A-I 115s-- / - /~/V/

'OfThe World Bank

FOR OrFrCIAL USE ONLY

MICROFICHE COPY

Report No. P- 5795-IND Type: (PM) RepSNo.P-5795-INDTHAKOR, V.! X82510 / A10085/ EA3IN

MEMORANDUM 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$423.6 MILLION

TO THE REPUBLIC OF INDONESIA

FOR THE

SURALAYA THERMAL POWER PROJECT

JUNE 3, 1992

This document has a restrictd distnbutio and may be used by reipiets only in te perormance ofthdk officia duties Its coantets may not othenwie be didosed without Wodd Bank authorization.

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CURRENCY EOUIVALENTS(January 1992)

Currency Unit = Indonesian Rupiah (Rp)

USS 1 = Rp 1,992Rp 1 b:llion USs 0.502 million

WEIGHTS AND MEASURES

1 kilovolt (kV) = 1,000 volts (V)1 Megavolt-ampere (MVA) - 1,000 kilovolt-amperes (kVA)

1 Megawatt (MW) = 1,000 kilowatts (kW)

1 Gigawatt hour (GWh) = 1 million kilowatt hours (kWh)1 Terrawatt hour (TWh) = 1 billion kilowatt hours (kWh)

FISCAL YEAR

April 1 - March 31

ABBREVIATIONS AND ACRONYMS

GOI - Government of IndonesiaZIA - Environmental Impact AssessmentIERR - Internal Economic Rate of ReturnPLN - State Electricity Corporation

FOR OMCAL USE ONLY

INDONESIA

SURALAYA THERMAL POWER PROJECT

Loan and Proiect Summary

Borrower 5 Republic of Indonesia

Beneficiary s State Electricity Corporation (PLN)

Amount : $423.6 million equivalent

Terms : Repayable in 20 years, including five years of grace,at the Bank's standard variable interest rate.

Onlendino Terms I The proceeds of the loan would be onlent from theGovernment of Indonesia (GOI) to PLN for 20 yearsincluding a grace period of five years; the onlendingrate would be equal to the Bank's standard variableinterest rate plus a variable fee equal to theaverage of the annual rate of change in the value ofRupiah during the previous three year period withrespect to the U.S. dollar, plus one percent. TheGovernment would bear the foreign exchange risk.

Financing Plan :Local Foreian Total…------- (USS million) …-------

IBRD - Earlier Loan /_ - 10.0 10.0- Proposed Loan - 423.6 423.6

ADB - 350.0 350.0Export Credits - 693.4 693.4Other cofinancing (Germany) - 69.7 69.7PLN/GOI 384.2 429.6 813.8

Total 384.2 1,976.3 2,360.5

Economic Rate s 20% on PLN's investment program in Java forof Return 1991/92-1997/98, of which the proposed Suralaya

Thermal Power Project is a part.

Staff AppraisalReport : No. 10550-IND

Maps * IBRD 23612IBRD 23610

/a Funds provided under Bank loan (3349-IND), for design, engineering andspecification for the Suralaya Project.

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 BANK FOR RECONSTRUCTION AND DEVELOPMENT

TO THE EXECUTIVE DIRECTORS ON APROPOSED L(,AN TO THE REPUBLIC OF INDONESIA FOR

THE SURALEYA THERMAL POWER PRO_JECT

1. The following memorandum and recommendation on a proposed loan to theRepublic of Indonesia for $423.6 million is submitted for approval. The proposedBank loan would be for 20 years, including five years of grace, at the Bank'sstandard variable interest rate and would help finance the Suralaya Thermal PowerProject. The proceeds of the loan would be onlent to the State ElectricityCorporation (PLN) for 20 years including a grace period of five years; theonlending rate would be equal to the Bank's standard variable rate on the loan,plus a variable fee equal to the average of the annual rate of change in thevalue of Rupiah during the previous three years with respect to the U.S. dollar,plus one percent. The Government will bear the foreign exchange risk. Theproject will be cofinanced by the Asian Development Bank ($350 million), Germany(about $70 million) and export credits (about $693 million).

Backcround

2. Indonesia is richly endowed with energy resources including oil, gas, coal,hydropower and geothermal energy. To maintain the level of its export earnings,a major objective of the Government's energy policy has been to diversifydomestic energy consumption away from heavy reliance on petroleum productstowards alternative and more econom.ical fuels for which there is a nonexportablesurplus (gas and coal) or which are nontradeable (hydropower and geothermal).The power subsector is playing an important role in this respect. It offers asizeable market for alternative fuels, and allows their development to takeadvantage of economies of scale in production and transportation infrastructure.

3. Indonesia's electric power subsector comprises: (i) PLN, the StateElectricity Corporation, with 9,100 MW of installed capacity, (ii) captive plantsinstalled by private parties for their own use, with about 6,800 MW of capacity,(iii) a small number of rural electric cooperatives, and (iv) a large number ofinformal microenterprises providing electricity to clusters of customers in ruralvillages not served by PLN. PLN's supply facilities have grown rt 'idly duringthe past decade. Its installed capacity increased by 255 percent, to 9.1 GW; itssales grew by 320 percent, to 27.7 TWh; the number of consumers grew 317 percent,to 11.5 million. Despite this rapid growth, the per capita electricityconsumption in Indonesia in 1990/91 was only about 250 kWh, compared to 450-550kWh per capita in the Philippines and Thailand, and about 300-350 kWh in Indiaand Pakistan which have lower per capita income than Indonesia. Only about 30percent of all households in Indonesia are electrified. PLN's current targetsfor 1999/2000 are to increase installed capacity to about 24.0 GW, and the shareof electrified households to 56 percent.

Sector Issues and Stratecw

4. The objectives that the Government has set for the power subsector are toimprove the welfare of the population and to support the growth of economicactivity by meeting electricity requirements in an efficient and reliable manner.The sector is also being used as a primary means to substitute oil consumption inthe domestic market by alternative, more economical fuels, such as natural gas,

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coal, hydro power and geothermal. The stratec,_ in the power subsector is beingfocussed on strengthening the technical, commercial and financial capability ofPLN to ~jonstruct, operate and maintain efficiently the growing electricitynetwork. The priority issues being addressed in the power subsector include(i) development of a stable long-term financial framework for meeting PLN'sinvestment requirements, and improvement in PLN's internal cash generationcapacity; (ii) promotion of efficiency by increasing the financial and managerialautonomy and accountability of PLN, and decentralization of authority within theorganization; and (iii) promotion of private sector participation in thedevelopment of the power subsector to achieve competition and additionality.These issues are being addressed through policy dialogue and lending operations.

Experience With Past Operations in the Sector

5. Since 1969, the Bank has financed a series of power projects to help PLNexpand its generation, transmission and distribution facilities in a least-costmanner by, inter alia, diversifying its sources of fuel and taking advantage ofgeothermal and 1.1droelectric resources. These projects, and the technicalassistance that was provided concomitantly, have also enhanced PLN'sinstitutional capabilities in many areas of utilities operation and management,including project implementation. The Bank's support has also focussed ondeveloping PLN into a modern and efficient utility by: (a) strengthening PLN'sfinancial performance; (b) strengthening technical and corporate planning;(c) improving operating efficiency; and (d) developing human resources. ProjectPerformance Audit Reports (PPARs) and Prcject Completion Reports have been issuedfor the first eleven power projects in Indonesia. The lessons drawn from theseare consistent with international experience reviewed in OED's report of 1990,entitled "Evaluation Results for 1988: Issues in World Bank Lending Over TwoDecades", that evaluated the outcome of 180 Bank-financed projects from 1974 to1988. The OED report recognized the impo:tance of adequate electricity tariffsfor good financial performance and highlighted the following as other majorfactors contributing to satisfactory performance: (a) continuing efforts forstrengthening institutional capacity; (b) taking steps for timely projectimplementation, including procurement and land acquisition; and (c) providinggreater financial and operational autonomy for the utility. These lessons havebeen taken into account in the design of the proposed project.

Rationale for Bank Involvement

6. The rationale for Bank involvement with the proposed project arises notonly from the financing requirements of Indonesia's large power program to meetits development objectives but also from the need to continue developing PLN intoa modern, commercially oriented utility. The Bank has been financing a largeproportion of PLN's facilities and assisting in building up PLN's institutionalcapabilities. The proposed project would continue implementation of thisstrategy by ensuring that adequate generating capacity is available to meetincreases in electricity demand. The project would also provide a vehicle forinitiating changes in PLN's institutional structure to promote greaterefficiency, furthering the dialogue on the strategy for financing the powersector investment program and making progress towards establishing a mechanismfor formula-based periodic adjustment of electricity tariffs.

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Proiect Obiectives and Description

7. The objectives of the project are to: (a) expand PLN's generating capacityin Java; (b) promote economic use of coal for electricity generation; (c) developPLN's institutional capacity to operate and maintain thermal power plants; and(d) strengthen PLN's financial position. To achieve these objectives, theproposed project will improve PLN's institutional capability by greaterdecentralization and delegation, eliminate subsidy in the Bank funds onlent byGOI to PLN, and enhance dialogue on the appropriate size of the investmentprogram in the sector, related financing strategy and a mechanism for periodic,formula-based adjustment of electricity price. The project includes: (a) theconstruction of three coal-fired units (Nos. 5, 6 and 7) of 600 NW each atSuralaya, including associated works and a 500 kV transmission line from Cilegonto Cibinong, with associated substations; (b) consulting services forengineering, design and construction supervision of the proposed units; (c)feasibility study for a high voltage submarine cable link between Java andSumatra; (d) engineering and design of a thermal power plant at Banjarmasin inSouth Kalimantan; (e) consulting services for PLN's institutional development;and (f) training of PLN's staff in public utility practices. The proposed Bankloan would help finance procurement of goods and works, consulting services andtraining costs. Schedule B provides the details of the items proposed to befinanced by the Bank and the cofinanciers. The total financing requirement forthe project is estimated at $2,360.5 million equivalent, with a foreign costcomponent of $1,976.3 million (83.7%), including interest during construction. Abreakdown of cost and the financing plan are shown in Schedule A. Amounts andmethods of procurement, allocation of the loan proceeds and the disbursementschedule are shown in Schedule B. A timetable of key project processing eventsand the status of Bank Group operations in Indonesia are given in Schedules C andD respectively. Relevant maps are also attached. The Staff Appraisal Report No.10550-IND dated June 3, 1992 is being distributed separately.

Environmental Aspects

8. The project will be designed, constructed, and operated to ensurecompliance with the applicable environmental regulations and guidelines of theBank as well as of the Government of Indonesia. Detailed Environment ImpactAssessment studies have been carried out with respect to air pollution, waterpollution and factors affecting other ecological aspects. The main environmentalimpacts of the project are: (a) emission of sulphur dioxide, oxides of nitrogenand dust into the atmosphere, as products of combustion of coal in the steam-generators; (b) pollution due to discharge of warmer cooling water into the sea,discharge of liquid effluents from the chemical processes in the plant, andrunoff water from the ash disposal and coal storage areas; and (c) use of landfor laydown area and for the construction of the transmission lines. The airquality standards will be maintained by using low sulphur coal (0.5% or less),having electrostatic precipitators remove 99.5% of the particulates from the fluegas and wide dispersal of emissions with stack heights of 275 meters. No fluegas desulphurization is found necessary. Air quality monitoring stations will beestablished at selected locations to confirm compliance with the regulations,during the plant operation. The thermal pollution will be minimized by ensuringthat the temperature rise in the mass of sea water closest to the plant does notexceed 2° C. All liquid effluents from the plant, the coal yard and the ashdisposal area will be treated and neutralized in a waste water treatment plant,prior to discharging them to the sea. Acquisition of about 15 ha. ofagricultural land, adjacent to the plant, will be required for use as a laydown

area for construction equipment and materials. the land is owned by about 60families of whom six reside on the land. For tle transmission line, only theland required for locating the towers will be acquired. Compensation andrehabilitation of the affected families will be carried out in accordance withplans to be approved by the Bank. An Environmental Assessment Summary for theproject was circulated to the Board on June 5, 1991 (Sec.M 91-708). Appropriateconsultations with local communities have been carried out.

Sustainabilitv

9. The projecz. is designed to meet the expected electricity demand in a leastcost manner and operate for over twenty five years. The revenue from the sale ofelectricity would be adequate to meet all the financial costs for operation,maintenance and debt service, and also generate profits. PLN has adequatelytrained staff and competent management to operate the proposed facilitiesefficiently.

Ptooram Obiectives

10. The project will create necessary infrastructure to sustain the economicdevelopment and welfare of the people. It is designed to be environmentallysafe.

Actions Aqreed

11. The followinq agreements were reached during the negotiations of theproposed loan.

(a) With GO! (i) Cofinancing for the transmisfion component to be effective byDecember 31, 1993; (ii) export credits for the steam generators and associatedequipment to be effective by September 30, 1993j (iii) submission of proposals bySeptember 30, 1993 'or periodic formula-based ti:iff adjustment; (iv) take allsuch actions as shall be necessary to enoure th!t the transfer of profits fromPLN to DPS (Overall Development Fund) shall not prevent PLN from implementing theagreed investment program.

(b) With PLN (1) Adopt and implement measures that will enhance PLNksinstitutional efficiency; (ii) procure coal for Suralaya units 5, 6 and 7 usingprocurement procedures satisfactory to the Bank; (iii) operate Suralaya ThermalPower Plant to comply with environmental guidelines satisfactory to the Bank;(iv) establish air quality monitoring stations at selected locations;(v) improve coal receiving, ash disposal and dust control facilities at Suralaya;(vi) award contracts for goods, works and consultant services in accordance withan agreed schedule; (vii) compensate and rehabilitate the families affected byland acquisition, in a manner satisfactory to the Bank; and (viii) appoint asenior manager to coordinate project implement-ation.

12. The following agreements, in substance the same as those under the ongoingPower Transmission Project (Loan 3349-IND), were also agreed under the proposedproject: (i) annual review of PLN's investment program; (ii) audited accountsand reports; (iii) revenue requirements; (iv) debt limitation; (v) long runmarginal cost and tariff review; (vi) financing planning; and (vii) assetrevaluation.

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13. The project was approved for implenentatio!i by the Central Commission forEnvironment, Ministry of Mines and Energy, GOI on December 9, 1991. Subsequentsupplementary air quality studies have resulted in the change of stack heightsfrom 250 meters to 27s meters, and reduction in the maximum sulphur content ofcoal from 0.7% to 0.5%. These changes have also been approved by the CentralCommission for Environment. Submission of a document indicating ouch reapprovalwill be a condition of effectiveness of the proposed loan. In addition,execution of a subsidiary loan agreement between GOI and PLN satisfactory to theBank and effectiveness of the proposed ADS loan for the project will beconditions of effectiveness of the proposed loan.

Benefits

14. The project would help PLN supply electricity And meet increases inelectricity demand. The project would also help strengthen PLN's financialposition by supporting the development of a mechanism for the periodic adjustmentof electricity tariffs, and improve its institutional capL.ilities. The intorna'.economic rate of return (lERR) for PLN's 'nvestment program in Java for 1991/92-1997/98, which includes the proposed project, is 20 percent; it would be 11percent, if the consumer surplus was excluded from the benefits.

Risks

1S. The main risk relates to possible delays in implementing the large project,due to slow procurement actions and ineffective coordination of differentimplementation activities. PLN has agreed to ensure effective coordination ofimplementation activities through its central Directorate of Construct'-on and bythe appointment of a senior manager as project coordinator.

Recommendation

16. I am satisfied that the proposed loan would comply with the Articles ofAgreement of the Bank and recommend that the Executive Directors approve theproposed loan.

Lewis T. PrestonPresident

Attachments

Washington, D.C.June 3, 1992

SCHEDULE A

INDONESIA

SURALAYA THERMAL POWER PROJECT

Estimated Costs and Financing Plan

Estimated CoststLocal Foreign Total

- (USs million) -----Turbine generators and ancillaries 30.9 222.5 253.4,steam generators and ancillaries 96.4 531.1 627.5Piling and circulating water channels 28.9 24.0 52.9Marine works 13.9 15.8 29.7Main civil works 39.6 59.4 99.0Stacks 7.2 22.3 29.5Steelwork and cladding 6.5 30.3 36.8Ash and dust handling plant 3.3 22.5 25.8Coal handling plant 11.7 59.2 70.9Mechanical and electrical works 25.7 177.3 203.0Substation and transformers 5.1 43.9 49.0500 kV transmission system 11.9 63.1 75.0owner administration and supervision 6.8 - 6.8Housing colony 9.4 - 9.4Technical assistance(a) Engineering and construction management 11.0 38.4 49.4(b) Others 3.3 8.7 12.0

Total Base Cost 311.6 1,318.5 1.630.:

Physical Contingency 22.9 84.3 107.2Price Contingency 49.7 237.5 287.2

Total Proiect Cost /a 384.2 1,640.3 2.024.5

Interest during construction - 336.0 336.0

Total Financing Reauired 384.2 1,976.3 2,360.5

Financina Plans

IBRD (a) Earlier Loan /b 10.0 10.0(b) Proposed Loan 423.6 423.6

ADS 350.0 350.0Export Credits 693.4 693.4Other Cofinancing (Germany) - 69.7 69.7PLN/GOI 384.2 429.6 813.8

TOTAL 384.2 1,976.3 2,360.5

Ja The local costs are inclusive of taxes and duties estimated to beabout US$183.5 million.

/b Funds provided under the Power Transmission Project (Loan 3349-IND), for thefirst phase of design, and engineering and specification for the Suralayaproject.

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SCHEULE BPage 1. of 2

RWEIA

S1 YA MMAL POWER PRT

Procurtent Metod ta -

Project Elemnt iB LCB Other N.F. lb Tol Cost(US$ millin)

1. work1.1 markn works 5.4 - - - 35.4

(18.8) /a - - - (18.8)1.2 Main Civll Works - - - 12 125.0

(AB)1.3 Stack 35.5 - - - 35.5

(26.9) - - - (26.9)1.4 Housfin Colony - - - 11.9 11.9

2. Goods2.1 Equpnt & Machiney hC

- Stem Gnrators & Anillarls - - 775.7 775.7ort Credit)

- Turb. Gensrtors & Anciliarles - - - 313.3 313.3(MB)

- Coal & Ash Handling - - - 121.7 121.7-qort Credit)

- 5WKI Tramisslon - - 90.4 90.4(Gemny)

- Mch. & Eec. WOs 281.3 - - - 281.3(228.2) - _ - (228.2)

- Sbstation 8 Transform 59.1 - - - 59.1(52.9) - - - (52.9)

2.2 COastctian Materials- Steewrk & Claddfr 45.2 - - - 45.2

(37.2) - _ - (37.2)-plln & cl ame 8 - 4.1 84.1

3. Technical Asist3.1 ineerg I and CorWt. - - 82. - 82.3

it e~3td - - (57.0) - (57.0)3.2 Otrs - - 15.0 - 15.O

- - (12.6) - (12.6)4. MisoellWou

4.1 Adsinlstratln - - - 88 8

Total 438.5 - 7.3 1,510.7 2,024.5(3E4.0) - (69.8) - (433.8)

/a Contingencies are iniked in the fi s. Figres in parenhses; ar the reet amouit to befinaced by the prqxosed Bwk loan.

/b NBf. ^ Not Ba*k Financed. inoiLdes AB, EWort QWdit, Bilateral cofienoin m PU/Wi -fkird pmt.

/e Eqpnt and inery inblkds servies./ ri ngr and Constrution nagmt hicles $10 million ftded frm the Per Trasmision

Om 13^ n tOJ#nI

SCHEDULE BPage 2 of 2

Diabursements

Amount PercentCategorv ($ million) Financed

(1) Marine Works 18.8 100 % of foreignexpenditure and S0%of local expenditures.

(2) Stacks (boiler 26.9 100% of foreignchimneys) expenditures and 60%

of local expenditures.

(3) Goods 272.6 100% of foreignexpenditures, 100% oflocal expenditures (ex-factory cost), 65% oflocal expenditures forother items procuredlocally.

(4) Consulting Services for 47.0 100%Suralaya Units 5, 6 and 7

(5) Other Consulting Services 12.6 100land training

(6) Unallocated 45.7

Total 423.6

Estimated Bank Disbursements (S million)

Bank FY 1993 1994 1995 1996 1997 1998 1999 2000

Annual 10.0 26.0 S7.0 86.0 131.0 96.0 15.0 2.6Cumulative 10.0 36.0 93.0 179.0 310.0 406.0 421.0 423.6

-9- SCHEDULE C

INDONESIA

SURALAYA THERMAL POWER PROJECT

Timetable of Kev Proiect Processing Events

(a) Time taken to prepare the project sl8 months

(b) Prepared by *PLN, with Bank assistance

(c) First Bank Mission :October 1990

(d) Appraisal Mission Departure sJune 1991

(e) Negotiations :May 1992(f) Planned Date of Effectiveness :October 1992

(g) List of Relevant PCRs and PPARs s

Credit/Loan No. Proiect PCR Date PPAR/PCR No.

Credit 165 Jakarta Power Distribution November 1979 2741

Credit 334 Jakarta Power Distrib. I1 November 1979 2741Credit 399 Thermal Power May 1984 5104

Loan 1127 Fourth Power May 1984 5104Loan 1259 Fifth Power October 1984 5300

Loan 1365 8'cth Power June 1986 6238

Loan 1513 Seventh Power April 1987 6762

Loan 1708 Eighth Power June 1989 7902

Loan 1872 Ninth Power June 1989 7902

Loan 1950 Tenth Power June 1989 7902

Loan 1950-1 Tenth Power Supplemental June 1989 7902

Loan 2056 Eleventh Power June 1990 8701

Loan 2214 Twelfth Power UnderFinalization

Loan 2300 Thirteenth Power Ditto,Loan 2443 Fourteenth Power Ditto

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Schgwdule DPage 1 of 4

STATUS OF BANK GROUP OPERATIONS IN INDONESIA

A. STATEMENT OF BANK LOANS AND IDA CREDITS /a(as of March 31, 1992)

Amount fUSS million)Loan/ Bank IDACredit Fiscal Original Principal Undis-number Year Purpose (less cancellation) bursed

Ninety-five Loans and forty-eight credits 7,935.18 901.60fully disbursed

of which 8ECALS, SAL8 and Program Loans /b

2780 1987 Trade Policy Adjustment 300.002937 1988 Second Trade Policy Adjustment 300.003080 1989 Private Sector Development 350.003267 1991 Second Private Sector Development 250.00

Subtotals 1,200.00

2232 1983 Nucleus Estate and Smallholders VII 96.00 16.932341 1984 Third Agricultural Training 63.30 1.062344 1984 Nucleus Estate and Smallholder Sugar 70.30 3.482431 1984 Second Swamp Reclamation 65.00 11.082443 1984 Fourteenth Power 210.00 4.892474 1985 Upland Agriculture and Conservation 11.30 5.082494 1985 Smallholder Rubber Development II 74.00 18.202529 1985 Fourth Population 35.13 2.882542 1985 Second Health (Manpower Development) 38.30 8.922543 1985 Kedung Ombo Multipurpose Dam 156.00 14.95

and Irrigation2547 1985 Second University Development 147.00 26.382560 1985 West Tarum Canal Development 4'.40 1.812577 1985 National Ports Development 82.69 16.312578 1985 Transmigration V 97.00 5.292599 1986 Science and Technology Training 93.00 0.112628 1986 Smallholder Cattle Development 32.00 7.032632 1986 Second East Java Water Supply 43.30 3.062636 1986 Second Nutrition & Community Health 33.17 2.222638 1986 Nusa Tenggara Agariculture Support 33.00 13.982649 1986 Central and Weet Java Irrigation 166.00 24.532690 1986 Gas Distribution 34.00 12.19

La The status of the projects listed in Part A is described in a separate report onall Bank/IDA-financed projects in execution, which is updated twice yearly andcirculated to the Executive Directors on April 30 and October 31.

Lk Approved during or after FY80.

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Amount fUSs million)Loan/ Bank IDACredit Fiscal Original Principal Undis-

number Year Purnose fless cancellation) burned

2702 1986 Export Development 64.50 2.302705 1986 Manpower Development and Training 58.10 8.202725 1986 Housing Sector Loan 200.00 3.65

2748 1987 Third National Agricultural Extension 55.00 11.902773 1987 Fisheries Support Services 24.50 14.792778 1987 Power Transmission a Distribution 226.00 24.822800 1987 BRI/KUPEDES Small Credit 101.50 0.88

2817 1987 Regional Cities Urban Transport 51.00 2.182879 1988 Industrial Energy Conservation 21.00 7.27

2881 1988 Second Rural Roads Development 190.00 36.892891 1988 Railway Technical Assistance 28.00 10.512930 1988 Forestry Institutions & Conservation 30.00 16.122932 1988 Jabotabek Urban Development 150.00 80.88

2940 1988 Accountancy Development 113.00 71.072944 1988 Higher Education Development 140.30 18.96

2979 1988 Second Export Development 165.00 21.292992 1989 Tree Crop Human Resource Development 18.40 9.943000 1989 Tree Crop Processing 118.20 89.46

3031 1989 Agriculture Research Management 35.30 23.643040 1989 Industrial Restructuring 284.00 91.973041 1989 Small & Medium Industrial Enterprise 100.00 18.17

3042 1989 Third Health 43.50 29.99

3097 1989 Power Sector Efficiency 337.00 286.713098 1989 Paiton Thermal Power 354.00 279.403112 1990 Public Works Institutional 36.10 19.63

Development & Training3133 1990 Highway Sector 350.00 175.763134 1990 Professional Buman Resource Development 117.S0 87.803158 1990 Second Secondary Bducation 154.20 129.90

3180 1990 Rural Blectrification 329.00 282.853182 1990 Third Telecommunications 350.00 293.723209 1990 Gas Utilization 86.00 78.43

3219 1990 Second Jabotabek Urban Development 190.00 178.633243 1990 second Forestry Institution 20.00 19.00

and Conservation3246 1991 Third Jabotabek Urban Development 61.00 57.063249 1991 Second BRI/KUPEDES Small Credit 125.00 91.67

3282 1991 Fertilizer Restructuring 221.70 137.803298 1991 Fith Population 104.00 97.26

3302 1991 Provincial Irrigated Agriculture 125.00 116.1SDevelopment

3304 1991 East Java/Bali Urban Development 180.30 173.443305 1991 Yogyakarta Upland Area Development 15.50 14.50

3311 1991 second Higher zducation 150.00 133.16

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Page 3 of 4

Amount *U8S millionL_Loan/ Bank IDACredit Fiscal Original Principal Undis-numxber Year furaosg ls cancellationl bursed

3340 1991 Sulawesi-Irian Jay, Urban 100.00 95.49Devlopment

3349 1991 Power Transmission 275.00 275.003385 1991 Tehnical Assistance Project for 30.00 27.00

Public and Private Provisionof Infrastructure

3392 1992 Second Irrigation Subsector 225.00 202.913402 1992 Agr cultural Financing 106.10 106.103431 1992 Third Non-Formal Education 69.50 69.50

Total 1,15886.27 901.60,of which has been repaid 2,752.50 75.19

To tal maw held by Blank AM12 13.133.77 826.41aount sold 88.06

of which repaid 64.60

Total undiiguga 4,224.13

Following projects have already been approved by the Executive Directorsbut not yet signed as of March 31, 1992.

3448 1992 Primary Education Quality Improvement 37.003454 1992 SAREDAL Development 12.00

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B. STATUMI OF IFC INVEnSTmNY a of March 31. 19921

_ ~~~(U,SS mlonUndibusbia

Original Total includingFiscal comaitments Hold Participants-year CTmyanv Sve of buginess Loan lauity 2Ttal _b !FC Portion1971/74 P.T. Primatexco Textiles & fibero 4.0 0.8 4.8 - -1971 P.T. Unitex Textiles fiboers 2.S 0.8 3.3 0.3 -1971/73/ P.T. Semen Cibinong Cement 46.0 5.8 51.8 - -74/76/841971 P.T. Rabel Zndonesia Cables 2.8 0.4 3.2 -1972/77/ P.T. Daralon Textiles Textiles & flbers 5.8 1.5 7.3 -79 Mfg. Carp.1973/89 P.T. Jakarta Tourism 9.8 2.7 12.5 2.7 -

Int'1 Hotel1974 P.T. Private Dev. Development - 0.5 0.5 0.4 -

Finance Co. of finmnceIndonesia

1974 P.T. monsanto Slectronice 0.9 - 0.9 -1974/77 P.T. Ramalt6x Textiles 3.8 0.8 4.5 - -1980 P.T. Papan Sejahtera Housing finance 4.0 1.2 5.2 1.2 -1980 P.T. Supreme Indo- Dinnerware 11.1 0.9 12.0 - -

American1980/87 P.T. Semen Andalas Cement 48.6 5.0 53.6 20.9 -1982/85 P.T. Saseka Gelora Leasing S.0 0.4 5.4 0.4 -

Leataing1988 P.T. Bali Holiday Tourism 11.3 - 11.3 2.4 -1988 P.T. AZuransi Jiwa Insurance - 0.3 0.3 0.3 -1989 P.T. Monterado Mining 8.0 2.0 10.0 0.0 -1990/91 P.T. Astra JA Xanufacturing 12.5 22.4 34.9 12.5 -1990 Federal MotorlA Manufacturing 12.5 - 12.5 -1990 Nomura Fund Ctry. Fund - 3.0 3.0 1.5 -1990 Bank Umum nacLonal Dev. finance 10.0 - 10.0 10.0 10.01990 Bank Niaga Dev. finance 7.S - 7.5 5.0 5.01990 Raja/Pendopa Oil exploratLon - 3.6 3.6 3.6 1.81990 P.T. Agro Muko Plantations 10.5 2.2 12.7 12.7 6.81990/91 Indo Rama Synthetics Text$ies 27.0 *6.2 33.2 33.2 -1991 Argo Pantes Text$Ies 83.0 13.0 96.0 43.0 -1991 P.T. Asahi Chemdcals Chemicals 4.0 1.8 5.8 5.8 0.41992 P.T. Nusantara Capital market 2.5 - 2.5 2.5 -1992 P.T. Citra Agramos Capial market 2.0 2.0 2.0 -1992 P1T. Bakrie Kassi Chemicals 30.0 9.6 39.6 39.6 99.6

Tatal 365.0 84 "8 .8 2QO 123.7

Proiect ann=roved but not et sianed1989 P.T. KaltengLk MLalng - 1.4 1.4 - -1990 P.T. S ayu NIC,& Wood products 12.2 0.9 13.1 - -1991 P.T. Petrochemical Petrochemicals 325.0 15.0 340.0 90.0 340.01991 P.T. Saeka Gelora LeasLag 20.0 - 20.0 S.0 20.01991 ViC indonesia Capital markets - 1.S 1.5 1.5 1.51991 P.T. RS mba Partikel Wood Products 24.5 0.6 25.1 25.1 25.11992 P.T. Lantai Keramik Mas Coramic Tiles S.4 1.7 7.1 7.1 7.11992 P.T. DD Holler Capital market - 0.6 0.6 0.6 -1992 P.T. Swadharma Tourim 86.0 - 86.0 35.0 86.0

JA Loan subsequently cancelled.i Loan approved but subsequetly dropped.

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