1988) Investment Fiscal Type Original Investment/a IFC Holding Total No. Year Obligor Business Equity Loan Total EqityLoan rtal Undiabursed 312 NEP 1976 Soaltee Tourism 0.4 2.7 3.1 0.4 -- 0.4 -- Hotel Limited 624 NEP 19e2 Nepal Mining -- 6.0 6.0 -- 7.7 7.7 -- Orind Magnesite (private) Limited Total .77 UT U.7 7T7 CT a/ There are no participants  IBRD 20783R i4R U N E P A L 88 MUNICIPAL DEVELOPMENT AND EARTHQUAKE EMERGENCY CHINA icon HOUSING RECONSTRUCTION PROJECT I N D i A 5 C4H ~~- a ? INAtw Pchinyt Undelr P,n1ect olZlltn.Cbmorf INDIA CHINAoa."" Fon Winh Suborolonn: Ho-oRb-, Prep,nod U .. Boondb,it ol ood , WD.oolopntonto.ff,. Z Uoion 3oWdho