* Ai Docment of

The World Bank

FOt OMCLAL USE ONLY

MICROFICEIE COPY

Report No. P- 5591-CR Type: (PM)ABRAMOVICH/ X31870 / 1-7100/ LA2AG M P-5591-CR

MEOi4RAJNDUM 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$41 MILLION

TO THE

REPUBLIC OF COSTA RICA

FOR AN

AGRICULTURAL SECTOR INVESTMENT AND INSTITUTION

DEVELOPMENT PROJECT

FEBRUARY 18, 1992

I bsdocwnent has a restriced distrbution and omay be usd by recipients only in the performanc ofthwk'Officsia duties. Its content MaY not Otherwise be disclosed without World Ban* authorization.

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CURRENCY EQUIVALENTS

Currency Unit = Colones (¢)U$1 = 118i 1 million US$8,474.58

(At Appraisal - April 1991)

FISCAL YEAR

January 1 - December 31

WEIGHTS AND MEASURES

1 meter (m) = 3.28 feet (ft)1 kilometer (km) - 0.62 miles (mi)1 hectare (ha) - 10,000 m2 = 2.47 acres1 square kilometer (ki2) = 0.38 square miles (mi2) = 100 ha1 metric ton (m ton) 2,205 pounds

ABBREVIATIONS AND ACRONYMS

CAN = Agrarian National CouncilSEPSA Executive Secretariat for Agricultural Sector PlanningMAG Ministry of Agriculture and LivestockCNP = National Production CouncilIDA = Agrarian Development InstituteMOPT = Ministry of Public Works and TransportsSAL = Structural Adjustment Loan

FOR OMCIAL USE ONLY

COSBTA IRLO

AGRICUlTURAL 8ECTOR INVESTMENT ANDN8TXTUTIONAL DE2EhOPMENT PROJECT

LOAN AND PROJECT SVMMARY

*errowers The Republic of Costa Rica

Exec2tia@ Aaencies: Executive Secretariat for Agricultural SectorPlanning (SEPSA); Ministry of Agriculture andLivestock (MAG); Agrarian Development Institute(IDA); and Ministry of Public Works and Transport(MOPT).

Deneficiaries: Mostly small agricultural producers, the Secretariatfor Agricultural Planning (SEPSA); Ministry ofAgriculture and Livestock (MAG); AgrarianDevelopment Institute (IDA); and Ministry of PublicWorks and Transport (MOPT).

Awouns US$41 million equivalent.

zgrsg Repayment in seventeen years, including five yearsof grace at the standard variable interest rate.

FinancinaLPlans Local Foreign TotalCost Cost cost,-USS Million---------

Bank financings 12.0 29.0 41.0Producers: 0.8 0.0 0.8Government: 27.7 0.5 28.2Total: 40.5 29.5 70.0

Bconouic Rate of Return: Not applicable. However, the project would bringdirect benefits in terms of improved access toagricultural services and productivity, which inturn will increase net farm income of small farmersby approximately 35%-40%. Rural transportinfrastructure is justified with an estimated rateof return ranging between 13% and 50%.

Staff Aporaisal Report: Report No. 9760-CR dated February 18, 1992.

mm;s IBRD No. 23110.

This document has a restricted distribution anti may l e used by recipients only in the performanceof their official duties. Its contents may not oti. , se disclosed without World Bank authorization.

MEMORANDUM AND RECOMMENDATION OF THE PRESIDENTOF TBE INTERNATI:ONAL 8MMK FOR RECONSTRUCTION AND DEVELOPMENT

TO THE EXECUTIVE DIFECTORSON A PROPOSED LOAN TO THE REPUBLIC OF COSTA RICA

FOR AN AGRICULTURAL SECTOR INVESTMENT AND INSTITUTIONAL DEVELOPMENT PROJECT

1. The following memorandum and recommendation on a proposed loan to theRepublic of Costa Rica for US$41 million equivalent is submitted for yourapproval. The proposed loan would be repayable over 17 years including 5 yearsof grace at the Bank's variable interest rate and standard charges. It wouldhelp to: (a) improve the scope and quality of agricultural services anldproductivity of small farmers, through a sector investment and institutionaldevelopment program; and (b) develop an appropriate technical foundation forlmproved natural resource use in Costa Rica. The project would be implementedby the Ministry of Agriculture and Livestock (MAG), the Executive Secretariatfor Agricultural Planning (SEPSA), the Agrarian Development Institute (IDA), andthe Ministry of Public Works and Transports (MOPT). A Project Coordinating Unit(PCU), responsible for overall project coordination, would be established withinSEPSA.

2. Rack0Zugnd: Costa Rica's agricultural sector accounts for about 20%of GDP and 70% of the country's foreign exchange earnings, and it employs 30% ofthe country's labor force. Coffee and bananas dominate the agricultural economywith 50% of agricultural GDP and half of the value of Costa Rica's exports.

3. Prior to 1987 industrial protection policies discriminated heavilyagainst agriculture. Food self-sufficiency policies led to heavy protection ofbasic grains. Consumer subsidies caused substantial losses by the state-ownedmarketing agency--Consejo Nacional de la Produccion (CNP). Mandatory creditallocations provided heavily subsidized agricultural credit at a high cost tothe Government. Under the first and second Structural Adjustment Loans (SAL Iand SAL 1I), approved in April 1985 and November 1988, respectively, mandatorycredit allocations were removed; subsidized credit granted by public commercialbanks from their internally generated tesources has been capped at the end-1986level, in nominal terms. In addition, the anti-export bias of the trade regimewas reduced, consumer and producer prices of basic grains were unified, andnominal protection levels for basic grains dropped to 40%. However, up to thetime of the proposed operation, quantitative trade restrictions on the import ofbasic grains and beans have persisted.

4. Significant impediments to agricultural growth remain, in terms ofineffective public sector institutions and high public expenditure levels.While the Minister of Agriculture--as Head of the National Agricultural Council(CAN)--has sector policy planning and coordination responsibilities, CAN'splanning secretariat (SEPSA) is ill-equipped to provide sector-wide policyguidance and control over budgeting and public expenditures of key parastatalorganizations (i.e. CNP and IDA). A particular weakness in sector investmentplanning relates to the lack of common criteria among MAG, IDA and MIRENEM forland use planning, soil management and erosion control. This results in someagricultural activities being poorly planned, poorly sited and consequentlycontributing frequently to environmental degradation.

5. Other major factors affecting growth adversely are: (a) CNP'sinefficient and ineffective intervention in food retail operations and continuedcontrol over grain marketing and trade; (b) the high cost and multiplicity ofpublic institutions responsible for agricultural research and extension; and

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(c) inefficient resource use in land settlements, derived from IDA's inabilityto complete the settlement process (land titles and basic rural infrastructureservices).

6. Rationale for 3ank Involvement: Fiscal adjustment and reform of thepublic sector are central compor -. ts of the stabilization program and theadjusttent process supported by SAL I and SAL IX. A comprehensive reform of thepublic sector based on a redefinition of its functions and expenditures is anecessary step towards achieving a substantial and permanent reduction of thefiscal gap and accelerating the integration of Costa Rica into the worldeconomy. The reform of public sector institutions would encourage private sectorinitiatives to expand production and exports. Measures undertaken to close thefiscal gap should be consistent with the medium and long-term developmentstrategy of Costa Rica, which heavily relies on the agricultural sector. Long-term sustainable growth will not occur without investment in key areas (i.e.drainage, flood control, titling, rehabilitation of rural roads, agriculturalservices) even if an appropriate economic and administrative framework is inplace.

7. The proposed project supports the country's development strategy byfocusing on institutional reform and rationalization of public expenditures toreduce constraints to growth in the agricultural sector. The project buildsupon the policy changes introduced in the context of the Government's structuraladjustment program supported by SAL I and SAL II, and would help enhance sectorplanning capacity, streamline administration of sector institutions, anddecentralize their operations. By supporting tight budgetary controls and theestablishment of a consistent cost recovery policy for key agricultural sectorinstitutions, the project would contribute to reducing and refocusing publicricurrent expenditures in agriculture.

8. Government recognition of the institutional and budgeting constraintsaffecting growth makes this an appropriate time to support a sector reformprogram. By removing trade and price distortions affecting basic grains andboans (removal of quantitative restrictions, institution of priceliberalization, and significant reduction of the Government's role in grainmarketing), the Government will be allowing farmers to respond to comparativeadvantage. Agricultural extension and marketing services will be improved byexpanding the role of the private sector.

9. Lessons Learned from Previous Bank Lendina: Costa Rica, to date, hasreceived 33 Bank loans and one IDA credit totalling US$680 million net ofcancellations. Of the total Bank lending to Costa Rica, four loans were madefor agriculture, amounting to US$56 million. Two loans (Loan 538-CR and Loan827-CR) were for directed agricultural credit; one (Loan 1410-CR) was for anationwide program including credit, rural roads, seed production andstrengthening of the extension servicel and the fourth, the AtlanticoAgricultural Development Project (Loan 2764-CR), still under implementation, isaimed at expanding agricultural production mainly through credit and rural roadsconstruction.

10. Project lending in a distorted policy environment not only faile4 topromote agricultural growth in Costa Rica but deepened or institutionalizedpublic resource misallocation. Poor project implementation has also beenrelated to fragmented Government leadership and the lack of a clear policyframework for the sector. Project success depends in part on a clear linkbetween the commitment of the Government to carry out sector reforms anddisbursement of Bank funds. In the proposed project, this link was achieved atthe design stage by "front-loading" conditionality--that is, major policy

actions were taken prior to Board presentation. This approach was essential toensure political consensus for the implementation of the sector's reformprogram. It is expected that the comprehensive approach to institutional andtechnological change, introduced under this project, will prove to be moreeffective than the piecemeal strategy applied under previous agriculturalprojects in Costa Rica.

11. Luring project design, major policy actions were identified and agreedupon as necessary preconditions to specific sector investments. The proposedproject became the means of achieving a broad spectrum of sector policy reforms,normally associated with fast-disbursing loans, but within the context of asector inveatment operation. Linking policy actions to sector investment hassignificantly strengthened the position of reform-minded elements in theGovernment, increasing the likelihood of successful and sustainable policyimplementation.

12. Bank lending experience in Costa Rica was also incorporated into theproject design in the project's attention to coordination between agencies,clearly defined project objectives, and elimination of overlappingimplementation responsibilities. Project implementation arrangements have alsotaken into account the inherent complexity of addressing key subsector issuesand investments within the same operation (para. 26).

13. Poor inter-relations between funding and executing agencies, and lackof adequate monitoring and evaluation are being addressed by the project throughpublic sector reform measures, providing back-stopping for the execution of theoverall program, and by training staff in critical technical areas. Reflectingthe Government's economic priorities, the project's focus is on institutionalreform, highly selective export-oriented public investments, and povertyalleviation.

14. Proiect ObJectives: The project aims to support Costa Rica'ssustainable agricultural growth by improving the efficiency and effectiveness ofpublic sector institutions and their expenditures. It would: (a) strengthensector policy planning, evaluation, and monitoring capacity of SEPSA; (b) shiftpublic expenditures away from inefficient food distribution operations andmarketinig of basic grains towards growth enhancing services such as agriculturalresearch and extension, land titling, and land settlement consolidation(including the provision of basic rural infrastructure up to specified minimumstandards); (c) support sector reforms directed at improving the regulatoryframework and economic environment for private sector development; and(d) develop an analytical framework for the design of projects, regulations andincentives to encourage appropriate land toe, with emphasis on soil erosioncontrol. By helping to regularize land rights and improving agriculturalproductivity of small farmers, the project would also contribute to alleviatingrural poverty.

1S. Protect Descrintion: The project has three componentss The 8ectorInstitutional Develogment comnonent (45% of total project cost, includingcontingencies) would: (a) strengthen CAN policy coordination and SEPSA'scoordination of sector planning and budgeting; (b) support the design andimplement an agricultural information network to strengthen planning,monitoring, and evaluation capacity; (c) support a shift of financial andtechnical responsibilities to regional offices of MAG and IDA, while privatizingsome activities, retrenching redundant staff, and strengthening criticalfunctions; (d) improve land use classification, assess ecosystems susceptible tosoil losses and measure the extent and cost. of the actual and/or potential

damage to the natural resource basea and (e) demarcate the boundaries cfNational Parks, Biological Reserves, and other protected areas.

16. The agricultural esearch and Extension compone2nt (21% of totalproject cost, including contingencies) would: (a) consolidate and/or foster theemergence of privats technical assistance services for small and medium-sizeproducersa (b) transfer extension responsibility from IDA and CNP to XAG, makingit the only government institution responsible for public research andextension; (c) concentrate MAG's research and extension activities on smallproducers; and (d) develop a group extension approach to transfer simple andcost effective technologies to small farmers.

17. The LMnd Titling and Settlement Consolidation eomoonent (34% of totalrroject cost, including contingencies) would provide resources to: (a) IDA forland titling; and (b) MOPT for consolidation of small holder settlements byproviding basic rural infrastructure such as roads and communal facilities. Theproject would assist IDA to improve its organization, procedures and regulationsfor land acquisition, beneficiary selection, infrastructure development, andland titling.

18. Xmolementation Arranoements: A unit reporting to the head of CANthrough SEPSA and comprised of qualified consultants, assisted by local staff,would be responsible for project coordination. Specialized executing agencies(MAG, SEPSA, IDA, and MOPT), selected according to their experience andcapability, would implement each component. A careful analysis of key sectorinstitutions has been carried out during preparation to identify tasks, skills,inter-institutional relationships, capacity gaps, and institutionalstrengthening required.

19. Proiect Costs and Financing: The project, to be carried out over aseven year period, would provide funds for civil works, equipment, materials,vehicles, technical assistance, training and studies. The total cost of theproject is estimated at US$70 million equivalent, with a foreign exchangecomponent of US$29.5 million (42%). A breakdown of costs and the financing planare shown in Schedule A. Amounts and methods of procurement and disbursements,and the disbursement schedule are shown in Schedule B. A timetable of keyproject processing events and the status of Bank Group operations in Costa Ricaare given in Schedules C and D, respectively. A map relevant to the project,and the Staff Appraisal Report No. 9760-CR dated February 18, 1992, are alsoattached.

20. The financial requirements of the project would exceed available localsavings, thus requiring Bank financing of approximately 30% of local costs.Local cost financing will be necessary given the deterioration in Costa Rica'scapacity to mobilize sufficient domestic resources. The Government'sstabilization program aimed at raising revenues and reducing local expenditures,by adjusting the fiscal accounts and implementing significant cuts in capitalexpenditures, has severely constrained public investment budgets. Thissituation was aggravated by the collapse in the international coffee agreementon September 1989 and the rise in oil prices on the second half of 1990. Inaddition, significant domestic public savings will be required forrehabilitation and reconstruction of infrastructure damaged or destroyed by theearthquake that hit Costa Rica in May 1991, and floods that affected thatcountry's Atlantic Region on July 1991.

21. Key Issues and Actions. Significant policy and institutional reformsteps required under the project have already been accomplished, or action plans

for their implementation agreed. (A) The Governr.ent confirmed the completion ofthe sector's labor mobility program according to agreed targete (dismiesal of1000 employees from MAG, CNP and IDA). (B) A decree has been issued authorizingthe Minister of Agriculture, as Head of CAN, to hold responsibility andauthority over the sector's budget and investment program review process. (C) Adecree has been issued stating IDA's and MAG's reorganization plant it specifiestha delegation of functions, decentralization of facilities and services, andtransfer of personnel to the regional offices, according to agreed timetables.(a) A decree has been issued stating that the Government, prior to June 30,1992, will: (i) eliminate any quota restrictions for imports and exports of

badic grains and bean3; (ii) cause the newly established tariffs on theimportation of such commodities not to exceed a maximum of 20%; and (iii) notintervene or fix prices of basic grains and beans. (E) Through a resolution ofits Board of Directors, CNP (which has already privatized its food retailoperations) has agreed to: (i) not undertake food retail activities nor createany new wholesale stores} (Ui) not re-open any of its remaining four grainstorage and processing facilities; (iii) limit its annual purchases of maize andbeans to agreed targets; (iv) cause the wholesale prices of maize and beans toreflect the full cost of storage and handling; and (v) maintain regional pricedifferentials in the farmgate and wholesale prices of basic grains and beans.In addition, the Government has signed a Statement of Policy regarding occupantsof national parks and natural and biological reserves, other than indigenousreserves. This Statement of Policy affirms the principles that boundaries willbe re-defined to exclude areas presently occupied except where such occupationconstitutes a threat to the integrity of the park or reserve. In the latterevent, the Government will relocate the occupants or expropriate the land andcompensate them as provided by law.

22. During negotiations the Government agreed to the following actionst(A) The Government will complete a study on the future role of CNP and implementan action plan satisfactory to the Bank. (B) IDA will implement and carry outall obligations as set forth or referred to in the policy letter dated October11, 1991. These include inter-alia beneficiary selection criteria which givewomen an equal opportunity to men, minimum standards for the settlementconsolidation process and a clear title transferability policy, and limitationof the time period (3 to 5 years) for IDA's direct involvement with newsettlements. (C) The Government will cause IDA to limit further landacquisitiona to: (i) an aggregate amount not to exceed US$3 million equivalentper year until all lands, including those with ongoing settlements and thosewhich are presently vacant, are completely settled and titled; and (Li) thoselands which meet the agreed socio-economic criteria and Environmental AssessmentGuidelines. (D) Agricultural research and extension services will beconsolidated within NAG, thus eliminating duplication of functions within publicsector institutions. (3) Agronomists' professional practice will not be

* constrained by Government regulations. (F) IDA beneficiaries will beresponsible for the periodic maintenance of settlements complemented by routinemaintenance to be carried out by MOPT. (0) Cost recovery for MAG, IDA and CNPservices will be achieved in accordance with agreed targets and actions.(H) Annual reviews and a mid-term review will be held in March of every year andat the end of the third year of project implementation, respectively.(I) Project performance will be evaluated in accordance with agreed targets asdefined in the project performance indicators which are stated in a SupplementalLetter to the Loan Agreement. If progress is found to be unsatisfactory, the

Government shall implement remedial actions satisfactory to the Bank. (J) TheGovernment will make available to the respective executing agencies thenecessary counterpart funds to allow project execution in accordance with theagreed implementation schedule.

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23. The Conditions of Effectiveness are as follows: (a) the projectcoordinating unit, and project steering committee are established and staffed;(b) project coordinators are appointed by executing agencies; (c) the contractbetween MAG and IDA has been signed; (d) each executing agency has established apro4ect account to cover about four months of project-related expenditures; and(e) the Government shall haves (i) eliminated all quota restrictions to importsand exports of basic grains and beans; (ii) established tariffs on theimportation of basic grains and beans, subject to a maximum rate of 20%, andapplied to the CI' "normal" price; and (iii) eliminated all price controls onbasic grains and beans.

24. The Conditions of Disbursement for the respective project componentsare as follows: (a) an operational plan for the implementation of theagricultural information network has been prepared In terms satisfactory to theBank; (b) the operational agreement between MAG and Banco Nacional de Costa Ricafor the implementation of the PTA voucher "pilot" program has come into effect;(c) HAG and IDA have sold or otherwise disposed of at least 240 existing non-operational or high maintenance cost vehicles; (d) for the third phase of theland titling program: (i) the boundaries of those settlements have beendemarcated; (ii) land use plans and technical and economic justification for therehabilitation and construction of rural infrastructure for such settlementshave been presented to the Bank; and (iii) an assessment satisfactory to theBank of the environmental impact of the consolidation process of suchsettlements has been furnished to the Bank. In respect to rural roadexpenditures related to the above phase, an economic evaluation, engineeringstandards and environmental assessments of expenditures related to such workshave been presented to the Bank; and (e) in respect of training expendituresconsisting of post-graduate studies, the Bank has approved the respectiveproposals.

25. Proiect Benefits: The main project benefits would be to generates(a) higher agricultural output growth by emphasizing Costa Rica's comparativeadvantage in international markets and by providing higher quality and cost-effective public services for the sector; (b) higher small-farmer income byenhancing access to modern agricultural technology; (c) greater settler well-being by regularizing land ownership rights and providing improved access tobapic rural infrastructure; and (d) a better technical foundation to improvenatural resource use, with emphasis on developing an environmentally sound soilmanagement strategy. A stronger SEPSA would also be in a better position tohelp formulate sound public policies. While supporting agricultural growth, theproject would contribute significantly to reducing public expenditures in thesector. Net fiscal savings during the project life would be approximately US$42million equivalent. In addition, the privatization of the Government's foodretail operation and grain processing and storage facilities, would reduce CNP'soperational budget by US$32 million annually (or approximately 23% of its 1991budget, a reduction significantly greater than the value of MAG's entirerecurrent budget).

26. Proiect Risks: The most important risks lie on the extent ofinstitutional change envisioned, the multiplicity of public sector institutions,and the complexity of the decision-making process in Costa Rica which mayconstrain timely implementation of policy reforms. These risks would bemitigated by supporting institutional development of sector institutions andensuring that implementation of the respective project components falls withinthe ongoing responsibilities of the line Ministries or government agencies.Particular emphasis would be given to CAN and SEPSA in terms of enabling theseentities to carry their legal mandate by improving their administrativeframework, and strengthening their technical skills and capacity to implement

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and monitor a rigorous sector planning and budgeting process. Technical

assistance under the project would minimize risks during implementation by

providing back-stopping to SEPSA in project execution and by training staff in

specific subject matters. Prior to Board presentation, major agreed

institutional changes and policy actions have been implemented by the

Government, thus ensuring a- adequate institutional framework for project start-

up. Budgetarv risks, which may lead to slower than planned project

implementation, would be addressed by the Government through public sectcr

savings agreed under the project and the reallocation of resources within the

sector.

27. Recommendations: I am satisfied that the proposed loan complies with

the Articles of the Agreement of the Bank and recommend that the Executive

Directors approve the proposed loan.

Lewis T. PrestonPresieunt

AttachmentsWashington D.C.rebruary 18, 1992

9-0STA RICA

AGRICULTURAL SECTOR INVESTMENT AND INSTITUTIONAL DEVELOPMENT PROJECT

Estimated Costs and ianp_ncina Plan

Local Foreign Total

------ USS Million -

Estimated Costs:

Institutional Development 19.5 9.5 29.0

Agricultural Research and Extension 7.0 6.0 13.0

Land Titling and Settlement 9.2 9.8 19.0

Total Baseline Costs 35.7 25.3 61.0

Physical Contingencies 1.1 1.6 2.7Price Contingencies 3.9 2.4 6.3

Total Project Costs 40.7 29.3 70.0

Financina Plan:

IBRD 12.0 29.0 41.0Producers 0.8 0.0 0.8Local Counterpart 27.7 0.5 28.2

ZQtkl 40.5 29.5 70.0

-9-SCHEDULE ILPage 1 of 2

COSIA REASAGRICULTURAL SECTOR INVESTMENT AND INT1TUTIONAL DEVELOPMENT PROECT

Summary of Procurmnt AmnReomt p1(USS miUlon)

TOWlPrjet Element J ICE LC8 Other I N.A. Coat

.ivl lWo 2.9 11.0 - 2.0 k/ 15.9(1.6) (6.2) (0.0) (7.4)

EBpaIpmot lSA 2.2 0.6 _ 7.9(5.3) (2.0) (0.5) (7-8)

Vehlces 3.5 - - 0.7 p/ 4.2_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ ~~(3.5) _ _ _ _ _ -0) (3.5)

Tnrinin and Studies - 2.3 e/ 23(2.3) (2.3)

Sevice Pcage 12.0./ - - _ 12.0(10.7) (10.7)

Technical Aiane _ - 7.3 p/ - 7.3._________ ________ (73) (7.3)

Opeating Costa 9.3 -/1 9.3... ___ _. . __ . ___ __ (2-0) (2.0)

O herCoats - - - 11.1f 11.1

11 _______________________ . ___________ ___________ (0.0) (0.0)TOrAL 23.5 13.2 10.2 23.1 70.0

(29.9) (8.0) (10.10) (2.0) (41.0)

p1 Values in parenthe show amounts to be finaed by die Bank.j/ llems to be financed by the Goverement.jI Consilit svce.IV Senice package for h band titing prgrm, the land use classification p-ograp, and the demrcation of eserve areas.Q1 On a decreasing basis.

Ineludes costs of th Governments labor mobility program, fte divestitum of some of CNP aetvities, and incrmeal exensesderived fiom IDA's decentaliztion program.

EstiUmted IBRD Disbursemegs

IBRD PY 1992 1993 1994 1995 1996 1997 1998 1999

Anual 3.30 6.3 9.3 8.0 5.8 4.2 2.8 1.2

Cmulaive 33 9.6 19.0 27.0 32.8 37.0 39.9 41.0

* InluhWs an inil depo in the Specia Accout of USS2.5 million.

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Page 2 of 2

CQOL2B RI

AGRMICAURAL SCTOR INVESTMENT AND INSTITUTIONAL DEVELOPMENT PROJECT

Disbursement Categori2s

Amount ofLoan Percentage of

Category Allocated Expenditures to be(USS Million) Financed

A. Civil Works Al 7.68 56%

3. Equipment 6.4 100% of foreignexpenditures and 80% oflocal expenditures.

100% of foreignC. Vehicles 3.6 expenditures and 80% of

local expenditures.

100%

D. Technical Assistance 6.4 100%

B. Training and Studies 1.9 100%

F. special studies .25

G. Services 8.97 100%100%

1. Land Titling Program 4.682. Land Use Classification 4.29

Program

R. Voucher Program 1.8 Up to US$ 450,000: 100%Up to Us$ 850,000: 80%Up to US$1,200,000: So%Up to US$1,500,000: 40%Up to US$1,650,000s 20%Up to US$1,800,000: 10%

Unallocated 4.0

Total 41.0

al Includes $1.68 million for Demarcation of Reserve Areas.

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8CHEDULS

COSTA RICA

AGRICULTURAL. SECTOR IMESTMENT AND INSTITTIXONALDEVELOPMENT PROJECT

Timetable of KeY Project Processina Events

(a) Time taken to prepare: Two years

(b) Prepared by: Government with IBRD assistance

(c) riret IBRD Mission: July 1989

(d) Appraisal Mission Departure: May 1991

(*) Negotiations% October-November 1991

(f) Planned Date of Effectiveness: November 1992

g) List of relevant PCRo, PPARs, Costa Rica-Agricultural Credit andand other Bank evaluations: Development Project (Loan 1410-CR)

(PCR-Report No. 6015)Costa Rica-Policy OptionsFor the 90sReport No. 8496-CR

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SCEEDULE LPage 1 of 2

COSTAk RIC

AGRICULTURAL SECTOR INVESTMENT AND XNSTITUTIONAL DEVELOPMEWNT PROECT

Status of lank Grouns Onegats gn C ogsta Rica

A. Statement of Bank Loans and IDA Credits(as of December 31, 1991)

Amount in Us$ millionilgess cancellation)

Credit/ FiscalLoan No. Year Borrower Purpose Bank IDA Undisbursed

30 Loans and one credit fully disbursed 488.70 S.48

of which SECALs, SALs, and Program Loans1

Ln. 2274-COS 1983 Costa Rica Export Development 25.20Ln. 2518-COS 1985 Costa Rica Structural Adjustment 80.00

Subtotal 105.20

Ln. 2764-COB 1987 Costa Rica Atlantico Agriculture 26.00 18.04* La. 3005-COS 1989 Costa Rica Structural Adjustment 100.00 25.08Ln. 3205-COB 1990 Costa Rica Transport Sector 60.00 56.86Ln. 3414-COSk/ 1992 Costa Rica Basic Education Rehab 23.00 23.Q0

Total 697.70 5.48 122.98Of which has been repaid 291.98 2LZZ

Total now held by Bank and IDA 405.72 3.21

Amount solds 11.10of which has been repaid: 11.10

Total undisbursed 122.98 0.00 122.98

a/ Approved during or after FY80.la Not yet effective.

* SAL, SECAL, or Program Loan.

EsArevalo :LA2C2File:COS0991 (al.060)02/10/92

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SCE3SDEE DPage 2 Of 2

COS^RICA

AGRIIUTU SECTOR XIVESTMENT AND INSTITUTIONAL DEVLOPMEN PROJECT

gStatus gf Bankc Orouns- Overatione in Costra Rica

S. Statement of X16 Investments(as of December 31, 1991)

(USS Millions)

Fiscal HeldYear -Original Approvals- by

Approved Obligor Type of Business Loan Equity Total IFC

1963/ Productos de Concreto, Cement & Construction 0.38 0.21 0.5965 S.A. Materials

1978/ Scott Paper Company de Pulp and Paper 4.00 - 4.00 0.1987 Costa Rica, S.A. Products

1979 Maricultura, S.A. Food & Food Processing 1.40 0.70 2.10

1983 Matas de Costa Ornamental Plants 1.52 - 1.S2Rica, S.A.

1991 Banex Credit Line Development Finance 5.00 0.8S 5.85 ilia

Total Gross 12.30 1.76 14.06 6.04Commitments

Less Cancellations, 7.12 09 8.03 0.00Terminations,Repayment,and Sales

Total Commitment now held -. is 0.85 6.04 6.04

ISC InvestmentesC030391EBArevalo/LA2C2

IBRD 231 10

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TRAL

CCOSOTA RRICAS NT,;..AGRICULTURAL SECTOR INVESTMENT ANDINSTITUTIONAL DEVELOPMENT PROJECT I

PHYSICAL CHARACTERISTICS

- PAN AMERICAN HIGHWAY9.

90 SELECTED ROADS ELEVATION IN METERS: Ptg

-___ RAILROADS

RIVERS

* NATIONAL CAPITAL 200. PANAMA

@ PRt'VINCE CAPITALS , 0

O CMES AND TOWNS

--- PROViNCE BOUNDARIES r' To Aonomo Cty

REGION BOUNDARIES

INTERNATIONAL BOUNDARIES 0 GO Mits

650 100 Kilmonw tO

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th dm e MAP I = f t ite r by te wo w d*noihenM l Vwk

mt sr fol Fhollce Cavostbnmi The de s taW ed tho tJbex nW on Vthb oe ob nowt

, on 11 pat of The rk01 aw* a ixtilho ateatF*tanw e Capobhe. hay 1eon l11 lega sja* of anw gnltoy as~ ov wxsww#orn aoonphw of damh bowtdelea

86 . 85° o n 8h eJtsa6s " rrato : 3e 82°

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