Mexico - Third Technical Training (CONALEP III) Project

Docmunt of The World Bank FOR OMCIAL USE ONLY Repot NO- P-5549-ME MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN IN AN AMOUNT EQUIVALENT TO US$152.0 MILLION TO NACIONAL FINANCIERA, S.N.C. WITH THE GUARANTEE OF THE UNITED MEXICAN STATES FOR A THIRD TECHNICAL TRAINING PROJECT MAY 31, 1991 This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may ot otherwise be disclosed without World Back authorization.  UNITED MEXICAN STATES Currencv Eauivalents (as of March 31, 1991) US$1.00 - Mexican Peso ($)2,945 Mex. $1.00 - US$0.0003395 PRINCIPAL ACRONYMS USED CONALEP: National System for Vocational and Technical Education (Colegio Nacional de Educacion Profesional Tecnica) ICB: International Competitive Bidding LCB: Local Competitive Bidding KAPIN: Nacional Financiera, S.N.C. (National Finance Co., Inc.) Fiscal Year January i to December 31 School Year September 1 to June 30  FYOR OFmFCIAL USE ONLY UNITED MEXICAN STATES THIRD TECHNICAL TRAINING PROJECT 1oan and Prolect Summary Borrower: Nacional Financiera, S.N.C. Guarantor: United Mexican States Beneficiarv: National System for Vocational and Technical Education (COUALEP; Amount: US$152.0 million equivalent Terms: To be repaid over 17 years, including 5 years of grace, at the standard variable rate Local Foreign Total (millions) Financina Plan: Government 52.5 - US$ 52.5 Bank 25.2 126.8 USS 152.0 Total 77.7 126.8 US$ 204.5 Economic Rate of Return: Not applicable Staff Aporaisal Reoorts Report No. 9534-1! Dated May 31, 1991 .Rps IBRD No. 23052 This document has a restricted distribution and may be used tv reCipit. ts only in the performance of their ofcial duties. Its contents may not otherwise be discioLed withuo World Bank authorization.  MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE IBRD TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN TO NACIONAL FINANCIERA, S.N.C. (NAPIN) FOR A THIRD TECHNICAL TRAINING PROJECT 1. I submit for your approval the following memorandum and recommendation on a proposed loan to Nacional Financiera, S.N.C. (NAFIN) (with the guarantee of the United Mexican States) for the equivalent of US$152.0 million to help finance a technical training project. The loan would be at the Bank's standard variable interest rate, with a maturity of 17 years, including five years of grace. NAFIN would be the borrower, and the National System for Vocational and Technical Education (CONALEP) would be the executing agency. 2. Background. After a long and deep recession, Mexico's successful economic reform and restructuring program has enabled it to resume growth. Expansion is strong in the maquiladora and related industries and has started in the tourism sector, but enterprise maL.agers complain about skilled manpower shortages, particularly at middle levels of qualification. At the same time, unemployment continues high among unskilled labor and secondary school dropouts and graduates (30% for lower and 452 for upper secondary schools). In addition, Mexico is facing new challenges as a result of trade liberalization and international competition; it has to improve the productivity of its labor force. Unlike many other countries in Latin America, small and medium sized enterprises providing a high proportion of total employment in Mexico do not have payroll taxes or fiscal incentives to provide training (e.g., tax deductions for training expenditures), and therefore have no structured in-house training programs for the preparation of skilled workers and middle-level technicians. However, many companies are willing to make financial contributions to external training. 3. To strengthen training at the skilled worker and middle technician levels in a way different from the conventional vocational/technical secondary education, the Government created in 1978 the National System for Vocational and Technical Education (CONALEP), a semi-autonomous, decentralized government agency, funded mainly from the federal budget through the Secretariat of Education. CONALEP trains adolescents who aim to enter the labor market upon completion of training, and adults who are already employed or who have had work experience. With the help of two Sank loans (Lns. 2042-ME and 2559-ME in 1981 a>xd 1985, respectively), CONALEP has built up a nationwide system of 252 training centers with an annual enrollment of about 239,000 students (174,000 students in grades 10-12 for pre-service training and 65,000 adults for in-service training or retraining) in 97 career areas. CONALEP is a major training contractor and the backbone of Mexico's skills training structure. Its training contracts include the labor retraining program of the ongoing Manpower Training Project (Ln. 2876-ME) of the Secretariat of Labor and the Basic Health Care Project (Ln. 3272-ME) of the Secretariat of Health. In the last ten years, CONALEP has made great strides: some 62% of its trainees have found employment within three months of graduation, even during the extended period of economic crisis (compared with only 25S for conventional upper secondary technical school graduates); CONALEP graduates' initial earnings are 1.5-2.5 times the minimum wage, which is slightly higher than the earnings of conventional technical secondary school graduates; the training cost per trainee is 44% lower than that of technical secondary school students; the rate of completion for CONALEP trainees improved from 40% on the average over the period 1979-1986 to 52% at present (if the student dropouts in the first semester are not counted, this rate is more than 90%); cost recovery from the student body is about 13% of the  - 2 - recurrent costs (this rate is close to 02 for the technical secondary schools), and from industry more than 102--not counting contributione in kind, which constitute the majority of contributions. 4. Notwithstanding the marked strides, CONALEP needs further improvements. It was created in an economic atmosphere that was very different from that of today; under the Government's current budgetary stringency, CONALEP needs to enhance the relevance and quality of training programs, improve efficiency in the delivery of training nervices, and reduce or at least maintain its level of dependency on federal budget transfers. Course offerings, course content, instructor quality, training aids and materials, and equipment need to be substantially upgraded and/or modernized to make them more relevant to the needs of a changing labor market; CONALEP needs to expand its training programs for the dynamic sectors (such as tourism and maquiladoras) and create in-service training programs for upgrading of technicians and skilled workers. CONALEP also needs to improve efficiency in student flows, reduce the high unit cost associated with small scale centers, increase the use-factor of training facilities in the evening, and uplift administrative efficiency. CONALEP's links to enterprises at the local level and its resource mobilization mechanisms need to be further strengthened and diversified. As part of the "Educational Modernization Program" (1989-94) of the current administration, the Government embarked on a major modernization program in CONALEP and asked for Bank support. 5. Rationale for Bank Involvement. The Bank's program of support for Mexico's economic restructuring effort includes substantial assistance in the area of human resources, aiming both to remove constraints to resumed growth such as skill shortages, and to ease the pain of restructuring. The Bank'- strategy for human resources development emphasizes the expansion of access to pre-primary education and improvements in the quality and efficiency of basic education (grades 1-9), especially in the poorer parts of the country, in order to provide flexibly, broadly, and generally educated manpower for the economy; training in specific skills can be provided later depending on the specific needs. In this context, the Bank is in the final stages of preparing pre-primary and primary education projects for its financing. The Bank's strategy for non-formal training in Mexico is two-pronged and includes: (i) support in improving the quality and efficiency of training in the major public training inastitution, CONALEP, to follow up two previous loans (Loans 2042- and 2559-ME); and (ii) support (under Loan 2876-HE) to Government efforts to encourage private sector enterprises to organize in-plant training or to contract with public training institutions on a cost sharing basis. The Bank's longer term strategy with regard to these two aspects of non-formal training is to assist the Government in shifting the emphasis in provision of training from the position of public sector domination to one in which private sector initiative is more actively encouraged. 6. The earlier Bank support to the CONALEP training system needs to be followed up to help CONALEP meet the new challenges mentioned in the previous paragraphs. In the last ten years, the CONALEP training system has sharply expanded its training opportunities and facilities with the support from the Bank and the private sector; now CONALEP needs to focus on improving the quality, relevance, and efficienc, of its training programs and on diversifying its financing sources. At the same time, the proposed project would, in synergy with the Manpower Training, the Basic Health Care, and the proposed Primary Education  Projects, contribute to the enhancement of the productivity and living standards of the poor and disadvantaged. The PCR for the first CONALEP project rated the project performance satisfactory, and the PCR for the second CONALEP project also rates performance as satisfactory and recommends improvements in the quality and efficiency of training programs. At present, the Bank is the only external aid agency involved in technical education and training, providing both technical and financial assistance to help remove skilled manpower constraints. 7. Prolect Obiectives. The overall objective of the project is to carry out the modernization of the system; in particular, to further improve the quality, efficiency and relevance of the CONALEP system. The specific project objectives are to: (a) uniformly upgrade the quality of high level skills training and middle level technician training to contribute to meeting the rapidly changing needs of the labor market; (b) selectively expand the range of CONALEP's training activities in key sectors, especially in-service training on a cost-recovery basis, and initiate a modular program in the evening to upgrade skill levels of experienced and employed workers; and (c) strengthen the administration of CONALEP, increase efficiency and improve cost reduction/recovery plans. Systematic improvements, as well as targeting of specific programs under the project, will be based on existing and planned studies concerning CONALEP programs' efficiency and impacts. 8. Profiect Descrlvtion. The proposed project would achieve the above objectives through the implementation oi three components, as follows. (a) Oualitv improvements (51X of total costs) would include: (i) upgrading of all instructional materials and course syllabi to meet current levels of technology; (ii) decentralization/upgrading of instructor training programs; and (iii) a technological services program, which would provide support to other CONALEP centers as well as to micro, small and medium enterprises, and contribute to the enhancement of teacher training quality, advanced technology pre-service training, and high level in-service training in eight selected centers, together with production and maintenance training programs. (b) Expansion of Training Activities (31X of total costs) would support, on the basis of a series of on- going and planned studies and assistance of specialists and community leaders: (i) training in response to demands from the maquiladora industry and the tourism sector; (i{) the initiation of a modular program in the evening and short-term uprading courses for employed workers; (iii) mobile training for marginal populations; and (iv) other minor but strategic actions such as food production and pond fish farming, joint school and in-plant cooperative technician training programs, and self-help training programs linked to productive activities. (c) Increasing Efficiency (181 of total costs) would strengthen the administration and efficiency of CORALEP and improve cost reduction/recovery plans through the following activities: (i) provision of the equipment production and maintenance services programs to all training centers and establishment of regional maintenance centers in eight existing training center complexes for the repair of major items and advanced technology equipment; (ii) development of a communications network, with computer modem and telefax connections throughout CONALEP's national system; (iii) technical assistance to strengthen CONALEP's cost accounting/recovery systems; and (iv) assistance in carrying out studies on improving the efficiency of student flows and graduate placement, and in the preparation of an action plan for implementation. The project would be implemented over five and one-half years by CONALEP under its existing organizational structure, The experience gained and the collaborative  - 4 - relationship developed among the Bank, NAPIN and CONALEP during the implementation of two successful earlier projects would be important assets for project implementation. 9. The total project cost is estimated at US$204.5 million equivalent with a foreign exchange component of US$126.8 million (622). A breakdown of costs and the finanzing plan are shown in Schedule A. Amounts and methods of procurement and of disbursement, and the disbursement schedule, are shown in Schedule B. Retroactive financing of US$8.0 million would be granted for eligible expenditures incurred after January 20, 1991. A timetable of key project processing events and the status of Bank Group Operations in Mexico are given in Schedules C and D, respectively. The Staff Appraisal Report No. 9534-ME, dated May 31, 1991 is also attached. 10. Issues and Actions. At negotiations, agreements were reached on the following: (a) draft terms of reference for the special studies on curriculum, cost accounting/recovery criteria and procedures, completion rates of the pre- service regular training program, the graduate tracer system, and quality and effectiveness of administrative services activities; (b) monitoring and evaluatior. targets; (c) equipment lists, space specifications, and prototype designs for facilities; (d) draft operational manuals for technological services, the mobile training units, and the maintenance services and equipment production programs; (e) annual review with the Bank of the previous year's project implementation experience and planning of the next year's implementation targets including capital and recurrent budgets; (f) an in-depth mid-term review, based on the agreed monitoring targets, of the results of the studies on effectiveness, efficiency, and cost recovery of CONALEP's programs, and implementation of strategic programs such as those mentioned in (d) above, with the mid-term review results to be submitted to the Bank for its review and comment by March 31, 1994, and action plans satisfactory to the Bank to be prepared and initiated by June 30, 1994; (g) increases in CONALEP's cost recovery receipts at an annual rate satisfactory to the Bank so that, by the end of calendar year 1996, such receipts will be equivalent to 20S of CONALEP's recurrent costs; and (h) retroactive financing of up to US$8.0 million for eligible expenditures incurred after January 20, 1991. 11. Conditions for effectiveness would be: (a) submission to the Bank of final terms of reference anl draft contracts for, and a short list of, consultants. to be hired for the studies on cost accounting/recovery systems, completion rates of regular pre-service training programs, and the graduates tracer system; (b) submission to the Bank of final terms of reference for all remaining studies to be carried out under the project; (c) formal adoption by CONALEP of the operational manuals for technological services, the mobile training units, and the maintenance services and equipment production programs; (d) preparation of an action plan, satisfactory to the Bank, to strengthen the advisory committee system at the state and national levels for the maquiladora and tourism sectors; (e) establishment of cost recovery/sharing and related accounting criteria and policies for the maquiladora and tourism sectors; and (f) establishment of an advisory committee system for the food production and pond fish farming training programs. 12. Proiect Benefits. The project would: (a) produce skilled manpower and small business services required for the restructured economy to sustain and  - 5 - strengthen growth, with particular emphasis on flexibility in reeponse to the labor market needs in growth sectors, and among disadvantaged populations; when the project is fully implemented in 1996-97, the expected annual output from all programs combined is projected to be some 180,000 trainees; (b) make CONALEP's training more efficient and improve its operational and financial sustainability through better links with enterprises and more diversified financing mechanisms; and (c) contribute to the development, in the medium term, of a more rational and efficient education and training system in Mexico. 13. Risks. There are no unusual risks associated with the project, except with regard to mobile training for marginal populations and the food production and pond fish farming training programs; there is a potential risk that the ultimate benefits to the targeted marginal rural populations could be minimal due to technical, credit, and marketing risks despite Government assurances that these training programs would be supported by the planned production credit through PRONASOL, and marketing and training specialists. As to the risk of reduced federal financial support for CONALEP in case of new budgetary crisis, such risk would be minimized through early steps to broaden CONALEP's resources mobilization base by setting targets for cost recovery and strengthening CONALEP's relationship with the industrial and business community. The project is unlikely to have significant environmental impacts. 14. Recommendation. I am satisfied that the proposed loan would comply with the Articles of Agreement of the Bank and recommend that the Executive Directors approve the proposed loan. Barber B. Conable President Attachments Washington, D.C. May 31, 1991  Schedule A Page 1 of I UNITED MEXICAN STATES THIRD TECHNICAL TRAINING PROJECT Estimated Project Cost and Financina Plan Local Foreign Total Estimated Costs4/ USSmillion----------- Project Comoonents Quality Improvements 32.7 53.4 86.1 Expansion of Training Activities 20.0 32.6 52.6 Icreasing Efficiency and Effectiveness 11.4_ 18.5 29.9 Total Base Cost 64.1 104.5 168.6 Physical Contingencies 3.2 5.2 8.4 Price Contingencies 10.4 17.1 27.5 TOTAL PROJECT COSTS 77.7 126.8 204.5 Financina Plan: --------------(US$million)--------------- Government 52.5 - 52.5 Bank 25.2 126.8 152.0 TOTAL 77.7 126.8 204.5 Costs exclude in-kind contributions and identifiable taxes and duties.  Schedule B Page 1 of 2 UNITED MEXICAN STATES TVIRD T_ECHNICAL TRAINING PROJECT Procurement Method (US$ millione) Category of Expenditure Ice LCB Other N.A. Total Cost Civil Works - 31.6 31.6 * - - (0.0) (0.0) Mobile Training Units Traction Units 1.0 - - 1.0 (1.0) - - - (1.0) Trailer Construction Materiats 3.7 - - 1.0 4.7 (3.7) (0.0) (3.7) Furniture * 0.4 0.4 - - (0.0) (0.0) Equipment 54.5 6.6 4.5 - 65.6 (54.5) (6.0) (4.0) (64.5) Instructional Materials and Library Books 25.1 10.8 4.0 2.2 42.1 (25.1) (9.6) .8) (0.0) (38.5) Production Supplies - - 14.8 14.8 - - - (0.0) (0.0) Technical Assistance Consultants - 35.9 35.9 - - (35.9) - (35.9) Study Tours - 2.8 - 2.8 - - (2.8) - (Z.8) Special Studies - - 5.6 - 5.6 - - (5.6) (5.6) TOTAL COST INCLUDING CONTINGENCIES 84.3 17.4 52.8 50.0 204.5 (84.3) teb1.6) (52.1) (0.0) (152.0) Note: Figures in parentheses (,) are the respective amounts to be disbursed from toan funds.  Sched-ule B Page 2 of 2 UNITD MEXICAN STATES THIRD TECHNICAL TRAINING PROJECT Allocatigon of Loan Proceeds Amount of the Loan Allocated X of Expenditures Catearv (in USS Ecuivulent) to be Financed (1) (a) Equipment and 92,500.000 100X of foreign expenditures; Education Materials 85X of local expendftures. (b) Nobile Training Units 4,500,000 100X of foreign expenditures; 85% of local expenditures. (2) Technical Assistance 40,000,000 100X of specialist assistance and Studies cost; internships and management training; and (3) Unmiocated j15 000000 feasibility studies. TOTAL 152,000,000 Estimated Loon Pisbursements: bank FY FY92 FY93 FY94 FY95 FY96 FY97 -C..... --------USS miLlion)----------------- Annual 22.3 I/ 32.3 32.1 29.8 24.6 10.9 Cuaalative 22.3 54.6 86.7 116.5 141.1 152.0 I1 Incltdes US$10.0 miLlion for the initial deposit to the Special Account.  Schedule C Page 1 of 1 UNITED MEXICAN STATES THIRD TECHNICAL TRAINING PROJECT Timetable for Key Proiect Processing Events Time Taken to Prepare: 12 months Prepared by: Government with assistance of IBRD First Bank Mission: March 1990 Appraisal Mission Departure: March 1991 Negotiations: May 15, 1991 Planned Date of Effectiveness: September 1991 List of Relevant PCR's and PPAR's: PCR and PPAR foi Loan 2042-ME: March 31, 1986 (Report No. 7136) and March 1, 1988 respectively PCR for Loan 2559-ME: May 23, 1991  Schedule D Page 1 of 2 STATUS OF BANK GROUP OPERATIONS IN MEXICO A. STATEMENT OF BANK LOANS ___________________________ (As of March 31, 1991) Amount in US$ million (less cancellation) Cre4it/ Fiscal --------------------------------------- Loan No. Year Borrower Purpose Bank IDA Undisbursed 86 loans fully disbursed 8,384.21 Of vhich SECALs, SALs, Program Loans, and Interest Support a> Ln. 1929-ME 1981 BANOBRAS Railway IV 149.88 Ln. 2882-ME 1988 BANCOMEXT Trade Policy Ln II 500.00 LU. 2918-1E 1988 NAFIN Agric Sector Loan 300.00 La. 3159-ME 1990 BANCOMEXT Interest Support Loan 1,260.00 Subtotal 2,209.88 Ln. 1706-5-ME 1979 NAFIN Irrigation 81.80 6.93 Ln. 1858-5-ME 1980 NAPIN Irrigation 64.40 6.72 Ln. 2428-ME 1984 BANOBRAS Highways 200.00 47.84 Ltn. 2450-ME 1984 BANPESCA Ports 38.25 14.52 Ln. 2526-ME 1985 NAFIN Chiapas Agric. Dev. 58.00 33.21 Ln. 2546-ME 1985 NAFIN Sm/Med Minit3 II 105.00 3.27 Lin. 2559-ME 1985 NAFIN Vocational Educ 81.00 1.96 Lan. 2575-ME 1985 BANOBRAS Railways V 300.00 80.08 LE. 2658-ME 1986 NAFIN Proderith II 88.30 66.40 L_. 2665-HE ,986 BANOBRAS Earthquake Rehab. 400.00 0.45 Lii. 2666-HE 1986 BANOBRAS Municipal Strength. 40.00 35.49 Lin. 2669-ME 1986 BANODRAS Solid Waste Pilot 25.00 16.32 * Ln. 2745-HE 1987 BANCOMEXT Trade Policy Loan I 500.00 5.39 Ln. 2746-ME 1987 NAPIN Industrial Recovery 150.00 14.49 Ln. 2747-ME 1987 NAPIN Technology Dev 48.00 25.75 La. 2777-ME 1987 BANCOMEXT Export Dev II 250.00 7.81 Ln. 2824-ME 1987 BANOBRAS Urban Transport 125.00 82.42 Li-. 2837-HE 1987 NAFIN Agricultural Credit 400.00 4.57 LSn. 2858-ME 1987 NAFIN Sm/Med Industry IV 100.00 53.10 La. 2859-ME 1987 NAPIN Agric Extension 20.00 10.90 Li. 2875-HE 1987 BANOBRAS Highway Maint 135.00 114.93 Ln. 2876-ME 1988 NAPIN Manpower Training 80.00 34.66 La. 2916-ME 1988 NAFIN Steel Sctr Restruct. 325.00 162.34 LSn. 2919-ME 1988 NAFIN Fertilizer Sctr Loan 265.00 98.20 La. 2946-ME 1988 BANOBRAS Ports Rehab 50.00 32.21 Ln. 2947-ME 1988 BANOBRAS Housing Finance 300.00 28.09 * Lai. 3047-ME 1989 NAPIN Industrial Restruct 250.00 183.66 La. 3083-ME 1989 NAFIN Hydroelectric Dev 460.00 376.81 * La. 3085-ME 1989 BANCOMEXT Financial Sctr Loan 487.14 2.03 * Ln. 3086-ME 1989 NAFIN Public Ent Restruct 500.00 0.71 * Lu. 3087-ME 1989 NAFIN Iad Sctr Policy 500.00 2.62 La. 3101-ME b> 1989 BANOBRAS Water, Women & Dev 20.00 20.00 Lim. 3115-ME 1990 NAFIN Forestry Dev 45.50 40.71 Ln. 3140-ME 1990 BANOBRAS Low-Income Housag II 350.00 244.05 La. 3141-ME 1990 NAFIN Agric Mktg II 100.00 39.63 Ln. 3189-ME b> 1990 NAFIN Transmission & Distrib 450.00 373.31 Lit. 3207-ME 1990 BANOBRAS Road Transport & e,lecom 380.00 190.00 Lin. 3208-ME b> 1990 BANOBRAS Telecom Technical Assist 22.00 19.00 Ln. 3271-ME b> 1991 BANOBRAS Water Supply & Sanit. 300.00 300.00 Lu. 3272-ME b> 1991 NAFIN Basic Health Care 180.00 180.00 Ln. 3309-ME 1991 BANCOMEXT Export Sector 300.00 300.00 Lu. 3310-ME b> 1991 KAFIN Decent. & Dev. 350.00 350.00 Total 17,308.60 3,610.58 Of Which has been repaid 4,179.80 Total now held by the Bank 13,128.80 Amount sold : 92.34 Of which has been repaid: 92.34 Total Undisbursed 3,610.58 3,610.58 a> Approved during or after FY80 and fully disbursed. b> Not yet effective. *SAL, SECAL, or Program Loan under Implementation.  Schedule D Page 2 of 2 STATUS OF BANK GROUP OPERATIONS IN MEXICOPae2o2 B. STATEMENT OF IFC INVESThENTS As of March 31. 1991 (US$ Million) Fiscal -----Original Approvals--------- Year Obligor Type of Business Loan Equity Total 1958159 Industrias Perfect Circle, S.A. al Industrial Equipment 0.80 0.00 0.80 1958 Bristol de Mexico, S.A. a/ Aircraft Engine Overhaul 0.50 0.00 0.50 1961 Aceros Solar, S.A. a/ Twist Drills 0.30 0.00 0.30 1962/51618 Fundidora Monterray, S.A. a/ Steel 2.30 21.40 23.70 1963 Tubos de Acero de Mexico Stainless Steel Pipea 0.90 0.1 1.00 1963 QuImica del Rey, S.A. a/ Sodium Sulphate 0.70 0.C 0.70 1964/66 Industria del 8ierro, S.A. Construction Equipment 0.00 2.0U 2.00 1970 Minera del Norte a/ Iron Ore Mining 1.50 0.00 1.50 1971 Celanese Mexicana, S.A. al Textiles 12.00 0.00 12.00 1972 Promotora Papel Periodico, S.A. de C.V. al Pulp and Paper b/ 0.00 0.00 0.00 1973/79 Cemeatos Veracruz, S.A. a/ Cement 15.90 0.00 15.90 1974/81 Cancun Aristos Hotel a/ Tourism 1.00 0.30 1.30 1975/78 Mexinox, S. A. a/ Stainless Steel 12.00 3.20 15.20 1978/81/83 Papeles Ponderosa, S.A. Pulp and Paper 10.70 5.00 15.70 1978 Tereftalatos Nexicanos, S.A. a/ Petrochemicals 19.00 0.00 19.00 1979/81/86 Hotel Camino Real Ixtapa, S.A. Tourism 0.00 4.20 4.20 1979183 Empresas Tolteca, S.A. Cement 168.00 7.90 175.90 1979/91 Conductores Monterray, S.A. Electrical Wire & Cable 21.40 0.00 21.40 1980 Industrias Resistol, S.A. a/ Particle Board 25.00 0.00 25.00 1980 Vidrio Plano de Mexico, S.A. Flat Glass 114.90 0.00 114.90 1980 Minera Real de Angeles, S.A. al Mining 110.00 0.00 110.00 1980 Corporacion Agroindustrial S.A. Agribusiness 11.30 3.00 14.30 1981/86 Celulosicos Centauro, S.A. a/ Pulp and Paper 59.50 0.00 59.50 1983 Capital Goode Facility a/ Capital Goods Financing 100.00 0.00 100.00 1984/87 Metalsa, S. A. Auto Chassis 8.00 1.40 9.40 1984 Proteison, S.A. de C.V. Agribusiness 2.00 0.80 2.80 1984/90 Promociones Industriales Nexicanas, S.A. Petrochemicals 36.40 0.00 36.40 1986/88 Celulosa y Papel de Durango, S.A. de C.V. Pulp and Paper 10.00 3.10 13.10 1986 Agromex Phase I (AESA) Veg. and Fruit Processing 1.50 0.50 2.00 1986 Cicasa Constr Guar Fac c/ Constr. Guarantee Facility 20.00 0.00 20.00 1987 Industrias Sulfamex, S.A. de C.V. Chemicals & Petrochemicals 2.00 0.50 2.50 1987 Sealed Power de Mexico Auto Assembly 9.00 0.00 9.00 1987 Crescent Market Aggregates c/ Construction Materials 37.00 0.00 37.00 1988 Apasco, S.A. de C.V. c/ Cement & Const. Materials 46.00 0.00 46.00 1988 Salumi, S.A. de C.V. Food and Food Processing 20.50 2.00 22.50 1988 Polimar (AB$), A.S. de C.V. Petrochemicals 14.50 0.00 14.50 1989 Grupo Femsa/Visa Consumer Goods Conglomorat 80.00 27.60 107.60 1989 Banca Serfin Development Finance 60.00 0.00 60.00 1989 Cementos Mexicanos Cement & Const. Materials 68.00 0.00 68.00 1990191 Condumex Electromanufacturing 53.00 0.00 53.00 1990 lndelpro, S.A. de C.V. Petrochemicals 30.00 0.00 30.00 1990 Banco Nacional de Mexico Developmeut Finance 60.00 0.00 60.00 1990 Bancomer Credit Line Development Finance 20.00 0.00 20.00 1991 Mexico Pund dl Money s Capital Markets 0.00 6.60 6.60 1991 Petrocel, S.A. Chemicals & Petrochemicals 32.00 0.00 32.00 1991 Vitro Flotado Glass & Related Manufac. 126.00 0.00 126.00 1991 Vitro, S.A. Glass S Related Manuf. 0.00 10.20 10.20 1991 Apasco, S.A. de C.V. el Cemeat & Conet. Materials 20.00 0.00 20.00 1991 Vitro, S.A. f/ Glass & Related Manuf. 15.00 0.00 15.00 Groas Total Commitments g/ 1458.60 99.80 1558.40 Less Cancellations, Terminations, Repayments and Sales 970.80 6.60 977.40 Total Commitments Now Held by IFC 487.80 93.20 581.00 Total Undisbursed (Including Participants) 111.20 0.00 111.20 mnwnfl=a cs=csaua. a. os= al Investmenta which have been fully cancelled, terminated, written off, sold, redeemed or repaid. b/ USS25,000. c/ Loan amount includes guarantees of $23 million (Crescent Market), $37.4 million (Apasco) and $20 million (Cicasa). d/ Underwriting (US$26.6 mlllion). e/ Signed & disbursed in March 1991. fl Approvals not yet signed. g/ Excludes swap transactions (Banca Serfin US$6.5 million, Indelpro $6.0 million).  IBRD 23052 UNITED STATES Of AMERICA MEXICO THIRD TECHNICAL TRAINING PROJECT Ci R fAJA $ < a NoMaK-- i f Jw, s` -t t $. | 8 0~ ~ ~ ~~~~ ~ ~ ~~~~~~~hy Pwb P.6.q -REGIOiN BOUNDARIES ALIFORNTA~ ~ ~ ~ ~ ~ ~ ~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~AIOA AIA ; > GlilQZ g \ e<, Iwlu~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~., o.o< STATE CAP!TALS rRAJA C5<s1e ddROi f \ a 0