Burundi - Private Sector Development Project

Document of The World Bank FOR OFFICIAL USE ONLY MICROFICHE COPY Report No. P- 5701-BU Type: (PM) ReotNo P-5701-BU DIOP,M. / X34369 / J-7069/ AF3IE X MWORANDUM AND RECOMKENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT OF SDR 12.4 MILLION TO THE REPUBLIC OF BURUNDI FOR A PRIVATE SECTOR DEVELOPMENT PROJECT MARCH 31, 1992 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 unit = Burundi franc (FBu) 1991 US$1 = FBu 200 (as of December 1991) Period Avae: 1990 US$1 = FBu 171 1989 US$1 = FBu 159 1988 US$1 = FBu 140 1987 US$1 = FBu 124 WEIGHT AND MEASURE Metric International Standard System 1 meter (m) = 3.3 feet I hectare (ha) = 2.47 acres 1 kilometer (km) = 0.62 mile 1 sq kilometer (km2) 0.39 sq mile (sq mi) 1 kilogram (kg) = 2.2 pounds (lb) 1 liter (1) = 0.26 US gallon (gal) 1 metric ton (m ton) = 2,204 lb GLOSSARY OF ABBREVIATIONS AfDB = African Development Bank BNDE = Banque Nationale de Ddveloppement Economique (Development Bank) BRB Banque de la ROpublique du Burundi - Central Bank CCCE = Caisse Centrale de Coopdration Economique (French Aid Agency) CCIB Chamber of Commerce and Industry of Burundi EDF = European Development Fund EIB European Investment Bank ESAF = Enhanced Structural Adjustment Facility FAC Fonds d'Aide et de Coopdration (French Aid Agency) IFC International Finance Corporation ILO International Labor Organization IMF = International Monetary Fund KtW Kreditanstalt fir Wlederaubau (German Aid Agency) MCI = Ministry of Commerce and Industry MPWUD = Ministry of Public Works and Urban Development OGL = Open General Licensing PCU Policy Coordinating Unit PE Public Enterprise PF1 = Participating Financial Intermediaries PMU Project Management Unit SAC = Structural Adjustment Credit SCEP = Public Enterprise Reform Office SSE/APEX = Small-Scale Enterprise Project UNDP = United Nations Development Program USAID = United States Agency for International Development OORMEN OULTISCAIJEAR January 1 to December 31 FOR OFFICIAL USE ONLY Borowr: Republc of B~undI. Central k of B~rndl (B), Pardtlpadlg Financial Ipåermedlares (PPIs), Private Entrprises, Ministri of Comerce and inbnstry (MCI), Public Works and Urbmn Development (MPWUD), nergy and Mining, Justico, and Public Bnterpise Reform Office (SCEP). SDR 12.4 millio (US$17.0 million quvaent). = Standad IDA teris, with 40 years matury. (i) Line of Crdit. ib Borrower would relnd US$11.0 mfhilon equivalent to the Central Bank (BRB) at the averag yield of the three-month Treasury Cerdifcate (T), minus an annual fe of 1.0 percunt. The Central Bank loan would be for 15 years, h~tuding a 5-yoar grace, and would bo onlent to PfIs at the TC yid, with a fible amordzadon schedule redfi~g the aggregate maturitie of subloasfeftindot by PPIs. Interest rats charged by PPs to aub- borrowers would be varlable and markTtdetermlndlhe foreign exchange risk would be bornm by the Governmnt (1) 3m and Services. US$3.5 laon through the MPWUD for a pilot Invesnt in sites and services, to be recovered through the sale of indnatrial plots. (Iii) . U mon to passed on as agrant by Government to implame~ng intitinoe for training and techical assistane. (Us$1,000) Investment Preiects 5,100.0 22.60 Participating Inatitutions 6,000.0 31.70 IDA 11.00.0 45,2Q subotal 22.100.0 1Q0,0Q sitea and Bervices Borrowr 400.0 10.26 n% 2.520. LiaM2 Subto~a 3.900. 100.00 cnigal Anglac Borrow 600.0 2.00 Other Donorg 1,190.0 28.80 IDA 222 Subtotal 410000 TOA, 30,290.0 100.00 Economic Rate of Remr Cedit compont N/A Silos and servics: Cost recovery Staff rNo. 10184-BU Meg NO. IORD 2360 This document has a restrictod distribution and may be tsed by recipients only In the performance of their official duties. Its contents may not otherm'c h disclosed without World Bank authortzation. MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIECTORS ON A PROPOSED CREDIT TO THE REPUBLIC OF BURUNDI 1. The following memorandum and recommendation on a proposed development Credit to the Republic of Burundi for SDR 12.4 million (US$ 17.0 million equivalent) is submitted for approval. The proposed Credit would be on standard IDA terms and would help fimance a private sector development project. 2. Bkrmun. Burundi's adjustment program has made substantial progress towards stabilizing the economy and laying the foundations for its structural transformation but it has not yet stimulated as strong a supply response as had been expected. This is partly due to the mixed signals given by Government to the private sector. Even though the elaborate system of controls has been progressively reduced, the public enterprise (PE) sector has remained essentially unchanged, and the private sector has been hesitating to undertake new productive Investments, and to modernize obsolete industrial equipment. Some progress in improving the business climate and the efficiency of the financial system has been achieved under the ongoing Small-Scale Enterprise Project (SSEIAPEX - Credit 1889- BU), the two Structural Adustment (SAC) Operations (Credits 1705-BU and 1919-BU), and under the IMF/ESAF program. Most commercial and manufacturing public enterprises, including major coffee processing and trading firms, are slated for privatization under the proposed Third Structural Adjustment Credit (SAC-III) and the Coffee Sector Project (Credit 2123-BU). More needs to be done, however, to enable the private sector to play a key role towards realizing Burundi's growth and export diversification objectives. 3. ProiW Obictv. The present development strategy for Burundi calls for the creation of a business environment to enable the private sector to provide the main impetus for growth. Meeting the development challenge of a smaller, more efficiently managed public enterprise sector and a rapidly emerging private sector requires the participation of local and foreign private investors, spurred on by an appropriate mix of an overhaul of policy barriers and regulatory constraints, and by effective assistance to promoters. The project, therefore, focuses on removing institutional, legal and regulatory impediments to private enterprise development and on implementing sharply-focused financial intermediation and policy reforms designed to facilitate export-oriented private sector investment. To help ensure rapid and tangible results of these improvements, the project also aims at providing technical support for their effective implementation. Finally, the project aims at providing funds for new productive investments and for the rehabilitation/redimensioning of viable privatized public enterprises as well as for investments in industrial infrastructure. To fulfill these objectives, the proposed project consists of three components: a line of credit through the banking system and industrial sites and services to provide support for investment; a sector policy package of institutional, legal, regulatory and financial policy reforms to remove impediments to private sector growth; and a technical assistance program to help Implement these reforms and assist private enterprises and participating financial institutions. The project would complement the proposed SAC-III program, which will expand and deepen macroeconomic reforms and provide a social safety net in support of transitional social costs. 4. Proc Dsipion nd st. The proposed Credit of US$17.0 million equivalent would allocate US$14.5 million in foreign exchange resources for inve-m* es and US$2.5 million to technical assian as follows: (I) US$11.0 million in an Apex line of credit through the Central Bank, and eligible Participating Financial Intermediaries (PFs), to finance economically viable and financially profitable projects promoted by private investors; (ii) US$3.5 million through the Ministry of Public Works and Urban Development for the development of 45 hectares (including access roads) of sites and services in -2- the Industrial zone in Bujumbura, the capital city, for lease or purchase by private promoters; and (Ii) US$2.5 million for Technical Assistance and Training. The total cost of the investment component is estimated at US$26.0 million, including US$22.1 million in sub-project investments, and US$3.9 million in sites and services development, with the balance being provided by private investors, fimancial institutions and Government. The total cost of the technical assistance is estimated at US$4.3 million, with donors expected to provide US$1.2 million and Government about US$0.6 million. A breakdown of estimated project costs and the financing plan are shown In Schedule A. S. Assuming the continuing pursuit of structural adjustment and liberalization policies, it is expected that substantial demand will be forthcoming for new investments, including export-oriented projects, small-scale mining ventures, and for investments in modernization and rehabilitation of existing industries. The prospective economy-wide investment demand is estimated to range from US$15 to US$20 million a year for the next four to five years, based on survey work of investor interest and on the pipeline of projects approved by the Na&nal Investment Commission, and assuming continued and effective implementation of the regulatory and legal reforms supported by the project. 6. The so pO component would include financial, institutional, regulatory and legal ref:-. Financial sector measures would carry thrther the ongoing liberalization of monetary and interest rate policies (in collaboration with the IMF), while strengthening the institutional capacity of commercial banks and of the Central Bank. Banking supervision and control would be given top priority, with particular reference to improving prudential regulatory instruments, and monetary and credit policy analysis formulation and implementation. In addition, the project would strengthen the capacity of commercial banks to mobilize resources, assess and manage risks, and expand long-term credit for private sector ventures. The enterprise legal and regulatory framework, which has already been substantially liberalized by Government, would benefit from additional reform measures. The new reforms aim at strengthening the mechanism for the enforcement of contractual agre ts through improving the performance of legal institutions (e.g., Tribunal of Commerce), and the creation of auxiliary parategal professions (e.g., notaries-public, process-servers, auctioneers, liquidators, etc.,) in the private sector. Fiscal reforms (to be implemented under the proposed SAC-II and ESAF program with the IMF) would focus on a reduction and more even distribution of the tax burden on productive activities and tax- deductibility of provisions for doubtful bank loans, and would, to the extent feasible, be revenue neutral. 7. The TodMical Asst#an component would provide Government, Central Bank, financial institutions, private entrepreneurs and their trade associations (e.g., Chamber of Commerce and Industry) the required technical expertise and institutional support to implement, and take advantage of, the proposed policy package. The component would support a redrafting of Burundi's antiquated commercial, and associated business legislation, strengthen the capacity of the Tribunal of Commerce, and also provide legal and economic expertise in mining to the Ministry of Energy and Mining to assist in exploration contract negotiations, and revision of the mining policy and regulatory framework. 8. Proect I n . An autonomous Project Management Unit (PMU), under Central Bank administrative supervision, would manage the credit and enterprise related technical assistance components. Participating financial itermediaries would appraise and take the risk of sub-project lending with support from the Project Unit. The sites and services component would be executed by the Directorate-General of Urban Development, which has experienced staff and a track record in this area under the two IDA-financed urban development projects. Sales of equipped plots under the sites and services component would be undertaken through an independent commission comprised of public and private sector representatives, as well as the director of the PMU. This commission would ensure full cost recovery, transparent marketing and sales, and easy access to equipped plots by local and foreign private promoters. -3- 9. A Policy Coordinating Unit (PCU), in the Ministry of Commerce and Industry, would screen and oversee all technical assistance proposals, and undertake close monitoring and coordination of policy reforms relating to private sector development and export promotion. The Central Bank would manage its own technical assistance with support from the IMF's Central Banking Department. The Office of Public Enterprise Reform (SCEP), in coordination with the Ministry of Justice and Chamber of Commerce, would undertake and supervise the legal reform component. Amounts and methods of procurement and d, as well as the estimated disbursement schedule, are provided in Schedule B. A timetable of key project processing events, and the status of Bank Group operations in Burundi are detailed in Schedules C and D. The Staff Appraisal Report No. 10184-Bu dated March 31, 1992, is being circulated separately. 10. Proect SustAib Improvements in the business environment are expected to have a lasting impact on the level and quality of investments in Burundi. The policy and institutional reforms to be implemented in the financial sector address specific weaknesses, and are designed to strengthen Central Bank capacity in bank supervision and in the formulation of monetary policy. The envisioned measures would also ensure that banks themselves take action to maintain and improve their financial soundness and gear themselves for Increased risk taking and improved financial management. The quality of financial intermediary lending to the private sector should benefit from these institution-building activities. The sites and services component provides for full direct cost recovery of investments in infrastructure and equipment through transparent marketing procedures, thereby ensuring the replicability of these investments. The technical assistance and training component would rely, to the extent feasible, on local institutions, consulting and counterpart staff, aided by part-time external consultants, to ensure continuity and sustainability. 11. Lesons from Ex n. The first IDA Credit (No. 731-BU) in the amount of US$3.4 million for industrial investment through the development bank (BNDE) was approved in 1977 and closed in 1983. A Project Completion Report (PCR) of January 1987 noted that the two main IDA objectives, providing funding to viable projects and strengthening BNDE's project appraisal capacity, were only partially met. No Project Performance Audit Report (PPAR) was issued on that Credit. The ongoing SSE/APEX line of credit (Cr. 1889-BU) of US$8.0 million, which addressed the problems Identified by the PCR, was approved in March 1988 and became effective in March, 1989. The delay in effectiveness stemmed from lengthy procedures in obtaining a satisfactory legal opinion in Burundi. Utilization of the APEX credit has been slowed due to obstacles faced by promoters (e.g., scarcity of developed sites and services, and cumbersome regulatory and bank lending procedures); and lack of coordination between the APEX units at the Chamber of Commerce and the Central Bank. The maximum eligible project size was too low (US$300,000 in total assets). The restrictions in size were lifted in February 1991, thus opening the ln of credit to a wider range of new borrowers. As of March 31, 1992, commitments amounted to US$ 2.7 million (i.e., 45 percent of the credit component) on some 57 subprojects involving total estimated investments of US$7.4 million. Di, including technical assistance, amounted to US$2.0 million. Afer a slow start, the line of credit is now disbursing rapidly. The policy and regulatory reform program, the implementation mechanism, and the technical assistance for the proposed project were designed to take these lessons into account. 12. Rationale for IDA Involvement. The Bank's main objective in Burundi is to promote sustained growth by supporting the establishment of an incentive framework for private sector investment, with emphasis on exports. As noted above (para. 2), while structural adjustment operations and technical assistance projects have supported significant steps towards opening up and liberalizing Burundi's economy, an array of institutional, fiscal, legal and regulatory obstacles still need to be removed to liberalize domestic markets and stimulate the private investment response necessary for economic growth and the diversification of the economy. Experience has shown that macro economic policy reforms -4- pursued under a comprehensive structural adjustment program must be complemented by sectoral reforms (e.g., financial policy, institutional, legal and regulatory improvements) and well-targeted technical assistance in order to elicit an effective private sector response. The removal of micro-policy and specific institutional barriers, crucial for a rapid and substantial supply response, is better addressed through operations with a direct impact at the enterprise, banking, and institutional levels. 13. As Burundi has been able to weather external shocks and to rebuild its reserves mainly through substantial external balance of payments support, the Bank's lending focus is shifting towards the provision of investment resources, while maintaining a significant policy reform content. Other donors are also pursuing the same strategy. The Bank has taken the lead in carrying out the analytical work in this area. Based on the findings of a study entitled "Private Sector Development in the Industrial Sector" (Cr. 9422-BU, February 10, 1992), prepared in close cooperation with the Government and other donors, a private sector development strategy has been designed. While macroeconomic objectives would be pursued under the proposed SAC-II/ESAF programs, the proposed operation would support sector- specific measures designed to implement this strategy and foster private enterprise development. 14. A&re Acin. Many of the proposed policy reforms have already been agreed to and are under implementation. An advance of US$1.1 million under the Project Preparation Facility is helping with implementation of additional reform measures. The reforms implemented include, inter alia, simplification of regulations for enterprise creation and operation, elimination of importlexport licensing, and liberalization of controls on the repatriation of dividends and salaries ; a new unified rediscount rate and market determined interest rates, the introduction of reserve requirements, restructuring of the auction market oi Treasury Certificates. Other agreed actions are summarized in sector policy statements, including matrices and timetable of policy and institutional reforms contained in the Letters of Private and Financial Sector Development Policy signed by the Government. These include, inter alia, reform of the Directorate of Notary-Public and creation of private paralegal functions, a policy statement on tax reforms, reinforcement of Central Bank's capacity for bank supervision and macroeconomic analyses, deregulation of air transport and creation of an independent commission to oversee the marketing of plots under the sites and services component. Agreements have also been reached on terms of reference for the operation of the Project Management and Policy Coordinating Units, and for the various technical assistance components. The implementation of policy and institutional reforms will be closely monitored, and a Mid-Term Review of progress in the effective execution of the project, and of the impact of the reform measures to improve the business environment, will be undertaken jointly by IDA and the Government in October 1993. 15. Environmental Aspects. The Government is in the process of formulating a National Environmental Action Plan with IDA's assistance, and to that effect, a review of pertinent environmental laws and regulations would be undertaken under the legal assistance program of this project. Agreements reached with the Government under a project to build an industrial waste water purification plant, to be financed jointly by the African Development Fund (AfDB) and KfW, provide for pretreatment of waste water by polluting industries, reinforcement of the policing capability of the National Institute for Environmental Protection, and the drafting of a Water Purification Code. These actions would benefit the sites and services component of the project, and would provide other opportunities to initiate a meaningful dialogue between Government and the private sector on environmental protection regulations and policy issues. Furthermore subprojects to be refinanced under the proposed Credit would be screened to identify those presenting potential environmental hazard concerns. Project appraisal procedures and training seminars would sensitize borrowers and PFIs, to ensure that projects financed are environmentally sound. -5- 16. BAvfl. Major expected benefits would stem from an enhanced supply response to the ongoing structural adjustment efforts through the Implementation of local and foreign private investments that would in turn contribute to ataining Burunds expolt diversification and growth objectives. Rapid response by private sector investors would create the employment opportunities that are critical for supporting the public sector retrenchment from productive activities. The project Is expected to contribute to the achievement of these objectives through the provision of long-term credit and the creation of a fully liberalized business environment, including freedom to create and operate an enterprise, and a reliable legal system guaranteeing transparent enforcement of contractual agreements between lenders and borrowers in particular. By supporting effective monetary and credit policies, and promoting better managed banking Institutions, the project would improve their capacities for increased resource mobilization, and diversified and expanded risk taking activities in productive sectors. 17. Egh. The Government of Burundi is currently undertaking a two-pronged series of major political and economic reforms designed to lead to greater national unity, and opening-up the political system while maintaining the thrust of the economic adjustment process, and liberalization of business environment. The process of fully revamping the legal and regulatory framework for enterprises and banks, as well as the introduction of substantial fiscal and labor policies may experience some delays in the political transition period. This could mean that the Implementation of a well focused private sector development and export strategy, which is critical for the success of the project, could be lengthy, thereby creatng a risk that the pace of private sector investment would be slower than expected. These risks will be monitored closely in the contxt of implementation of the proposed SAC-Ml and IMFIESAF, and through an early assessment to be undertaken during the Mid-Term Review of project implementation planned for October 1993. Furthermore, the consensus built around the need for effective reform of the business environment and the strong voice of a rapidly emerging private sector should ensure the effective implementation of the project. 18. Recommendatio. I am satisfied that the proposed Credit would comply with the Articles of Agreement of the As2ociation and recommend that the Executive Directors approve it. Lewis T. Preston President Attachments Washington, D.C. March 31, 1992 -6 - ISTZluShD ?903sCT 00sT aND PrUANCZNG PLAN gggL Zoeifa Total subprojects 8,100.0 14,000.0 22,100.0 81tes and SvIGes 900.0 3.000.0 .900.0 samb~ofalR9.0. 17.000.0 2§.000.0 * <(5> Technical Assistanee and Trainina Project Kanagosmnt 300.0 40.0 340.0 ntprise Omsultant Services 100.0 240.0 340.0 M~nistry o Xining* - 400.0 400.0 Legal Aefors* 145.0 375.0 520.0 Tribunal of Cafmerm* 30.0 150.0 180.0 central Bank - 9B* 2,060.0 2,060.0 Ninistry of amieo a ndustry g .Q2 450 Aub~a 825. 3.465.0 4.290.0 TMTAL 9,825.0 20,465.0 30,290.0 --- --=== ==== • Advanced Punding under PPP (Us$1,000) subborrowers 5,100.0 22.60 Participating Institution 6,000.0 31.70 IDA 11.00.0 45,20 Subtotal 01000 sites and Services sorrover 400.0 10.26 • IDA 3.500.0 82a24 subtotal 2A00._0 1QQ00 Borrower 600.0 2.00 Other Donors 1,190.0 28.80 ImA 2500,0 6220 Subtotal 4.290.0 100.00 TCYAL 30,290.0 100.00 gc- Page I of 3 SUMARY OF PROPOSED PROCUREMENT ARRANGEMENTS (US$ million) *ProjctEtant ------PrecureMntNehod----.--. Ie LCm Ote /A T s»A. i c n tprojectS Smeds, works and service contrbcts •- 22.1 . 22.1 8. sites and Service Cetmanent 1. Uorks 1.1 Rmede 1.90 0.3 . . 3.20 (1.70> (0.3> (2.00> 1.2 Utilities 1.50 - 1.50 2. Vehicles and Offio Equpmnt 0.06 - . . 0.06 (0.06) (0.06) 3. Contaent service. . - 0.04 0.04 C. TehntI, AssItance c nnt 1. conslSJtancies . - 2.89 2.89 . Treining and Smmenars . . 0.31 0.31 (0.12) ky <0.12) 3. Vehicles & Offie Euimant . • 0.84 0.84 (0.13> af (0.13> 4. Operating coste PitI/PCU - - 0.35 0.35 (0.32>0/ (0.32) 0. PPFRfanl . • (1.10> (1.10> TOTAL 346 0.3 26.14 0.39 30.29 IDA (2.93> (0.3) <12.35) <1.42) (17.00) Figur s In parenthees are the respective amunts financed by the IDA ~redh. Cost figures shown above are rounded and «nciude cont~ngencies, excludng dutius and taes. lI For contracts of US$750,000 or below, internadonalshopping procedures - Subborrowers wil be required to submt to PFis at lest three qom suppliers of gods to be procured contracts in e~cess of US$750,OO0 wil be procured through ICB in accordance with Bank Group Guldelines for Procurment (May 1985). b/ In accodance with Bank Group's Gudelines on Use of Cons n by World Bank Borrowers and by the Bank as Ex~cudng Agency (August 1981). £f According to Governmmnt procedurs wbich have bee= reviewed as accsptable. PaP 2 of 3 The proceeds of the proposd Crdft would be disbursed as follows: (a) Credi US$1 1.0 million (1) 100 percent of exp for up to 70 per- cent of tal subproject cos for new operatons; () 100 porcent of expondit~r for ap te 80 percent of total cos of subprojects for xnn, modernizadon and rehablation (b) Ser Cone US$2.9 m ulion (1) 100 percent of foreign P for goods and sevi^s (i) 90 pe~ent of locaIy procured goods and srices; () T cc (exclusive US$1.5 m~lion 100 percent of the cost of consultants, m a training, 100 percent of the c.Lf. cost of goods d~ecdy lmported, 90 percent of the local cost for materials and supplhs, 80 percent for salarles and operadng exp~nd~ures, the first you, 70 percent the second you, and 50 prcent the thkd y~a. (») ProectManagemntUnit Enterprlse Consultant Services $340,000 ncreamental Operating Cost 300,000 Vehicies (1i) PolieoodntnUn: Consultant Servicus and Traning $370.000 Incremental Opera~ng Cost 50,000 Office Equ~pmmnt, Vehices 1450.00 (mi Trb~a of CoM ~.ee Consultant Servces and'Talning $ 90,000 Office Equipment/P.C.s 40,000 Vehicle2. Consultant Services and Training S7.0 .9- Schedule B Page 3 of 3 (v) Consultant Servioss and Trainng$ (vi) fJ Mng adE : Consultant Services$7.0 (d) Auit jetAcuts: $200. (P) eæmbmumet PPAdce $11 milion (f) Unlo tmatd IDA Dibsmtnts IDA riscal Yar y 1993 1994 1995 1996 1997 1998 ----------------------- Knual 1.0 5.8 3.7 2.5 2.5 1.5 Cumulative 1.0 6.8 10.5 13.0 15.5 17.0 - 10- (a) Timc taken to prepare: 15 months (b) Prepared by: Government with IDA usistance l (c) First IDA mission: October 24, 990 (d) Pre-Apprasal misson departure March 1st, 1991 (e) Apprasal misson deparure: June 18, 1991 (t) Negotiations: March 16,1992 (g) Plann date of effctvumess: August 31, 1992 (h) List of Relevant PPARs: NIA Tis repoit is baed on the fndings of a prapprlasal miblon which took 1 in March, 1991, and of a appaisal mi~sian wbu v~std Burundi from June 19 to uly 9, 1991. Boa .i,.1nni ennlm~ of Mesars. Mohman Diop, Sr. Op~radlns OMer (AP3MB, min leader and sak mnager), Aded Rya, Baning Seor Specialist (AFP - ~na ~ial r), km4 Al~iaui, b ~dustria Boonomist (AP3B - indusrIal and bu~iness cavhm~a. Mr. Paul 8alard, Puincipal bd~ Booom~at was poef rviwer. DBlingual se.elaial support was providd by Mm. Frangoiss Seatan, 1Saf Ausi~aat, (AP3B). M~ssr. Franlsco Agikma=asa (AF3DR) and Mi(haE N. Santa (APSIB) a the Deparumt Dm~stor and the mauaging Divion Chief, - 11.- STAlING 881 iBP UENTIUB InM 8 a. BTAtear 01 am ao a a c uys (As of unkrc 31, 1992> Amount In US illion Lon or (tss canceltation) Credit riscal m~E. .1ear. Boeme uff los .o.( UndIsbs 1 Loen Futty Olsbursed 4.80 25 Credits (includine I SFA) Futty oisbursed 313.16 Of which 2 SAC Cr. 1705 86 BIUNDI SAL I 15.00 Cr. A017 86 USMIDf SAC I (SFA) 16.20 Cr. 1919 86 8UMDI SAC I I 90.00 s~bTotal Otosed SAL 121.20 Cr. 1583 85 M~I Fourth nigh~my 18.10 0.44 Cr. 1593 85 UMDI Power Tra~.4 Distrib. 12.30 5.87 Cr. 1620 86 MU~MIDI Second Forestry 12.80 4.97 Cr. 1625 86 MUIDI Sural Uater St"pty 9.50 0.16 Cr. 1795 87 8U~MDI Eco.& P*.EnterprioeNgt. 7.50 3.67 Cr. 1805 87 8UlDI second Telecomuications 4.80 3.95 Cr. 1857 8 IMIDI Nuyi"ng Agric.Døvelop. 10.00 8.16 Cr. 1862 88 6U~MDI Population 8 Mealth 14.00 5.04 Cr. 1881 88 8UlolDI £duetion Sector Døv. 31.02 12.82 Cr. 1889 88 0imiDI ~l E enterpris/APEX 8.00 5.78 Cr. 1968 89 UoDI Second Urban Dev. 21.00 16.61 Cr. 2024 89 6U~ID Agericulturat Services 33.10 30.58 Cr. 2105 90 BUIMDJI Transport sector 43.20 42.36 Cr. 2123 90 6UNMEDI Coffe Sector 28.00 20.43 Cr. 2230 91 UEMIDI Energy Sector Reb. 22.80 21.55 Cr. 2288 91 0URUNDI Mater Saipty Sector 32.70 33.11 SsTotal active projects: 308.82 215.50 Total le canceltations: 4.80 621.98 .f shidh has b n repeid 4.80 4.42 Total due Sank and IDA: 0.00 446.89 (1 Total undishursed: 0.00 215.50 (1) $uw of Total n held by IDA and Total Undisbured is higher than Total cutstanding da to fluctuations in value of 0. 8 * 8!EBI T! Of XFC INvm E (Aa at March 31, 1992) A~out in =mittion 282 Borrower T aef ~usness i=8 1mi810te 1981 Verrertes du undi lasa Container 4.8 1.0 5.8 Total Grss Camltment Lss Cancellatins, Terminationg, Repsynents and sales .0 1.0 1.0 Total Comitents Ko Held by IFC .0 1.0 1.0 Total Undisbursed .0 .0 .0 IBRD 230 BURUNDI PRIVATE SECTOR DEVELOPMENT PROJECT BUJUMBURA INDUSTRIAL SITES & SERVICES - PROJECT AREA ALLOCATED INDUSTRIAL ZONE EXISTING INDUSTRIAL ZONE SITE AND SERVICE AREA UPGRADING NEIGHBORHOODS eri URBANIZED AREAS ROADS .// ] RIVERSNATIONA -- INTERNATIONAL BOUNDARIES KIOB KWOA8 LAKF TANGAhYKA KILOMETERS BURUN fraoeaceo etr and th boundo ariehon TANZANIA / ar@ept8i1 na "/i endarsegment ort acc@ c h of MR 1 MARCAM"9