/4/-V -_ / 5 / .Doc_mgnt of

The World Bank

FOR OMCIAL USE ONLY

Report No, P-6170-4CRA

MMORANDUM AND RE]KCOMENDATION

OF THE

PRESIDENT OF THE

INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELM

TO THE

ExECwTIVE DIRECTORS

ON &

PROPOSED LOAN

IN TilE ANOUNT EQUIVALENT TO $160 MILLION

TO

THE PEOPLE' S REPUBLIC OF CHINA

SHANGHAI ENVIRONMENT PROJECT

FEBRUARY 8, 1994

MICROGRAPHICS

Report No: P- 6170 CHAType: M'OP

This doctment bas a resticted distribution and uasy be used bY recipients only in the p.rformance ofther oficial dties. Its contents may not oherw be disclod without Wordd Banl authorization.

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CURRENG EOUIVALENTS(As of January 1, 1994).

Currency RenminbiCurrency Unit Yuan (tY)Y 1.00 - $0.11$1.00 - Y 8.7

WRIGHTS AND MEASURES

1 millimeter (mm) - 0.0394 inch (in)1 meter (m) - 3.2808 feet (ft)

1 kilometer (km) - 0.6214 mile (mi)1 square meter (in) - 10.7639 square feet (it')

1 cubic meter (m3) - 35.3147 cubic feet (ft')cubic meter (3) or ton of water - 284 US gallons

1 hectare (ha) - 2.4711 acres (ac)1 liter (1) - 0.2642 US gallon (gal)

cubic meter per second (='Isec) 35.3145 cubic feet per second (cfs orcusecs)

ACRONYMS AND ABBREVIATIONS

EA - Environmental AssessmentICB - International Competitive BiddingLCB - Locaj. Competitive BiddinFSmmC - Shanghai Environmental ' 'litoring CenterSEPB - Shanghai Rnvironmental Protamction BureauSEPO - Shanghai Environment Project OfficeSERAP - Shanghai Economic Reform Actict PlanSESAB - Shanghai Environmental Sanitation Administration BureauSm - Shanghai MunicipalitySMG - Shanghai Municipal GovernmentSMWC - Shanghai Municipal Waterworks CompanySSC - Shanghai Sewerage CompanySWWTP - Songjiang Wastevater Treatment PlantUNDP - United Nations Development Program

FSCAL TAR

January 1 - December 31

FOR OMCIAL USE ONLY

SNANONAI ENVIROIMENT PROJECT

Loan and Prolect Summary

Borrowert People's Republic of China

Beneficiarys Shanghai Municipality (SN)

Amount: $160 million equivalent

Te rmssTwenty years, including 5 years of grace, at the Bank'sstandard variable interest rate.

Onlendint Termls From the Government of China to SN: 15 year^ including5 years of grace at 90.63 percent of the Bank'c standardvariable interest rate, and a commitment charge at theBank's standard rates vith SM bearing the foreign exchangerisk. From SN to inplementing public utilities: 15 yearsincluding 5 years of grace at the Bank's standard variableinterest rate, and a commitment charge at the Bank's stan-dard rate, with the utilit 4 .es bearing the foreign ezehangerisk.

Financina Plant Local Foreian Total--------- ($ million) ---------

Shanghai Municipality 261.3 35.3 296.6IBRD 0.0 160.0 160.0

Total -3193 456

E¢onomic Rateof Returns Niot Applicable

Povertv Cateforv: Not applicable

Staff AnoraisalReportt Report No. 12386-cHA

NMA IBRD 25283

This document has a restrited distribution and may be used by recipients only in the performanceof their official duties. Its contents may not otherwise be disclosed without World Bank authorization.

MEMORANDUM AND RECOMMENDATION OF THE PRESIDENTOF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT

TO THE EXECUTIVE DIRRCTORS0 A PROPOSED LOAN

TO THE PEOPLE'S REPUBLIC OF CHINAFOR A SHANGHAI ENVIRONMENT PROJECT

1. I submit for your approval the following memorandum and recommen-dation on a proposed loan to the People's Republic of China for the equivalentof $160 million to help fianmce the Shanghai Environment Project. The loanwould be at the Bank's standard variable interest rate, with a maturity of20 years, including 5 years of grace. The proceeds of the loan would beonlent to the Shanghai Municipality (SM) for 15 years, including 5 years ofgrace, at a rate equivalent to 90.63 percent of the rate payable to the Bankby the Borrower with a commitment charge at the Bank's standard rate on theoutstanding balance. SN would bear the foreign exchange risk. SM wouldonlend part of the proceeds to the implementing public utilities for 15 yearsincluding 5 years of grace at the Bank's standard variable Interest rate, anda cammitment charge at the Bank's standard rate, with the utilities bearingthe foreign exchange risk.

2. IMkgrgUag. Shanghai is China's largest and most Industrializedmunicipality, with an urban population of some 9 million and, including theadjacent counties, a total population of about 14 million. The past emphasisan limiting growth in urban areas has constrained the provision of essential

urban services, which are now inadequate for a city of such economic impor-tace and size. Waterways In the environs of the city are heavily polluted,the solid vaste disposal facilities are overburdened, and the nightsoil systemthat serves some 4 million people daily is seriously at risk due to a lack ofdisposal facilities. These problems directly affect the raw water supply forShanghait most of which is drawn from an intake in the city center on thelower reaches of the Huangpu River. Inadequately treated discharges to theHuangpu of industrial, ahip, and domestic wastes have resulted in water qual-ity that fails to meet World Health OrgSaniation and Chinese standards, and isdeteriorating. Water passing into supply frequently contains toxic chemicals,including known carcinogens, at levels causing taste, odor and health prob-lems.

3. These environmental hazards threaten the sustainabi3 4 ty of theaccelerated and outward-oriented development supported by the bbsnghai Munici-pal Government (SMG). Furthermore, an inadequate environmental service infra-structure places Shanphai at a competitive disadvantage at a time when it istrying to reestablish itself as the premier financial and commercial center onthe Chinese eastern seaboard. Accordingly, environmental protection hasbecome a high priority for SM6. The ongoing Bank-supported Shanghai SewerageProject (1779-CHA) began to address those problems through pollution reduc-tion.- The proposed project would support further pollution reduction, waterquality improvement and environmental risk containment.

4. Economic To speed the evolution of the Shanghai economy,SMW has adopted the Shanghai Economic Reform Action Plan (SERAP). This was

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endorsed by the Bank in 1991, and adopted as a basis for the future Bank lend-ing program in Shanghai. The Action Plan focuses on reform in four principalcategoriess Industry, Fiscal Systems, Urban Land and Infrastructure, andSocial Security. For six priority subsectors (State-Owned Enterprises, Muni-cipal Finanee, Infrastructure, Social Security, Securities Markets, and LandManagement), action plans are being developed by SMG with UNDP and Bank assis-tance. This proposed project assists SERAP implementation through infrastruc-ture development and sector planning.

5. Le6sons from Previous Bank/IDA Ooerations. * he proposed projectdraws and builds on the experience gained through the ongoing Shanghai Sewer-age Project, which finances the collection and removal of wastewater from thecity, and strengthens institutional capacity for wastowater and water resourcemanagement and from the preparation work for the Ship Waste Disposal Project(2391-CRA), which addresses the problem of water pollution from maritime traf-fic in the lower reaches of che Huangpu River. Our exporience from these andother environmantal and urbaz% infrastructure investments in Shanghai and else-where in China has demonstrated high implementation capacity, but stressed theimportance of early Implementatien of economically efficient cost recoverypolicies, and the need to adopt long-term plans for the provision of essentialurban environmental services. Taking these lessons into account, a 45 percentreal increase in water tariffs was implemented prior to appraisal, and a fur-ther increase is axpected before effectiveness. An Environmental Master Planfor Shanghai, iuitiated during preparation, will, once completed, support thecity's longer-term environmental policies and programs.

6. Rationale for Biik Involvement. The Bank's Country AssistanceStrategy presented to the Board in August 1993 highlighted the need to supporteconomic reform while assisting infrastructure modernization in an environmen-tally responsive manner. Project-finsuced investments specifically respond tothese needs. Our recent environmental sector work with the Government (ReportNo. 9669-CRA, 1992) identified improving environmental protection in majorurban area as a national priority. The request to assist Shanghai inaddressing such problems was particularly attractive because of Shanghai'srole as a model for urban development efforts throughout China. Furthermore,Shangbal's mix of environmental problems typifies those in larger Chinesecities, and is one to which the Bank can bring considerable international expe-rience, as well as our experience In recently approved environmental projectsin the adjacent Jiangsu and Zhejiang Provinces, and In Beijing. SMW origi-nally conceived the project to comprise only water supply investments; Bankinvolvement has, as result of our enviranmental dialogue with Chira, broadenedthe scope and impact of the project to include solid and hazardous waste man-agement, pollution abatement, and capacity building to assess and manage long-term environmental risks.

7. Objectives. The principal project objective is to provide a sus-tainable environment for the long-term economic and social development ofShanghai. Specific objectives of the project are tot (a) provide sate drink-ing water; (b) idents.fy and control sources of pollution; (c) expand waterquality monitoring; (d) improve municipal solid waste and nightsoil manage-ment; (ei Improve municipal, environmental and utility management andfinances; and (f) support training, feasibility studies, and future investmentproject preparation In the environment area.

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8. Iesgr2gtJon. The Shanghai Evironment Project vould comprise aninvestment program of environmentally oriented capital works and relatedlnstitutional otrengthening to provide safe drinking water while improvingwater quality in the Hugpu River, supported by financial and policy initia-tives focusing out (a) improving operational efficiency of urban services;(b) mobilizing resources through lcreased tariffs ,nd service chargest and(a) streg thening long-term environmental planning and ivestment programmingcapacity.

9. The proposed investment program would comprise the following compo-nontas (a) Drinaki Water Oualitv Protecton. The construction of a majorraw wator supply system for SM, including an Intake on the Ruangpu River at DaQiso (about 5.4 mlli$on amlday capacity), pumping stations, a 25 Ua multiple-barrel low pressure supply main, surge protection, telemetry and controls,solected improvements to the existing treatmett facilities aod distributionnetwork, and the strengthening of operational and financial procedurest(b) Uonor HuaMu Catobbent Pollution C2=trol. The-construction of wastewateronveyance system for the Wujing and Minhang neighborhoods of Shanghai,

including secondary and tertiary connecting sewerst (c) Sonaiian WastZaerPg1lluti.Control. The construetion of wastewater collection and treatmentfacilities in Songj iang County including wastemter treatment plant upgrading;(d) Pollution Sures and Vater Oialitv MonitorinM. A water quality monitor-ing laboratory at the vew water supply intake, together with associated sam-pling and analytical equipment to monitor water quality in the Upper Huangpucatebment; (e) Municival Solid Waste and Nightsoil Menseament. The modernisa-tion of solid wast and nightsoil management systems and assocfated invest-ments in mechanical plant and civil work;t and (f) Technical Assistance adProgect Manaiement. Project management, training, financail management andstrengthening of utility operations, preparation of a Shanghai Water SupplyMaster Plan, information .ystems development for urban planning and watersupply management, and feasibility studies and future project preparation.Two key envirorAental studies currently underway, the Australian InternationalDevelopment Assistance Bureau-funded Shanghai Environmental Master Plan andthe Norwegian Government-financed Shanghai Hazardous Waste Management Study,would also be implemented in parallel.

10. Imlementation. SEG has appointed a Leading Group headed by a Dep-uty Mayor, with members from the concerned commissions, departments andbureaus, to direct the preparation and execution of all major urban projectsin Shanghai; project management would be undertaken by the Shanghai Environ-ment Project Office (SEPO), established in the Shanghai Environmental Protec-tion Bureau (SEPB). Implementation would be by the Shanghai Municipal Vatee-works Company (SMWC), the Shanghai Sewerage Company (SSC), the SongjiangWastewater Treatment Plant-(SWWTP), the Shanghai Environmental MonitoringCenter (SEEC), the Shanghai Environmental Sanitation Buteau (SESAB) and SEPI;subproject offices have been established and fully staffed in these agencies.SEPO would r2ceive direction from the Leading Group and provide direction toand coordination of the subproject offices. The project would be carried outover a period of six years. The total projoct coot is estimated to be $456.6million, with a foreign exchange component of $195.3 million (43 pzrcent). Abreakdown of project costs and the financing plan are shown in Schedule A.Amounts aud methods of procurement and disbursements, and the disbursementschedule are shown in Schedule B. A timetable of key. project processing

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events and the status of Bank Group operations in China are given In SchedulesC and D, respectively. A map (IBRD 25283) is also attached. The StaffAppraisal Report, Report No. 12386-CIA, dated February 8, 1994, is being dis-tributed separately. To assist the early start expected to be made by SE onsome works, it is recommended that retroactive financing of up to $15.0 mil-lion be provided for expenditures inurred from April 15, 1993, covering ini-tial civil works, goods anJ services contracts.

11. AQreed Act40ns. During negotiations, agreement was reached regard-ing onlending and project organizational requirements, and assurances obtainedthat: (a) rosettlement would be carried out in a manner and according to aschedule satisfactory to the Bank; (b) SMWC would generate revenues from itswater supply operations in fiscal year 1994, sufficient to cover its operatingand maintenance costa including depreciation, and commencing In fiscal year1995, adjust its tariffs as necessary, In order to earn rates of raturn onrevalued fixed assets of not less than 2, 3, 4, 5, 6, and 7 percent in 1995,1996, 1997, 1998, 199, sand 2000 and each year therQafter, respectively;(c) S8C would, for each fiscal year, (i) produce revenues sufficient to coverits total operating costs and the amount by which its debt service require-ments exceed depreciation, (il' have a debt service coverage of at least 1.3;(d) SWWV would, commencing in fiscal year 1996, (i) produce revenues suffi-cient to cover its total operating costs and the amount by which its debtservice requirements exceed depreciation; (it) have a debt service caverage ofat least 1.3; (e) a time-bound Action Plan would be implemented by SWQ forconnecting existing septic tank and nightsoil facilities to the city andcounty sewerage systems; and (f) the 33 most polluting industries in the UpperNuangpu catchment would complete process changes, or construct pretreatmantfacilities, within an agreed time-bound Action Plan, in order to meet relevantdischarge standards.

12. The following are conditions of loan effectiveness -(a) executionof subsidiary loan agreements satisfactory to the Bank between SE and (i)SEWC, (ii) SSC and (iii) SWWTP; (b) approval of the Loan Agreement by theState Council of China; (C) effectiveness of the agreement between theShanghai Water Conservancy Bureau and the Taihu Basin Authority to operate andfinnmce the operational costs of the proposed Taihu Pumping Station in anacceptable manner; and (d) an increase in SMWC's tariffs permitting it to meetits covenanted 1994 financial targets.

13. Invironmental Assessment. The proje4t has been categorized "B".Comprehensive envirormental impact assessments have been undertaken andacceptable Environmental Assessment (EA) Reports submitted to the Bank. Nomajor negative evironmental impacts are epected. The upstream catcbmentprotection measures, improvements to nightsoil and solid waste managementsystems, and water quality monitoring Improvements would make significantenvironmental improvements, protect the ew ivestments in safe water supply,prevent the major environmental degradation that would occur in the mediumterm without these investments, and significantly lessen the risks from cata-strophic environmental accidents, and avoid pollution dmage being caused byShanghai to Hangzhou Bay, China's major fishing grounu.

14. Project activities would require about 87 households (350 people) to 4be resettled within their original villages. A detailed resettlemest plan

acceptable to the Bank has been prepared in accordance with Chinese regula-tions, confirming that the resettled families could expect to maintain orimprove their living standards following resettlement. Land acquisition issubstantially complete and resettlement to date has been found satisfactory tothe Bank.

15. Beneflts. Project benefits include direct reduction of pollution inShanghai, the cost-effective prvvision of a safe potable water supply, andpolicy changes that include phased implementation of economically rationalcharges for water, wasteuater, nightsoil and sclid waste management services.This benefit mix would lead to sustained improvements in public health andliving stanIdards in Shanghai, supportiag continued rapid economic gzowth ofthe municipalityl, and increased capacity to manage and plan municipal urbanenvironmental uervices.

16. Rlsks. Project risks include: (a) possible reluctance by SMG orSongjiang County gover:ment to approve snd maintain the tariffs ond servicecharges needed for financially sound operationsl (b) possble unwillingness bySMG to enforce the pollution control laws with respectt to financially weakenterprises, resulting in continued increases in pollutant levels ir theHuangpu River; (c) delays by SHG in implementing the institutional developmentand training components; and (d) a serious toxic-ffluent spill that wouldclose the new water system intake for a period. The risks have been the sub-ject of continuous dialogue during project preparation. A program of waterand wastewater tariff increaes, alread; under way before appraisal, would beimplemented under the project; project invqstments in pollution mouitoring sadwastewater collection systems in the Upper Huangpu,and assurances by SM6regarding in-plant pollution reduction would support industrial control mea-sures, minisizing toxic spill risks; the focused institutional development andtraining program, initiated during project preparation, would be completedduring iMplentation, enhanciAg SMG's envitronmental management capacity.

17. The risk of a toxic spill would be reduced by the solid wast*,nightso$l management, swerage, and industzial pollution abatement componentsof the project, and related preparation of hazardous waste management strate-gies. Should a toxic spill occur, the project-financed relocatioi of theintake to a point far upstream of the indust-ial and shipping centers wouldsubstantially decrease the danger to the drinking water supply. To provideadditional protection, the current intakes would rwmain available for stand-byoperation.

18. Sustainabilitv. Proposed revenue and service charge enhaUcements,together with investments to Improve the quality of drinking water and reducethe risks to Shanghai of toxic chemical spills in the Shanghai water supply,would provide a reliable basis for economic growth and hence project sustaina-bility. The costs of sustained system operations, asset maintenance and pro-active environmental manaSgement would be provided through enhancing existingrevenue arrmagements as part of the project.

6

19. Recommendstlon. I am satisfied that the proposed loan would complywith the Articles of Agreement of the Bank and recommend that the ExecutiveDirectors approve the proposed loan.

Leiws T. PrestonPresident

Attachments

Wsshington, D.C.Pebruary 8, 1994

-7- 8heabu1Lh

SHANGRAI UVIRONMEET PROJECS

Estimated Coats and Pinancin. Plan($ million)

Local Foreign Total

Estimated Protect C08t 1gDrinking Water Quality Protection 111.8 li5.0 226.8Upper Ruangpu Pollution Control 25.4 22.3 47.7songjiasg Pollution Control 13.1 16.0 29.1Water Quality MEnitorigg 1.2 2.7 3.9Solid Waste/ Nightsoil Maragement 26.9 5.9 32.8TA, Trains ng & Studies 2.7 8.1 10.8

Total Iase Cgot lb 181.1 170,0, 351.1

Pbysical Contingencies 21.2 18.9 40.1Price Contingencies 59.0 6.4 65.4

tOal Proiect Coat 213953a

FinE1nc_l Plan-Shanghai Municipality 261.3 35.3 296.6TBRD 0.0 160.0 160.0

Total 195.3 456-6

I/ Project-financed goods are exempt from import duties and taxes.L Includes cost of land ($15.o million).

- 8 - 8chodule BPage 1

YlNI1 gmN-ARECT

surnuglr of Progosed Procurement Arrantments-($ million)

P90curement method TotalProject element ICB LCB other uNp costs

Water Supply 169.8 6.9 - 5.9 18±.6(47.6) (1.9) (49.5)

Water Quality Monitoring 1.9 1.9(0.0)

Wastewater 40.2 38.4 - - 78.6(11.3) (10.7) (22.0)

Solid Waste/Nightsoil - - - 9.1 9.1(0.0)

IqR4u.nent & Mat.erials

Water Supply 56.5 1.5 - .4.1 62.1(56.5) (1.5) (58.0)

Water Quality Monitoring 1.7 0.3 - - 2.0(1.7) (0.3) (2.0)

'Wastewater 10.1 - - - 10.1(10.1) (10.1)

Solid Wast./Nightsoil - - 30.0 30.0(0.0)

Land Acquisition - - - 15.0 15.0(0.0)

tIntitutional Development - - 12.8 - 12.8(12.5) (12.5)

Implementation Support - - 5.9 46.5 52.4(5.9) (5.9)

278.3 47. 187 112.5 456.6(127.2) t14,4) (18.41 (160.0)

Note: Figures in parenthesis are amounts to be financed by the Bank. Otherprocuremet methods include international and local ehopping (for theindus4tral pollution component and small equipment for water qualitymoitoring, solid waste), and consultant services under technicalassistance and training. NIFBP Not Bank financed.

Pag 2

Dlsbursement Arrgn_ement_

Amount 2 of expendituresCategory (S million) t) be financed

Civil Works 68.0 28 percent of expenditures

Materials and Pluipment 66.6 100 percent of foreign expenditure.,100 percent of local expenditures(ex-factory cost) and 75 percent oflocal expenditures for other itemsprocured locally

Implementation Support 17.4 100 percent of expendituresinstitutional Development,Studies and Training(consulting **rvices)

Unallocated 8.0

1stimated Diobursement

Bank PY 1995 1997 1998 1999 2°-(_____-------------- ------------------i-

Annual 20.0 46.9 54.8 24.9 9.6 3.8

Cumulative 20.0 66.9 121.7 146.6 156.2 160.0

- 10 - Schedule C

HJAMGEAI EDVIRONHENT PROJECT

Tlmetable of Rev Proleet ProcessaL" Events

(a) Time taken to prepares 24 months

(b) Prepared by: S'anghai Municipal Government

(a) First Bank Mission: October, 1991

(d) Appraisal mission departures June 8, 1993

(e) Date of negotiations: January 10, 1994

(f) Planned date of effectiveness: June 15, 1994

(S) List of relevant PCRs snd PPARJs None

This report is based on the findings of an appraisal mission that vieitedChina in June/July 1993. Project team members included Mr. Geoffrey Read(Senior Sanitary Engineer ane Task Manager), Mr. Terry Hall (Sanitary Engi-neering Consultant), Mr. Lynn Holstein (GIS Consultant)* Mr. Edward Re-SiongBum (Environmental Engineer, Consultant), Mr. Patrick McCarthy (FinancialConsultant), Miss Linda Mih (Operations Assistant), Mr. Tore Semb (Solid WastoConsultant), Dr. George Taylor (Envirormental Consultant), Mr. Lee Travers(Economist), and Mr. Zhang Zhun (Institutional Specialist, Consultant).Assistance was also provided by Mrs. Chongwu Sun (Operations Officer),MLss Ziaolan Wang (Secretary) sad Mr. Xiaoyong Wu (Interpreter) of the ChinaResident Mission. Pesr reviewers for the project were Mr. Art Bruestle (Prin-cipal Environmental Specialist), Mr. Daniel Coyaud (Senior Sanitary Engineer),Mr. Harvey Garn (Economic Adviser), and Mr. Grams Lee (Senior Financial Ana-lyst). The managing Division is EA2EU. The Diviaion Chief is Ms. KatherineSierra and the Acting Department Director is Mr. Zafer Ecevit.

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Schedule 0Page 1 of 3

STATUS OF BANK GROUP OPERATIONS IN tNE PEOPLE S REPUBLIC OF CHINA

A. STATEMENT OF BANK LOANS AND IDA CREDITS(As of December 31, 1993)

Loan/ Amount (US1 miltion)Credit Bar- (net of cancellattons)Nuwbr FY rower Purpose Bank IDA Undiab.(a)

21 loans and 38 credits have been fully disbursed. 1950.4 2190.9Of which SECAL:

2967/1932 88 PRC Rural Sector AdJ. 200.0 93.2

2501 85 PRC Chansecun (Lun) Coal Mining 79.5 10.62540 85 PRC Railway It 220.0 - 6.41664 86 PRC Technical Cooperation Credit II - 20.0 4.2

2678/1680 86 PRC Third Rallway 160.0 (70.0)(b) 34.62689 86 PRC Tianjin Port 130.0 11.02706 86 PRC Beilungang Thermal Power 225.0 * 6.12707 86 PRC Yantan Hydroelectric 52.S - 0.5

2723/1713 86 PRC Rural Health & Preventive ed. 15.0 6S.0 28.82784 87 PRC Shanghai Machine Tools 100.0 3.81764 87 PRC Xinjirang Agricultural Dev. - 70.0 2.8

2794/1779 87 PRC Shanghai Sewerage 45.4 100.0 36.22811/%M2 87 PRC BeiJing-Tianjin-Tanggu Expressway 25.0 125.0 16.42812/1793 87 PRC Gansu Provincial Dev. 20.0 150.5 40.7

1835 87 PRC Ptanning Support & Special Studies * 20.7 7.42838 87 PRC Fertilizer Rationalization 97.4 2.2

2852 87 PRC WuJing Thermal Power 190.0 24.91871 88 PRC Rurat Credit III 170.0 2.0

2877/1845 88 PRC Nuangpu Port 63.0 (25.0)(b) 30.42907/1875 88 PRC Datian Port 71.0 (25.O)b) 3.7

I885 88 PRC Northern Irrigation - 103.0 20.12924/1887 88 PRC Coastal Lands 0ev. 40.0 (60.0)(b) 6.4

2943 88 PRC Pharmaceuticals 127.0 . 4,62951/1917 88 PRC Sichuan Highway 75.0 (50.0)(b) 48.42952 88 PRC Shea fi Highway 50.0 - 1.11918 88 PRC Doxing An Ling forestry - 56.2 3.12955 88 PRC Beltungang II 165.0 - 25.62958 88 PRC Phosphate Dev. 62.7 13.22968 88 PRC Railway IV 200.0 50.51984 89 PRC Jiangxi Provincfal Highway - 61.0 7.01997 89 PRC Shaanxi Agricultural Dev. - 106.0 35.22006 89 PRC Textbook Development - 57.0 2.02009 89 PRC Integrated eog. Health * 52.0 19.73006 89 PRC Ningbo & Shanghai Ports 76.4 - 21.23007 89 PRC Xiamen Port 36.0 13.6

3022 89 PRC Tianjin Light Industry 154.0 - 93.93060/2014 89 PRC Inner MongoLia Railway 70.0 (80.0)(b) 30.7

2097 89 PRC Shandong Agriculture Dev. - 109.0 7.73066 89 PRC Hubel Phosphate 137.0 97.1

3073/2025 89 PRC Shandong Prov. Highway 60.0 (50.0)(b) 26.43075 89 PRC Fifth Industriat Credit 300.0 - 134.02097 90 PRC Jiangx; Agric. Dev. 60.0 19.72114 90 PRC Vocational & Tech. Educ. 50.0 11.52145 90 PRC National Afforestation 300.0 133.52159 90 PRC Nebef Agricultural Dev. - 150.0 72.42172 91 PRC Nid-Yangtze Agricultural Dev. - 64.0 24.1

3265/2182 91 PRC Rural Credit IV 75.0 200.0 81.03274/2186 91 PRC Rural Indust Teh (SPARK) 50.0 64.3 61.73286/2201 91 PRC aedfus-Sized Cities Dev. 79.4 52.9 79.5

3288 91 PRC Shanghai tndustrial Dev. 150.0 - 147.92210 91 PRC Key Studies Development - 131.2 57.72219 91 PRC Liaoning Urban Infrastructure ?7.8 20.8

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Schedulo DPage 2 of 3

Loan/ AMunt (USS afiUfon)Credit Bor- (net of cancetlatIons)Number FY rower Purpose Bank IDA Undiab.(a)

3316/2226 91 PRC Jfangsu Provl. Transport 100.0 C53.6)tb) 54.72242 91 PRC Renan Agricul. Dev. 110.0 79.7

3337/2256 91 PRC trrig. Agrfcul. intensif. 147.1 187.9 176.23387 92 PRC Ertan Hydroelectric 380.0 115.32Z94 92 PRC Tarim Basin - 125.0 88.22296 92 PRC Shanghai Metro Transport - 60.0 36.03406 92 PRC Railways V 330.0 - 238.7

3412/2305 92 PRC Daguangba Muttipurpose 30.0 37.0 39.92307 92 PRC Guangdong ADP 162.0 129.5

3415/2312 92 PRC SelJing Envirorment 45.0 80.0 96.42317 92 PRC Infectious and Endemic Disease Cant - 129.6 103.13433 92 PRC Yanshi Thermal Poaer 180.O * 104.02336 92 PRC Rural Water Suppty and Sanitati0n 110.0 78.52339 92 PRC Educ. Development in Poor Provs. - 130.0 92.53443 92 PAC Reional Cement Industry 82.7 77.23462 92 PRC Zouxian Thermal Power 310.0 - 283.23471 92 PRC Zhejiang Provincial Highway 220.0 - 178.8Z387 92 PAC Tianj1n Urban Devt. & Envir. - 100.0 85.32391 92 PRC Ship waste Disposal - 15.0 15.22411 93 PRC Slchuan Agricultural Devt. - 147.0 116.03515 93 PAC Shuikou Hydroolectric It 100.0 82.72423 93 PRC Financial Sector TA - 60.0 54.13S30 93 PRC Ouangdong Provincial Transport 240.0 - 213.83S31 93 PRC Henan Provincial Transport 120.0 - 100.52447 93 PRC Ref. Inst't and Preinvest. 50.0 45.13552 93 PRC Shanghai Port Rest. and Devt. 1SO.0 - 147.024ST 93 PRC Changchun Water Supply & Env. - 120.0 112.72462 93 PRC Agriculture Support Services 115.0 110.4

3560/2463 93 PRC Tathu Basin Flood Control 100.0 100.0 171.12471 93 PRC Effective Teaching Services - 100.0 99.635T2 93 PAC Tianjin Industry It (c) 150.0 150.03582 93 PRC South Jianqsu Envir. Prot. (c) 250.0 - 250.02475 93 PRC Zhejian Multicities Devt. 110.0 102.S3S81 93 PRC Railway VI 420.0 420.03606 93 PRC Tianhungping Hydroelectric 300.0 300.0

3624/2518 93 PRC Grain Distribution 325.0 165.0 489.22522 93 PRC Environuental Tech. Assist. - 50.0 48.82539 94 PRC Rural Health Workers Oevt. - 110.0 109.53652 94 PRC Shanghai Metro Transport tt le) 150.0 150.03681 94 PRC Fujfan Provincial Highways tc) 140.0 - 140.03687 94 PRC Telecomanications Ce) 250.0 * 250.0

Total 9870.6 6980.0 737.9

of? which has been repaid 790.2 5.6Total now held by Bank and IDA 9080.4 6974.4

Amount sotd: Of which repad -

Total Undisbursed 4967.5 2411.4 7378.9

(a) As credits are denominated in SDRs Ceinca IDA Reptenishment VI), ndiw5bureed SON cred1tbalanoes are converted to dotlars at the current exchanW rate between the doltae nd the S6R.In : 9&xes, therefore. the undfsbursed balance indicates a dotlar awont greater than theS. igfnat principat credit amount expressed in doltars.

Cb) Credit fully diebursed.(e) Not yet effective.

- 13 -

Sehe.dlut 0Pag;e 3 of 3

8. STATENt OF IFC INVESTMENTS(As of December 31. 1993)

invest- Type of Loan Equfty totalment No. FY Sorroer Busirness ------ (US$ Mlliion) ----

81312178 85/91 Gusngzhou Vnd Peugeot Autombile 15.0 4.5 19.5

974 88O93 China Investment Co. Investment 3.0 1.0 4.0

1020 88/92 Shenzhen China Bicycle 17.5 2.5 20.0Bicyctes Co. Ltd. Manufacture

1066 89 Crown Electronics Electronics 15.0 15.0

1119 89/93 Shenzhen Chronar Solar Solar (a) 2.0 3.0 5.0Energy Energy

3423 93 Shenzhen PCCP Manufacturing 4.0 - 4.0

3150 93 Yantaf Cement Cement 28.7 - 28.7

Not yet signed 93 JV Commercfal Bank Banking 7.5 7.5

Not yet signed 94 Chfna Walden kgt. Capital Nkts. - 7.5 7.5

Not yet signed 94 Datian Glass Manufacturing 61.0 2.4 63.4

Total Gross Comnitments 85.2 11.0 96.2

Less caetllations, terdnations 17.9 - 17.9repayment and sales

total Conmtments now Held by IFC 67.3 11.0 78.3

Totat Undisbursed 28.7 2.0 30.7

(a) Loan subsequently cancelled.

12/31/93EA2DR

IBRD 25283

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