Document of

The World Bank

FOR OFFICAL USE ONLY

c/-g 1q92 -II7/

Repwt No. P-4828-BD

MEMORANDUM AND RECOMMENDATION

OF THE

PRESIDENT OF THE

INTERNATIONAL DEVELOPMENT ASSOCIATION

TO THE

EXECUTIVE DIRECTORS

ON A PROPOSED CREDIT

OF SDR 8.3 MILLION

TO THE PEOPLE'S REPUBLIC OF BANGLADESH

FOR AN

INDUSTRIAL ENERGY EFFICIENCY PROJECT

June 3, 1988

This document has a restricted distribution and may be used by reApients only in the performance oftheir official duties. Its contents may not otherwise be disclosed without World Bank authorization.

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CURRENCY EQUIVALENTS

Currency Unit - Taka (TK) US$1 - TK 31.0

WEIGHTS AND MEASURES

1 barrel (bbl) = 42 US gallons1 ton of oil equivalent (toe) - 10,200 Mcal - 41 million BTU

- 42.7 x 1O6 KJ1 standard cubic feet (scf) ofnatural gas - 1,036 BTU

ABBREVIATIONS AND ACRONYHS

EMU - Energy Monitoring UnitGOB - Government of Bangladeshmscf - thousand standard cubic feetODA - Overseas Development Administration (U.K.)

FISCAL YEARS

Government: July 1 to June 30Agrani Banks January 1 to December 31

FOR OFFICIAL USE ONLY

BANGLADESH

INDUSTRIAL ENERGY EFFICIENCY PROJECT

CREDIT AND PROJECT SUMMARY

Borrowert People's Republic of Bangladesh

Beneficiaries: Enterprises and Agrani Bank

Amount: SDR 8.3 million (US$11.4 million equivalent)

Terms: Standard, with a 40-year maturity

OnlendingTerms: (a) US$11.3 million equivalent to enterprises for up to

10 years including a grace period of up to 3 years.The Government of Bangladesh (GOB) will onlend toenterprises through Agrani Bank. which willadminister the funds on behalf of GOB, for a fee.The initial onlending rate will be 14.52 p.a.

(b) US$0.1 million equivalent to Agrani Bank fortechnical assistance. The GOB will onlend to AgraniBank at cost for up to 10 years including a graceperiod of up to 3 years.

Financina Plan: IDA - US$11.4 millionODA - US$ 0.6 millionEMU - US$ 0.1 millionAgrani Bank - USS 0.1 millionEnterprises - US$ 2.8 million

Total US$15.0 million

Economic Rateof Return: 43Z

Staff AppraisalReport: No. 6778-BD. 25 May, 1988

This document has a restricted 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 DEVELOPMENT ASSOCIATION

TO THE EXECUTIVE DIRECTORSON A PROPOSED CREDIT TO

THE PEOPLE'S REPUBLIC OF BANGLADESHFOR AN INDUSTRIAL ENERGY EFFICIENCY PROJECT

1. The following report on a proposed Credit to Bangladesh forSDR 8.3 million (US$11.4 million equivalent) is submitted for approval. Theproposed Credit would be on standard IDA terms with a maturity of 40 years andwould help finance an industrial energy efficiency project. The OverseasDevelopment Administration (ODA) of the United Kingdom will providecofinancing of US$0.6 million equivalent in grant funds for technicalassistance.

2. Background. While the Government has accelerated development ofBangladesh's abundant natural gas reserves to replace more costly energysources, the country remains highly dependent on oil imports. In FY85, netimports of oil and petroleum products accounted for about 372 of the country'stotal primary commercial energy supply at a cost of about US$ 346 million,equivalent to about 352 of total export earnings. During FY8O-85,Bangladesh's commercial energy consumption increased at 42 p.a. If futureconsumption were to grow at a similar rate, Bangladesh would have to makelarge investments to develop its energy resources or increase imports to meetfuture needs. It is therefore critical that the country save energy byimproving energy use efficiency through conservation measures, in addition tocontinuing the development of natural gas. Under the IDA-financed EnergyEfficiency and Refinery Rehabilitation Project (Credit 1357-BD), the EnergyMonitoring Unit (EMU) was set up under the Ministry of Energy and MineralResources to promote energy conservation. EMU's energy audits of 46enterprises in the industrial and power sub-sectors identified substantialscope for improving energy use efficiency. The eventual energy conservationpotential in these sub-sectors is estimated at about 323,000 tons of oilequivalent (toe) p.a.. This corresponds to about 92 of their total energyconsumption and a savings of about US$18 million p.a. (at crude oil price ofUS$15 per barrel and natural gas price of US$1.2/mscf).

3. The most important measure to induce energy conservation is to setenergy prices at levels that reflect long-term economic opportunity costs.Petroleum product prices in Bangladesh are well above international pricelevels. Natural gas and power prices are gradually being increased to levelsequivalent to their long run marginal costs. However, to complement thepricing policy, a promotional campaign is needed to increase public awarenessof the potential benefits of energy conservation. Local personnel also needto be trained to increase their technical expertise in energy conservationinvestments because these investments are complex and not easily identifiableby non-specialists. They also require intensive studies and in many casesinnovative technology. In the absence of these programs, energy conservationhas received only limited attention in Bangladesh in spite of the significantsavings potential described above. Under the proposed Project, IDA willassist in developing a comprehensive program including promotion, training,and technical and financial assistance necessary for the implementation ofenergy conservation measures and further development of the national energyconservation program.

- 2 -

4. Rationale for IDA Involvement. The proposed Project supports IDA'sstrategy in Bangladesh In the two relevant sectors, industry and energy. Inindustry, it complements the policy to increase industrial competitiveness andpublic sector enterprises efficiency. In energy, it supports the strategy ofimproving energy use efficiency. IDA involvement would support furtherdevelopment of an appropriate instituticnal framework for the energyconservation program as well as implementation of specific energy conservationsubprojects identified under Credit 1357-BD. The Project would also be avehicle for continuing IDA's dialogue with the GOB on the policies andstrategies for its energy rationalization program.

5. Project Objectives. Continuing the efforts initiated underCredit 1357-BD, which supported energy audits and project preparation, theproposed Project will help implement identified energy conservation measuresin economically and financially viable industrial and power plants. Thesemeasures are expected to save about 72 of Bangladesh's annual industrialcommercial energy consumption and generate energy savings of 5-302 forindividual firms. Institutionally the Project would (i) strengthen EMU'stechnical capabilities and support its evolution from a development unit,focussing on formulation of an energy conservation program and the energyaudits, to a service unit for industry, focussing on implementation ofidentified conservation measures: and (ii) build-up the capabilities of AgraniBank, the proposod fiduciary agent for GOB under the Project, to appraise andprocess viable energy conservation investments.

6. Project Description. The Project would: (i) finance about 50 energyconservation subprojects in selected industrial and power plants in the publicand private sectors; and (ii) strengthen EMU and Agrani Bank's appraisalcapability for energy conservation sub-projects, through staff training andtechnical assistance. The energy conservation subprojects would includehousekeeping, quick-fix, combustion control and retrofit measures, aiming atincreasing the energy use efficiency of existing facilities. Cogenerationmeasures involving larger investments and more complex institutionalarrangements will be undertaken on a pilot basis. One such subproject isplanned for three relatively well managed private textile mills. Overall,approximately 302 of the subloans and 342 (mostly for the textile cogenerationsubproject) of the subloan amounts are expected to be extended to private sub-borrowers.

7. The Project, conservatively estimated to be carried out over 6 yearsbased on past IDA experience with similar projects, provides funds forequipment, materials and spares, licensing and engineering, civil works, andtechnical assistance. The total cost is estimated at US$15.0 millionequivalent, with a foreign exchange component of US$9.4 million (63Z). Abreakdown of costs and the financing plan are shown in Schedule A. Schedule Bshows the estimated amounts and methods of procurement and of disbursements aswell as the disbursement schedule. A timetable of key project processingevents and the status of Bank operations in Bangladesh are given in SchedulesC and D, respectively. The Staff Appraisal Report, No 6778-BD, dated 25 May,1988 (SAR), is being distributed separately.

8. The proposed Credit of US$11.4 million equivalent will be made to thePeople's Republic of Bangladesh (GOB) at IDA's standard terms with a maturityof 40 years. GOB will onlend: ti) USS 100,000 equivalent to Agrani Bank for

MEMORANDUM AND RECOMMENDATION OF THE PRESIDENTOF THE IPTERNATIONAL DEVELOPMENT ASSOCIATION

TO THE EXECUTIVE DIRECTORSON A PROPOSED CREDIT TO

THE PEOPLE'S REPUBLIC OF BANGLADESHFOR AN INDUSTRIAL ENERGY EFFICIENCY PROJECT

1. The following report on a proposed Credit to Bangladesh forSDR 8.3 million (US$11.4 million equivalent) is submitted for approval. Theproposed Credit would be on standard IDA terms with a maturity of 40 years andwould help finance an industrial energy efficiency project. The OverseasDevelopment Administration (ODA) of the United Kingdom will providecofinancing of US$0.6 million equivalent in grant funds for technicalassistance.

2. Background. While the Government has accelerated development ofBangladesh's abundant natural gas reserves to replace more costly energysources, the country remains highly dependent on oil imports. In FY85, netimports of oil and petroletum products accounted for about 372 of the country'stotal primary commercial energy supply at a cost of about US$ 346 million,equivalent to about 352 of total export earnings. During FY8O-85,Bangladesh's commercial energy consumption increased at 4Z p.a. If futureconsumption were to grow at a similar rate, Bangladesh would have to makelarge investments to develop its energy resources or increase imports to meetfuture needs. It is therefore critical that the country save energy byimproving energy use efficiency through conservation measures, in addition tocontinuing the development of natural gas. Under the IDA-financed EnergyEfficiency and Refinery Rehabilitation Project (Credit 1357-BD), the EnergyMonitoring Unit (EMU) was set up under the Ministry of Energy and MineralResources to promote energy conservation. EMU's energy audits of 46enterprises in the industrial and power sub-sectors identified substantialscope for improving energy use efficiency. The eventual energy conservationpotential in these sub-sectors is estimated at about 323,000 tons of oilequivalent (toe) p.a.. This corresponds to about 92 of their total energyconsumption and a savings of about US$18 million p.a. (at crude oil price ofUS$15 per barrel and natural gas price of US$1.2/mscf).

3. The most important measure to induce energy conservation is to setenergy prices at levels that reflect long-term economic opportunity costs.Petroleum product prices in Bangladesh are well above international pricelevels. Natural gas and power prices are gradually being increased to levelsequivalent to their long run marginal costs. However, to complement thepricing policy, a promotional campaign is needed to increase public awarenessof the potential benefits of energy conservation. Local personnel also needto be trained to increase their technical expertise in energy conservationinvestments because these investments are complex and not easily identifiableby non-specialists. They also require intensive studies and in many casesinnovative technology. In the absence of these programs, energy conservationhas received only limited attention in Bangladesh in spite of the significantsavings potential described above. Under the proposed Project, IDA willassist in developing a comprehensive program including promotion, training,and technical and financial assistance necessary for the implementation ofenergy conservation measures and further development of the national energyconservation program.

- 2 -

4. Rationale for IDA Involvement. The proposed Project supports IDA'sstrategy in Bangladesh in the two relevant sectors, industry and energy. Inindustry, it complements the policy to increase industrial competitiveness andpublic sector enterprises efficiency. In energy, it supports the strategy ofimproving energy use efficiency. IDA involvement would support furtherdevelopment of an appropriate institutional framework for the energyconservation program as well as implementation of specific energy conservationsubprojects identified under Credit 1357-BD. The Project would also be avehicle for continuing IDA's dialogue with the GOB on the policies andstrategies for its energy rationalization program.

5. Project Objectives. Continuing the efforts initiated underCredit 1357-BD, which supported energy audits and project preparation, theproposed Project will help implement identified energy conservation measuresin economically and financially viable industrial and power plants. Thesemeasures are expected to save about 72 of Bangladesh's annual industrialcommercial energy consumption and generate energy savings of 5-301 forindividual firms. Institutionally the Project would (i) strengthen EMU'stechnical capabilities and support its evolution from a development unit,focussing on formulation of an energy conservation program and the energyaudits, to a service unit for industry, focussing on implementation ofidentified conservation measures; and (ii) build-up the capabilities of AgraniBank, the proposed fiduciary agent for GOB under the Project, to appraise andprocess viable energy conservation investments.

6. Project Description. The Project would: (i) finance about 50 energyconservation subprojects in selected industrial and power plants in the publicand private sectors; and (ii) strengthen EHU and Agrani Bank's appraisalcapability for energy conservation sub-projects, through staff training andtechnical assistance. The energy conservation subprojects would includehousekeeping, quick-fix, combustion control and retrofit measures, aiming atincreasing the energy use efficiency of existing facilities. Cogenerationmeasures involving larger investments and more complex institutionalarrangements will be undertaken on a pilot basis. One such subproject isplanned for three relatively well managed private textile mills. Overall,approximately 302 of the sublvans and 342 (mostly for the textile cogenerationsubproject) of the subloan amounts are expected to be extended to private sub-borrowers.

7. The Project, conservatively estimated to be carried out over 6 yearsbased on past IDA experience with similar projects, provides funds forequipment, materials and spares, licensing and engineering, civil works, andtechnical assistance. The total cost is estimated at US$15.0 millionequivalent, with a foreign exchange component of US$9.4 million (632). Abreakdown of costs and the financing plan are shown in Schedule A. Schedule Bshows the estimated amounts and methods of procurement and of disbursements aswell as the disbursement schedule. A timetable of key project processingevents and the status of Bank operations in Bangiadesh are given in SchedulesC and D, respectively. The Staff Appraisal Report, No 6778-BD, dated 25 May,1988 (SAR), is being distributed separately.

8. The proposed Credit of US$11.4 million equivalent will be made to thePeople's Republic of Bangladesh (GOB) at IDA's standard terms with a maturityof 40 years. GOB will onlend: (i) US$ 100,000 equivalent to Agrani Bank for

the institution strengthening component for 10 yeArs including a 3-year graceperiod at cost, i.e., with a 0.75? service charge: and (ii) US$11.3 milLionequivalent to enterprises for up to 10 years including a grace period of up to3 years for energy conservation subprojects. Maturities for individualsubloans will be established on the basis of expected subproject pay-backperiods -- typically approximately twice the anticipated pay-back period. Onthis basis, most subloans are expected to have maturities of 5-7 yearsincluding the grace period. Energy conservation subloans will be made underan agency agreement with Agrani Bank. which will carry out the financial &ndeconomic evaluations of subprojects based on the EMU's technical reviews,approve them, and administer the funds as the fiduciary agent of GOB, for afee equivalent to about 3.0 p.a. The onlending rate will be 14.52 p.a. whichtakes into account that the Government would assume the risk of foreignexchange fluctuations. This onlending rate is attractive to prospective sub-borrowers, considering that all the subprojects to be financed under theProject would have economic and financial rates of return of at least 182. Anagency arrangement is necessary as an interim measure, until an effectivefinancial sector reform program is evolved and initiated by GOB to improvecredit discipline and strengthen the financial system and while Agrani Bankimproves its collection performance for term loans; this arrangement willtherefore be reviewed within three years, to determine whether sufficientprogress has been made to allow Agrani Bank to act as a financial intermediaryassuming credit risk.

9. Agreed Actions. GOB and Agrani Bank have already signed an agencyagreement with terms and conditions satisfactory to IDA, and EMU's fundingshall be transferred from the Annual Development Program to the revenue budgetas a condition of effectiveness. GOB has approved a Technical AssistanceProject Proforma (project document) and agreed in principle with ODA for grantfinancing of technical assistance to EHU. The appointment by EMU and AgraniBank of consultants with satisfactory qualifications; execution of a financingagreement between GOB and ODA and a subsidiary loan agreement bett7een GOB andAgrani Bank for technical assistance to EMU and Agrani Bank respectively, willbe conditions of Credit effectiveness. GOB has agreed to (i) maintain, asDirector of EMU, a person with qualifications and experience satisfactory toIDA; (ii) ensure regular participation by members in Energy ConservationCoordination Group meetings; (iii) provide Agrani Bank with authority toapprove public sector subprojects below Tk 20 million (US$650,000 equivalent)based on EMU's technical review; (iv) review with IDA by December 31, 1991 theprogress of the financial sector and Agrani Bank's performance under theagency agreement; (v) review annually with IDA the interest rates charged tosub-borrowers; (vi) cause EHU to (a) introduce a gradual cost recoveryprogram; and (b) hire a senior economist by March 31, 1989; and (vii) causeAgrani Bank to (a) carry out appraisal supervision of all subprojects inaccordance with methodology agreed with IDA; (b) furnish to IDA for approvalthe first six subprojects and those exceeding US$100,000; and (c) applyUS$100,000 and US$3.5 million as the minimum and maximum subloan sizes,respectively.

10. Benefits. The Proiect will contribute to improving energy useefficiency in the industrial and power sectors. It will help improvecompetitiveness of Bangladesh industries by reducing energy costs and generateforeign exchange savings by substituting energy imports. When fullyimplemented, the Project is expected to save about US$8.8 million p.a. in 1987

-4-

prices in energy costs to Bangladesh industry and, US$11.1 million over Projectlife in net foreign exchange. Energy conservation investments supported underthe Project are highly attractive, with economic rates of return averaging 43Zand pay-back periods of 2-3 years. The institution strengthening componentwill help to improve EMU's technical capabilities in energy conservationactivities and strengthen its role in the national energy rationalizationprogram. It will also help reinforce, through technical assistance to AgraniBank, the soundness of the investment decision-making process in Bangladesh.

11. Risk. Project risks are related mainly to slow demand, institutionalweaknesses and subloan repayments. The risk of slow demand is, however,mitigated by a large pipeline of identified potential subprojects, smallcredLt size of about 602 of the identified demand and conservatively estimatedsix-year project implementation period. Technical assistance is beingprovided to address the institutional weaknesses. Strict financial andeconomic eligibility criteria would be set to minimize the risk of subloandefaults.

12. Recomcendations. I am satisfied that the proposed Credit wouldcomply with the Articles of Agreement of the Association and recommend thatthe Executive Directors approve the proposed Credit.

Barber V. ConablePresident

Attachments

Washington, D.C.June 3, 1988

Schedule A

BANGLADESH

INDUSTRIAL ENERGY AND EFFICIENCY PROJECT

ESTIMATED COSTS AND FINANCI(. PLAN

Estimated Cost /a

Energy Conservation Investment /a Local Ptzeian Total-------(US$ million)------

Equipment, Haterials & Spares 2.6 lb 7.3 9.9Licensing & Engineering 1.2 0.7 1.9Civil Works & Construction 1.0 - 1.0

Subtotal 4.8 8.0 12.8

Technical Assistance

Training 0.0 0.2 0.2Consultancy 0.1 0.3 0.4Administrative Expenses Ic 0.1 - 0.1

Subtotal 0.2 0.5 0.7

Total Base Cost 5.0 8.5 13.5

Price Contingency (112) 0.6 0.9 1.5

Total Project Costs 5.6 9.4 15.0

Financing Plan Local Foreign Total-- USS million) -----

IDA 2.5 8.9 11.4ODA 0.1 0.5 0.6EffU 0.1 - 0.1Agrani Bank 0.1 - 0.1Enterprises 2.8 - 2.8

5.6 9.4 15.0

(a Estimated on the basis of already identified subprojects./b Includes US$0.6 million equivalent in duties and taxes./c Includes local transport, office equipment, facilities and supplies,

and other general and administrative expenses relating to technicalassistance component.

- 6 - Schedule 3Page i of 2

BANGLADESH

INDUSTRIAL ENERGY FF?!rIENCY PROJECT

PROCUREMENT IMTHOD AND DISBURSEMENTS

Procurement Method ProjectProiect Element ICB LIB la Other Cost

------------…(USS million)---------

Energy Conservation InvestmentsEquipment & materials 5.11/b 4.3 1.6 11.0 Ic

(5.1) (3.8) (1.4) (10.3)

Engineering & licenses - - 2.1 2.1_ - (1.0) (1.0)

Civil works, construction - - 1.0 1.0& commissioning

5.1 4.3 4.7 14.1Sub-total (5.1) (3.8) (2.4) (11.3)

Technical Assistance

Training & consultancy - - 0.7 0.7_ _ (0.1) (0.1)

Administrative expenses - - 0.2 0.2

5.1 4.3 5.6 15.0Total (5.1) (3.8) (2.5) (11.4)

Note: Figures in parentheses are the amounts to be financed from IDA Credit.

/a Limited international bidding.

Lb Includes erection and commissioning costs associated with equipmentpackages, totally about US$0.4 million.

Ic Includes duties and taxes of US$0.6 million (not financed bf IDA) andinternational freight, and insurance of US$0.9 million (financed by IDA).

Schedule BPage 2 of 2

7-

CategoryAmount 2

(US$ million)A. Institution Strenathening Component

(a) Consulting Services 0.5 lOOZ(b) Training 0.2 1002

Subtotal 0.7

B. Energy Conservation Investment Component(a) Equipment, materials & spares 10.3 1002 of foreign

exchange costfor directimports, 1002of ex-factoryprice oflocallymanufactureditems, and 65Zof totalexpendituresfor itemsimported butprocuredlocally.

(b) Licensing & engineering 1.0 1002

Subtotal 12.0

Total Credit 11.4

Estimated IDA Disbursements

IDA Fiscal Year(US$ million)

1989 1990 1991 1992 1993 1994 1995

Annual 0.5 1.9 3.4 3.2 1.7 Q.5 0.2Cumulative 0.5 2.4 5.8 9.0 10.7 11.2 11.4

Schedule C

BANGLADESH

INDUSTRIAL ENERGY EFFICIENCY PROJECT

TIMETABLE OF KEY PROJECT PROCESSING EVENTS

(a) Time taken to prepare. One and a half years (January1986-July 1987)

(b) Prepared bys Government with IDA assistance

(c) First IDA mission: December 1985

(d) Appraisal mission departure: February 23, 1987

(e) Negotiationst May 16-18, 1988

(f) Planned date of effectivenesst September 30, 1988

(g) List of relevant PCRs and PPARs: None

- 9 - Schedule 0page Ie

BANGIUDESi1

INDUSTRIAL ENERGY EFFICIENCY PROJECT

THE STATUS OF BANK CROUP OPERATIONS IN BANGLADESH Ia

A. Statement of Bank Loons and IDA Credits (as of Snbh 81, 1988)

AmountsLoon or (less Cencel lstlons)Credit US9 Million /bNumber Year Borrower Purposeo Dank IDA Undiebured

One Loan end 07 Credits fully disbured 54.90 1,9a6.00 -

912 1979 90 Vocstional Training - 26.00 9.41956 1979 B0 Small-Scale Drainag A Flood Control - 25.00 1.121001 1980 80 Chittagong Water Supply II - 20.00 0.981054 1980 80 Education IV (Primary Eduetlon) - 40.00 10.821140 1981 BO Hand Tubewlls - 14.96 2.171184 1982 B0 Orainaos A Flood Control II - 27.00 10.611216 1982 B0 Exte nson & Research II - 27.00 16.791247 1982 80 Chittagong Port - 60.00 64.481254 1982 SD Ashunganj Therml Power - 92.00 18.061262 1982 80 Rural Electrification - 40.00 10.871287 1982 D0 Deep Tubewells II - 44.17 27.74isl8 1983 B0 Business Management Education A Training - 7.80 4.141321 1983 SD Telecommunications III - 85.00 24.461349 1983 B0 Public Administration (Training *nd

Personnel Management) - 12.00 8.101857 1983 80 Energy Efficiency and Refinery

Rehabilitation - 28.50 20.171384 1983 BD Rural Development II - 78.45 71.081898 1983 90 Agricultural Training II - 8.10 6.091899 1988 B0 Sugar Rehabilitation and Intensification - 11.84 6.801402 1988 B0 Petroleum Exploration Promotion - 28.00 10.291440 1984 BD Fifth Technical Assistence - 25.00 28.781466 1984 SD Second Agricultural Reseorch - 24.50 27.621467 1984 80 Water Development Board - 41.50 46.691477 1984 90 Textile Industry Rehabilitation It - 23.00 27.57F022 1984 50 TextIlo Industry Rehabilitation It - 22.00 28.721490 1984 B0 Technicel Eduestion - 80.00 28.871574 1985 80 Second Primary Eduetion - 78.00 77.611988 1986 8D Second Gas Development - 110.00 147.681687 1986 80 Flood Rehabilkation - 80.00 8.201691 1986 B0 Third Flood Control a Drainage - 48.00 61.041683 1986 80 Rural Electrification II - 79.00 95.471684 1986 90 Second Forestry Project - 28.00 29.871648 1998 SD Power Trans A Distribution - 66.00 67.961649 1986 80 Population & Family Health III - 78.00 95.861661 1986 B0 Shrimp Culture - 22.00 25.591655 1988 SD Imports Program XIII - 200.00 19.001784 1986 90 Dhhaka ASA III - 80.00 88.441749 1987 80 Refi iery Modification & LPO

Recovery & Distribtion - 47.00 49.581784 1987 B0 Fourth Flood Control A Drainage - 20.00 28.081816 1987 SD Industrial Sector - 190.00 101.621827 1987 90 Road Rehabilitation A Maintenance - 102.00 101.461870 L 1988 80 2nd Small Scalo Flood Control - 81.60 85.601876 1988 B0 knd Flood Rehabilitation - 26.00 26.26

Total 54.90 8,952.82 1,647.27__F-WHICH HAS BEEN REPAID 5.50 25.68 -

TOTAL NOW OUTSTANDING 4V:U r;ui 7 -AMOUNT SOLD-

TOTAL NOW HELD BY DANK AND IDA 49.40 A 926. 74TOTAL UNDISBURSED U647. 27

/ IDA sixth and seventh replenishments credits denominated In SORe.The prineipal amounts are shown in U.S. dollars equivalent at neotiations as shown in thePreosident's Reports. The undisbursed aounts are calculated at the rate of exchange onMarch 81, 1988.

b Not yet *ffective.

Schedule D

- 10 -

E. Statement of pC nveetmgnto (as of Marc@h Lt. 26)

USM million

Flscal Type of Totsl Particilpants VadisursedYear Obligor euwlue Equlty LoUn TotaL by IPC Portlon tFC Portions

lo9 Kornophuil Popor Mille Ltd. Pulp a Paper O." S6.0 C.28(This Loea was cancel led in 1069/70)

19?9 H egh sp ShipbiulIdI4 AHeavy Eaginerfna Co., Ltd Shipbuilding 0.0 1.20 1.56 0.01

It101trlo Promotion andOe'velogmnt Company OfBangladesh, Ltd. 0PC 1.05 - 1.05 1.06

1060 Industrial Ooeelopeet Mo4ey &Leacing Co., of Sangladeeh Capital(IOLC) Market 0.17 2.02 2.79 2.70 2.44 2.44

106/66 gat Shoe Co.(Bangladesh) Ltd Shoe 0.61 6S.0 0 01 4.C0

Total 2.72 11.07 10.59 6.45 4.64 8.560