Argentina - Forestry Development Project

Document of The World Bank FOR OFFICIAL USE ONLY Report No. P-6588-AR 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$16.0 MILLION TO THE ARGENTINE REPUBLIC FOR A FORESTRY DEVELOPMENT PROJECT SEPTEMBER 22, 1995 This document has a restricted distribution and may be used by recipients only in the perfortnance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS Currency Unit - Peso (Arg$) EXCHANGE RATE (September 22, 1995) US$1.00 = Arg$1.00 Arg$1.00 = US$1.00 FISCAL YEAR January 1 to December 31 WEIGHTS AND MEASURES The metric system has been used throughout the memorandum. ABBREVIATIONS AND ACRONYMS Bank/FAO-CP World Bank/Food and Agriculture Organization Cooperative Program CAS Country Assistance Strategy DPF Directorate for Forestry Production (within SAGyP) GDP Gross Domestic Product ICB International Competitive Bidding IFONA Argentinean National Forestry Institute INASE National Seed Institute INTA National Institute for Agricultural Research LIB Limited International Bidding NCB National Competitive Bidding NGO Non-Governmental Organization PAR Project Audit Report PCR Project Completion Report PIU Project Implementation Unit SAGyP Secretariat of Agriculture, Livestock and Fisheries SRNyAH Secretariat of Natural Resources and Human Environment  FOR OFFICIAL USE ONLY ARGENTINA FORESTRY DEVELOPMENT PROJECT Table of Contents Loan and Project Summary Main Text .1 Schedule A. Estimated Costs and Financing Plan ............... 9 Schedule B. Procurement Methods and Disbursements ... ........ 10 Schedule C. Timetable of Key Processing Events .............. 12 Schedule D. Status of Bank Group Operations in Argentina ... .... 13 MAP: IBRD No. 26467 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.   ARGENTINA FORESTRY DEVELOPMENT PROJECT Loan and Project Summarv Borrower: The Argentine Republic Implementing Agencv: Secretariat of Agriculture, Livestock and Fisheries (SAGyP) Beneficiaries: Those parts of the private sector involved with forest plantations and timber processing industries; 3,000 poor farm families; and residents of Patagonia Poverty: Program of Targeted Interventions. The Small Farmer Component would be targeted at poor farm families in selected rural areas where the incidence of poverty is substantially higher than average Amount: US$16.0 million equivalent Terms: Repayable in 15 years, including 5 years of grace, with loan amortization based on level repayments of principal, at the Bank's standard variable interest rate Commitment Fee: 0.75 percent on undisbursed loan balances, beginning 60 days after signing, less any waiver Onlending Terms: Not applicable Financing Plan: See Schedule A Net Present Value: Not applicable Staff Appraisal Report: Report No. 14314-AR, dated September 22, 1995 Project Identification Number: AR-PA-6040 Map: IBRD No. 26467   MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE IBRD TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN TO THE ARGENTINE REPUBLIC FOR A FORESTRY DEVELOPMENT PROJECT 1. I submit for your approval the following memorandum and recommendation on a proposed loan to the Argentine Republic for the equivalent of US$16.0 million to help finance a forestry development project. The loan would be at the Bank's standard variable interest rate, with a maturity of 15 years, including 5 years of grace. 2. Sector Background. Argentina's forest plantations have clear natural advantages compared with those in many countries. These advantages stem mainly from: (a) the fast growth rates of trees in Argentina resulting from relatively rich soils and favorable temperatures and rainfall; and (b) an abundance of land with few alternative uses. In spite of these advantages, forest plantations in earlier decades were not developed in line with the potential, principally because of unfavorable macroeconomic, trade, and other policies. In recent years many of these policies have been adjusted appropriately, and the improved economic and policy environment now encourages investment. 3. The forest resources of Argentina are made up of both plantations and native forests. Land with woody vegetation is estimated at about 64 million hectares (23 percent of the total area of the country), of which forested land is estimated at between 35 and 45 million hectares. The area of native forest with commercial potential is estimated at about 15 million hectares; it produces about 7.3 million m3 of wood per annum, equal to about 40 percent of the country's annual production. The remainder comes from plantations, whose area is estimated at about 900,000 hectares. 4. The forestry sector in Argentina contributes just under 2 percent of GDP and had a positive trade balance of US$132.1 million in 1989. While it now contributes positively to the trade balance, this was achieved only by 1988. The contrast between the perfornance of the forestry sectors in Argentina and Chile could hardly be more striking. While Argentina is about 3.7 times the size of Chile in area, and about 3 times its size in terms of GDP, Chile's exports of forest products, at about US$1.0 billion annually, are almost 4 times greater than Argentina's. 5. From 1980 to 1989, the area under plantations in Argentina grew only 7.5 percent. From. 1970 to 1990, Argentina planted about 1 million hectares of forests; over the same period, Brazil planted about 6 million hectares, and between 1978 and 1990, Chile planted 1.3 million hectares. Chile developed an export-oriented industry which enabled it to develop well beyond the  - 2 - requirements of the domestic economy. Brazil suffered from macroeconomic and policy distortions similar to those of Argentina, but the size of the domestic market was much larger, enabling its forestry sector to expand rapidly. Argentina was constrained both by macroeconomic and sector policy distortions and by the small size of its domestic market. In comparing Argentina with Chile in particular, it becomes clear that a substantial gap exists in Argentina between the actual and potential levels of forest plantation production. Furthermore, much of the past growth in forest plantations in Argentina has not been efficient. 6. The Argentinean National Forestry Institute (IFONA), an autonomous institute under the institutional umbrella of the Secretariat of Agriculture, Livestock and Fisheries (SAGyP), was responsible for overall management of the forest sector until late 1991 when it was dismantled. IFONA's functions were divided between the SAGyP's Directorate for Forestry Production (DPF), which was given responsibility for forest plantations, timber processing industries and agroforestry, and the newly- created Secretariat of Natural Resources and Human Environment (SRNyAH), which was given responsibility for native forests, protected areas, and green environmental issues. SAGyP is responsible for two semi- autonomous agencies: (a) the National Seed Institute (INASE); and (b) the National Institute for Agricultural Research (INTA), which has responsibility, inter alia, for forestry research and extension. DPF, INASE, and INTA, which would be directly involved with the implementation of the project, are relatively capable and efficient institutions, but in need of some further strengthening. 7. While the names of the administrative units dealing with the forest sector may differ in the 23 Argentinean provinces, the general institutional design is relatively simple. The focal point is a provincial Forestry Directorate with responsibility for coordinating the forestry-related activities of all entities, including national, for both native and planted forests. 8. In the Government strategy for developing forest plantations and timber processing industries, fostering agroforestry, and dealing with the prevention of desertification in Patagonia, responsibility for the production and marketing of commercial goods and services is assigned to the private sector while the role of the state is limited mainly to the creation of a supportive policy, legal and regulatory framework, the production of goods and services with a high public good content, and support of agroforestry in selected areas to alleviate rural poverty. Examples of public goods would be: (a) producing public information on the stock of trees in the nation's forest plantations; (b) producing market and price information; (c) developing genetically-improved seed and promoting the production and use of improved seedlings; and (d) generating and disseminating information about improved technical packages for the establishment and management of plantations. The proposed project would help the Government implement the public sector role outlined here.  - 3 - 9. Project Objectives. The objectives of the project would be to contribute to efficient and sustainable growth of forest plantations and timber processing industries, to alleviate rural poverty, and to develop a strategy and consensus for addressing the desertification and soil erosion problems in Patagonia. 10. Project Description. To achieve these objectives, the project would: (a) help to create a supportive institutional, policy, legal and regulatory framework; (b) produce and disseminate information which would enable all actors, both public and private, to contribute to narrowing the gap between actual and potential levels of output from forest plantations and timber processing industries; (c) target directly with technical assistance and grants, groups of small farmers in which the incidence of poverty is high, agroforestry can play a central role in improving farming practices, and, as a consequence, alleviate rural poverty and better protect important resources of nearby native forests; and (d) complete a comprehensive study on the Patagonia region, focussing on the development of an appropriate role for the state to help prevent soil erosion and destruction of natural habitat. 11. The project would have three components: (a) institutional strengthening, including reform of the policy, legal, and regulatory frameworks affecting forest plantations and timber processing industries; (b) research and information generation and dissemination; and (c) support to poor farmers in about five areas adjoining important native forests to help them improve their farming practices partly through the use of agroforestry. 12. The Institutional Strengthening Component (13 percent of project costs) would: (a) analyze and strengthen the policy, legal, and regulatory frameworks; and (b) address identified weaknesses in the principal public sector institutions supporting forest plantations and timber processing industries: the Directorate for Forestry Production (DPF), the National Seed Institute (INASE), and the National Institute for Agricultural Research (INTA), all within the Secretariat of Agriculture, Livestock and Fisheries (SAGyP). The project would provide the necessary technical assistance and training for selected staff of SAGyP, and, where appropriate, cooperating staff at other institutions involved directly in project implementation. The baseline cost of the component would be US$3.0 million, and would include expenditures for the acquisition of vehicles, equipment, training, studies, and technical assistance. 13. The Research and Information Generation and Dissemination Component (56 percent of project costs) would support the following actions and investments aimed at generating information with a high public good content: (a) a national inventory of forest plantations and a related database; (b) studies on export markets and adoption of grading systems for mechanical wood products; (c) the development of a breeding program to achieve a higher level of species domestication; (d) the production and marketing of better seedlings; (e) plantation management research and extension; and (f)  - 4 - strengthening of the information base available for improved management of the Patagonia region. The baseline cost of the component would be US$13.2 million, and would include expenditures for remote imagery, equipment, technical assistance, studies, and training. 14. The Small Farmer Component (31 percent of project costs) would: (a) provide direct support in the form of technical assistance and grants to poor farm families in about five areas adjoining important native forests to help them improve their farming practices partly through the use of agroforestry and, as a consequence, alleviate their poverty and contribute to relieving the pressure on these native forests; (b) develop improved technologies adapted to small farming systems; and (c) increase small farmers' and their families' sensitivity toward environmental values, environmental degradation, and the need to conserve native forests. Activities would expand and sustain the participation of effective local groups to facilitate the adoption of technological alternatives that could not be easily absorbed by individual farmers. Farmers' groups or associations -- formed spontaneously or promoted by public and private institutions or by non- governmental organizations (NGOs) -- would be the main vehicles for the implementation of the component. The baseline cost would be US$7.2 million, and would include expenditures for technical assistance, research, farm inputs, and training. 15. The estimated project costs and financing plan are shown in Schedule A. The amounts and methods of procurement and disbursement and the proposed disbursement schedule are shown in Schedule B. A timetable of key processing events and the status of Bank Group operations in Argentina are shown in Schedules C and D, respectively. A Staff Appraisal Report, No. 14314-AR, dated September 22, 1995, has also been prepared. 16. Project Implementation. Overall responsibility for project implementation would rest with SAGyP, and authority to make most decisions affecting the project would be delegated to the Sub-Secretary of Production. The Sub-Secretary would make maximum use of existing SAGyP capacity for project implementation but, in addition, would receive administrative and technical assistance from a Project Implementation Unit (PIU) which would be established under the project. The PIU would include a project coordinator, a technical manager, a procurement specialist, and an accountant. The Directors of DPF and INASE would work closely with the Sub-Secretary of Production in implementing the Institutional Strengthening Component in their respective areas of responsibility. Under the Research and Information Generation and Dissemination Component, the Sub-Secretary of Production would: (a) directly manage the study of the Patagonia region working in close cooperation with other interested parties in the federal government, provincial governments concerned, the private sector, and NGOs; (b) implement, with the assistance of INTA, two sub-components, namely, tree selection and breeding, and plantation management research and extension; and (c) delegate to DPF authority: (i) to complete the national  - 5 - inventory of forest plantations and to manage the related database; (ii) to manage the study on export markets and the adoption of grading systems for mechanical wood products; and (iii) to manage, with the assistance of INASE (which would be responsible for certification), the program for promoting the production and marketing of improved seedlings. In implementing the Small Farmer Component, the Sub-Secretary would use: (a) the assistance of INTA to carry out applied research on small farmer issues; and (b) the institution with the best proven record in each of the approximately five areas affected (whether an NGO or local government) to provide technical assistance and other support to poor farmers. 17. Proiect Sustainability. Project sustainability would be enhanced through the strengthening of the implementing agencies, particularly DPF and INASE, and the reform of the incentive structure that affects forest plantations, timber processing industries, and desertification and soil erosion in Patagonia. Research-generated information would make possible more efficient plantations which, in turn, would help to make project activities more sustainable. The incremental recurrent cost after project completion would be modest, at about US$1.1 million per annum. 18. Lessons Learned from Previous Bank/IDA Involvement. Only one Project Completion Report (Haiti Forestry Project (C1257-HA), Report No. 9399, dated March 7, 1991), and no Project Audit Report (PAR), exists for a forestry project in the Latin America and the Caribbean Region. Lessons learned are derived from Bank studies of sectoral experience. The proposed project represents an appropriate set of public sector interventions aimed at boosting the productivity of plantation forests and timber processing industries while being sensitive to environmental issues. It heeds lessons from Bank and non-Bank projects that the government has a critical role to play in encouraging and facilitating the use of improved technology in plantation forests, and that forestry and agroforestry can play a key role in alleviating rural poverty in selected locations while also helping to protect native forests. 19. Rationale for Bank Involvement. The proposed project is fully consistent with the Country Assistance Strategy (CAS), which was discussed by the Board on May 4, 1995. The CAS highlights three broad objectives: (a) consolidating structural reform; (b) poverty reduction and strengthening social services; and (c) rebuilding infrastructure. The proposed project would be the Bank's first forestry project in Argentina. It would provide a vehicle for the Bank to pursue CAS objective (a) by enhancing the competitiveness of forest-plantation based industries through policy. legal and regulatory reform, and by strengthening public sector institutions and applied research and extension systems; objective (b) by improving the incomes of poor small farmers through the use of agroforestry in selected rural areas where the incidence of poverty is high; and objective (c) by promoting soil conservation through a study to identify the causes of, and to develop remedies for, desertification in the Patagonia region.  - 6 - 20. Agreed Actions. During negotiations, agreement was reached between the Government and the Bank on the following: (a) that SAGyP would pursue the least-cost option of inputting into its database raw statistics collected by other agencies, and would concentrate on collecting only the unavailable raw data required by its unique mandate; (b) that for plantation owners to be eligible for participation in any government grant-assisted plantation program, they would be required, when establishing a new forest plantation, to use INASE-certified improved seedlings; (c) that under the Small Farmer Component, the target population would be limited to farm families having legal title to the land they farm, family incomes of less than two minimum rural salaries, total assets (excluding land) of less than Arg$20,000, and potential and motivation, in the opinion of the collaborating institution, to increase farm income while also contributing to protecting adjoining native forests; (d) that under the Small Farmer Component, the cumulative amount of grants paid to any farm family over the life of the project would not exceed US$1,000 equivalent; (e) that prior to the commencement of activities to be financed under the Small Farmer Component in any selected area, SAGyP would enter into a collaboration agreement for such selected area with a well qualified and experienced public or private institution in order to ensure the provision of extension/technology transfer services and environmental education to beneficiaries, and monitoring of the use of the agroforestry fund; (f) a draft of the contractual agreement between SAGyP and INTA, which includes the provision that SAGyP, with the assistance of INTA, would carry out the proposed plantation forestry management and small farmer research programs jointly with private sector research organizations or universities; (g} timing for the submission of the Annual Operating Plan and reporting procedures; and (h) timing and scope of the Mid-Term Review. 21. Before the effectiveness of the proposed loan, the following conditions would be met by the Borrower: (a) the PIU would be established and staffed with a project coordinator, a technical manager, a procurement specialist, and an accountant; and (b) a contractual agreement would be in effect between SAGyP and INTA. 22. Poverty Category. The Small Farmer Component would be targeted at the Northeast and Northwest, the two regions of Argentina which have the highest concentration of poor farmers and between them contain 53 percent of the country's rural poor. Within these regions, the level of family income would be used along with other criteria to select beneficiaries and to ensure that they all would come from the population of rural poor. 23. Environmental Aspects. The proposed project would have no adverse environmental impact; the small farmer component is specifically designed to have a positive impact on adjoining native forests. The project has an Environmental Assessment category B because of the need to ensure that reform of the policy, legal and regulatory framework affecting forest  plantations and timber processing industries would avoid negative consequences for the environment. 24. Program Objective Categories. The program objective categories affected by the project would be private sector development, poverty reduction, and environmentally sustainable development. The emphasis would be on private sector development and poverty reduction. 25. Participatory Approach. The proposed implementing agencies for the project were closely involved in project preparation. Producer associations and plantation and timber processing operators and owners were consulted on all aspects of the proposed project affecting their interests. In the case of the Small Farmer Component, the NGOs which developed the pilot schemes upon which that component is based were involved directly in project preparation. There was also widespread consultation with small farmers and their organizations in the proposed project areas. 26. Project Benefits. The project would contribute to efficient and sustainable growth in forest plantations and timber processing industries by reorienting the role of government toward its core functions of providing appropriate public sector support to the private sector. The rural economy would be strengthened by improved resource allocation and by the increased competitiveness of forest plantations and timber processing industries. About 3,000 poor rural families would benefit directly from efforts to alleviate poverty. As a result of studies to be completed under the project, the government would be better positioned to play an appropriate role in addressing problems stemming from the destruction of the Patagonia region's natural resources and habitats. 27. Risks. The major risk is that the key institution charged with executing the project, namely SAGyP, would not be up to the task. This risk stems mainly from the changed demands the project would place on SAGyP's DPF, INASE, and INTA. The source of these new demands is the changed role of the state in forest plantations and timber processing industries which underlies and has guided project design. In response to this concern, great emphasis would be placed on institutional strengthening as part of the project. There is also a risk that a complementary project which is under preparation with SRNyAH, dealing with native forests and protected areas may not proceed as scheduled. Should this occur, the benefits from the Forestry Development Project would be unaffected, but the issues confronting native forests, protected areas, and related green environmental issues would receive inadequate attention. However, this outcome is unlikely since preparation of the complementary project with SRNyAH is proceeding on schedule.  - 8 - 28. Recommendation. I am satisfied that the proposed loan would comply with the Articles of Agreement of the Bank, and I recommend that the Executive Directors approve it. James D. Wolfensohn President Attachments Washington, D.C. September 22, 1995  -9- Schedule A ARGENTINA FORESTRY DEVELOPMENT PROJECT Estimated Costs and Financing Plan Local Foreign Total ---------------US$million------------ Institutional Strengthening 2.2 0.8 3.0 Research and Information Generation and Dissemination 7.9 5.3 13.2 Small Farmer 5.5 1.7 7.2 Total Baseline Costs 15.6 7.8 23.4 Contingencies: Physical 0.2 0.2 0.4 Price 1.8 0.6 2.4 Total Project Costs 17.6 8.6 26.2 Financing Plan IBRD 7.4 8.6 16.0 Government 10.2 0.0 10.2 Total 17.6 8.6 26.2  - 10 - Schedule B ARGENTINA FORESTRY DEVELOPMENT PROJECT Summary of Proposed Procurement Arran2ements (US$ millions)!' Procurement Project Element Tl ____ ICB NCB I Other N.B.F.-- TOTAL I.Civil Works 1.1 Rehabilitation of laboratories 0.3 0.3 2. Goods 2.1 Vehicles 1.5Y' 1.5 (0.9) (0.9) 2.2 Equipmenit 1AP 1.4 (0.8) (0.8) 2.3 Remote Images 0.6"e/ 0.6 (0.3) (0.3) 2.4 Materials & Supplies 0.6 0.6 3.Consultinjg Services!' 3.1 Studies/Research 4.3 4.3 (4.3) (4.3) 3.2 Technical Assistance 4.8 4.8 (4.8) (4.8) 3.3 Training 1.0 1.0 (1.0) (1.0) 3.4 Project Management 1.1 1.1 __ __ _ __ __ _ __ __ _ __ _ __ __ _ __ _ _ __ _ (1.1) (1.1) 4.Other Expenditures 4.1 PIU & Other Recurrent Costs 3.2 3.2 4.2 Workshops 0.3 0.3 (0.2) (0.2) 4.3 Training programs 1.6 1.6 (0.9) (0.9) 4.4 Research activities 3.0 3.0 (1.7) (1.7) 4.5 Agroforestry Fund 2.5 2.5 Total 19.6 6.6 26.2 (16.0) (16.0) Figures in parentheses are the amounts to be financed by the Bank. a! Totals include taxes and contingencies. b/ Not Bank-financed. c/ Procured using LIB procedures (in more than 3 packages). d/ LIB or international or national shopping. e/ Direct contracting. f/ Consultant services include only fees and international travel costs.  - 11 - Schedule B Disbursements: Allocation of the Loan Proceeds Percent of Expenditures Allocation to be Category (US$) Financed (1) Institutional Development Component (a) Consultant services 1,846,000 100 (b) Vehicles, equipment, training programs, workshops 318,000 57 (2) Inventory (a) Consultant services 1,970,000 100 (b) Vehicles, equipment, remote images, workshops 510,000 57 (3) Commercial Forestry Research (a) Consultant services 3,608,000 100 (b) Vehicles, equipment, training programs, research activities 2,612,000 57 (4) Patagonia Study (a) Consultant services 690,000 100 (b) Workshop 34,000 57 (5) Small Farmer Component (a) Consultant services 2,058,000 100 (b) Vehicles, equipment, training programs, research activities 889,000 57 (6) Unallocated 1,465,000 Total 16,000,000 Estimated IBRD Disbursements: IBRD FY 1996 1997 1998 1999 2000 2001 2002 2003 ----------------------------US$millions---------------------------- Annual 0.7 0.5 2.4 2.5 4.5 3.8 1.0 0.6 Cumulative 0.7 1.2 3.6 6.1 10.6 14.4 15.4 16.0  - 12 - Schedule C ARGENTINA FORESTRY DEVELOPMENT PROJECT Timetable of Key Processing Events 1. Time Taken to Prepare: 18 months 2. Prepared By: SAGyP, Bank, FAO/CP 3. First Bank Mission: June 1993 4. Pre-Appraisal Mission: October 1994 5. Appraisal Mission: December 1994 6. Date of Negotiations: July 1995 7. Planned Date of Effectiveness: November 1995 8. List of Relevant PCRs and PARs': Project Completion Report: Haiti Forestry Project (C1257-HA), Report No. 9399, March 7, 1991. Project Completion Report: China Forestry Development Project (C1605-CH), Report No. 12012, June 17, 1993. Project Audit Report: Philippines Smallholder Tree Farming and Forestry Project, Report No. 7585, December 31, 1988 Project Audit Report: Turkey Northern Forestry Project, Report No. 10210, December 30, 1991. 1 Only one PCR exists for a forestry project in the LAC Region, and no PARs. Lessons learned are derived from Bank studies of sectoral experience.  - 13 - Schedule D ARGENTINA FORESTRY DEVELOPMENT PROJECT THE STATUS OF BANK GROUP OPERATIONS IN ARGENTINA STATEMENT OF BANK LOANS (as of June 30, 1995) --------------- (US$ million) ------------- Loan Fiscal AMOUNT (less UNDISBURSED Number Year Borrower Purpose cancellations) Fully disbursed loans (44) 5,361.2 0.0 of which SAL/SECAL/Debt Reduction loans: 2675 1986 Argentina Agriculture Sector 350.0 2815 1987 Argentina Trade Policy 496.0 2996 1989 Argentina Trade Policy II 300.0 3291 1991 Argentina Public Enterprise Reform 300.0 3394 1992 Argentina Public Sector Reform 325.0 3555 1993 Argentina DDSR Support 450.0 3558 1993 Argentina Financial Sector Adjustment 400.0 3556 1993 Argentina Pub Enterprise Ref II 300.0 2641 1986 Argentina Water Supply 44.8 7.2 2854 1987 Argentina Power Distribution 276.0 69.8 2920 1988 Argentina Municipal Development 120.0 4.9 3280 1991 Argentina Provincial Development 200.0 125.5 3281 1991 Argentina Water Supply 100.0 92.8 3292 1991 Argentina PEREL 23.0 0.7 3297 1991 Argentina Agricultural Services 33.5 12.7 3362 1991 Argentina Pub Sector Reform T.A. 23.0 4.8 3460 1992 Argentina Tax Administration II 20.0 4.3 3520 1993 Argentina Yacyreta II 300.0 25.4 3521 1993 Argentina Flood Rehabilitation 170.0 51.1 3611 1993 Argentina Road Maintenance & Rehab 340.0 229.0 3643 1994 Argentina Maternal & Child Health 100.0 86.4 3709 1/ 1994 Argentina Capital Markets 500.0 500.0 3710 1994 Argentina Capital Markets TA 8.5 7.6 3794 1/ 1995 Argentina Secondary Education I 190.0 190.0 *3836 1995 Argentina Provincial Reform 300.0 200.4 3860 2/ 1995 Argentina Municipal Development II 210.0 210.0 3877 2/ 1995 Argentina Provincial Dev. II 225.0 225.0 *3878 1995 Argentina Provincial Bank Privatiz. 500.0 333.0 TOTAL 9045.0 of which has been repaid 2537.2 TOTAL NOW OUTSTANDING 6507.8 AMOUNT SOLD 12.8 of which has been repaid 12.8 TOTAL NOW HELD BY BANK AND IDA 6495.0 TOTAL UNDISBURSED 2380.6 *Disbursing SECAL, SAL or Debt Reduction Loan 1/ Not yet effective 2/ Not yet signed. I1-Jul-95  - 14 - Schedule D ARGENTINA STATEMENT OF IFC INVESTMENTS as of June 30, 1995 IUS* Millions) Original Gross Commitments Undsbursed Fiscal Year IFC Loan IFC Equity Participants Total Hild by Held by lInduding Committed Obligor Type of Business FC Partidpants Patcilputa) 1960/95 Acindar S.A. Steel Products 27.94 - 20.73 48.67 25.00 - 15.00 1960 a/ Papelera Rio Parana S.A. Pulp and Paper 3.00 - - 3.00 - - - 1961 a/ Fadesa S.A. Motor Veh. & 1.23 - 0.28 1.50 1962 a/ Pasa SAIC Petrochemicals 3.05 - - 3.05 1965/72 a/ Celulosa Argentina Pulp and Paper 8.25 - 4.25 12.50 1969 a/ Editorial Codex S.A. Printing and Publishing 5.00 1.60 0.40 7.00 - - 1969/75 a/ Dalmine Siderca SAIC Iron and Steel 14.75 - 2.25 17.00 1971/73 a/ Calera Avellaneda S.A. Cement 5.50 - - 5.50 1977/84/86/88 Alpargatas SAIC Textiles and Shoes 62.93 5.00 36.50 104.43 34.22 29.00 1977/85 a/ Soyex S.A. Food and Food 21.00 - - 21.00 - - 1 978/81//82/87/93/94 Juan Minetti S.A. Cement 44.00 - 67.50 111.50 6.79 6.31 1978/85/87/88/91 al Massuh S.A. Pulp and Paper 25.65 4.25 3.00 32.90 - - 1979/82/87/92 a/ Ipako S.A. Petrochemicals 21.00 1.15 9.00 31.15 1979/83/84 a/ Alpesca S.A. Food & Food Process 5.20 1.61 - 6.81 1984/86 Petroquimica Cuyo S.A. Chemicals & 21.00 4.00 21.09 46.09 3.52 4.21 1986 a/ Atanor S.A. Chemicals 7.00 1.00 - 8.00 - 1986 Ropasa/Sadicar Capital Markets - 0.05 - 0.05 0.05 1986/87 Sadicar Capital Markets - 2.00 - 2.00 0.43 1986 ROB-Cattorini General manufacturing - - - 0.00 0.12 1986 ROB-Benvenuto Food & agribusiness - - - 0.00 - 1986 ROB-Boldt Timber, pulp & paper - - 0.00 1986 ROB-Clave Plast General manufacturing - - - 0.00 1986 ROB-Cuyo General manufacturing - - - 0.00 1986 ROB-Gaverante Industrial services - - - 0.00 1986 ROB-Klaukol Cement - - 0.00 1986 ROB-Labelcor Food & agribusiness - - - 0.00 1986 ROB-Longvie General manufacturing - - - 0.00 0.79 1986 ROB-Pilar General manufacturing - - - 0.00 0.13 1986 ROB-Sudamericana Industrial equipment - - - 0.00 0.14 1986 ROB-St.Ursula Food & agribusiness - - - 0.00 - 1986 ROB-Stani Food & agribusiness - - - 0.00 1986 ROB-Tage Industrial services - - 0.00 1986 ROB-Diario Timber, pulp & paper - - 0.00 0.09 1986 ROB-Piedra Mining - - - 0.00 0.04 1986/89/91/95 Banco Roberts S.A. Capital Markets 48.00 - - 48.00 20.00 1987 a/ Garovaglio y Zorraquin General Manufacturing 13.00 - - 13.00 - 1987/90 a/ Hidra Oil Crude Petrol. & Nat. 80.00 - 27.60 107.60 - 1987/90/91 Terminal 6 S.A. Port Facilities 12.50 0.00 0.00 12.50 4.75 1988 a/ Astra CAPSA Lindero Energy 12.38 - - 12.38 - 1988 a/ Bridas S.A.P.I.C. Energy 20.63 - - 20.63 1988 Arcor SAIC General Manufacturing 12.00 - - 12.00 1.00 1988 BGN-Colortex Textiles - - - 0.00 0.27 1988 BGN-Estrella General Manufacturing - - - 0.00 - 1988 BGN-lnterpack Timber, pulp & paper - - - 0.00 0.45 1988 BGN-Noroeste Food & agribusiness - - - 0.00 0.13 1988 BGN-Cilsa Textiles - - - 0.00 0.05 1988 BGN-Moldeada Timber-pulp & paper - - 0.00 0.27 1988 BGN-Oftalmologic Timber-pulp & paper - - 0.00 - 1988 BGN-San Sebastian Food & agribusiness - - - 0.00 0.27 1988 BGN-Tevycom Industrial equipment - - - 0.00 0.08 1988 BGN-Valley Food & agribusiness - - - 0.00 0.13 1988 BGN-Vandenfil Textiles - - - 0.00 0.13 1988/89 BGN-Flichman General Manufacturing - - - 0.00 0.38 1 988/89 Banco General de Negocios Dev. Finance 20.00 - 20.00 - 1988/92 a/ Chirete Oil Chemicals & - 6.62 - 6.62 - 1988/92 Banco Rio de la Plata Capital Markets 50.00 - - 50.00 30.18 - 7.53 1988/93/94 Bunge y Born Food and Food 63.00 - 57.50 120.50 13.75 52.71 - 1988/93 BGN-Longvie General manufacturing - - - 0.00 0.11 - 1989 a! Argentine Investment Securities/Financial - 2.00 - 2.00 1989 a/ Chihuidos Petroleum Energy - 4.98 - 4.98 - 1989 Banco Frances Dev. Finance 15.00 - - 15.00 9.55 1989 ROB-Carboclor Chemicals & - - - 0.00 0.14 1989 BGN-Cencosud Industrial services - - - 0.00 0.27 1989 ROB-Ciervos Food & agribuLsiness - - - 0.00 1989 ROB-CDmesi General manufacturing - - - 0.00 0.66  - 15 - Schedule D ARGENTINA STATEMENT OF IFC INVESTMENTS as of June 30. 1995 (us$ Millions) Original Gross Commitments Undisbursed FIsca Year IFC Loan IFC Equity Participants Total Held by Held by (including Committed Obligor Type of Business IFC Participants Particispants) 1989 ROB-Maleic Chemicals & - - - 0.00 - - 1989 ROB-Malteria Food & agribusiness - - - 0.00 1989 a/ Com. General de Financial Services - 0.10 - 0.10 1989 ROB-Fracchia Industrial services - - - 0.00 0.42 1989 ROB-Lauril Chemicals & - - - 0.00 0.22 1989 ROB-Inta Textiles - - - 0.00 0.66 1989 ROB-Masoprano Timber-pulp & paper - - - 0.00 0.05 1989 BGN-Parafina Chemicals & - - - 0.00 1.13 1989 BGN-Pastoril Food & agribusiness - - - 0.00 0.29 1989 BGN-Genaro Food & agribusiness - - - 0.00 1.23 - 1989/92 Astra CAPSA Energy 50.00 - 43.00 93.00 24.80 28.67 1989/93 BGN-Bolland Tourism - - . 0.00 0.40 - 1990 BGN-Algodonera Textiles - - - 0.00 0.48 1990 Corporacion de Inversiones Privatizacion SA Financial Services - 0.08 - 0.08 0.08 1990 BGN-Frogotoba Food & agribusiness - - - 0.00 0.23 1990 BGN-Willmor Food & agribusiness - - - 0.00 1.23 1990/95 Petroken Petroquimica Chemicals & 40.00 - 11.00 51.00 33.33 8.92 10.00 1991 Banco de Credito Argentino Financial Services 10.00 - - 10.00 7.14 1991 ROB-Guilford Textiles - - - 0.00 0.40 1991 ROB-Jugos Fod & Agribusiness - - - 0.00 0.27 1991 ROB-Interpack Timber,pulp & paper - - 0.00 0.83 1991 ROB-Surfactan Chemicals & - - 0.00 0.17 1991 BGN-TBR Industrial equipment - - - 0.00 0.32 1992 Frigorifico Rioplatense Fod & Agribusiness 12.00 1.00 6.00 19.00 10.33 5.00 2.00 1992 MBA Sociedad de Bolsa SA Capital Markets - 0.18 - 0.18 0.16 - - 1992 Oleaginosa Oeste Sunflower Seed 20.00 - 15.00 35.00 18.93 12.50 1992 Polisur SM Chemicals & - 7.00 - 7.00 7.00 - - 1992/93 Petrolera Argentina San Energy 15.00 27.00 35.00 77.00 40.75 32.08 27.00 1993 Alto Parana S.A. Timber, pulp and - - - 0.00 19.47 - 1993 Bridas SAPIC Energy 35.00 15.00 60.00 110.00 50.00 50.00 1993 Cadipsa S.A. Energy 15.00 5.00 20.00 40.00 20.00 13.00 9.20 1993 BGN-Capri Food & agribusiness - - - 0.00 0.90 - 1993 ROB-Emprigas Industrial services - - - 0.00 0.94 - - 1993 Ferroexpreso Pampeano Industrial Equipment 13.00 20.00 33.00 12.45 17.07 4.60 1993 ROB-Alimenticia Food & agribusiness - - - 0.00 0.69 - - 1993 Malteria Pampa S.A. Food & Agribusiness 12.00 - 12.00 24.00 12.00 12.00 1993 ROB-Mendoza General manufacturing - - - 0.00 0.94 - 1993 Nuevo Central Argentino Railroad Equipment 10.00 3.00 15.00 28.00 12.38 1993/94 Molinos Rio de la Plata Food & Agribusiness 3.00 - 3.00 7.82 1994 Banco General de Negocios Dev. Finance 15.00 - - 15.00 15.00 - 1994 Cerveceria y Malteria Food & Agribusiness 15.00 - 15.00 30.00 15.00 15.00 1994 CIA Gen Combustible Crude Petroleum 25.00 15.00 40.00 80.00 40.00 40.00 1994 Empresa Distribuidora Industrial Services 45.00 - 128.00 173.00 45.00 128.00 1994 Quitral Chemicals & - - - 0.00 - 1994 BGN-Ferrum Cement & construc - - - 0.00 1.50 1994 Masisa-Argentina S.A. Forest Products 11.00 - - 11.00 11.00 1994 Arg.Equity Investment I Financial Services - 4.00 - 4.00 4.00 - 1994 Yacylec S.A. Industrial Serfices 20.00 - 45.00 65.00 20.00 45.00 1995 Aceitera General Deheza Food & Agribusiness 15.00 10.00 15.00 40.00 25.00 15.00 15.00 1995 Aguas Argentinas Industrial Services 38.00 7.00 134.50 179.50 45.00 134.50 1995 Compania Elaboradora de Productos Alimenticios Food & agribusiness 15.00 - 6.00 21.00 15.00 6.00 1995 Compania Americana de Supermercados, S.A. Supermarkets 28.00 - - 28.00 28.00 1995 Kleppe/Caldero Food & agribusiness 6.00 - 6.00 6.00 - 1995 La Buenos Aires Vida Financial Services - 2.89 - 2.89 2.89 - 0.36 1995 La Buenos Aires Retiro Financial Services - 1.17 - 1.17 1.17 - 0.53 1995 Mastellone Hermanos S.A. Food & Agribusiness 40.00 - 35.00 75.00 40.00 1995 Maxima S.A. AFJP Financial Services - 14.19 - 14.1 9 14.19 0.04 1995 Nahuelsat S.A. Industrial Services 30.00 5.00 - 35.00 35.00 - 35.00 1995 Roberts Argentina Investment Capital Fund (AICFI Financial Services - 20.00 - 20.00 20.00 - 17.73  - 16 - Schedule D ARGENTINA STATEMENT OF IFC INVESTMENTS as of June 30, 1995 (US$ Millions) Original Gross Commitments Undi3bursed Fiscal Year IFC Loan IFC Equity Psnidpants Total Held by Held by tincluding Committed Obligor Type of Business IFC Participants Participants) 1995 Roberts Argentina Investment Fund Manager Financial Services - 0.15 - 0.15 0.15 - 0.13 1995 Sancor Cooperativas Unida Food & agribusiness 40.00 - 30.00 70.00 40.00 - 1995 Socma Americana S.A. Industrial Services 24.99 15.00 60.01 100.00 39.99 - Total Gross Commitments b/ 1,222.99 190.00 995.61 2,408.60 Less: Cancellations, Terminations, Repayment & 500.29 6.52 340.65 847.46 Sales Total Commitments Now Held c/ 722.70 183.48 654.95 1,561.14 906.18 654.95 144.12 Pending Commitments: R-E-C Toll H'way IAECSA) Transport Service 20.00 - 61.00 81.00 AGUAS II Water & wastewater 40.00 - 110.00 150.00 Bridas S.A.P.I.C. Energy 20.00 10.00 40.00 70.00 Empresa Distribuidora Industrial Services - - 8.00 8.00 Tucuman Infrastructure - 0.30 - 0.30 sub-total 90.00 12.30 219.00 321.30 Total Commitments Held and Pending Commitments 812.70 195.78 873.95 1,882.44 Total Undisbursed Commitments 67.48 50.78 25.85 144.12 a/ Investments which have been fully cancelled, terminated, written-off, sold, redeemed or repaid. b/ Gross Commitments consist of approved and signed projects. c/ Held Commitments consist of disbursed and undisbursed investments.  IBRD 26467 01700 \ BOLIVIA 60o }s p n tw NPARAGUAY BRAZIL N -. ~~~SASANG z !/ C,