Doumient of

The World Bank

FOR OMCILAL USE ONLY

Rqxot No. P-6384-IND

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$136 MILLION

TO THE

REPUBLIC OF INDONESIA

FOR THE

KALIMANTAN URBAN DEVELOPMENT PROJECT

FEBRUARY 24, 1995

This document has a restricted distribution and may be used by recipients only in the performance of

their official duties. Its contents may not otherwise be disclosed without World Bank authorization.

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CURRENCY EOUIVALENTS(As of May 1994)

Currency Unit = Indonesian Rupiah (Rp)US$1.00 = Rp.2154Rp. 1 million = US$464

FISCAL YEAR

Government of Indonesia, Provincial and Local Governments: April 1 - March 31PDAMs: January 1 - December 31

WEIGHTS AND MEASURES - METRIC SYSTEM

1 meter (m) = 39.4 inches1 kilometer (km) = 0.62 miles1 square kilometer = 100 ha or 0.39 square miles1 hectare = 2.47 acres

PRINCIPAL ABBREVIATIONS AND ACRONYMS

ANDAL - GOI Detailed Environmental Assessment StudyAPBN - National Development BudgetDJCK - Directorate General of Human SettlementsGOI - Government of IndonesiaIDC - Interest During ConstructionIUIDP - Integrated Urban Infrastructure Development ProgramKUDP - Kalimantan Urban Development ProjectMPW - Ministry of Public WorksO&M - Operations and MaintenancePDAM - Local Government Water EnterprisePIA - Project Implementation AgreementRepelita - Five-year Development PlanSLA - Subsidiary Loan Agreement (Domestic Lending Arrangement)TKPP - Interagency Coordination Team for Urban Development

INDONESIA FOR OFFICIAL USE ONLY

KALIMANTAN URBAN DEVELOPMENT PROJECT (KUDP)

LOAN AND PROJECT SUMMARY

Borrower: Republic of Indonesia

Beneficiaries: The Cities of Banjarmasin, Balikpapan, Palangkaraya, Pontianak and Samarindaand their respective water enterprises.

Loan Amount: US$136 million equivalent

Terms: 20 years, including 5 years of grace, at the Bank's standard variable interest rate

Onlending Terms: Out of the proceeds of the proposed loan, US$33.5 million equivalent would beonlent by the Central Government to the Municipalities and their WaterEnterprises at an annual interest rate of 11.5% which retlects the 6 monthaverage of the 3-month Sertifikat Bank of Indonesia (SBI) rate at the time ofproject appraisal, for a term of 20 years, including 5 years grace. TheMunicipal Governments and their Water Enterprises are responsible for interestduring construction. The Central Government would hear the foreign exchangerisk.

Financing Plan: Own IBRD % ofSources Loan Total Cost--------------------- (US$ million)' -----------------------

Local Governments 41.0 13.0 54.0 22Water Enterprises 28.2 20.5 48.7 19Provincial Government 3.2 - 3.2 1Central Government 42.9 100.8 143.7 58

Total 115.3 134.3 249.6 100

PPF Refund 0 1.7 1.7IDC 10.7 - 10.7

Total Financing Required 126.0 136.0 262.0

Poverty Category: Targeted intervention: the KIP/MIP component (20% of project cost) will favorthe poorer neighborhoods. All the other components will also, directly orindirectly, benefit the urban poor more than the non-poor, except probably forthe road component.

Economic Rate of Return: 15% to 40% for urban roads; minimum 12% for water supply, B:C ratiosexpected to exceed I for other components.

Staff Appraisal Report: Report No. 13154-INDMaps: IBRD No. 26065: Key Map - Indonesia and Kalimantan

' ToaIls imay not add up due to rounding

This document has a restricted distribution and may be used by recipients only in the performance of theirofficial 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 DIRECTORSON A PROPOSED LOAN

TO THE REPUBLIC OF INDONESIA FORTHE KALIMANTAN URBAN DEVELOPMENT PROJECT

1. The following memorandum and recommendation on a proposed loan to the Republic ofIndonesia for US$136 million equivalent is submitted for approval. The proposed loan would be for 20years, including 5 years of grace, at the Bank's standard variable interest rate, and would help financethe Kalimantan Urban Development Project (KUDP). Part of the proceeds (US$33.5 million equivalent)would be onlent by the Government of Indonesia (GOI) to the five municipalities of Banjarmasin,Balikpapan, Palangkaraya, Pontianak and Samarinda and their water enterprises (PDAMs) for a periodof 20 years at an annual interest rate of 11.5% which reflects the 6 month average of the 3-monthSertifikat Bank of Indonesia rate at the time of project appraisal. The Government will bear the foreignexchange risk.

2. Background. Indonesia's urban population exceeds 55 million and is growing at over 5 %per year, more than twice the overall national rate. About 80 million Indonesians (about 40% of thepopulation) will be city dwellers by the year 2000. Infrastructure services lag behind. Only about 20-25% of the urban population have direct access to piped water supply with the balance relying onstandpipes, shallow wells, vendors and surface water. Less than 60% of the urban households haveproper toilet facilities (39% with septic tanks), the balance share toilets or use waterways for sanitation.In the larger cities, inadequate residential and industrial water supply, and liquid and solid waste disposalcause serious environmental and health problems. The urban poor, who constitute 17% of the urbanpopulation, are the more affected by deficiencies in basic services and degraded environmental conditions.Despite past progress in the provision of urban roads, some 60% of urban households still rely on accessroads less than three meters wide, and in 1990 some 25% of municipal roads were in poor condition.Vehicle emissions are increasingly being recognized as the dominant source of localized air pollution andhealth problems in cities. Moreover, there is limited traffic management in central areas, and publictransport is insufficient in many cities in Indonesia. To meet GOI's equity objectives, more investmentis needed in low-cost systems for poorly served urban areas.

3. BAPPENAS is responsible for overall planning and the allocation of resources, based onFive-Year Development Plans (Repelita) and Annual National Development Budgets (APBN). TheMinistries of Home Affairs and Public Works are respectively responsible for overseeing regionalgovernments and most infrastructure investments through provincial offices, that also execute centrally-financed infrastructure projects. All key agencies with responsibilities in the urban sector are representedin GOI's Interagency Coordinating Team for Urban Development (TKPP) chaired by BAPPENAS, theNational Development Planning Agency. In this context, GOI relies on Integrated Urban InfrastructureDevelopment Programming (IUIDP) for improving local government management, infrastructureinvestment planning, revenue mobilization and consultation between various levels of government--Repelita VI, for the period 1994-98, builds on the IUIDP for achieving urban infrastructure and serviceimprovements. The central government also has a dominant role in financing local services through itsgrants. Grants help resolve the disparity between local needs and local resource mobilization, which isconstrained by the limited ability to levy and collect taxes. Over the medium to longer term, GOI alsointends to increase resource mobilization at the local level; this will include more local borrowing atmarket rates. GOI's strategy is to decentralize decision-making on urban sector matters.

4. Kalimantan. Kalimantan lies directly north of Java. Its large area, 540,000 km2, isendowed with abundant natural resources--in particular forests, oil and gas. Extractive and processingactivities expanded greatly in the 1980s and accelerated growth of urban centers, particularly in EastKalimantan. Urban populations grew at 5.7% average during the 1980s, and most of the growth occurredin the project cities. By 1993 of a total urban population of 2.5 million (20% of the population), almost2 million were in these cities. The economic growth in modern sectors had considerable spilloverbenefits but traditional sector activities predominate; they command lower incomes and some 15% of theurban populations remain in absolute poverty--still, poverty incidence is higher in rural areas.

5. As happened in other Indonesian cities, development of infrastructure did not matchpopulation growth. Service levels are low, though variable across cities, in all sectors: clean water(access ranges from 20% to 40% of the population), sanitation (commonly open drains and rivers areused for sanitation needs), solid waste (final sound disposal sites are missing), drainage (drains areclogged and flooding is common), and roads (roads need upgrading and extension). Services are furtheraffected by the project cities being low-lying, with high water tables, and most of them, subject to tidaleffects. Given the service backlog and further expected population growth, it is urgent and highlyjustified to improve the urban infrastructure of the project cities.

6. Lessons from Previous Bank Experience. The Bank's experience with 12 completed andseven ongoing urban and water supply projects has elicited the following lessons in particular: (a) limitedplanning and implementation capacity at the central level and the nature of local services reduces theefficiency of mass delivery programs; (b) capacity building at the local level is a long-term process thatneeds to be accompanied by an increase in local responsibility and accountability; (c) central-localfinancial relations need to provide more local government autonomy; and (d) private sector involvementneeds to be enhanced. The project design builds on these lessons.

7. Rationale for Bank Involvement. The Bank's Country Assistance Strategy for Indonesia,which is being presented to the Board on March 21, 1995, highlights the need for improving publicservices delivery, especially to the poor, greater decentralization of responsibilities, and improvedenvironmental management. The project is fully consistent with this Country Assistance Strategy, becauseit supports increasing decentralization of responsibilities for urban management and implementation tothe municipal governments of the five project cities; it integrates environmental improvement actions intourban infrastructure development; it strengthens local government institutions and human resources formore efficient urban management; and it provides services to lower income groups and underservedareas.

8. Project Objectives. The main objectives of the project are to:

(a) improve the provision of urban infrastructure services and the efficiency of urban investments;

(b) promote stronger, more autonomous, and financially more independent municipal governments;

(c) contribute towards poverty reduction, mainly through better access to essential services; and

(d) improve the urban environment.

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9. Project Description. To achieve these objectives, the project would finance:

(a) Urban roads - arterial, collector and local roads, and bridge, upgrading and construction, andimproved traffic management (26% of base cost);

(b) Water supply - source supply enhancements, improvements to transmission, storage anddistribution systems, reduction in non-revenue water, new house connections and standpipes, andtechnical assistance (25%);

(c) Drainage and flood control - channel rehabilitation, selective widening and deepening, removalof bottlenecks (such as undersized culverts and bridges), and measures to improve areas subjectto frequent flooding (6%);

(d) Human waste disposal - pilot on-site sanitation programs, construction of communal toilets,construction of pilot trunk and interceptor sewers, waste water treatment plants, and procurementof sludge disposal equipment (9%);

(e) Solid waste - construction of new disposal sites and procurement of collection equipment (6%);

(t) Kampung and Market Improvement Programs (KIP and MIP) - improvement of poor kampungs(neighborhoods), benefitting about 300,000 people in the five cities, as well as rehabilitation andimprovement of high priority markets, and provision of infrastructure to low income housingdevelopments and pilot urban renewal schemes (22%);

(g) Technical assistance for institutional development and capacity building (about 5%). This coversinstitution building, program management/implementation (in support of greater localresponsibility and autonomy), sector development studies, and preparation of a follow-up 5 yearplan for the 5 cities; and

(h) Design and engineering services for construction works (5%) is included in (a) to (t) above.

10. Project costs and financing plan. Schedule A provides details on project cost andfinancing. Retroactive financing of US$5 million has been proposed for eligible project expendituresincurred after May 31, 1994 for consultants' services, goods and civil works in order to make an earlystart on the implementation of the program. Schedule B sets out the amounts and methods ofprocurement and disbursement. Schedule C summarizes key project processing events, and the status ofBank Group operations in Indonesia is given in Schedule D. A map is also attached. The Staft AppraisalReport No. 13154-IND dated February 24, 1995, is being distributed separately.

11. Project Implementation. The principal implementing agencies are the Cities of Balikpapan,Banjarmasin, Palangkaraya, Pontianak and Samarinda and their water enterprises. A Project ManagementUnit and a Project Monitoring Office in each city will coordinate all project activities city-wide; theDirectorate General of Human Settlements, Ministry of Public Works, will be responsible for subprojectsunder central jurisdiction, central technical supervision and overall management of KUDP. Policy andgeneral program coordination will be provided by GOI's Urban Development Coordination Team(TKPP).

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12. Project Sustainability. The project design and implementation arrangements draw uponthe lessons of experience: greater involvement of the local governments in all phases of projectpreparation through the IUIDP process, ownership through financial contributions from the municipalitiesand the water enterprises; more participation in implementation by the project beneficiaries; increasedlocal resources for increased levels of O&M. These actions are expected to contribute to projectsustainability.

13. Environmental and Social Impact. Most project activities would have a positiveenvironmental impact. Water quality and quantity and sanitation would improve. Pollution would bereduced in the rivers in the five cities. Appropriate environmental criteria have been incorporated in theproject design. Project design has also minimized displacement of families. Compensation andresettlement for the 40 families affected by the project will follow the two action plans approved by theBank and would be monitored through technical assistance and Bank supervision. Compensation andarrangements following consultations with affected and displaced families provide them opportunities tostart new and better lives. The project was classified early on as an "A" environmental assessmentcategory; an Executive Summary of the EA was distributed to the Executive Directors on May 11, 1994.

14. Impact on Poverty. The project is expected to improve significantly the quality of life andenvironment in the poorer kampungs of project cities. The population with access to piped water coulddouble while costs to poorer consumers would be reduced. Drainage and flood control components wouldreduce the frequency and duration of floods in the low-lying areas where mostly poor people live. TheKIP/MIP components, targeted on poor neighborhoods, will benefit some 500,000 persons or 25 % of theurban population.

15. Azreed Actions: At negotiations the Borrower agreed inter alia to the following (recordedin Schedule 5, Parts A ((a) and (b) below)) and C ((c) to (h) below)) of the Loan Agreement):

(a) local government commitment to implement the agreed PJMs/LIDAPs/RIAPs includingincreases in fees for solid waste and sanitation;

(b) PDAMs will implement tariff increases by no later than January I of 1996,1998 and 2000as necessary to fully cover O&M as of FY1996 and O&M and depreciation by FY1999;PDAMs will consult the Bank, for any additional investment exceeding Rp 2 billion; andto enhance the self-financing capacity of PDAMs, PDAMs will be allowed to retain profitsand use them for their project investments;

(c) to prepare and agree with the Bank on a revised training program no later than 6 monthsafter loan effectiveness;

(d) payments to local contractors would be made from the KPKN provincial offices;

(e) to review with the Bank, not later than November 30 each project year, (i) the proposedbudgets for the following year, including any proposal to include a new project componentand (ii) the O&M expenditures for the previous year and to issue the respective budgetapprovals by January 15 for PDAMs and May I for other agencies, each project year;

(f) to carry out yearly technical audits and discuss the audit recommendations with the Bank;

(g) a mid-term review with the Bank not later than June 30,1998; and

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(h) to resettle affected people according to the Resettlement and Rehabilitation Action Plansagreed with the Bank.

16. The condition for loan effectiveness is that the Project Implementation Agreements and theSubsidiary Loan Agreeents under the Project have been executed, ratified, and are legally binding.

17. The PPF including charges and accrued interest will be repaid from the loan uponeffectiveness.

18. With the above agreements and assurances, the project would be suitable for a Bank loanof $136 million equivalent with a 20 year maturity including a 5 year grace period, at the standard Bank'svariable interest rate. The Borrower would be the Republic of Indonesia.

19. Project Benefits and Risks. The project would benefit the inhabitants of the fiveKalimantan cities by improving the quality, reliability and accessibility of urban infrastructure services.Water supply, drainage, and waste disposal investments would greatly improve the living environmentby providing safe water, reducing property damage, and decreasing pollution and the incidence ofdiseases. The local economies would benefit from lower transport costs and travel times. Kampung andmarket improvements would help lower income households in particular by bettering living conditionsand local commercial facilities. The main project risks are limited management capabilities at the locallevel which may cause implementation delays, poor quality, cost overruns and non-achievement offinancial targets. Possible delays in the availability of GOI funds and late approvals by the centralgovernment are also risks to efficient project execution. Steps taken prior to Negotiations and duringimplementation, as well as close monitoring by supervision missions, are expected to minimize theserisks.

20. Recommendation. I am satisfied that the proposed loan wouid comply with the Articlesof Agreement of the Bank, and recommend that the Executive Directors approve the proposed loan.

Ernest SternWashington D.C. Acting PresidentFebruary 24, 1995

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Schedule AINDONESIA

KALIMANTAN URBAN DEVELOPMENT PROJECT

ESTIMATFD COST AND FINANCING PLAN

................... $ m illion ................ % ofLocal Foreign Total Total

COST:I. Water supply 24.8 19.2 44.0 202. Drainage 16.2 7.6 23.8 113. Urban roads 38.1 17.8 55.9 264. Solid waste 5.7 2.6 8.3 45. Human waste 9.0 2.8 11.8 66. KIP/MIP/Other 14.4 6.7 21.2 10

Subtotal 108.1 56.7 164.9 77

7. Incremental O&M 13.6 7.3 20.9 108. Implementation Support TA 8.0 2.3 10.3 59. Institutional Development TA 6.8 4.9 11.7 510. Administration 5.2 0.0 5.2 2

Total Base Cost 141.8 71.2 213.0 100

Physical Contingencies 10.5 5.7 16.2 8Price Contingencies 16.4 4.0 20.4 9PPF Repayment 0.0 1.7 1.7 1

Total Proiect Cost 168.7 82.6 251.3 118

Local Foreign Total % of Total.............. (US$ million) .

FINANCING:Central Government 42.9 100.8 143.7 58Provincial Government 3.2 - 3.2 1Local Government 41.0 13.0 54.0 22PDAMs 28.2 20.5 48.7 19Total Financing 115.3 134.3 249.6 100

Shares 46% 54% 100%PPF Repayment - 1.7 1.7Int. During Construction 10.7 - 10.7Total Financing Required 126.0 136.0 262.0

7 Schedule BINDONESIA

KALIMANTAN URBAN DEVELOPMENT PROJECT

PROCUREMENT ARRANGEMENTS

(US$ nillion) /a

Expenditure Category ICB LCB Other Lb NBF ic Total Cost

Civil works 37.3 113.0 150.3(25.0) (74.7) (99.7)

Goods 10.0 6.0 2.0 12.0 30.0(10.0) (4.0) (1.0) (15.0)

Consultancies:Engineering & Supervision 10.4 10.4

(9.0) (9.0)Technical Assistance

and Training 11.8 11.8(10.6) (10.6)

Land, taxes and duties 21.0 21.0Incremental O&M and Administration 26.1 26.1

() ()Total 47.3 119.0 24.2 59.1 249.6

(35.0) (78.7) (20.6) - (134.3)(PPF) (1.7)

/a Figures in parentheses are the respective amounts financed by the Bank.Lb Includes local and international shopping, and selection of consultants following Bank guidelines for the use of

consultants./c Not Bank financed.

DISBURSEMENTS

Category Amount Disbursement Rate(US$ million)

(1) Civil Works 69.3 60%(2) Equip. and Supplies 5.4 100 % of foreign expenditures

(excluding vehicles) 100% of ex-factory costs and65 % of other items supplied locally

(3) Consultants' Services & Training 19.6 80% (central) and 91 % (local)(4) Goods and Works under SLA 33.5 91%(5) Refunding of PPF 1.7 100%(6) Unallocated 6.5

Total 136.0

Estimated IBRD DisbursementsIBRD FY 1995 1996 1997 1998 1999 2000

----------------------------- US$ million --------------------------Annual 3 32 42 42 14 3Cumulative 3 35 77 119 133 136

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Schedule C

INDONESIA

KALIMANTAN URBAN DEVELOPMENT PROJECT (KUDP)

TIMETABLE OF KEY PROJECT PROCESSING EVENTS

(a) Time taken to prepare: 5 years /a(b) Prepared by: Government and local and foreign consultants with Bank assistance(c) First IBRD mission: July 1989(d) Appraisal mission departure: May 1994(e) Date of negotiations: January 30, 1995(f) Planned effectiveness date: June, 1995(g) List of relevant PCRS and PPARs:

Loan No. Project Date Report No.

Ln. 1040-IND Jakarta Urban Development 06/03/83 4620 (PPAR)Ln. 1049-IND Five Cities Water Supply 06/10/86 6256 (PPAR)Ln. 1336-IND Second Urban Development Project 07/15/85 6329 (PPAR)Ln. 1653/ Third & Fourth Urban

1972-IND Development Project 05/24/90 8583 (PCR)Ln. 1709-IND Second Water Supply Project 04/30/90 8622 (PPAR)Ln.2275-IND East Java Water Supply Project 12/20/91 10226 (PCR)Ln.2275-IND East Java Water Supply Project 07/20/92 10853 (PPAR)Ln.2408-IND Fifth Urban Development 12/24/92 11501 (PCR)Ln.2816-IND Urban Sector Loan 12/24/92 10388 (PCR)Ln.2236-IND Jakarta Sewerage & Sanitation 06/30/93 12150 (PCR)

The report is based on the findings of an appraisal mission which visited Indonesia during May/June1994. The mission comprised S. O'Humay (EA31N), F. Johansen (EA3IN), D. Hughes (ASTEN), J.Darmody, J. Bsaies (consultants); and G. Soraya and R. Scouller (EA3RS) from Jakarta. The peerreviewers were Messrs. J. Kozel (EAIIN), K.S. Lee (TWURD) and P. Stott (EA2TP). Mr. A Khanna,Chief (EA31N) and Mrs. M. Haug, Director (EA3DR), have endorsed the project.

/a Preparation of the project was protracted largely because the IUIDP process was new to the localgovernments in Kalimantan.

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STATUS OF BANK GROUP OPERATIONS IN INDONESIA

A. STATEMENT OF BANK LOANS AND IDA CREDITS /a(as of December 31, 1994)

Amount (US$ million)Loanf Bank IDACredit Fiscal Original principal Undis-

Number Year (less cancellation) bursed

One-hundred-twentysix loans and 10,652.49 901.60fourty-eight credits fully disbursed

Of which SECALS, SALs 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

Subtotal: 1,200.00

2638 1986 Nusa Tenggara Agriculture Support 33.00 5.612705 1986 Manpower Development and Training 58.10 4.382773 1987 Fisheries Support Services 20.00 3.922930 1988 Forestry Institutions & Conservation 30.00 7.152932 1988 Jabotabek Urban Development 150.00 28.062940 1988 Accountancy Development 113.00 20.132992 1 989 Tree Crops Human Resource Development 18.40 3.223000 1989 Tree Crops Processing 88.40 33.633031 1989 Agriculture Research Management 35.30 4.513040 1 989 Industrial Restructuring 238.06 5.783041 1 989 Small & Medium Industrial Enterprise 94.43 0.463042 1989 Third Health 43.50 10.463097 1989 Power Sector Efficiency 337.00 59.743098 1989 Paiton Thermal Power 346.00 64.433112 1990 Public Works Institutional 36.10 4.95

Development & Training3133 1990 Highway Sector 350.00 37.183134 1990 Professional Human Resource Development 117.50 11.313158 1990 Second Secondary Education 154.20 67.883180 1990 Rural Electrification 329.00 106.023182 1990 Third Telecommunications 350.00 117.833209 1990 Gas Utilization 86.00 67.933219 1990 Second Jabotabek Urban Development 190.00 102.003243 1 990 Second Forestry Institution 20.00 11.75

and Conservation3246 1991 Third Jabotabek Urban Development 61.00 39.29

/a The status of the projects listed in Part A is described in a separatereport on all Bank/IDA-financed projects in execution, which is updatedtwice yearly and circulated to the Executive Directors on April 30 andOctober 3 1.

/b Approved during or after FY80.

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Schedule DPage 2 of 4

Amount (US$ million)Loan/ Bank IDACredit Fiscal Original principal Undis-

Number Year (less cancellation) bursed

3249 1991 Second BRI/KUPEDES Small Credit 125.00 10.283282 1991 Fertilizer Restructuring 221.70 34.143298 1991 Fifth Population 104.00 34.923302 1991 Provincial Irrigated Agriculture 104.50 61.49

Development3304 1991 East Java/Bali Urban Development 180.30 85.863305 1991 Yogyakarta Upland Area Development 15.50 8.023311 1991 Second Higher Education 150.00 43.323340 1991 Sulawesi-Irian Jaya Urban Development 100.00 50.163349 1991 Power Transmission 171.60 62.663385 1991 Technical Assistance Project for 30.00 24.21

Public and Private Provisionof Infrastructure

3392 1992 Second Irrigation Subsector 215.00 40.193402 1992 Agricultural Financing 106.10 76.903431 1992 Third Non-Formal Education 69.50 39.233448 1992 Primary Education Quality Improvement 37.00 30.253454 1992 BAPEDAL Development 12.00 9.743464 1992 Treecrops Smallholder 87.60 64.103482 1 992 Fourth Telecommunications 375.00 302.333490 1992 Third Kabupaten Roads 215.00 94.713496 1992 Primary School Teacher Development 36.60 24.823501 1992 Suralaya Thermal Power 423.60 346.763526 1993 Financial Sector Development 307.00 143.223550 1993 Third Community Health & Nutrition 93.50 79.153579 1993 E. Indonesia Kabupaten Roads 155.00 114.663586 1993 Integrated Pest Management 32.00 28.673588 1993 Groundwater Development 54.00 49.043589 1993 Flores Earthquake Reconstruction 42.10 27.503602 1993 Cirata Hydroelectric Phase II 104.00 96.793629 1993 Water Supply & Sanitation for 80.00 76.91

Low Income Communities3658 1994 National Watershed Management and 56.50 53.48

Conservation3712 1994 Second Highway Sector Investment 350.00 325.633721 1994 Skills Development 27.70 25.703726 1 994 Surabaya Urban Development /a 175.00 175.003732 1994 Fifth Kabupaten Roads 101.50 96.523742 1994 Dam Safety 55.00 55.003749 1994 Semarang-Surakarta Urban Development 174.00 169.003754 1994 University Research for Graduation Study 58.90 55.913755 1994 Integrated Swamps 65.00 65.003761 1 994 Sumatera & Kalimantan Power 260.50 260.503762 1994 Java Irrigation Improvements and 165.70 163.70

Water Resource Management

/a Not effective a of December 31, 1994.

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Schedule DPage 3 of 4

Amount (US$ million)Loan/ Bank IDACredit Fiscal Original principal Undis-

Number Year (less cancellation) bursed

3792 1995 Land Administration 80.00 80.003810 1995 Second Accountancy Development 25.00 25.00

Total * 19,193.88 901.60of which has been repaid 4,618.85 125.28

Total now held by Bank and IDA 14,575.03 776.32Amount sold 88.08

of which repai 79.72

Total undisbursed 4,428.09

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Schedule DPage 4 of 4

B. STATEMENT OF IFC INVESTMENTS(as of December 31, 1994)

(USS million)- Original Gross Commitments - Held Held Undisb'd

Fiscal Year IFC IFC by by incl.Committed Obligor Type of business Loan Equity Partic Totals IFC Partic Partic1971 /a P.T. Kabel - Indonesia Industrial equip. & t 1.80 0.37 1.00 3.17 -

1971 P.T. Unitex Textiles 0.75 0.80 1.75 3.30 0.35 -

1971t73t74/76/84 /a P.T. Semen Cibinong Cement & constructi 21.23 5.31 25.27 51.81 -

1971t74 /a P.T. Primatexco Indonesia Textiles 3.35 0.80 0.65 4.801972/77/79 /a P.T. Daralon Textile Textiles 4.43 1.12 1.73 7.281973/89 /a P.T. Jakarta Tourism 4.00 1.49 7.00 12.491974 /a P.T. Monsanto Pan General mfg. 0.90 - - 0.90 -

1974 P.T. PDFCI Bank Development financ - 0.48 - 0.48 0.341974/77 /a P.T. Kamaltex Textiles 2.36 0.75 1.39 4.50' -

1980 /a P.T. Supreme General mfg 5.10 0.94 6.00 12.041879 P.T. Papan Sejahtera Capital markets 4.00 1.20 - 5.20 1.20 -

1980/88 P.T. Semen Andalas Cement & constructi 28.51 5.00 28.53 62.04 23.44 13.981982/85194 P.T. Saseka Gelora Capital markets 4.52 0.38 2.00 6.90 1.90 -

1988 ia P.T. Nonterado Mas Minin Mining 3.50 2.00 4.50 10.00 - -1.351988 P.T. Asuransi Jiwa Capital markets - 0.32 - 0.32 0.32 -

1988 P.T. Bali Holiday Village Tourism 9.32 - 2.00 11.32 1.09 0.171990 Ia Nomura Jakarta Fund (NJF Financial services - 3.00 - 3.00 - -

1990 /a P.T. Federal Motors Automotive & acces 12.50 - - 12.501990 Bank Niaga Capital markets 7.50 - - 7.501990 P.T. Bank Umum Nasional Capital markets 10.00 - - 10.00 -

1990 P.T. Nusantara Island Tourism - - - 0.00 1.411990/91/94 P.T. Astra International Automotive & acces 12.50 35.43 - 47.93 22.431990/91/95 P.T. Indo-Rama Synthetics Textiles 57.00 6.18 67.50 130.68 58.31 67.50 97.501991 /a Raja-Pendopo Oil Energy - 3.60 - 3.60 - - -

1991 P.T. Agro Muko Food & agribusiness 10.50 2.20 - 12.70 12.70 -

1991 P.T. Argo Pantes Textiles 30.00 13.00 53.00 96.00 37.38 41.641992 P.T. Bakrie Kasei Chemical & petroch 30.00 9.63 95.00 134.63 39.63 95.00 -

1992 P.T. Indonesia Asahi Textiles 4.00 1.83 - 5.83 4.23 - 0.391992 P.T. Rimba Partikel Timber, pulp & pape 9.88 0.60 10.00 20.48 11.31 7.501992 P.T. Swadharma Kerry Tourism 35.00 - 51.00 86.00 35.00 51.00 -

1992/94 P.T. Lantai Keramik Mas Cement & constructi 5.40 3.10 10.00 18.50 7.73 8.00 0.131993 P.T. BBL Dhamala Finance Capital markets 5.00 - - 5.00 3.82 - -

1993 P.T. Nusantare Tropical Food & agribusiness 9.00 - 7.00 16.00 9.00 7.00 2.251993 P.T. Samudera Indonesia Industrial services 12.00 5.00 3.00 20.00 17.00 2.63 -

1993 P.T. South Pacific Textiles 20.00 - 25.00 45.00 18.66 18.101993 SEAVI Indonesia Aruba Capital markets - 1.50 - 1.50 1.50 - -

1993/95 P.T. Mitracorp Industrial services 21.45 4.12 - 25.57 25.44 - 2.701994 P.T. Asia Wisata Tourism - - - 0.00 2.63 2.63 -

1994 P.T. KDLC Bali BancBali Capital markets 15.00 1.14 - 16.14 16.14 - 15.001994 P.T. Pame Indonesia Capital markets - 0.71 - 0.71 0.71 - -

1994 P.T. Saripuri Pamai Tourism 8.00 3.60 24.00 35.60 11.60 24.00 19.601994 P.T. Sinar Pure Foods Food & agribusiness - - - 0.00 1.39 -

1994 Prudential Asia Indonesia Capital markets - 6.75 6.75 6.75 4.781995 P.T. Bakrie Kasei Pat Chemical & petroch 12.00 2.00 - 14.00 14.00 - 14.00

Total gross commitments /b 420.50 124.35 427.32 972.17Less cancellations, terminations, repayments & sale 145.12 12.34 89.52 246.98Total commitments now held /c 275.38 112.01 337.80 725.19 387.41 337.80 156.35

/a Investments have been fully cancelled, terminated, written-off, sold, redeemed, or repaid./b Gross commitments consist of approved and signed projects./c Held commitments consist of disbursed and undisbursed investments.

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