Tunisia - Private Investment Credit Project

 36-7/ - 7IV 3672 - * Documentof - The World Bank 3 FOR OFFICIAL USE ONLY 36 74 - 3& f(2 ' Report No. P-6096-TUN "EPORT AND RECO1MENDATION OF THE PRESIDENT OF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPEMENT TO THE EKECUTIVE DIRECTORS ON A PROPOSED LOAN IN AN AMOUNT EQUIVALENT TO US$50 MILLION TO THE REPUBLIC OF TUNISIA AND NINE PROPOSED LOANS, WITH THE GUARANTEE OF THE REPUBLIC OF TUNISIA IN AN AGGREGATE AMOUNT EQUIVALENT TO US$70 MILLION TO NINE TUNISIAN FINANCIAL INSTITUTIONS FOR A PRIVATE INVESTMENT CREDIT PROJECT NOVEMBER 17, 1993 MICROIRAPHICS Report No: P- 6096 TUN Type: MOP This document has a restricted distribution and a, their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY AND EQUIVALENTS Currency Unit - Tunisian Dinar (DT) US$1.00 = DT 1.034 (average August 1993) DT 1.00 = US$ 0.97 US$1.00 = DT 0.88 (average 1992) DT 1.00 = US$ 1.14 FISCAL YEAR January 1 - December 31 WEIGHTS AND MEASURES Metric System US System I meter (m) 3.2808 Feet (ft) 1 kilometer (km) 0.6214 mile (mi) I square kilometer (ki = 0.3861 square mile (mi) I metric ton (m ton) 0.9842 long ton (ig ton) 1 kilogram (kg) 2.2046 pounds (lbs) ABBREVIATIONS AND ACRONYMS BCT - Banque Centr.1e de Tunisie BDET - Banque de D6veloppement Economique de Tunisie CAS - Country Assistance Strategy EFRSL - Economic and Financial Reforms Support Loan FI - Financial Institution PB - Participating Bank FOR OFFICIAL USE ONLY REPUBLIC OF TUNISIA PRIVATE INVESTMENT CREDIT PROJECT Loan and Project Summary Borrowers: Arab Tunisian Bank (ATB), Banque de D6veloppement Economique de Tunisie (BDET), Banque Internationale Arabe de Tunisie (BIAT), Banque de Tunisie et des Emirats d'Investissement (BTEI), Crddit Foncier Commercial de Tunisie (CFCT), Socidt6 Tuniso-Sdoudienne d'Investissement et de Ddveloppement (STUSID), Tunisie Leasing (TL), Union Bancaire pour le Commerce et l'Industrie (UBCI), Union Tunisienne de Leasing (UTL) and Republic of Tunisia. Guarantor: The Republic of Tunisia for the loans to the Financial Institutions (FIs) Amount: US$120 million equivalent in the aggregate, consisting of loans to: Republic of Tunisia US$50 million ATB US$6 million BDET US$12 million BIAT US$8 million BTEI US$10 million CFCT US$7 million STUSD US$10 million TL US$6 million UBCI US$7 million UTL US$4 million Terms: 17 years, including 5 years grace period for the Republic of Tunisia and three FIs and 4 years grace period for six FIs, at the Bank's standard variable rate. On-lending terms: The Republic of Tunisia would on-lend a total of US$50 million equivalent in Dinar- denominated subsidiary loans to eligible Fis for a period not exceeding the maturity of the loan to the Republic of Tunisia at the money market rate plus 50 basis points. This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. - ii - On-lending terms (Cont.): The Republic of Tunisia would assume the foreign exchange risk for the direct loans to the nine FI and for the subsidiary loans to eligible FI against payment of the difference (currently about 400 basis points) between the money market rate plus 50 basis points and the Bank's standard variable rate. The on-lending rates to beneficiaries will reflect domestic market rates (presently around 12.5%-14%) and will be significantly positive in real terms. Repayment terms of sub- loans will reflect the economic life of the sub-projects and will be a maximum of fifteen years, with a maximum grace period of three years. Economic Rate of Return: Minimum of 10% for each sub-project. Poverty Category: Not Applicable. staff AparAIL Reod: 12017-TUN Map No. IBRD 24916 MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN TO THE REPUBLIC OF TUNISIA AND NINE TUNISIAN FINANCIAL INSTITUTIONS, EACH WITH THE GUARANTEE OF THE REPUBLIC OF TUNISIA, IN AN AGGREGATE AMOUNT EQUIVALENT TO US$120 MILLION FOR A PRIVATE INVESTMENT CREDIT PROJECT 1. I submit for your approval the following report and recommendation on a proposed loan in an amount equivalent to US$50 million to the Republic of Tunisia, and seven proposed loans to eligible Tunisian banks (ATB, BDET, BIAT, BTEI, CFCT, STUSID, UBCI) and two proposed loans to eligible Tunisian financial leasing companies (UTL and TL), each with the guarantee of the Republic of Tunisia, for an aggregate amount equivalent to US$70 millio -i to help finance credit for private investment. The loans would have a maturity of 17 years, including 5 years of grace at the Bank's standard variable rate for the Republic of Tunisia and three FIs and 4 years grace period for the other six FIs. The nine direct loans to FIs and subsidiary loans to FIs through the Republic of Tunisia would be made in Tunisian Dinars at the local money market rate plus a 50 basis point spread to account for the long-term nature of the funds. The Banque Centrale de Tunisie (BCT) would be the executing agency for the loan to the Republic of Tunisia. 2. Country background. A Country Assistance Strategy (CAS) for Tunisia was discussed in the Board on May 11, 1993; the following two paragraphs are a summary of that discussion. Since 1986, the Government has been carrying out a comprehensive stabilization and structural adjustment program aimed at reducing distortions in the economy, improving efficiency and fostering economic growth, and increasing the role of the private sector in the economy. The main elements of the stabilization program were demand management through tight fiscal and monetary policies, exchange rate adjustment, price liberalization and financial sector reforms. The adjustment measures included simplification of the tax system by replacing a distortionary and complicated set of indirect taxes with a simple and efficient value added tax, replacement of virtually all quantitative restrictions on imports with import tariffs up to 43%, and liberalization of domestic producer prices and distribution margins. Financial sector reforms are discussed in para. 4. The Bank, along with other donors, has supported this program with six structural and sectoral adjustment loans, of which five have been closed or had all tranches released. The third and last tranche relese of the most recent adjustment loan, the Economic and Financial Reforms Support Loan (EFRSL, Loan 3424-TUN, FY92), is expected in early 1994. Tunisia's economic performance during this period has improved considerably: between 1986 and 1992, the current account deficit of the balance of payments decreased from 8% to 4.7% of GDP and the budget deficit from 5.5% to 2.7% of GDP, while inflation has averaged 7% per annum, and in 1992 was 5.4%. Manufacturec exports have grown rapidly, and GDP growth rates averaged over 4% in real terms over the 1987-91 period, and was 8% for 1992. 3. The proposed project in the context of the CAS. The Government's objectives for the medium term, beyond 1993, are to sustain GDP growth rates of at least 5% per year, while spreading the benefits to a wide population, maintaining the country's natural resources, and reducing its debt indicators. To do this. .he Government needs to increase competition, attract private investment and better integrate the economy into world markets, especially the EEC. The Bank supports this strategy through sector work (private sector assessment, poverty assessment, public sector management study, and investment incentives study) as well as through the lending program (including projects in, inter alia, agriculture and housing, aimed in particular at vulnerable groups, in the social sectors -- health, employment, training, and secondary education, and in private sector development). The proposed project would address the priority task of strengthening the financial sector to help the private sector adjust to the liberalized trade regime and play an increasing role in an outwar:'-oriented economy. 4. Financial Sector Reforms have been carried out over the last six years, and most recently have been supported by the EFRSL, which was put in place to support Tunisia's program of economic reforms, particularly in the areas of external trade and prices, financial markets, banking supervision and regulation, special incentives, and the social security system. For the first tranche release of US$100 million in December 1991, the EFRSL supported the following reforms in the financial system: (a) Government's issuing Treasury bonds of at least two maturities at market rates (10%-I 11v2%); (b) a program of early redemption over 1993-96 of financially unattractive Government bonds which had been force-placed; (c) removal of the requirement of banks to hold 20% of their deposits in Treasury bonds; (d) improved taxation of financial instruments, to allow secondary markets to develop and to encourage the development of equity markets and mutual funds; and (e) replacement of the cap on deposit banks' spread of lending rates by a cap on the average spread. The BCT issued new prudential regulations consistent with international standards for provisioning and capital adequacy, defined acceptable audit and reporting practices for financial institutions (FIs), and adopted a program to strengthen its supervisory functions. For the second tranche release of US$70 million in August 1993: (a) a -ew draft banking law was submitted to the Chamber of Deputies, putting commercial banks and development banks on a more level playing field; (b) banks representing about 70% of the assets of the banking system have been audited and action plans agreed on four of the banks to ensure adequate provisioning and recapitalization by December 31, 1995 (except for one large public commercial bank, whose action plan extends until June 30, 1996; in addition, action plans for all banks participating in this project have been agreed since the tranche release, with adequate provisioning and capital to be attained by end-1994); and (c) agreement has been reached on the new unified investment code which, inter alia, eliminates subsidized, targeted investment credits from domestic resources (subsidized resources are likely to continue to be available from bilateral and multilateral donors), and replaces them with, inter alia, fiscal incentives through tax deductions for selected activities; investments in tourism will no longer benefit from targeted subsidies or tax advantages. For the final tranche release of US$80 million, all lending rates will be free, action plans, where necessary, for FIs representing over two-thirds of the assets of the banking system will be agreed, a program of audits agreed to complete the coverage of the banking system, and the unified code of investments will be implemented. It is within this framework of reform and liberalization of the financial sector that the proposed project has been formulated and appraised. Supervision during project implementation will review the situation in the financial sector to ensure that there have been no key policy reversals. 5. Interest rates are strongly positive in real terms, with lending rates at 12.5%-14% and estimated inflation rates for 1992 and 1993 at about 5.5%. Competition, particularly among commercial banks, is strong. With the implementation of the reforms mentioned above, bond and equity markets will be able to develop to serve the financing needs of the private sector. Realistically, however, it will be some time before the equity and bond markets develop fully to play their part in mobilizing long-term resources. At the same time, the amounts of subsidized long-term loans will be sharply reduced once the new investment code is implemented in early 1994. Until the markets develop to replace term funds, financial institutions will need to mobilize new term resources to balance the maturities of their assets and liabilities. The Bank loan will provide, at market prices, part of the term resources needed by the banking system. -3- 6. Lessons learned from previous Bank involvement. Over the past twenty five years of financial intermediation lending, it has become clear that: (a) targeted lending is particularly vulnerable to changing economic conditions, when demand for investments in the targeted sector falls off sharply; the proposed loan will finance a broad range of activities, across virtually all sectors of the economy (except farming, construction of housing and land development for housing); (b) subsidized resources to the banking system can discourage savings mobilization and subsidized lines of credit competing with Bank loans can effectively crowd out the use of Bank funds; the new investment code agreed upon under the EFRSL will eliminate domestic programs of subsidized resoirces in the banking system; external bilateral and multilateral donors will likely continue to offer targeted lines of credit at below-market rates, althcugh these are usually less fungible than open lines of credit; (c) participating FIs must be operationally strong to ensure that sound appraisal standards are applied to investments, that loans are repaid, and that project are sustainable; (d) strict prudential regulations and their consistent application are critical to ensure the financial viability of the FIs. This loan has been prepared within the framework of strict, internationally acceptable prudentihl regulations and project supervision will ensure continued compliance with these regulations. 7. Rationale for Bank involvement. The Bank loan complements the trade and financial reforms underway that foster the adjustment of the private sector to the liberalized, more competitive economy, and the strengthening of the financial system, and provides term resources to strong, commercially viable financ;al institutions operating in a liberalized sector which has not yet developed sufficien instruments to mobilize and intermediate term resources. The resources made available will enable the participating FIs to play an important role in financing the investment needs of the Tunisian private sector at a critical juncture in the adjustment process of the economy. 8. Project objectives. The project will provide financially sound banks and financial leasing companies access to term resources at market rates, to finance private firms, during the current transitional period of emerging long-term capital markets. By including a wide range of FIs (commercial banks, development banks, and financial leasing companies) using project funds according to Bank standards, the project will promote sound medium and long-term lending throughout the financial system, and by undersizing the loan size compared to the estimated needs for term funds by the FIs, the project will also promote competition within the financial system. 9. Project Description. The project would consist of: (a) nine direct lines of credit to eligible FIs having completed necessary audits by negotiations (US$70 million); (b) an apex loan of US$50 million to the Republic of Tunisia for: (i) on-lending through subsidiary loans to eligible FIs; this would permit flexibility and competition in the use of the funds by each FI, and would allow additional Ms, reaching eligibility after negotiations, to participate (US$48.8 million); and (ii) refinancing two Project Preparation Facilities, for US$0.7 million, put in place for the benefit of the Soci6t6 Tunisienne de Banque, to finance technical assistance and software for computerization of its accounting system; (0 technical assistance and training for FIs, to strengthen their capacity to monitor their risk assets (US$0.5 million from the apex; another US$1.2 million are allocated under the direct lines of credit for this purpose). Retroactive financing would be included for expenditures made on eligible investments after March 31, 1993 and prior to loan signing, up to a total of 10% of the direct line of credit to each Fl. 10. The eligibility criteria for participating banks in the direct lines of credit require each FI to have: (a) an international audit for 1991 or 1992, applying the new prudential regulations; (b) a risk-weighted capital ratio of at least 2.5% for the year the bank is audited, or by loan effectiveness; -4- (c) acceptable quality of management; (d) acceptable medium term strategy and policy statement (and/or to develop them by loan effectiveness), including limitations on sectoral exposure for their medium and long-term portfolio (except for the Banque de D6veloppement Economique de Tunisie (BDET), who must prepare such a plan by June 30, 1995); (e) acceptable procedures for appraisal, supervision and internal control, as appraised by the Bank; and (f) a minimum pipeline of investments eligible tor fnancing under the project. In additioa, banks must reach at least a 5% risk-weighted capital ratio by end -1994 to continue to be eligible to participate in the project. Action plans were agreed at negotiations to strengthen banks to achieve these financial targets and to strengthen their credit and other internal operations. Satisfactory implementation of actions is required for continued eligibility. Eligibility criteria for financial leasing companies are: (a) at least one year of profitable operations; (b) to be in compliance with the BCT's regulations on loan classification, provisioning and capita! requirements; (c) to have acceptable procedures for appraisal and supervision, as appraised by the Bank; and (d) to have an acceptable medium term plan, including limits on sectoral exposure of lease financing; (e) to have expected annual approvals of lease financing of at least US$2.0 million in eligible sectors. FIs eligible for the direct lines of credit include four private commercial banks, two private financial leasing companies, and three publiz development banks, which together account for about 33% of the assets of the banking system. Other FIs may become eligible during project implementation, provided they have carried out an international audit, meet agreed eligibility criteria, and have satisfactory management, internal policies and procedures, an acceptable medium term strategy as determined by a Bank appraisal, and a minimum pipeline of sub- projects likely to be eligible for financing under the loan. Any action plan necessary for the FI would be part of a subsidiary loan agreement, acceptable to the Bank, between the Republic of Tunisia and the FI concerned. 11. Eligible beneficiaries are privately owned enterprises, defined as having at least 50% of the voting stock or other proprietary interest effectively controlled by individuals or private sector entities, operating in all sectors of the economy (except farming, construction of housing, and land development for housing), which are financially sound and profitable and have no loans in arrears or have a plan for paying them, a debt/equity ratio not exceeding 70/30, and a debt service coverage of at least 1.3 by the first year of full development of the sub-project. In addition, the sum of all sub-loans financed by the Bank through any one FI for any one sub-project will not exceed US$3 million, and through all FIs for any one sub-project will not exceed US$10 million. Eligible sub-proLjects are those which: (a) have a total cost below US$25 million (excluding the cost of land acquisition); (b) have a projected financial rate of return of at least 12% and an economic rate of return of at least 10%; (c) are appraised according to acceptable standards, including an environmental assessment, where appropriate, and a complete enterprise diagnosis if the enterprise is undergoing a change in corporate strategy. The Bank loan would finance credit for investments and incremental working capital. In addition, equity investments by FIs would be financed up to 5% of the loan amount allocated to each FI and up to 5% of the amount of the apex loan. On-lending rates for sub-projects are determined by the FIs, and are currently strongly positive. Appraisals of sub-loans above the free limit of US$1 million equivalent would be sent to the bank for prior approval; appraisals for sub-loans below the free limit would be kept on file with the participating bank for review by Bank supervision missions. The Bank loan will disburse 100% of the amount disbursed by the banks, up to 70% of the sub-project cost, and 100% of amounts, net of taxes, invested by the banks and disbursed by the financial leasing companies for vehicles and equipment financing. Details on procurement of goods and consultant services are in Schedule B. 12. Environment. The proposed project has been reviewed in accordance with the provisions of World Bank Operational Directive 4.01, "Environmental Assessment" and placed in environmental screening category B. It does not require preparation of a full environmental assessment (EA), although -5- all sub-borrowers will be required to comply with the national environmental agency's requirements. The local guidelines, criteria and monitoring procedures for EAs to be carried out on specific industries and agricultural and commercial activities have been reviewed and were found to be satisfactory. All sub-projects that require EAs would have them carried out as part of the appraisal process. For sub- projects above the free limit, the EAs will be submitted to the bank with the appraisal reports; for sub- projects below the free limit, the EA will be kept on file for Bank supervision review. In addition, sub- projects shall be designed in accordance with appropriate safety, health and environment guidelines satisfactory to the Bank. 13. Actions agreed. Agreement was reached at negotiations with the Government, the BCT and the FIs that: (a) action plans will be carried out to strengthen Fis financially and operationally; (b) failure of an FT to meet targets and time-bound actions would be cause for suspension of new commitments and disbursements to that FI under the loan; (c) to ensure that large FIs do not crowd out smaller ones, no one FI would borrow more than 35% of the amount in the apex loan; (d) Fis would pay 50 basis points above the money market rate for the dinar equivalent of loan funds; (e) financing of equity t.y a participating bank would be limited to 5% of the loan to each PB and 5% of the apex loan; (f) key policies in the financial sector and implementation of FI action plans would be explicitly reviewed during a mid-term review, about eighteen months after project effectiveness; and (g) pre and repayments of sub- loans and lease financing and proceeds from sales of equity iavestments would finance additional eligible sub-projects and would be monitored for the life of the loan. Conditions of effectiveness of the direct lines of credit are that each FI have: (a) a risk-weighted capital ratio of at least 2.5% (applies to only two banks that did not have such a ratio as of end-1992); and (b) an acceptable medium-term strategy and policy statement, including limits on sector exposure of medium and long-term portfolios (except for BDET, para. 10). 14. Benefits. The project will provided term resources needed to finance viable investments, thus making a significant contribution to industrial and export growth, generating additional employment, and enabling industrial modernization and diversification which, in turn, will help sustain economic growth. It will provide the private sector enterprises with a broad range of financing options by making term resources available to a range of FIs. Overall, the project would contribute to enhancing private sector competitiveness and to encouraging competition in the financial sector. 15. Risks. A few FIs requiring action plans may have difficulty in meeting the agreed targets and measures; this risk has been mitigated by ensuring strong Fl commitment to the plans. Second, commitments under the loan may be slower than expected if investment demand turns sharply down. The loan has been deliberately undersized, compared to the needs of the FIs for credit, to ensure competition among the FIs and rapid use of the funds. 16. 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 it. Lewis T. Preston President Attachments Washington, D.C. -6- Scedule A REPUBLIC OF TUNISIA Private Investment Credit Project Estimated Costs and Financing Plan timted Costs: The proposed loan consists of lines of credit to the .lic of Tunisia, sevvn Tunisian banks, and two financial leasing companies to finance eligible investment sub-projects. The conventional project cost concept is thereforo not applicable. Plan: Each line of credit would finauce up to 70% of the investment costs (including incremental permanent working capital) of eligible sub-projects financed by participating banks, and 100% of amounts, net of taxes, invested by the banks, and 100% of the investment costs, net of taxes, of vehicles and equipment purchased by the participating financial leasing companies for the purposes of leasing. These percentages correspond to the estimated foreign exchange component of investments in Tunisia. Additional funding to cover the sub- projects' investment costs of the participating banks would be provided by investors (a minimum of 30% of the sub-project cost), suppliers' credit, and other bank lending; and additional funding to cover the costs of taxes on vehicle and equipment -fnanced by the financial leasing companies would be provided by other sources ot financing to the leasing company. -7- Schedule B REPUBLIC OF TUNISIA Private Investment Credit Project Procuremnt and Disbursement Procurement: Procurement under the proposed project will be those established for financial intermediation operations. The investment cost of most sub-projects is expected to be on average about US$2.5 million equivalent. Individual contracts for procurement of goods and services will generally be less than US$1.0 million equivalent. Procurement of contracts below US$5.0 million will take place under the supervision of the FIs through existing local channels according to established commercial practices in Tunisia, where the self-interest of the entrepreneurs has led to efficient procurement. In addition, with current account convertibility of the Tunisian Dinar since January 1993, international transfers of funds have been liberalized for private enterprises procuring foreign goods and services, removing the last administrative constraint to ensuring efficiency in procurement. For all contracts exceeding US$5.0 million, procurement will follow the Bank's guidelines on ICB procedures. The FIs will maintain, for Bank supervision, records on the methods of procurement. Consultants for technical assistance with qualifications, terms and conditions of employment satisfactory to the Bank would be appointed following Bank Guidelines on the use of consultants published in August 1981. For consultants' contracts estimated to cost less than US$100,000 equivalent each, prior review or approval by the Bank of budgets, short lists, selection procedures, letters of invitation, proposals, evaluation reports and contracts will not apply. Disbursement Schedule (US$ million) IBRD Fiscal Year Disbursements 1994 1995 1996 1997 1998 1999 Annual 5 17 27 28 28 15 Cumulative 5 22 49 77 105 120 -8- Schedule C REPUBLIC OF TUNISIA Private Investment Credit Project Timetable of key processing events (a) Time taken to prepare : 20 months (b) Prepared by : Government/Bank (c) First Bank mission : September 1990 (d) Appraisal mission departure : March 14, 1993 (e) Negotiations : August 25, 1993 (f) Planned date of effectiveness : January 31, 1994 (g) List of relevant PCRs, PPARs : Small Scale Industries I (Loan 1969-TUN) Electrical and Mechanical Industries (Loan 2113-TUN) Export Industries (Loan 2522-TUN) Industrial and Trade Policy Adjustment Loan (Loan 2781 -TUN) -9- Schedule D (pace 1 of 2) The Status of Bank Group OeErations in Tunisia Statement of Sank Loans and IDA Credits (As of September 30, 1993) US$ Million Amount Loan or Fiscal (less cancellations) Credit No. Year Borrower Purpose Bank IDA Undisbursed Sixty-eight loans and 10 credits fully disbursed 1,721.51 76- . Of which SALe. SECALe, and Program Loans la 2781 1987 Republic of Tunle'a Industry & Trade Policy 160.00 2764 1987 Republic of Tunisia Agriculture Sector Adjustment 150.00 2062 1988 Republic of Tunisia SAL I 150.00 3109 1990 Republic of Tunisia PERL 130.00 Sub-total 680.00 Disbursing Loane 2223 1983 Republic of Tunisia Urban Development ill 25.00 1.28 2308 1984 Republic of Tunisia Seventh Water Supply 50.00 0.78 2429 1984 Republic of Tunisia Second Urban Transportation 33.00 1.57 2654 1985 Republic of Tunisia 2nd Electrical & Mechanical industry 21.86 0.99 2673 1985 Republic of Tunish irrigation Management improvement 17.00 5.50 2605 1986 Republic of Tunisia Gabes Infigation 19.20 1.04 2735 1987 Republic of Tunisia Energy Conservation 4.00 3.08 2730 1987 Republic of Tunisia Fourth Urban Development 30.20 5.27 2870 1988 Republic of Tunisia Forestry Development 20.00 5.90 2896 1988 Republic of Tunisia Highways Maintenance & Rehabilitation 63.00 18.27 2911 1988 Republic of Tunisia 2nd SMS Industrial Development 28.00 1.98 3023 1989 ETAP Petroleum Exploration 3.00 1.79 3054 1989 Republic of Tunisia Education & Training 95.00 27.98 3064 1989 Republic of Tunisia Fifth Urban 68.00 6.03 * 078 1989 Republic of Tunisia ASAL II 84.00 9.98 3217 1990 Republic of Tunisia Research & Extension 17.00 13.31 3255 1991 Republic of Tunisia Employment & Training Fund 12.00 4.61 3307 1991 Republic of Tunisia Population & Family Health 26.00 22.84 3308 1991 Republic of i unisla Hospital Research Support 30.00 28.00 3418 1992 Republic of Tunisia Gas Infrastructure 80.00 52.39 * 424 1992 Republic of Tunisia Economic & Financial Reform 250.00 84.23 3456 1992 Republic of Tunisia Higher Educetion 75.00 71.99 3807 1993 Republic of Tunisia Municipal Sector 75.00 72.00 3601 1993 Republic of Tunisia Second Forestry b/ 69.00 69.00 TOTAL 2,886.77 75.18 507.54 Of which has been repaid (only amortization) 906.44 20.38 Total held by Bank and IDA 1.980.33 54.78 Amount sold 34.82 of which repaid 33.97 Total Undisbursed 507.54 SAL, SECAL or Program Loan la Approved after FY80 /b Not yet signed - 10 - Schedule D (paae 2 of2) Statement of IFC Investments in Tunisia (As of September 30, 1993) Original Gross Commitment Fiscal (US$ Million) Year Obligator Type of Business Loan Equity Total 1960/ Societe Nationale Development Finance Company - 1.74 1.74 70/78 dnvestissement (now BDET) 1969 COFIT Tourism (now BNDT) Development Finance Company - 2.20 2.20 1973 Societe d'Etudes et Tourism - 3.13 3.13 do Developpement du Sousse-Nord 1988 Societe Industrielle Textiles and Fibers 5.00 3.72 8.72 des Textiles (SITE)Q 1988 Adwya S.A. Pharmaceuticals 2.08 0.28 2.34 1987 Rozzl Edilizzla Prefabricated 1.13 0.42 1.55 Industrializzata Panels (REIT S.A.) 1987 COMETE Engineering Engineering Services - 0.04 0.04 1988 Societe des industries Textiles & Fibers 2.45 2.10 4.55 Textiles Reunies S.A. (SITER) 1991 Societe Monastirienne Textiles and Fibers 3.64 1.28 4.92 des Textiles (SOMOTEX) 1992 Societe Miniere do Zinc/Lead Mine 14.00 2.15 10.16 Bougrine 1993 Ideal Sanitaire Manufacturing 2.78 1.01 3.79 Total gross commitments 31.06 18.07 49.13 Less cancellations, terminations, repayments, sales and exchange adjustments 2.86 6.23 9.09 Total commitments held by IFC 28.20 11.84 40.04 of which undisbursed 14.63 0.24 14.87 Does not include participants IBRD 24916R .Q 9 100 Gulf of 110 MEDITERRANEAN erBizote Tunis SEA *Arous 'e Jendouba hcuan - 'Nabeul E Kef Simna Gulf of Hammumet ~ (*~36ý \ Sousse w -'~Kairouan onastir IV STIR t abdia AA Kasserine -- 535 Sd Bou Zid Sfax / ) QP Kerkenah Gafsa Islands ,Pø Miskar Cho elGAFSA r Ghar Gulf o/str Chott Gobes - Fedia34 Tozeure Fei' abes 3* ZEUR Choft el .Gbei Jerid 4 ,~Mdenino GBE LLI T ½ Tataou ine TUNISIE PRIVATE INVESTMENT CREDIT PROJECT 0 E"ý T32-- PROJET DE CREDI A L'INVESTISSEMENT PR VE SALT LAKES LACS SALÉS GOVERNORATE CAPITALS CAPITALES DES 0 25 50 75 GOUVERNORATS KILOMETERS GOVERNORATE BOUNDARIES FRONTIÉRES DES imp hb GOUVERNORATS f« onvthe ~ :of r eaø nd ms f«r tfle NATIONAL CAPITAL Thedmi~ sød CAPITALE DU PAYS wasS&t INTERNATIONAL BOUNDARIES o" t*t° FRONTIÉRES INTERNATIONALES 8N 9 10 11 NOVEMBER 1993