China - Seventh Railway Project

Document of The World Bank FOR OMCIAL USE ONLY Report No. P-6500-CHA MEMORANDIUM 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 $400 MILLION TO THE PEOPLE'S REPUBLIC OF CHINA FOR A SEVENTH RAILWAY PROJECT APRIL 14, 1995 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 EQUIVALENTS (as of October 1, 1994) Currency Name: Renminbi Currency Unit: Yuan (Y) = 100 Fen $1.00 = Y 8.70 $0.115 = Y 1.00 ABBREVIATIONS AND ACRONYMS MOR = Ministry of Railways PID = Policy Reform and Institutional Development SOE = State-Owned Enterprise TA = Technical Assistance FISCAL YEAR January 1 - December 31  FOR OFFICIAL USE ONLY CHINA SEVENTH RAILWAY PROJECT LOAN AND PROJECr SUMMARY Borrower: People's Republic of China Beneficiary: Ministry of Railways (MOR) Poverty: Not Applicable Amount: $400 million equivalent Terms: 20 years, including 5 years of grace, at the Bank's standard variable rate Commitment Fee: 0.75 percent on undisbursed loan balances, beginning 60 days after signing, less any waiver Fimancing Plan: See Schedule A Economic Rate of Return: 27 percent overall Staff Appraisal Report: Report No. 13795-CHA Map: IBRD 26327 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,   MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN TO THE PEOPLE'S REPUBLIC OF CHINA FOR A SEVENTH RAILWAY PROJECT 1. I submit for your approval the following memorandum and recommendation on a proposed loan to the People's Republic of China for the equivalent of $400 million to help finance a Seventh Railway Project. The loan would be at the Bank's standard variable interest rate, with a maturity of 20 years, including 5 years of grace. The proceeds of the Bank loan would be allocated to the Ministry of Railways (MOR) on the same terms, with MOR bearing the foreign exchange risk. 2. Country/Sector Background. Although China's transport system is a comprehensive network of railways, highways, waterways and airways, it is still unable to meet the needs of the rapidly growing economy. Since the beginning of the open-door policy in the late 1970s, the enhanced demand for transport has greatly outstripped increases in the nation's supply of transport services, with average annual growth rates of freight and passenger traffic of about 7 percent and 10 percent, respectively. During this period China underinvested in its transport infrastructure (an annual average of 1.4 percent of GNP in 1981 to 1993, which is about half the comparable figures for Brazil and India), resulting in at least a 1 percent loss of real GDP growth annually. The limited supply of transport capacity continues to pose serious problems, and to alleviate these conditions, the country will need to invest heavily in transport infrastructure and equipment. 3. The railway is the dominant transport mode. It is administered by some 1,000 MOR employees, and comprises 54,000 route-kilometers (route-km) and 3.4 million staff, of whom 51 percent work in transport and 49 percent in transport-related and nontransport activities. For organizational reasons, the railway is divided into 12 regional administrations. It is relatively well managed, has a disciplined workforce, and has one of the world's highest track and equipment utilization rates. Although the railway's share of overall freight traffic has declined slightly (from 59 percent in 1988 to 55 percent in 1993), it accounts for nearly three times as many ton-kilometers (tkm) as its closest modal rival, domestic waterway transport. With regard to passenger travel, the drop in railway market share has been greater; yet in 1993 the railway still handled 44 percent of total passenger-kilometers (pkm) (compared with 52 percent in 1988). In the foreseeable future, the railway is expected to continue to play a vital role, especially in long-distance bulk and semibulk freight transport as well as in long-distance passenger transport, although it will increasingly face competition from road, water, and air transport as the output of the economy continues to shift to services and manufactured goods. 4. To improve its operations, the railway must first alleviate its severe capacity constraints-bottlenecks in at least one direction reach 95 percent of design capacity on nearly 40 percent of the system. As part of the massive investment program launched by the Government in 1992, the railway plans to build about 16,000 route-km of new lines  by the year 2000, adding nearly a third to the size of the system. Further, it plans to upgrade track and equipment, and to double-track several existing lines. 5. Along with addressing physical capacity constraints, the railway recognizes that it must undertake reforms so as to operate in a market economy. MOR formulated its own vision of changes in a 30-point Action Statement for Railway Reform, which was endorsed by the State Council in April 1994. This Statement is consistent with the Government's 1993 50-point Agenda of Nationwide Economic Reform, intended to intensify the market orientation of China's state-owned enterprises (SOEs) that still largely operate outside market forces, even though price reforms were introduced several years ago. It is consistent with recommendations in "China's Railway Strategy," prepared by the Bank in close cooperation with MOR (Report No. 10592-CHA). MOR's proposed Railway Reform Program is well structured and defined. In summary, it covers: (a) Government-Railway Relationships and Railway Regulations. It proposes to: (i) separate the roles of the Government and railway enterprises-with the Government limited to macro regulations; (ii) introduce compensation for public service obligations; and (iii) create an enabling environment in which modern railway enterprises can develop. (b) Organization and Management. It proposes to: (i) increase the autonomy of the 12 railway administrations and their subunits; (ii) form for-profit transport enterprises (for example, container companies) organized along lines of business that will be allowed to interact through arms' length commercial relationships, such as operating and leasing agreements; (iii) regroup equipment manufacturing companies to achieve competition and economies of specialization; (iv) introduce international competitive bidding to railway construction companies; (v) rationalize its nontransport companies; (vi) divest itself of social welfare responsibilities; and (vii) improve staff compensation and manpower planning systems. (c) Transport Capacity Investments and Financial Management. It proposes to: (i) employ modern investment and financial planning tools; (ii) adopt more cost-effective technologies; (iii) attract private sector funds to railway enterprises through both debt and equity financing; and (iv) improve pricing. (d) Technology, Operations and Services. It proposes to: (i) upgrade railway track and equipment; (ii) develop a more dynamic wagon distribution system; (iii) adopt modern management practices to improve the use of track and equipment and the productivity of labor; and (iv) install modern management information systems to improve customer services. 6. Lessons Learned from Previous Bank Operations. The proposed project would build on the experience gained through Railways I to VI, and through railway projects in other developed and developing countries. 7. Railway I to V (of which I and II are closed) were mainly loans for physical investments, which were or are being satisfactorily implemented. These loans assisted  - 3 - MOR conduct several studies that involved developing plans to modernize the railway's information systems and its track and equipment. Some of their recommendations will be implemented under Railways VII (para. 15). Railways VI was a transition project and established a foundation for policy reform through studies and the preparation of analytical tools. The railway management and economic studies (such as on the relationship between the Government and MOR, the restructuring of MOR, the development and rationalization of railway staff, and the mobilization of resources) are nearly completed, the tariff and accounting studies are already completed, a railway investment model and a costing model have been developed, and a pilot program to modernize rail container transport has been initiated. Railways VII will build on these efforts to restructure the railways, reform tariffs, improve labor productivity, strengthen MOR's investment decisions and financing, and commercialize container transport. 8. Bankwide experience shows that railway reform throughout the world has been slowed by the railway's lack of authority to set rates, the absence of a sufficiently commercial approach to transport markets, and resistance to change in both the railway and other government institutions. Further, the process of railway reform in China is expected to be difficult, lengthy and uneven because of: (a) the size and complexity of the railway system; and (b) the ramifications to the entire economy of major changes to the railway's structure, staffing and pricing. For these reasons, the Government and MOR are following a cautious, gradual approach in testing reforms in pilot experiments, which the Bank considers appropriate. Examples of pilots are: experimental programs of enterprise reform in the Fuzhou Subadministration, the Guangzhou Railway Group Corporation and the container companies; application of the costing model in the Fuzhou Subadministration and in container companies; contract pricing in container companies and for oversized and extraheavy freight loads; passenger congestion pricing in selected provinces; a passenger reservation system in one administration; and environmental protection activities to acquaint MOR with up-to-date technologies and practices. 9. Bankwide experience also suggests that excessive reliance on loan covenants to achieve reforms is unrealistic. Thus, the Bank's intense and very productive dialogue with MOR will be continued under the proposed project, with the aim of further assisting and spurring the reform process. Operationally, the Bank has learned the usefulness of early preparation (optimally before loan effectiveness) of bidding documents for physical investments, terms of reference (TORs), invitations for consultancy services, and a procurement monitoring system. Because of the complexity of procurement in previous railway projects, arrangements began early for the current project. 10. The reform program of the railway is broadly consistent with lessons learned from railway reform in developed market economies (World Bank Discussion Paper No. 269). First, there should be a clear separation between the Government's role and that of the railway, and between market-driven and public-service activities. Second, railways should be organized along lines of business, with clear financial goals (rather than physical output targets), adequate compensation for public services and sufficient authority to set tariffs. Third, major barriers such as redundant labor and employee welfare obligations should be removed. These lessons are reflected in the project's policy reform and institutional development (PID) initiatives.  - 4 - 11. Rationale for Bank Involvement. The proposed project is consistent with the Country Assistance Strategy, to be discussed at the Board in May 1995 in conjunction with this project, as it addresses three of the Bank's key objectives. These are to assist China in: (a) alleviating infrastructure bottlenecks; (b) reforming SOEs; and (c) safeguarding the environment. It is further consistent with China's national and railway sector reform agenda (para. 5). While the pace of change will be uneven (para. 8), the Bank's involvement in the railway reform dialogue is propitious because: (a) the Government adopted measures to reorient sectors toward the market economy since the Bank's Board approved Railways VI; and (b) the dialogue builds on the foundation for reform being established under Railways VI (para. 7). With its extensive experience in railway reform in other countries, the Bank is well equipped to assist China in a similar effort. 12. Project Objectives. The project would address key issues in railway reform and critical constraints in railway capacity, particularly by helping to: (a) redefine the relationship between the Government and the railway with a view to pursuing market- oriented policies in railway operations; (b) reshape the railway's organization and strengthen its internal management; (c) expand transport capacity; and (d) modernize technologies and bolster the efficiency of railway operations and services. 13. Project Description. The project would finance equipment and technical assistance (TA) to help MOR undertake: (a) policy reform and institutional development (PID) initiatives; (b) physical investments and (c) studies. 14. PID initiatives would provide MOR with TA to further the process of: (a) enterprise reform that would help MOR transform the national railway system into a group of market-oriented specialized transport service companies; (b) railway tariff reform that would help MOR justify adjustments on a cost-recovery basis, pilot-test contract pricing and expand the experiment with congestion pricing for passenger traffic; and (c) increase labor productivity enhancements that would then help MOR control the size of its railway staff and raise its productivity in general. 15. Physical investments would entail: (a) expanding corridor capacity through the electrification and upgrading of the 1,044 km Wuhan-Guangzhou line; (b) modernizing information systems by introducing computer hardware and software; (c) upgrading telecommunications systems by installing fiber-optic cables and digital microwave equipment; (d) commercializing container transport by providing TA, computer software, and container transport and handling equipment; (e) protecting the environment by pilot- testing environmental programs and upgrading MOR's environmental management system; and (f) expanding system capacity by importing fully assembled, three-phase electric locomotives. 16. Study components would provide the TA, training, computer software, and equipment needed to: (a) undertake a feasibility study for a new dedicated passenger rail line in the Beijing-Shanghai corridor; (b) apply a system developed under the completed Railway Investment Study to boost the efficiency of investment decisions; (c) conduct studies to expand the scope of the Transport Management Information System; (d) review telecommunications network management and optimization; (e) design a high-efficiency,  - 5 - high-power, low-emissions diesel engine for heavy-haul freight operations and high-speed passenger services; (f) bolster MOR's treasury functions; and (g) develop an action plan for restructuring the railway's manufacturing sector. 17. Project Cost and Financing. The project is estimated to cost $1.75 billion, with a foreign exchange component of $619.9 million (35 percent). The proposed Bank loan of $400 million would cover almost 65 percent of the foreign exchange costs, and about 23 percent of total project cost. MOR would cover the remaining costs. A breakdown of costs and the financing plan are shown in Schedule A. 18. Project Implementation. MOR would be the executing agency responsible for implementing the project; its Foreign Capital and Technical Import Office would be MOR's counterpart office to the Bank. Goods purchased under the Bank's Guidelines for Procurement dated May 1992 would be handled by tendering companies appointed by MOR. The acquisition of TA, training, computer software, and equipment for research and development would be handled by MOR with consultants' help as needed. Amounts and methods of procurement and disbursements, and the estimated disbursement schedule are shown in Schedule B. A timetable of key project processing events and the status of Bank Group operations in the People's Republic of China are given in Schedules C and D, respectively. A map (IBRD 26327) is also attached. The Staff Appraisal Report, No. 13795-CHA, dated April 14, 1995, is being distributed separately. 19. Project Sustainability. The long-term sustainability of the physical assets under this project raises no doubt. The railway has a long history of implementing physical project components satisfactorily, and of operating and maintaining these assets properly. Further, the proposed project provides for the training of MOR staff in the use of modem, unfamiliar technologies. Long-term sustainability of the reform component will depend on the railway adapting an organizational structure, and managerial, financial and operating skills, systems and tools needed to operate in a socialist market economy. TA to be procured under the proposed project will focus on these necessary changes, and is expected to lead to measures to sustain the railway sector in the long term. 20. Agreed Actions. Agreement was reached at negotiations that the Borrower, through MOR, will: (a) carry out the PID initiatives in accordance with acceptable action plans; (b) retain consultants to assist it in the preparation of contractual leasing and operating agreements between MOR and the selected container transport companies; (c) complete the studies in accordance with an acceptable action plan, and, in consultation with the Bank, take appropriate steps to implement the studies' recommendations; (d) conduct, jointly with the Bank, a mid-term review of project implementation by November 30, 1998; (e) carry out the project according to acceptable environmental standards and carry out the resettlement of people affected by the corridor expansion component according to an acceptable resettlement plan; and (f) generate funds from internal sources equaling at least 50 percent of a rolling three-year capital investment average (i.e., average of investments in the current, previous and following year) in 1995 and 1996, and 55 percent from 1997 onward. 21. Environmental Aspects. This is a Category B project. None of the investment components will significantly harm the environment, and a resettlement plan,  -6 - satisfactory to the Bank, will compensate the 13,200 individuals (including 4,300 losing housing) to be affected by the proposed Wuhan-Guangzhou electrification and upgrading. Electrification of this line would have positive environmental impacts as it would reduce air pollution and soil contamination by diesel fuel and lube oil. The pilot-testing of environmental programs and the upgrading of MOR's environmental management system under the investment component would acquaint it with up-to-date technologies and practices, and thereby help it develop a comprehensive environmental action strategy for the railway. 22. Project Benefits. The most important benefit to this project is that it would support the Ministry of Railway's own reform program, which provides for its restructuring and modernization, and the definition of the relationship between the Government and the railway operator. The physical investments will increase capacity in a critical section of China's railway network and provide for the introduction of new technologies to improve management information services, container transport, communications and locomotive design. These investments will increase the quality and efficiency of railway services, and in particular will reduce the cost of transport services, generate time savings for the railway's customer, and create savings in capital investment outlays. On the basis of the quantifiable benefits, the overall economic rate of return for the project is estimated at 27 percent. 23. Risks. The physical investments in the proposed project pose minimal risks in view of the railway's past experience in implementing such components. The risks relate to the policy reform component because of MOR's lack of familiarity with reform and its dependence on endorsement from core government agencies in undertaking reform initiatives. However, the Government and MOR are committed to reform, and are clearly moving in the right direction. The risk would be reduced by a continuous dialogue among MOR, other Government agencies, and the Bank on the substance and timing of reforms, by funding TA and training for sector policy reform, and by intense Bank supervision of the project. 24. 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. Lewis T. Preston President by Sven Sandstr6m Washington, D.C. April 14, 1995 Attachments  - 7 - Schedule A CIINA SEVENTH RAILWAY PROJECT ESTMATED COSTS AND FINANciNG PLAN ($ million) Project component Local Foreign Total Expanding corridor capacity 676.4 278.9 955.3 Modernizing information systems 80.6 119.0 199.6 Upgrading telecommunications 92.2 39.7 131.9 Commercializing container transport 126.8 26.3 153.1 Enhancing environmental protection 2.3 4.4 6.7 Expanding system capacity 31.3 92.5 123.8 Technical assistance 0.2 7.2 7.4 Base Cost 1.009.8 5680 1.577.8 Physical contingencies 85.8 30.6 116.4 Price contingencies 32.0 21.3 53.3 Total Project Cost 1.127.6 619L2 1,747.5 Financing Plan Ministry of Railways 1,127.6 219.9 1,347.5 IBRD 400.0 400.0 Total /a 1.127.6 619.9 1.747.5 /a Import taxes and duties estimated at $130.1 million are included in project costs from 1996 onward.  -8 - Schedule B Page 1 CBEINA SEVENTH RAILWAY PROJECT PROCUREMENT MEmODS AND DISBURSEMETS L ($ million) Total Procurement method project Project component ICB LCB Other/b NBFL cost Works - - - 294.0 294.0 Equipment and machinery 1,297.5 20.0 110.0 - 1,427.5 (262.5) (20.0) (110.0) (392.5) Consultancies - - 7.5 - 7.5 (7.5) (7.5) of which: PID components - - 0.6 - 0.6 (0.6) (0.6) Investment components - - 0.9 - 0.9 (0.9) (0.9) Study components - - 6.0 - 6.0 (6.0) (6.0) Resettlement - - - 18.5 18.5 Total 1.297.5 20.0 117.5 312.5 1,747.5 (262.5) (20.0) (117.5) (400.0) La Figures in parentheses are the amounts to be financed by the Bank loan. L/ Includes Limited International Bidding (LIB), local and international shopping, and consultants' services. Lg NBF = Not Bank-financed.  - 9 - Schedule B Page 2 DLSBURSE nMs ($ million) Category Loan amount Percent financed Equipment for container transport 28.0 100% of foreign expenditures; 100% of commercialization local expenditures (ex-factory component cost); and 75 % of local expenditures Equipment for other components 361.5 for other locally procured items Consultants' services 5.5 100% Unallocated 5.0 Total 400.0 ESTIMATED DRsBu1ISEMENDs ($ million) Bank Group FY 1996 1997 1998 1999 2000 2001 2002 2003 Annual 10.0 42.0 80.0 120.0 75.0 36.5 32.5 4.0 Cumulative 10.0 52.0 132.0 252.0 327.0 363.5 396.0 400.0  - 10 - Schedule C CHEINA SEVENTH RAILWAY PROJECT TIMTrABLE OF KEY PROJECr PROCESSING EVENTS Time taken to prepare the project 15 months (identification to Board presentation) Prepared by Ministry of Railways (MOR) First Bank mission February 1994 Appraisal mission departure October 1994 Negotiations March 1995 Board presentation May 1995 Planned date of effectiveness September 1995 List of relevant PCRs and PPARs First Railway Project PPAR No. 9375 (including PCR), June 24, 1991 This report is based on the findings of an appraisal mission that visited China in October/ November 1994. Members of the appraisal team included Messrs./Mmes. T. Watanatada (Transport Economist, Task Manager until negotiations), H. Deboeck (Financial Analyst, Task Manager from negotiations onwards), P. Anderson (Railway Specialist), J. Fraser (Financial Analyst, Consultant), M. Gill (Resettlement Specialist, Consultant), N. Holcer (Telecommunications Engineer), R. Kopicki (Transport Industry Specialist), M. Kuby (Transport Specialist, Consultant), U. Marggraf (Railway Engineer), R. McAfee (Information Systems Specialist, Consultant), W. Siemieniuk (Environmental Specialist, Consultant), A. Somani (Environmental Specialist), R. Spero (Transport Economist, Consultant), L. Thompson (Railway Advisor), W.H. Thompson (Container Transport Specialist, Consultant), S. Tsukada (Transport Specialist). Assistance was also provided by Messrs./Mme. Juemin Chen, Huikang Xu and Yan Zong, Operation Officers in the Resident Mission in China. Mmes. M. Dearborn and T. Ortega provided the word processing support for the documents. Peer reviewers for the project were Messrs./Mme. R. Bums (SA2IN), R. Carruthers (LA2IE), J. Holt (EC3IV) and E. Vasur (EC2IN). The Division Chief is Mr. Richard Scurfield and the Department Director is Mr. Nicholas C. Hope.  - 11 - Schedule D Page 1 of 3 STATUS OF BANK GROUP OPERATIONS IN THE PEOPLE'S REPUBLIC OF CHINA A. STATEMENT OF BANK LOANS AND IDA CREDITS (As of March 31, 1995) Loan/ Amount CUSS million) Credit Bor- (net of cancellations) Number FY rower Purpose Bank IDA Undisb.(a) 34 Loans and 42 credits have been fully disbursed. 3,124.3 2,702.0 - Of which SECAL: 2967/1932 88 PRC Rural Sector Adj. 200.0 93.2 - 2678/1680 86 PRC Third Railway 160.0 (70.0)(b) 3.3 2723/1713 86 PRC Rural Health & Preventive Med. 15.0 65.0 11.4 1764 87 PRC Xinjiang Agricultural Dev. - 70.0 0.1 2794/1779 87 PRC Shanghai Sewerage 45.0 (100.0)(b) 4.1 2811/1792 87 PRC Beijing-Tianjin-Tanggu Expressway 25.0 125.0 7.8 2812/1793 87 PRC Gansu ProvinciaL Dev. (20.0)(b) 150.5 13.3 1835 87 PRC Planning Support & Special Studies 20.7 2.4 2852 87 PRC Wujing Thermal Power 190.0 - 8.1 2877/1845 88 PRC Huangpu Port 63.0 (25.0)(b) 6.0 1885 88 PRC Northern Irrigation - 103.0 7.6 2943 88 PRC Pharmaceuticals 127.0 - 0.4 2951/1917 88 PRC Sichuan Highway 75.0 (50.0)(b) 12.3 2955 88 PRC Beilungang 11 165.0 - 21.4 2958 88 PRC Phosphate Dev. 62.7 - 4.9 2968 88 PRC Railway IV 200.0 - 6.2 1984 89 PRC Jiangxi Provincial Highway - 61.0 0.8 1997 89 PRC Shaanxi Agricultural Dev. 106.0 13.6 2006 89 PRC Textbook Development - 57.0 0.3 2009 89 PRC Integrated Reg. Health - 52.0 13.5 3006 89 PRC Ningbo & Shanghai Ports 76.4 - 7.1 3007 89 PRC Xiamen Port 36.0 - 1.3 3022 89 PRC Tianjin Light Industry 154.0 - 39.0 3060/2014 89 PRC Inner Mongolia Railway 70.0 (80.0)(b) 6.0 3066 89 PRC Hubei Phosphate 137.0 - 29.1 3073/2025 89 PRC Shandong Prov. Highway 60.0 (50.0)(b) 21.8 3075 89 PRC Fifth Industrial Credit 300.0 - 0.3 2097 90 PRC Jiangxi Agric. Dev. - 60.0 1.3 2114 90 PRC Vocational & Tech. Educ. - 50.0 2.9 2145 90 PRC National Afforestation 300.0 71.9 2159 90 PRC Hebei Agricultural Dev. - 150.0 45.5 2172 91 PRC Mid-Yangtze Agricultural Dev. - 64.0 13.6 3265/2182 91 PRC RuraL Credit IV 75.0 200.0 23.4 3274/2186 91 PRC Rural Indust Tech (SPARK) 50.0 64.3 22.5 3286/2201 91 PRC Medium-Sized Cities Dev. 79.4 52.9 35.3 2210 91 PRC Key Studies Development - 131.2 35.5 2219 91 PRC Liaoning Urban Infrastructure - 77.8 9.5 3316/2226 91 PRC Jiangsu Provl. Transport 100.0 (53.6)(b) 24.5 2242 91 PRC Henan Agricul. Dev. - 110.0 65.0 3337/2256 91 PRC Irrig. Agricul. Intensif. 147.1 187.9 94.3 3387 92 PRC Ertan Hydroelectric 380.0 32.2 2294 92 PRC Tarim Basin - 125.0 59.1 2296 92 PRC Shanghai Metro Transport - 60.0 17.7 3406 92 PRC Railways V 330.0 85.2 3412/2305 92 PRC Daguangba Multipurpose 30.0 37.0 10.2 2307 92 PRC Guangdong ADP - 162.0 109.0 3415/2312 92 PRC Beijing Environment 45.0 80.0 76.6 2317 92 PRC Infectious and Endemic Disease Cont - 129.6 111.1 3433 92 PRC Yanshi Thermal Power 180.0 23.4 2336 92 PRC Rural Water Supply and Sanitation - 110.0 70.0 2339 92 PRC Educ. Development in Poor Proys. - 130.0 70.9 3443 92 PRC Regional Cement Industry 82.7 - 26.6  - 12 - Schedule D Page 2 of 3 Loan/ Amount (USS million) Credit Bor- (net of cancellations) Number FY rower Purpose Bank IDA Undisb.(a) 3462 92 PRC Zouxian Thermal Power 310.0 190.0 3471 92 PRC Zhejiang Provincial Highway 220.0 - 131.2 2387 92 PRC Tianjin Urban Devt. & Envir. - 100.0 74.7 2391 92 PRC Ship Waste Disposal - 15.0 17.1 2411 93 PRC Sichuan Agricultural Devt. - 147.0 98.0 3515 93 PRC Shuikou Hydroelectric rr 100.0 - 67.2 2423 93 PRC Financial Sector TA - 60.0 57.4 3530 93 PRC Guangdong Provincial Transport 240.0 - 165.5 3531 93 PRC Henan Provincial Transport 120.0 - 78.7 2447 93 PRC Ref. Inst'l and Preinvest. - 50.0 45.2 3552 93 PRC Shanghai Port Rest. and Devt. 150.0 - 125.1 2457 93 PRC Changchun Water Supply & Env. - 120.0 125.3 2462 93 PRC Agriculture Support Services - 115.0 99.0 3560/2463 93 PRC Taihu Basin Flood Control 100.0 100.0 135.5 2471 93 PRC Effective Teaching Services - 100.0 105.4 3572 93 PRC Tianjin Industry If 150.0 - 150.0 3582 93 PRC South Jiangsu Envir. Prot. 250.0 - 229.9 2475 93 PRC Zhejiang Multicities Devt. - 110.0 104.6 3581 93 PRC Railway VI 420.0 - 340.4 3606 93 PRC Tianhuangping Hydroelectric 300.0 - 277.5 3624/2518 93 PRC Grain Distribution 325.0 165.0 486.6 2522 93 PRC Environmental Tech. Assist. - 50.0 48.4 2539 94 PRC Rural Health Workers Devt. - 110.0 105.9 3652 94 PRC Shanghai Metro Transport II 150.0 - 60.0 3681 94 PRC Fujian Provincial Highways 140.0 - 121.9 3687 94 PRC Telecommunications 250.0 - 238.4 2563 94 PRC Second Red Soils Area Devt. - 150.0 146.2 2571 94 PRC Songliao Plain Agric. Devt. - 205.0 201.4 3711 94 PRC Shanghai Environment 160.0 - 155.0 3716 94 PRC Sichuan Gas Devt & Conservatn. 255.0 - 244.6 3718 94 PRC Yangzhou Thermal Power 350.0 - 335.5 3727 94 PRC xiaolangdi Multipurpose 460.0 - 384.9 2605 94 PRC Xiaolangdi ResettLement - 110.0 109.0 2616 94 PRC Loess Plateau Watershed Devt. - 150.0 148.3 2623 94 PRC Forest Resource Devt. & Prot. - 200.0 206.5 3748 94 PRC NationaL Highway 380.0 - 364.0 3773/2642 95 PRC Ent. Housing/Soc Sec Reform 275.0 75.0 349.6 3781 95 PRC Liaoning Envirorwnent 110.0 - 103.0 3787 95 PRC Xinjiang Prov. Highways 150.0 - 150.0 2651 95 PRC Basic Ed for Poor/Minorities (c) 100.0 107.7 3788 95 PRC Shenyang Industrial Reform (c) 175.0 - 175.0 2654 95 PRC Economic Law Reform - 10.0 10.4 2655 95 PRC Comp Maternal/Child Health - 90.0 92.3 3846 95 PRC Zhejiang Power Development (c) 400.0 - 400.0 3847 95 PRC TechnoLogy Development (c) 200.0 - 200.0 3848 95 PRC Sichuan Power Transmission (c) 270.0 - 270.0 Total 12,994.6 8,125.9 9,211.1 of which has been repaid 1,130.8 16.2 TotaL now held by Bank and IDA 11,863.8 8,109.7 Amount sold: Of which repaid - - Total Undisbursed 6,238.3 2,972.8 9,211.1 (a) As credits are denominated in SDRs (since IDA Replenishment VI), undisbursed SDR credit balances are converted to dollars at the current exchange rate between the dollar and the SDR. In some cases, therefore, the undisbursed balance indicates a dollar amount greater than the originaL principaL credit amount expressed in dollars. (b) Credit fuLLy disbursed. (c) Not yet effective.  - 13 - ScheduLe D Page 3 of 3 B. STATEMENT OF IFC INVESTMENTS (As of March 31, 1995) Invest- Type of Loan Equity Syndicate Total ment No. FY Borrower Business ----- (USS Million) ---------- 813/2178 85/ Guangzhou Auto AutomobiLe 15.0 4.5 - 19.5 86/91 974 87/88 China Investment Co. DFCs 3.0 - - 3.0 1020 88/ Shenzhen China Bicycle 17.5 3.4 - 20.9 92/94 Bicycles Co. Ltd. Manufacture 1066 89 Crown Electronics Electronics 15.0 - - 15.0 1119 89 Shenzhen SoLar ELectric 2.0 1.0 - 3.0 Light/Power 3423 93 Shenzhen PCCP Manufacturing 4.0 1.0 - 5.0 3150 93 Yantai Mitsubishi Cement Cement 28.7 2.0 - 30.7 3881 94 China Walden Mgt. CapitaL Mkts. - 7.5 - 7.5 4470 94 Dynamic Growth Fund Venture - 20.0 - 20.0 CapitaL 4534 95 Newbridge Inv. Securities Mk - 10.0 - 10.0 Financing Instit. 3746 95 DaLian GLass GLass 30.5 - 30.5 61.0 4755 95 Mantong Wanfu Food/ 7.9 3.4 10.2 21.5 Agribusiness TotaL Gross Cormnitments 123.6 52.8 40.7 217.1 Less canceLLations, terminations, 28.5 - 10.2 38.7 repayments, write-offs, and saLes TotaL Commitments now HeLd by IFC 95.1 52.8 30.5 178.4 TotaL Undisbursed 13.4 32.8 16.5 62.7 4/19/95 EA2DR  !  100 110 ~~~~~~~~~~~~~~~~~~~~20 130 C H INA 0-odo RAILWAY SYSTEM e~~WG,Id8-1GnL\p EXISTING.orayeroeml DOUBLE TRACK RAILWAYS -Mno ,ororroo nh SINGLE TRACK RAILWAYS bd. ..ELECTRIFICATION RUSSIAN FED. K NATIONAL MAARSHALLING YARDS REGIONAL TAARSHALLING YARDS RIVER PORTS IWyIn ' ELECTED CITIES ( oTnIaB 0 PROVINCE CAPITALS Manbo, H,r onh0n * NATIONAL CAPITAL PROVINCE BOUNDARIES Nnh ~ " Iony - INTERNATIONAL BOUNDARIES fla ----PLANNED NEW RAILWAYS ~N~' ~ , n, II N;I I BANK FUNDED PROJECTS. RAILWAY LINES (ONGOING OR COMPLETED PROJECTS[ .ELECTRIfICATION BRIDGE CONSTRUCTIONM.7- A FACTORIES * TERMINALS J PROPOSED PROJECT (WITN ELECTRIFICATION) hngk. OECF FUNDED PROJECTS: T RAILWAYS . ..ELECTRIFICATION BRIDGE CONSTRUCTION ... r- H-d. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~40'- f ~~ JO~AOO Anohan / ~DEM.PEOPLE'S J,ning ( ,,.~ .., andong REP. OF KOREA -. - SIooo,,haa )''' ~ ~ xi.D.1 -' GANSU Ioan S~~~~~~~~~~~~an~~~( )NA rI Yi,a, N -oa,I REP. OF Uo~~~~~~~~ang ~ ~ ~ ~ ~ W~~~~~~~~~~~ REA~~~~~~~~~~~~~~~~aIn Ti~ ~ ~ ~ ~ ~~~~~Nnn **0O~~~~~~~~~~~~~~~~~~~~~~~~~~~~0 DEM. REP. ~ ~ ~ ~ ~ L.y. N, FIAINAN~~~~~~~~~~~~~? INui ~~~THAI1AND (~~~~~~~~~~~~P'g..A 9 'Nw~~~~~~~~~~~~~~~~~~~~~.o ~ ~ ~ ~ ~ 0 - I 10 120 PHILIPPINES~~~~~~~~~~~~~~~ 01) c-c~~~~~~~~~~~~~~~~~~