c- ., ,.u odwuent of

fhe World -Bank -

FOR OFnCiAL USE ONLY.

AAV 3Z2s-z-9tzRepor No. P-4872-PAK

. MEMORANDUM AND RECOMMENDATION

- . OF THE - -

PRESIDENT OF THE -

INTERNATIONAL -BANK FOR RECONSTRUCTION AND, DEVELOPMENT

- TO THE

I- -ECUTIVE DIRECTORS

ON A

-. < .PROPQS]D LOAN

~ - i -~- IN AN AMOUNT EQUIVALENT TO US$130 ILLION .

-TO

SUI NORTHERN GAS PIPELINES- LIMITED (SNGPL), PAKISTAN

- WITH THE.GUARANTEE OF THE ISLAMIC REPUBLIC OF PAKISTAN

- _ ~'. FOR A - - -

* . CORPORATERRESTRUCTURING AND SYSTEM EXPANSION PROJECT

JULY 12, 1990

)

This<document h*s a restritekd distribution and amsy be med by' recipients only In the perfdwmansce of.

\\ I - , - S _ p-_I- .

their eowe rck duties Itcnot mand notohews be uwosd wiboitn World Bnkathopriztion.ao

- eirofScbdis.ltscoWots ay nt dhewiw b dWcowd whout odd ankabdd

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-~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ -

--n N CURRENCY KOUIVAIZUT

Currenocy Unit - Pakistan Rupee (Rs)US$i.'0. - Rs 21.50 (May 1990)

NEASURES AND EOUtVALENTS

1 barrel (bbl) l - 0.159 cubic meters1 metric ton of oil'(0.85 specific gravity) - 7.4 bblMiCF ;- 1,000 cubic ft. of gasMMCF - - 1 million cubic-ft.MNCFD ~~ - il illion cubic ft. 'aily1 BCF - 1 billion cubic ft.1 TCF - 1 trillion-cubic ft.

PRINCIPAL AJBREVIATIONS AND ACONYS -,

ESL L - Energy Sector Loan ILESL II --- i Energy Sector Loan IIECNEC - Executive Co=mittee pf the National EcQnomic CouncilGDS - Gas Development SurchargeGOP - Government of Pakistap;IMF - International Moneta?y Fuid -

LES - Long-Term Energy StrategyOGDC - Oil and Gas Development CorporationPC - _ PFoj4ct Concept -

~ SCADA - - Supervisory Control and Data AcquisitionSNGPL - Sui Northern Gas Pipelines Limited

l

GOP 's and Borrover's Fisca 1 Year (FY)

July 1 -June 30

I~~~~~~~~~ .. ¾ ,- .

. ~ ~~~~ ~ ~ ~ . -.

FOIR OFMCIUL USE ONLY

Sf2I NoITBERR GAS PIPELINES ! azT MD (S¢PLI

CORPORATE RESTRUCTURING AND SYSTEM EXPANSION PROJECT

LOAN AM POJECT SURY

Borrower: Sui Northern Gas Pipelines Limited (SNGPL)

Guarantgr: . Islamic Republic of Pakistan

* Amon: US$130 million equivalent

Terms: Twenty years, including a five-year grace period,at the Bank's standard variable interest rate.

Financing Plan:

USS million

Local Foxeign Total --

IBRD - 130 130- Equity Issues 93 - 93Local loans 121 - 121Internal Cash Generation -

including consumer contributionsand security deposit 203 -

TOTAL 417 130 547

Economic Rate of Return 25Z

Staff ADnraisal Report No.: 7407-PAR

IBRD 20961R1

This document has a estrited distribution and may be used by recipients only in the 1,_.tmanceof their official duties. Its contents may not otherwise be disclosed without World bank authorization.

MEMORANDM AN! RECOkEUNDAION OF THE PRESIDENTOF THE INTERNATIONAL BANM YOR RECONSTRUCTION AND DEmELOPMENT

TO THE tYRUTIV TARiCTOON A PROPOSED LAN

TO SUX NOTHERN GAS PIPELINES LIUTED (SNOPAK. PAXISTANFOR A CORPORATE RESTRUCTURING AND SYSTEM mxpASION PROJECT

1. The following memorandum and recommendation on a proposed loan to SuiNorthern Gas Pipelines Ltd. (SNGPL), a semi-autonomous gas transmission anddistribution entity in Pakistan, for US$130 million equivalent is submitted forapproval. The Islamic Republic of Pakistan would be the guarantor of theproposed loan. The loan would be at the Bank's stanckrd variable interest rate,and repayable over twenty years including a five-year grace period. It wouldassist in restructuring the ownership and management of SNGPL and in expandingthe utility's transmission and distribution capacity.

Backgroun

2. In 1985, the Government of Pakistan (GOP) formulated with assistancefrom the Bank a Long-Term Energy Strategy (LES), aimed at addressing the majorissues affecting the development of the sector. Support for initiating theprocess of structural reforms called for by LES was provided in 1985 under theEnergy Sector Loan I (ESL I, Loan 2552-PAK). The objectives of ESL I have beenachieved fully and GOP is continuing this process with Bank support under ESLII which, inter al", is aimed at: eliminating budgetary support for revenueearning public enterprises in favor of prudent direct borrowing in capitalmarkets; rationalizing investments in the public sector to ensure that priorityprojects are implemented within the resources available to the public sector,and to supplement these through appropriate incentives and a framework to enablethe private sector to assume a more prominent role in the development of energy.

3. Natural gas is Pakistan's main commercially exploitable hydrocarbonresource with proven and probable reserves of about 16 and 6.3 trillion cubicfeet, respectively. However, its share in the overall consumption of energy hasdeclined and shortages of gas have persisted since 1981. This is mainly due toinadequacies in the Government's pricing policies which failed to restrain thegrowth of demand and encourage public and private producers to increase theiroutput of gas. As these shortages were inducing consumers to shift to highervalue petroleum products which, in turn, were absorbing the country's scarceforeign exchange resources, GOP agreed under ESL I to rationalize the consumptionand supply of gas. On the demand side, the consumer price of gas has beenincreased six times since 1981. On the supply side, a new gas producer pricingformula was adopted in 1985 which links the well-head price of gas to two-thirdsthe border price of fuel oil. The private sector, both local and foreign, hasresponded favorably and 21 new onshore concessions have already been signed.In addition, satisfactory progress in the implementation of the Core InvestmentProgram agreed under ESL I and ESL II has increased gas reserves by about 4.6trillion cubic feet and has enabled the Oil and Gas Development Corporation(OGDC) to accelerate the development of the Pirkoh and Loti gas fields, outputfrom which can be increased by about 200 MMCFD in a relatively short time. Thisgas can be made available to final consumers in the northern part of the coun;ryto correct the imbalance between supply and demand, but would require anexpansion of SNGPL's transmission and distribution capacity.

4. The Bank's involvement with SNGPL began in 1964, the year it became apublic limited company under the Companies Act. Since then, the Bank has

2-

assisted SNGPL through a series of five loans. While these operations havecontributed significantly to the expansion of SNGPLs operations and thestrengthening of its institutional capability, it also became evident duringtheir implementation that the autonomy granted to SNGPL under the Companies Actwas not gaining hold because of the continued concentration of SNCPL's ownershipin the hands of GOP and government-owned institutions and has resulted in GOPexercising substantial control over the management and operations of the company.This situation is being addressed in the proposed Project through agreementsconcerning the dilution of GOP's ownership and control initially, to be followedby majority shareholding by the private sector and management arrangements whichreflect it. A second major feedback from the completed projects is thedifficulty of enforcing a rate of return covenant based on revalued assets inoperation. Because of continuing non-compliance with the covenant, the Bank hasagreed, until a new pricing formula is developed, to substitute under theproposed Proiect, a new covenant which would require SNGPL to achieve a rate ofreturn of 17.51 on SNGPL's fixed assets and also limit the Gas DevelopmentSurcharge, which together would yield results comparable to those under the oldcovenant.

Project Objectives

5. The objectives of the proposed Project are to: (a) assist GOP inrestructuring SNGPL's equity ownership to make the utility more autonomous andanhance its resource mobilization capability by ftnabling it to tap new sourcesof finatncing; (b) expand SNGPL's infrastructure for purification, transmissionand distribution of gas at least cost; (c) promote the substitution of gas forhigher value petroleum products in the northern part of the country; (d)rationalitze the consumption and supply of gas through pricing and demandmanagement; and (e) strengthen SNGPL's capabilities in long-term planning,project implementation, inventory control, operation and maintenance, and safety.

Pxoiect Description

6. The proposed Project would include three components: CorporateRestructuring of SNGPL, Infrastructure Development, and Consultancy Services andTraining. CorRorate Restructuring of SNGPL would involve: (a) restructuringof SNGPL's ownership through issuance of new additional equity shares to dilutepublic sector ownership initially from 911 to 511, and subsequently to at most401; (b) restructuring SNGPL's Board of Directors to reflect the newshareholding; (c) establishing financial performance criteria to improve itsefficiency and ability to raise equity; and (d) reviewing the regulatoryfunctions of the Directorate General of Gas. Infrastructure Devel2Rm= wouldprovide for: (a) installation of a 1 x 120 M)CFD gas purification plant at Sui;(b) expansion of the transmission system capacity by about 300 NKCFD; (c)expansion of the distribution network to supply natural gas by FY96 to newdomestic, commercial, and industrial consumers, two fertilizer plants and thepower station at Kot Addu; (d) installation of a linepipe coating plant; (e)installation of a telecommunication system for monitoring the operations of thenetwork; and (f) procurement of rompressors and construction equipment requiredfor the installation of the linepipe. Consultancy Services and Training wouldcover: (a) safety and hazard assessment survey of the transmission anddistribution system; (b) upgrading the capability of the. Directorate General ofGas, and training of SNGPL staff through a collaborative arrangement with aforeign private gas utility; (c) development of SNGPL's financial managementinformation systems and data processing and training in internal auditing ofcomputerized accounting systems; (d) designing the new formula for setting

-3

SNGPL's prices net of the Gas Development Surcharge, and performance criteria;(e) services of financial advisers and an underwriter or consortium ofunderwriters'to manage the issuance of shares; and (f) design, engineering andsupervision of high pressure pipeline construction at river crossings. Theproject, to be carried out over a period of si'L years, provides funds for theprocurement of equipment and materials for the construction of the high pressurelinepipes, including compressors, SCADA system, gas purification plant and alinepipe coating plant; training, technical assistance and consultancy services.The total cost of the project is estimated at US$546.5 million equivalent witha foreign exchange component of US$129.9 million (24X). A breakdown of costsand the financing plan are shown in Schedule A. Amounts and methods ofprocurement and of disbursements and the disbursement schedule are shown inSchedule B. A timetable of key project processing events and the status of BankGroup operations in Pakistan are given in Schedules C and D, respectively. Amap (IBRD No. 20961R1) is attached. Also attached is the Staff Appraisal ReportNo. 7407-PAK dated July 12, 1990.

Rationale for Bank Involvement

7. The proposed Project fits into the overall framework of the ESL II,which identifies pr: rity investments and policy reforms to be implemented duringthe period FY89-93. It would assist GOP in reducing the fiscal deficit tosustain the economy's growth momentum and control inflation as provided in themacro-economic framework agreed with the IMF and the Bank, and enhancing the roleof the private sector in energy development. The Bank's support for this Projectis to be viewed in the context of its continuing economy-wide role in promotingboth privatization and corporate. restructuring of revenue-earning entities, andin assisting GOP in mobilizing financing from the private sector.

Summary of Agreements and Recommendations

8. GOP has agreed to: (a) annually increase the price of gas tohouseholds so as to reach full parity with the border price of fuel oil by June30, 1993; (b) annually increase the development surcharge on the sale of gas topower producers so that by June 30, 1995 the price of such gas, inciuding suchdevelopment surcharge shall achieve full parity with the domestic price of fueloil less discounts for the gas transmission investments made by the powerproducers; (c) contirue to maintain the price of gas supplied as fuel by the gastransmission and distribution companies to the industrial, power and commercialsectors at least at full parity with the domestic price of fuel oil; (d) a ameans of diluting its ownership of SNGPL, initially reduce its direct - Iindirect shareholding in SNGPL to not more than 51% by June 30, 1991 through theissuance of 57.5 million new equity shares; (e) thereafter not purchase orotherwise acquire directly or indirectly, any additional new equity shares tobe issued by SNGPL during the life of the project, if its direct and indirectshareholding in SNGPL will exceed 40X; (f) undertake not later than October 31,1991, and complete not later than March 31, 1992, a study, under terms ofreference satisfactory to the Bank, to upgrade the regulatory capabilities ofthe Directorate General of Gas; furnish to the Bank the findings andrecommendations of such study for review and comments; and thereafter taking intoaccount the Bank"s comments, implement the findings and recommendations of suchstudy not later than March 31, 1993; (g) establish a new formula, satisfactoryto the Bank, for the setting of the Borrower's Prescribed Prices, and take allnecessary measures to ensure that the said formula shall be applied by SNGPL notlater than July 1, 1993; (h) notify SNGPL by not later than December 31, 1990:(i) the final Prescribed Prices applicable for FY90; and (ii) the provisional

4-

Prescribed Prices applicable for FY91 to ensure that for FY91 the 17.51 rate ofreturn on net fixed assets in service valued at historical cost will be actuallyachieved.

9. GOP and SNGPL have agreed to: (a) implement all, measures necessary toenable SNGPL in each fiscal year to: (i) earn a rate of return of at least 17.5Xon net fixed assets in service valued at historical cost; and (ii) set the GasDevelopment Surcharge at not more than 321 of the gross revenue from gas saltsto consumers in FY92 and at not more than 281 thereafter.

10. SNGPL has agreed to: (a) provide, not later than December 31, 1990,evidence satisfactory to the Bank that it has obtained all necessary consentsand clearances for the marketing of the new equity shares; (b) appoint not laterthan January 31, 1991, an underwriter or a consortium, satisfactory to the B.'.k,on a fully-committed banis to market the new equlty shares; (c) prepare andfurnish to the Bank for review and comment, not later than June 30, 1991, arevised corporate investment and financing plan, and annually revise such planand furnish it to the Bank for review and comment; (d) appoint, by March 31,1991, to the staff of the Corporate Planning Department, an economist, afinancial analyst and a system planner, all with appropriate qualifications andexperience; (e) finalize by June 30, 1991 the contract for a collaborativearrangement, under terms and conditions satisfactory to the Bank, with aninternationally reputable private sector gas utility for the purpose of providingtechnical assistance and training to SNGPL's staff; (f) issue to the generalpublic about 219 million new equity shares as follows: (i) not later than June30, 1991, 57.5 million shares; (ii) not later than June 30, 1992, about 37.5million shares; (iii) not later than June 30, 1993 about 50 million shares; (iv)not later than June 30, 1994 about 57 million shares and (v) not later than June30, 1995, about 17 million shares; (g) reconstitute its Board of Directors, notlater than March 31, 1992 to reflect the new ownership of the company; (h)recruit consultants by March 31, 1991, under terms and conditions satisfactoryto the Bank, to prepare the detailed design, ngineering and supervision of Thehigh pressure pipeline across rivers Ravi and Sutlej; (i) complete the plan fordistribution of gas to new towns and, in consultation with GOP, establish, notlater than June 30, 1991, criteria satisfactory to the Bank, for the ranking andselection of the new towns to be connected; (j) take all necessary actions tocommence not later than December 31, 1990, the process of acquisition of the landrequired for the construction of the high pressure transmission lines; (k) seekthe Bank's approval before incurring additional long-term debt if after theincurrence of such debt its debt/equity ratio would be greater than 70:30; (1)continue to declare dividends only if after payment of the dividend SNGPL'scurrent assets excluding stores and spares would not be less than its currentliabilities; (m) appoint by March 31, 1991, consultants satisfactory to the Bankand under terms of reference satisfactory to the Bank, for implementing studiesfor: (i) development of SNGPL's financial management information systems and dataprocessing; (ii) reviewing the company's billing cycle; and (iii) training ofSNGPL's staff in computer auditing, and to submit the completed studies andrecommendations and an implementation plan to the Bank, no later than June 30,1992. The auditor's annual reports will cover, besides the annual accounts, thespecial account and all statements of expenditure on the basis of whichwithdrawals are made for the Project.

11. The following would be set as conditions of effectiveness of theproposed Loan: (a) appointment by SNGPL of financial advisers, whosequalifications, experience and terms of reference are satisfactory to the Bank,to manage and implement measures for raising the required resources through

equity issues and loans; (b) submission of evidence of concluded loan agreementstotalling Rs 1.5 billion with local institutions; (c) approval of the PC-1document by ECNEC; and (d) submission of evidence that the gm-formaEnvironmental Impact Assessment of the Project has been approved by the PakistanEnvironmental Protection Agency.

Benefits

12. The proposed Project would assist GOP in restructuring SNGPL with aview to increasing its autonomy and ability to mobilize resources from thefinancial capital markets and the general public, as well as expanding theutility's transr.ission and distribution network at least cost. Specific benefitsunder the proposed Project are expected from: (a) increased private sectorinvestment in SNGPL, which would be supportive of GOP's filcal reforms byrestraining the growth of public debt; (b) incremental sales of gas to newconsumers; (c) incremental consumer investment contributions; and (d)substitution of gas for higher value petroleum products which, at the margin,are imported.

Risks

13. The main risks associated with the proposed Project are: (a) inabilityof SNGPL to raise the required financial resources from the capital markets;(b) delays in the implementation of the proposed Project because of itsrelatively large size compared to past investments undertaken by SNGPL; (c) adecline in the productivity of the gas fields to a level lower than forecast;and (d) environmental impact from possible gas leakages. These risks are beingaddressed through the provision of: (a) professional services of a financialadviser and underwriters to assist SNGPL in managing the marketing of equityshares in the domestic capital mwrket; (b) consultancy servicss for theengineering, design and supervision of the construction of the high pressurepipelines and the establishment of a collaborative arrangement with anexperienced foreign private sector utility to assist SNGPL in projectimplementation, as well as train its staff in pipeline operation and maintenanceand establishment of adequate safety measures, including the installation of anew SCADA system to monitor gas flows and detect faults along the system; and(c) technical assistance and consultancy services under ESL II for thedevelopment of the Loti field, and also under Pirkoh III Development Project,financed by the Asian Development Bank, for the development of the Pirkoh field,and assistance to OGDC, under the proposed Domestic Resources DevelopmentProject, for the accelerated development of new gas fields.

Recommendation

14. I am satisfied that the proposed loan would comply with the Articlesof Agreement of the Bank, and recommend that the Executive Direct3rs approve theproposed loan.

Barber B. ConablePresident

AttachmentsWashington, D.C.'July 12, 1990

ScheduleA

ZAKIUTM

Si NORTHERN GAS IPELINES LIB=ED (SNPL)

CORPORATE RESTRUCOTRING AND SYSTEX EXPANSION PROJECT

Estimated Costs and PinancinU Plan

USS MillionEstimated Costs Local Foreign Total

1. Transmission Lines 212.0 45.9 257.92, Purification Plant 5.8 9.0 14.83. Compression (New & Restaging) 8.6 10.7 19.34. Coating Plant 1.7 3.4 5.15. Construction Equipment 12.4 14.0 26.46. Telecommunications 3.5 2.9 6.47. Distribution Development 71.7 12.8 84.58. Technical Assistance & Training Q.$ 2.4 2.9

Base Cost 316.2 101.1 417.3

9. Physical Contingencies - 31.6 10.1 41.710. Price Contingencies 45,4 18.Z 64.1

Total Project Cost 393.2 129.9 523.1

11. IDC 23.4 0023.412. Total Financing Required 416.6 129.9 546.5

(of which taxes and duties 103.9 0 103.9)

USS MillionFinancine Plan jLcal EX&ien TItal

1. IBRD 0.0 130.0 130.02. Equity Issues 93.0 0.0 93.03. Local Loans 121.0 0.0 121.04. Internal Cash Generation

including ConsumerContributions andSecurity Deposits 203.0 0.0 203.0

Total 417.0 130.0 547.0_- _ -

EMA's~~~~~~~~sul Bs =

CORPORATE RESTRUCTURING AND SYSTIM EXPAJSION PROJECT

rOcree .Megthod Mad Disbursements

Procurement Method TotalProject Element !CB LIB DC OthersW Cost

--- US$ Killion -------------Materials and Equipment 114.5 4 8.5 251 378

(114.5) (4) (8.5)

Civil Works - - - 122 122

Engineering & Design - - - 20 20

Training & TechnicalAssistance - - - 3 3

--- _ _ _ {3\ _l3Z

Total f 114.5 4 8.5 313 523W(114.5) (4) (8.5) (3) (130)

A/ Includes reserved procurement, SNGPL's work force and civilworks contracted locally, as vell as Technical Services forwhich Bank guidelines for consultants would apply.

hi Excludes Interest During Construction (IDC) of about US$23 million.sJ' Includes taxes and duties (about US$104 million).

Note: Figures in parenthesis are the respective amountsfinanced by the Bank Loan.

=!Msurants

(1) Materis art8qwisent 127 1001 of the total costof materials andequipasmt

(2) Training, Technical Service andCOsultanoy 3.1 1001

fttinated Disburse XSXAl U

^------- - ---------------- U8S milao .-------------------

_ m EM im ImC E

hnnu&1. 12 33 25 31 21 acumulative 12 4U 70 101 122 -130

Bchedule

MUI NORTEKN GMB PIPl!NK LI[KD (BFOL)

C1PORATE RNSTR=CTURING AND SYSTEz mXPANSIOm PROJ8CT

Timetable of Key Project &.o"Siaabii& LEvnts

(a) Time taken to prepare: Two Years

(b) Prepared by: SNGPL

(c) First Bank mission: 11/15/87

(d) Appraisal mission departure: 05/22/88

(a) Negotiations M': 05/10/90

(f) Planned Date of Effectiveness: 12/12/90

(g) Relevant PCR: -SNGPL IV, Report No. 5685dated 05/31/85

FNagotiations were Jelayed at the request of the new Government elected inNovember 1988 to allow review of project financing plan and privatization.

Schedule D; ~~~~~~~~~~Pageliofr9

STATUS Of SANK GROUP OPERATIONS IN PAKISTAN

A. STATEMEnT OF AM LOANS AND IDA CREDITS (as of March 31. 1990)

(USS million)

Loan/ (Amotnt net of cancelleatin

Credit Fiscal Undis-

Nurser Year Borrower Purpoe Bank IDA bursed

106 loans and credits futly disbursed 1045.3 1485.9

Of which SECALS, SALs and Program Loaos a/

Ln. 2166 1982 Republic of Pakistan Structural Adjustment Loan 60.0

Cr. 1255 1982 Republie of Pakistan Structurat Adjustment Credit 80.0._........ .. .....

Sub-Totat 60.0 80.0

Cr. 7S4 1978 Requbtic of Pakistan Salinity Control & Reclmation - 70.0 35.2

Cr. 877 1979 Republc of Pakistan Salinity Control & Reel. CMar*n) - 60.0 21.0

Cr. 1157 b/ 1981 Repulic of Pakistan Grain Storage 23.4 5.2

Ln. 2247 1983 Repulic of Pakistan Reservoir Maintenance Facilities 10.2 - 2.3

Ln. 2324 1983 Sui North GPL LTD Fifth Suf Northern Gas Pipeline 43.0 0.3

-Cr. 1243 bt 1982 Republic of Pakistan Baluchistan Minor Irrig. & Agr. - 14.0 -8.8

Cr. 1348 bJ 1983 Repbtlic of Pakistan Lahore Urban DevO wmnt 16.0 11.5

Cr. 1374 bI 1963 Republic of Pakistan Karachi Water Suppty 25.0 5.5

Cr. 1375 bI 1983 Republic of Pakiatan Fourth Drainage - 6S.0 63.6

Ln. 2351 M984 Republie of Pakistan Petroteus Exploration 51.5 - 0.1

Ln. 2380 19E4 Republic of Pakistan IndustriaL Investment Credit ti 50.0 - 9,6

Cr. 1439 bI 1984 Republic of Pakistan Indust-ial Investment Credit it 50.0 6.2

Cr. 1461 bI 1984 Republic of Pakistan Integrated Mill Farming Dev. 21.0 14.6

Cr. 14(' 1984 Republic of Pakistan Second Technical Assistance - 7.0 1.0

Cr. 14? - / 1984 Republic of Pakistan Command Water Manageent - 46.5 33.5

Cr. 1499 bI 1984 Republic of Pakifci.n Second Small Industries - S0.0 6.5

Cr. 1532 bI 1985 Republic of Pakistan Left Bank Outfall Drain - Stage 1 - - 150.0 168.3

Cr. 1533 bI 1985 Republic of Pakistan Saluchistan Agricultural Extension 8.3 4.8

Ln. 2499 1M85 Water/Power Auth. Fourth WAPOA Power 100.0 36.4

Cr. 1602 bl 1985 Republic of Pakistan Second Primary Educetion - 52.5 53.6

Cr. 1603 bI 1985 Republic of Pakistan Second on-Farm water Management - 34.5 3.5

* Ln. 2552 1985 Republic of Pakistan Energy Sector Loan 178.0 - 1.4

Ln. 2556 1985 Water/Power Auth. Fifth WAPDA Power 100.0 - 57.3

Ln. 2648 1986 Republic of Pakistan Industrial Investment Credit 148.0 - 24.6

Cr. 1646 b/ 1986 Republic of Pakistan Industrial Investment Credit - 2.0 1.3

Cr. 1652 bI 1986 Republic of Pakistan Karachi Special Development - 70.0 65.0

Cr. 1670 hb 1986 Republic of Pakistan Second Vocational Training - 40.2 43.6

Cr. 1693 1986 Republic of Pakistan SCARP Transition Pilot - 10.0 7.0

Cr. 1699 1986 Republic of Pakistan Agric. Dev. Bank of Pakistan VI - 55.0 3.4

Ln. 2693 1986 Republic of Pakistan Agric. Dev. Bank of Pakistan VI 165.0 - 32.?

Ln. 2698 1986 Water/Power Auth. Kot Addu Coabined Cyclo 90.0 27.5

Ln. 2743 1987 Republic of Pakistan Telecomiunications V 100.0 - S4.8

Cr. 1755 bl 1987 Republic of Pakistan Third Technical Assistance - 7.0 5.3

Cr. 1762 bf 1987 RepubLic of Pakistan 9g. Extensin IV - 42.1 37.5

Cr. 1821 b/ 1987 Republic of Pakistan Third Primary Education - 145.0 135.7

Schedule DPage 2 of 3

STATUS OF SANK GROUP OPERATIONS IN PAKISTANA. STATENENT OF SANK LOANS AND IDA CREDITS (as of March 31 1990)

.................. ..............................................................................

(USS million)LoanW (Amount net of carnellation)Credit fiscal Undis-

Nurber Year Borrower Purpose eank IDA bursed

Ln. 2792 19B7 Water/Power Auth. Power Plant Efficiency 70.0 60.9Ln. 2814 1987 Republic of Pakistan Fourth Highways 152.0 123.7Ln. 2839 1987 Republic of Pakistan Third Smail Industries 54.0 - 48.9Ln. 2842 1967 State Petr./Petroch. Refinery Energy Conservation 21.0 17.8Ln. 2884 1988 Republic of Pakistan Cement Industry Nodernization 96.0 93.9Cr. 18B8 1988 Republic of Pakfstan Second Irrigation Syste Rehab. 79.5 74.1Cr. 1895 19B8 Republic of Pakistan Punjab Urban Development 90.0 78.6Cr. 1936 1988 Republic of Pakistan National Oilseed Development 20.0 17.3Ln. 2m 198B Republie of Pakistan National Oilseed Development 31.4 - 31.4Ln. 2982 1988 Republic of Pakistan Private Sector Energy Devetopment 150.0 - 150.0

• Ln. 2986 1989 Republic of Pakistan Agriculture Sector Adjustment 200.0 102.1Cr. 1982 1989 Republic of Pakistan Industrial Investment Credit III 2.0 1.9Ln. 3019 1989 Republic of Pakistan Industrial Investment Credit III 148.0 142.5Cr. 1987 1989 Republic of Pakistan Karachi Water Suppty - 125.0 120.6

• Ln. 3029 1989 Republic of Pakistan Financial Sector Adjustment 150.0 75.0* Ln. 3107 1989 Republic of Pakistan Energy Sector Ln. II 250.0 - 215.0

Cr. 2003 1989 Republic of Pakistan Flood Restoration - 40.0 27.0

Cr. 2004 1969 Republic of Pak' ten Private Tubeellt 34.4 34.0

Ln. 3147 ci 1990 Water/Power Auth. Power Transmission & Extension 162.0 - 162.0Cr. 2078 ci 1990 Republic of Pakistan Rural Electrification - 37.0 37.6

Ln. 3148 c/ 1990 Republic of Pakistan Rural Electrification 123.0 - 123.0Cr. 2102 cf 1990 Repubtic of Pakistan Sindh Primary Education 112.5 110.1

Totat 3688.4 3090.8 2835.5

of which has been repaid 678.1 105.4

Total now outstanding 3010.3 2985.4

Amount sold 33.5 12.0of which has been repaid 27.8 12.0

Total now held by IBRD/IDA 2976.8 2973.4

Total undisbursed 1592.9 1242.7 2835.5

.,.,,.,.,,,.,,.,,,,-- ........................................ . ...... .... ...... ..... ..................... ....................................

Q/ Approved During or After FY80.

b/ IDA Credits under the 6th and 7th Replenishments are denominated in SDRs. The

principal and non-effective Credits are shown in USS equivalent at the time ofnegotiations. Disbursed amounts are computed at the exchange rate applicableon the transaction dates. Undisbursed amounts are valued at the exchange rateapplicable on the date of this statement.

ci Not yet effective.

* Adjustment lending and policy-based sector lending.

Schedule DPage 3 of 3

STATUS OF ANK GROUP OPERATIONS IN PAKISTANS. STATEMENT OF IFC INVESTMENTS

..................................

(As of March 31, 1990)

Investment Fiscat AmDunt USS MitlionNumber Year Obligator Type of Business Loan Equity Total

140 1958 Steel Corp. of Pakistan Rolled Steel Products 0.63 - 0.6390 1959 Adamjee Industries Ltd. Textiles 0.75 - 0.75440/920 1962/65 Gharibual Cement Cement 5.25 0.42 5.67

Industries Ltd.6550-52 1963/69/ PICIC Developing Finance - 3.63 3.637610-7611 75/89870 1965 Crescent Jute Products Textites 1.84 0.11 1.95910/5070/ 1965/80/ Packages Ltd. Paper Products 26.01 1.01 27.026150-51/ 829280-811230-31 1967/76 Pakistan Paper Corp. Ltd. Paper 5.38 2.02 7.401330 1969 Dawood Hercules Fertilizers 18.30 2.92 21.22

Chemicals Ltd.4570-73/ 1979 MilKpak Ltd. Food & Faod Processing 2.40 0.40 2.8094104720-21/ 1979 Pakistan Oilfields Ltd. Chemicals & Petro- 29.00 2.04 31.046060/6800 and Attock Refinery Ltd. chemicals5060 1980 Fauji Foundation woven Polypropylene Sags 1.78 - 1.78984 1988 Fecto Cement Cement and Construction 18.58 18.58

Materials953/1161 1987/89 Anglo Suisse Chemicals and Petro- 6.80 6.80

chemicats5080 1980 Premier Board Mills Ltd. Particle Board 2.70 - 2.709790 1988 Millat Tractors 4.90 4.905760-61 1981 Habib Arkady Food & Food Processing 3.15 0.16 3.316210 1982 Asbestos Cement 3.50 0.51 4.016550-52/ 1983 Pakistan Petroleum Ltd. Chemical and Petro- 104.50 1.56 106.067610-11 cehmicals1069 1989 Shams Textile Textiles and Fibers 2.76 - 2.767500-7501 1985 National Development Money and Capital Market 5.49 0.37 5.86

Leasing Corp.1070 1989 Suraj Cotton Textiles and Fibers 2.76 - 2.761112 1989 Hala Spinning Plant 3.2? - 3.278220-8223 1986 Marl Gas Chemicals and Petro- 46.53 - 46.53

Chemicals1220 1990 Pakistan Suzuki Motor Vehicles and 15.14 - 15.14

Accessories1204 1990 Rupali Textiles and Fibers 19.56 - 19.56

Totat Gross Commitments 324.18 21.95 346.13Less Canceltations, Terminations, 234.10 12.58 246.68

Repaymnts and sales ...... ------ ------

Total Commitments Now Held by IFC 90.05 9.37 99.45Undisbursed (inctuding participants) 39.70 1.61 41.31

U.S.S5&R. 3? 74 7 -

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