Italy - Loan 0150 - P037416 - Administration

THE WORLD BANK GROUP ARCHIVES

PUBLIC DISCLOSURE AUTHORIZED

Folder Title: Power Agriculture and Industry Project - General Development - Italy - Loan 0150 - P037416 - Administration - Volume 4

Folder ID: 1854145

Project ID: P037416

Dates: 01/19/1962 – 06/18/1968

Fonds: Records of the Europe and Central Asia Regional Vice Presidency

ISAD Reference Code: WB IBRD/IDA EC A

Digitized: 05/18/2018

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THE WORLD BANK Washington, D.C. © International Bank for Reconstruction and Development / International Development Association or The World Bank 1818 H Street NW Washington DC 20433 Telephone: 202-473-1000 Internet: www.worldbank.org

PUBLIC DISCLOSURE AUTHORIZED

,GLOB1.1cn ; TO RE-ORDER SPECIF Y

No. 86163 Folder PAT. USA No, 1484611

MADE IN 0, S. A,

,i; ,, 111rn 111111 , 1,11m1mm1rnw~,1 ~~i 1854145

::-:-,. .... _..,....... A1995 /73 Other#: 11 Box# 182610B

Power Agri,~ulture and Industry Prpject- Italy - Loan 0150 - P037416 -

Administration - Volume 4 ·

THIS FIIE IS CLOOED AS OF

DECEMBER 1968.

FOR FURTHER CCRRESPONDENCE SEEs

1969 - 1971.

RECORDS MANAGEMENT SECTIOO February 1969

FORM NO. 59 (2- 55)

CROSS REFERENCE SHEET

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COMMUNICATION: Memo

DAT ED: June 18, 1968

TO: Mr. Bruce M. Cheek

FROM: T. Hirano

FILED UNDER: ITALY - Loan 117 IT

SUMMAR y: EXTRACT:

v" " By letter of May 29, 1968, Cassa informed us that S.p.A. ANIC had purchased the entire share capital of ABCD* and has succeeded S.p.A. Calci e Cementi di Segni in the suretyship. Cassa requested IBRD ' s consent to the above changes.

* ABCD - Ragusa, Sicily; IBRD funds were allocated to ABCD through Cassa/ IRFIS for the expansion of its polyethylene plant and special cement plant as follows:

Loan No.

117 IT 150 IT

189 IT

Effective Date

Sept. 1958 Aug. 1957 March 1961

Original Amount

($ million)

2.4 1.0 1.0

FORM No. 59 ( 2. 55)


COMMUNICATION: Letter

DATED: May 30, 1968

TO: IBRD

FROM: Mr . Pescatore Pres.-Cassa

F1LED UNDER: ITALY - Loan 117 IT

SUMMARY: EXTRACT:

" IRFIS has informed the Cassa on May 15, 1968 that S.p.A. ANIC has purchased the whole share capital of ABCD and, therefore , should succeed S.p.A. Calci e Cementi di Segni in theg.1ality of suretor for all financirgs granted by the Institute to subject Company.

The Cassa hereby approves such operation and is awaiting to receive at the soonest the Bank ' s approval in order to authorize the Institute to accept such replacmment of suretyship. "

chedule for simplified eriodical reporting

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Professor C.::ibricl,;: ? asca.t.ora Prosidont Cassa Per Il Hezzogiorno Piazza Dei Congressi U. 20 ( EJR) Roa9, Ita ly

Dear Professor Pe3catoro:

Docc~bor 20, 1967

Ua have been reviffuii1g the i nf o~:atlon sub:'litted by th ... Cassa

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t o the Bank uit,h resp .1 0 t to industrial bor.-.co;-rcr.:; unde:· t 1a abovJ loc.ns.

On J u.71.c 3~~965 Ur . Douclas J,, .I! ontcir1 of t,h.3 I;anl:, ini'or.11wc1. you that the Bank uas will..:.l".g to accG:0t a si.:mplH'iGd. forn of peI'i clic2.l reportii..rig ~s out.linQd i n the att2..chcd cchedulc o 1'hcco si..m::i.'.3.!"J repo:r::.s originally uers scheduled to have arrived for t he fir.1t tir.lo by June 30., 1966 for fiscal 1965. Hm;:::7Jr, in s:1bseq:1crr0 conv"ercn.tions bet:i~cn ourself an:l. D~. de Pal!:I.:t and D~ru' staff it uas awc:id t,ha.t reportin0

for 1965 should folloi:-r the t r·adit.:i.on~l pattern ai1d t hc'..t tho n:nr forn would be appliad for th1 first t; ~n for fiscal 1966. T'no B:mk was to have received ·~his i:.1.for .. :w.tion by June 30, 1967.

As of tM.s d'.1.tc, ue have not. rGce:J.vecl tho su;,L7.D..l7 report for fiscal 1966, and 1-;e consoq_u~ntly find it extrc~nly difficult to foJ.l m.-r th6 da7eloµ13nt of the ind11Gtrial proj ccts i'ina.-riced wi:r,h Bank fu.nds o

Wa liOi.1.ld, therefore, very much appreci ate you::t' sena.ing s tho r eports on th,we projects in a for.i'!l following t he at,ta ched sched:ilo. We realize that, '..10 to different fiscal years of the vario-1s projects, it will be difficult to tr~a.t all cor,1panieo in tho seno report. May we suggest, therefora , t hat t 11e Cassa. prepare SC?;>are.t e schedules, e3.ch listing tho inforaatio:n f or all coni.!)3.nies l:avlng t.he s'""m.:? fis ca.1 y e3.rs.

¥.tay we l ook forward to r ecoi vine the re 01~ts for 1966 at your earliest convenience .

With bnst. re gar s ,

Cle2.red in substance with Mr. Fuchs Clear ed Hi th and cc: Hr . Cheek cc: Hess r s . Paterson/Fuchs

Vourloumis/Huth Miss Hahl Circulation (2)

A tta.ch'ucnt

Very sincerely yours .,

. .--,. {7 ( ChD.UllC(:!'J F~_ D :J\·T:Jy

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V Indicate periods .

Proj ect Completed i.Yl (Year)

150: 189 and 224-IT

.Annual Reporting for Fiscal ____ (from ___ to ____ )

Appro. capacity increase %, i f arzy, a ovc thu t

attainad bl_.IDRD Project

Compara ..,~ vo net Sa_oc

for Pnct, 7 .. P.-m

Year~l (Lira ;\·IilJ :i.on) (a) (b)

First/ w.st Rcrpaymon-t

Da.te to In t.:.t1t,as

Sho! t ct DcriptiO!l o ·, Co._ ri.ny 1 s ~ operations in _ qporting y car and outlook for following ye1r as W:Jll as of problems , if any, '· facing the Company and p~qspocts of overcoming ·them.Y •

?/ Plo~sc use scp~rate s100t i f necessary . P_ ase indicate in partictu..ar i£' tho project company is on schedul~ 1rlt_ its payr.:onts of p:r·incipil. and interest. If not,, please indicat,e th\:: al!!OtLts .nc: ·c,.:L"'D.2 of o 3rduo pnyments 0

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·F~ r .tom, or~ua Qf.'. Sept b r-'24;· \ 96, 1.Pie~, de~P:ima-.called me '.from Rane again today to tell me that the Finelettr1.c11:, :,F,insider group will be in Washington on October 22nd. _ They want . to see · between 101.30 and UsOO hilt Will be fre~, tor lunch ,and' -,for. th aft rnoon. (I don• t know wh1" the 102.30 to 'llsOO tim ' is L

fsuggea)t"'o· definite~, unless it has t .~~~~ J ~ ..1. with .. ~lane·"a~_yai '.time. •, II . • ~ . 1 • •. , - • -.

Tho e .coJIJ.ing are;_ I -

iBianchi - President, Fineiettri'c .... . • "' - .... ~:, 11!!'1

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;present. if a.ml.able. Since Fin ider' s inter t are largely 'industrial the appropriate IFC officer. (in 'thi _,_case Hana Fuchs, ·I suppose) should be invited. · Pro~bly Fuehs oul<lr.b :ln .. anz

-'it.vent. I don't know who han<µ.es Italy _!lJ~ ';~ ' Prq_jects . · ·· -- .. -· ...... - .

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Mr. Gabriele Pescatore President Cassa Per Opere Straordinarie di Publico Interesse Nell 1Italia Merid.ionale

Piazza Dei Congressi N. 20 (EUR) :I -,. •• Rome, Italy

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Dear Mr. Pescatore: ~ I ·,.:. ,-~·

••. • F ' ,. II •-,.-. • '/ . - ..a.- -This will acknowledge your letter of August 4, 1965

transmitting the economic report for the Fltmtendosa Irrigation Project.

We appreciate receiving the report, and if we have comments offer we shall advise you later.

Sincerely yours,

•· ~na~l •11: • .Agriculture Division

_ Projects Department •

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I N D IRIZZO TELEGRAFICO e CA S MEZ - ROMA

CASSA PER OPERE STRAORDINARIE DI PUBBLICO INTERESSE

NELL'ITALIA MERIDIONALE

(CASSA PER I L M EZZOGIO RN O)

Prot. N. .... ............... ............. Posiz.G,h.~/.CM/DJ

Allegati ........................... _ By air mail Risposta a ......................................................... .

d0 I ............................................... N ....................... .

OGGETTO: ......................................................... .

International Bank for Reconstruction and Development

1818 H Street, N.W. Washington, D.C. 20433.

Gentlemen:

ROMA ..... .... ........ .. ................................ . PIAZZ A DEi CONGRESS ! N, 2 0 ( E UR )

TEL. 59 91

Translation

IBRD Loan No. 150 IT - Flumendosa Irrigation Project: Economic Report

According to the previously reached understandings, attached hereto is an economic report . on the Flumendosa Irrigation Project, financed out of the funds of IBRD Loan No.150 IT.

We enclose herewith as well two copies of the English translation of above-said report.

With best regards.

The President

s/ Gabriele Pescatore

, Enclosures - ~ -#-~I-~

)

nECEIVED CEHt:!U,L FILES

comrntt1c,\TIO

1965 AUG IO rn 2: I .

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INCIRIZZO TEL.EGRAFICO: CASMEZ • ROMA

::ASSA PER OPERE STRAORDINARIE DI PUBBLICO INTERESSE


(CASSA PER IL MEZZOGIORNO)

VIA AEREA

Prot. i /.J..6 .. 7 .. 3 .. 0. ...... l?osiz .. ... CF/FE/CM/mbg • 4 AGO 196

ROMA··················································-PIAZZA DEi CONGRESS! N. 20 (EUR)

Allegoti ......... J ................ . TEL. 5991

Risposto a ......................................................... .

del ............... ................................ N ....................... .

OGGETTO: ..... Pr.es:tit.a ... J3IRS ... .N.. 150 IT - Progetto Irriguo ............................. de1. ... F1.um.end.o.s.a.: .... Rapporto economic o

Spett.le Banca Internazionale per la Ricostruzione e lo Sviluppo 1818 H Street, N.W. Washington, n.c. 20433

A seguito delle intese intercorse, in allegato alla presen.te si rimette il rapporto economico sul Progetto Irrigu.o~ del Flum.endosa, finanziato con i fondi del Prestito BIRS N. 150 IT.

Si allegano al tresi no 2 copie della traduzione ingle i..--

se del suddetto rapportoo

Distinti saluti •

I, I :z lid O I Dn~ S96/ ~ mu 1111ni-11w:.i s.:111.:1 1\ u::iw a

OJ,\131~.:u

FORM No. 59 ( 2- 55)

COMMUNICATION:

DATED:

TO:

FROM:

TILED UNDER:

SUMMARY:


•

FORM NO. 59 ( 2. 55)

,l i

COMMUN! CATION:

DATED:

TO:

FROM:

FILED UNDER:

SUMMARY:


FORM NO. 59 ( 2. 55)

COMMUNICATION:

DATED:

TO:

FROM:

FILED UNDER:

SUMMARY:


..

Professor Gabri le Pescator President, Cs peril Mezzogiorno Piazz dei Congz:essi N. 20 (EUR) Rom , Italy

Dear Prof ssor Pescatore:

August l, 1963

Loan 150 IT - Parteno,r£aaporti Sp •

Thank you for your 1 tter of July 17, 1963 (your r f: 5/20095/CF/

PE/MBG) nclosing th third supplem ntary a re ent to the lo n con

tract between C ssa and lSVEIMER of January 31, 1957 and the 1 gal

opinion of the Cassa Counsel.

iv'Vth

We bave no co nts on these documents.

With best wish s,

Yours sincerely,

--@ -·

S. R. Cope Director of Operations

Europe

C-r GToeell i/mh

FORM NO. 59 (2- 55)

COMMUNICATION: ·r.t,

DATED:

TO:

FROM:

F1LED UNDER: J:~-

SUMMARY:


Professor Gabriele Peso tore President, Cassa per 11 Mezzogiorno Piazza dei Congressi Na 20 (EUR) Rome, Italy

Dear Professor Pescatore:

August 11 1963

loan 150 rr - l:lq:tenopea Tiaspo~Induatriol Projeot. Further to our letter of July 2, 1963, we are pleased to inform

you that the Bank has no objection to the decision of ISVEIMER to

relieve the heirs of Sig. Vibert! from the guarant es given in con

nection with the l.()an of ISVEIMER for the Vibert! plant in Naples,

which was subs quently sold to Partenopea Tra~ SpA.

We understand from your letter of June 25, 1963 that the Cassa

has already agreed with the decision taken by lSVEIMERQ

With best wishes,

cc: Mro Sella !V':.r. Te Alba

Sincerely yours,

S . R. Cope Director of Operations

Europe

FORM No. 57 INTERNAT l,ONAL DEVEl../lPMENT I INTERNAT I ONAL BANK FOR ASSOC I AT I ON RECONSTRUCTION AND DEVELOPMENT I INTERNATIONAL FINANCE

CORPORATION

TO: VJ.r . S . R. Cope

FROM : H--~~aum

~ CE MEMQRAND~~• August l, 1963

-SUBJECT: loan 150 IT - Partenopea Trasporti SpA and Viberti SpA.

lo Partenopea Trasporti is an Italian company which maintains and repairs bus and trucks. In 1960 it took over the Naples plant of Viberti SpA, a leading Italian manufacturer which has been a borrower from the Cassa, through ISVEIMER, under loan 150 IT. The sale of the Viberti plant to Partenopea was caused by some financial difficulties which arose in the company on the death of Mr . Viberti; both the Viberti family and the company remained guarantors of the loan.

2. The heirs of Mr . Viberti have now requested ISVEil"1ER to be relieved from their personal guarantee . }~ . de Alba , who recently discussed this matter in Rome , has endorsed the proposed action. As the loan remains fully secured by other guarantees , the Working Party has agreed that the Bank should not object to this operation, which also has the agreement of both ISVEIMER and the Cassa. The attached letter he.s been prepared accordingly.

C 0

p y

TO:

Handwritten m orandllm from E. deAl.ba and o. Kreuter received

Mr. W. J. Armstrong

J~ 24, 1963

Bombq, India J~ 19, 1963

FROM, Messrs. E. d Alba/ o. Kreuter

SUBJF.CT r Cassa ;per il Mezzogiorno / Reporting requirements - Our letter of April 91 1963

During the meeting with repre entatives of Cassa, we hav brief'.cy discussed the above-mentioned lettero

Cassa is in agreement with the general terms and suggestions of the letter. With regard to the timing, the three-month limit for the transmission of operating reports was considered too low and four months appears to be more adequate. It was furtherm.or explained that in the pa t the Institutes have frequently sent operating reports and financial statements back to the companies, either to have minor points corrected or to have supplementary information without importance, thus delaying the transmission of the documents to the Bank. The C a ha now tructed the Institute to avoid these unnecessary de~.

With regard to the presentation of the financial reports, we hav noticed that the latest balance sheets and profit and loss accounts are presented according to our uggestions. If this is--hopetully- carried on, the financial. surveillance of the project will b simpler and les timeconsuming than in the past.

We asked the Cassa to acknowledge our letter and indicate it agreement with our suggestiona.

Several operating reports and financial statements have be mailed directly to the Bank by Cassa. Missing operating report and financial statements have been again requested from the companies and will be picked up by de Alba in Rome on the return trip from India some time in August.

Original. and typed copy on :i:~ Loan 224 Copies on Loans 50IT

ll7'r! 1501'1' ~ l89IT

' SO Cl ETA IDROELETTRICA ALTO LI RI PER AZIONI - SEDE LEGALE IN FROSINONE - DIREZIONE GENERALE IN ROMA

CAPITALE SOCIALE L. 5,000.000,000 VERSATO

DIREZIOHE GEHERALE ROMA 1 7 GI U. 1963 Via Poli, 14 Tel. 663

n . 1 18

~ Spett. Interna t ional B a nc for Recos Lructions and De veloppement (BIRS) -18 18, H Stre e t N. W. WASHINGTON 25 D. C. (U.S. A. )

e , p er conoscenza: Alla CASSA PER IL MEZZOGIORNO Piazza de1 Congress i, 20 ROMA

Ci preg ... amo rim tterVi, qui unit e, n. 2 copie della pubblicazione contenente il Bilancio della scrivente Societa al 31 dicembre 1962,cor r e da t o d e lle Relazioni del Cons iglio di A m ministrazione e del Collegio Sindacale all 1Assemblea Ordinaria eStraordinana degliAz ' onis i d ella nostra Societa, tenutasi il 22 maggio u. s.

Con riferimento alla comunicazione fatta dal Consiglio (pag. 16 della Relazione) circa l'avvenuta emanazione del D ecreto di trasferimen to della nostra Imp1esa all'ENEL, s ignifichiamo che, mentre agli effet t i giuridici il t rasferimen t o decorre dal 2 m aggio 1963, di fatto es so non e ancora a ,,r venuto. E' peraltro g :.a previsto che la c onsegna de i beni a 1 rappresent ante dell 'ENEL abbia luogo nei pros simi giorni.

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DATED

IL nav.uAJ

Ille \Id.Id IRlpp].a.eatiay' ...... t, t.o the :d legal opialaa. In&iartriat P..--.,P• Truportt, Lom

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(eon or bandvritten )

' July 17, 1963

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in with rel r

iberti on ......... -t t

The loan bu 4ur1na tbe la.at T.n,..,_ years

acbeduled l'e?la.vnian1~ Lit. 637 allllon to

Lit. 500 llilliOn,

!be guuanty ot tl\e ibeJ'ti COUl~IY ViU in 1n tuU to ;

• De.ttolia• raonal. t)f Ya\;11,CU. M ral ta~ ng nil •ta- ¥1th a n.1a• ot Lit. 120

m.1111on,v1U 1n tall. toroeJ

Parteno _. • · ,- tn.ot vi th If.

Trtmeporta; n Sye,ta) vh1 lt • tima1*! vU1 t prof1t of ut Lit. 200 ll1ll.1on -.nnuallys

roperty of Dr.. 1 rti •a beil"II repreMnt.t a S1a.n1UV ot only uout !At. 200 Uion..

~~~~!!!•W:~!2· e.rea letter to Caa ntleue ot Dr. 'fibirti•• be11' ' :panori&l gann.t

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IS

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July 2, 1963

Dear Professor Pescatore: /

Thank you for your letter of June 25th (your ref: 5/17182 CF/

PE/MB) informing us that Viberti SpA has asked to be relieved from

the guarantees of the company and the Viberti family in connection

with the loan granted by ISVEDER for the Viberti plant in Naples,

which was subsequently sold to Partenopea Trasporti. Since Mr. de

Alba will be in Rome on the 15th and 16th of July, we suggest that

he take this opportunity to review the Viberti question with ISVEIMER.

We hope that you can make arrangements for doing this without inter

fering with Mr. de Alba's time schedule, as te/tively indicated in

the letter of Mr. Fuchs to you of June 26. ~~ -(-.\ff

With best wishes, ~~ Sincerely yours,

/(}£_ ~ein

Assistant Director of Operations Europe

Professor Gabriele Pescatore l>tesident, Cassa peril Mezzogiorno Piazza dei Congressi N. 20 (EUR) Rome, Italy

iv& Oif" GTorelli/WCBatnn/mh

cleared with and cc: Mr., de Alba

INDIRIZZO TELEC.RAFICO: CASME.Z • ROMA

CASSA PER OPERE STRAOROINARIE 01 PUBBLICO INTERESSE

NELL'ITALIA MERLOIONALE


TRANSLATION

Prot. N .. 5/J1 .. li-?.. .. Posiz. CF/PE/MB/mbg ROM A .. --;r \!_ .Y\.~ .. ~- -~ 1 . . .I.~--~ PIAZZA DEi CONGRE.!151 N. ao (E.UR)

TEL, 91iUitt Allegati .................. ..

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..3GETIO: .... . . .. .... ....... . ...... .. ... .

International Bank for Reconstruction and Development 1818 H Street, N.W. Washington 25, D. C.

Gentlemen: Subject: Loan No. 150 IT - Industrial Projects:

S.p.A. Partenopea Trasporti

We have been informed by ISVEIMER that S.p.A. Officine Viberti, Turin, has submitted formally a request for being relieved of any commitment to gu.aranty the loan granted out of IBRD Loan 1.50 IT funds for constructing the plant in Naples subsequently assigned to S.p.A. Partenopea Trasporti which, on the basis of the concentration contract executed with Viberti, bas undertaken the burden of servicing such loan.

Yiberti has submitted the above request because it has discontinued any participation in the industrial plant in Naples.

Concurrently, the same Company has requested that the heirs of the deceased Mr. Angelo Viberti be relieved of the joint suretyship obligations derivi.ngo/them as parties to the original loan contract.

Both requests by Viberti have been submitted to the Boa rd of Directors of ISVEIMER who, in their meeting of June 3, 1963, have resolved to agree - subject to prior approval by the IBRD and the Cassa - to relieving Mr. Angelo Viberti•s heirs of their suretyship obligations. Conversely, they have not d•eemed

E 0

"' "' Q.

~ in

CASSA PER IL MEZZOGIORNO loglio n . ... ... 2 .•.. .....

it feasible to discharge S.p.A. Officine Viberti from the commitments deriving to it from the guaranty given, in so far as such discharge would involve the decadence of the mortgage lien surrendered at the time of the original contract with respect to the plant in Naples.

We are in agreement with the resolutions adopted by ISVEIMER Board of Directors in the sense cited above, and request the Bank to express, if agreeable, its consent to the ISVEIMER forfeiting the suretyship guaranty given at the time by Mr. Angelo Viberti's heirs on the reimbursement of the loan by S.p.A. Partenopea Trasporti.

With best regards.

Sincerely yours,

for THE PRESIDENT

/s/ Rocco Gullo

(

I

INOIRIZZO TELl£GRA P'ICO : CASMl£Z - ROMA


NELL'ITALIA MERLOIONALE (CASSA PER IL MEZZOGIORNO)

17182 25 GIU. 1963 Prot. N . . 5/ .. ... .... . . . . . Posiz .. .CF/PE/MB/m bg

VI.A .A ERE.A

cltare nella rtspos ROMA ..................... .. .. . .......... . . .

A llegati ............. . ...... .

P IAZZA OE I C ONG R E SS! N . ao (1£U R)

TEL. 9 &91

Risposta a ............. .. ...... . .. . ............... .

deL . .. . ...... ....... .... ... N ... . ........ .

JGETIO : .... J?:t>.e.f3:t.:i,:t.o .. J5.0 .:CT - Progetti Industriali:

.......... ..... ...... S. ~.P.!.~.• ..... P.~.:i;t~~~_pea Trasporti ( ex Viberti)

0 c • E & .. II 0 0 .. I: I

II .. • : .! 1

i. ! II .. ii ::

a Ill • .. Q.

iii

v

Spett. le Banca Internazionale per la Ricostruzione e lo Sviluppo 1818 H Street , N.W. Washington 25 , D. C •

Questa Cassa e stata informata dall 1 ISVEIMER che la Sop. A. Officine Viberti di Torino ha avanzato formale richiesta di essere liberata da ogni impegno a garanzia del finanziamento a suo tempo concessole a valere sui fondi del Presti to 150 IT per la costruzione dello stabilimento di Napoli , successivamente ceduto alla Sop • .Ao Partenopea Trasporti la quale , in forza del contratto di concentrazione di azienda stipulato con la stes sa Soc . Viberti , si e accollato l ' onere del rimborso . -

Tale richiesta e stata rappresentata dalla Societa Viberti a motivo della sua cessata partecip:izione al complesso industriale di Napoli.

Contemporaneamente e stata chiesiB dalla predetta Societa la liberazione degli eredi del defunto Sig • .Angelo Viberti dalla obbligazione fidejussoria derivante loro dagli impegni sot toscritti all 1atto della stipula dello stesso contratto di mutuo.

Le richieste della Societa Viberti sono state sottoposte dall ' ISVEIMER al proprio Consiglio di Amministrazione il qua le, nella seduta del 3 giugno 1963, ha deliberate di consentire7 subordinatamente alla approvazione della :Banca e di questa Cassa, la liberazione degli eredi del Sigo Angelo Viberti dalla loro ob

~ "' "' C.

.i a,

CASSA PER I L MEZZOGIORNO loglio n. -- -2 .. .. .... ... .

bligazione fidejussoria. Per contra non hB ritenuto di solleva re la S.p.A. Officine Viberti dagli impegni derivantile dalla garanzia prestata in quanto la sua liberazione comporterebbe la estinzione dell'ipoteca a suo tempo consentita sul complesso di Napolio

Questa Cassa ritiene di poter concordare con le decisioni prese dal Consiglio di Am.ministrazione dell'Istituto nel senso sopra descritto e prega codesta Banca di voler dare, se d'accordo, il proprio benestare alla rinuncia da parte dello ISVEIMER alla garanzia fidejussoria a suo tempo rilasciata dagli eredi del Sig. Angelo Viberti peril rimborso del mutuo da parte della Societa Partenopea Trasportio

Con i migliori saluti.

/ IL PRESIDENTE

(Gabriele Pescatore) (/\_o~/~

FOIIIM No. 7!5 ( 2°60)

INTEIIINATIONAL FINANCE CORPORA Tl ON

INTERNATIONAL IANK FOR R~CONSTRUCTION AND DEVELOPMENT

ROUTING SLIP

NAME

~~rvli~cd '

-.

To llandle Appropriate Disposition Approval Comment Full Report Information Initial

INTERNATIONAL DEVELOPMENT ASSOCIATION

Date

t/1f/~ ROOM NO.

h~~ ~3/

Note and Fi le Note and Return Prepare Reply Per Our Conversation Recommendation ~ i onatu re

Send On REMARKS vlz~-4{ ~-~d

BJ? ~/YYL.{A,z ~ ~JJ'~ ~ "'tui-v' /S!}-IT

From ~ y ""'1A.. du- ~-

.. . , ...... ~., .. ~ ... -· •

INDIRl~ ZO TELEGRAFICO : cAs~EZ - RO~A •


NELL'ITALIA MERIOIONALE


Prot. N . 5/ . ... 10.Z~ ~osiz. CF!PE/BM/bm d/lJ,re nella rispo::;ta 1 SAP R, 1963

ROMA .............................•.... ... .

Allegoti .. Vari .... PIAZZA DEi CONGRESS! N. ao (EUR)

TEL. 9991

Risposto a

de! .............. . .. .... .. . N.

OGGETTO: Pre.s.ti.to .. .150 IT .. . ......... ....... . Pro.ge.tt.o. .. Ir.riguo ... del Flumendosa

0 1: • E & .. a 0 ~

.. • II.

• .. ! a :: ii a DI ! II.

iii

.. E 0

"' ~ ~ iii

Spett ole BANCA INTERNAZIONALE PER LA RICOSTRUZIONE E LO SVILUPPO 1818 H Street, NoW • WASHINGTON 25, D~O.

A seguito della visita effettuata da Mr. von der Goltz di codesta Banca , nell ' Italia meridionale, si allega la documentazione predisposta dai Consorzi Riuniti della Sardegna meridionale, con un commento di quest a Cassao

Con i migliori salutio t~-

RECEI\IEO GEt\ERAL fl\..~S

coRRESPOllOC'.\C•·

~ f.\PR 22 nM \\: S'l

•

..

INOIRIZZO TELl!:GRAFICO : CASMEZ - ROMA




TRANSLATION

Prot. N . . 5/.... .. .... .. .. Posiz . .. CF/PE/BM/bm ROMA . . . . . . . . . . . .. ... . ...... ... . . . . . . .. .. . .

Allegoti .. ..... .. ... ... .... .

PIAZZA DEi CONGRESS! N. 20 (EUR)

TEL. 9991

Risposta a

del. ... : .. ... ... .... .. ... ..... N . ...... . .. ..... .

OGGETTO : . ..... .......... . . .. ..... . .... .

! I: • E 0

!' II

.! ' :i II .. .! l

.. E 0

"" ~ g iii

u

International Bank for Reconstruction and Development 1818 H Street , N. W. Washington 25, D. C.

Gentlemen: Subject : Loan N. 150 IT - Flumendosa Irrigation Prpject

Following the visit of Mr. von der Goltz of the Bank to Southern Italy , we attach hereto the documents prepared by the Amalga.mated Consortia of Southern Sardinia , together with our comment .

With best r egards.

Isl

Encls/

Sincerely yours ,

THE PRESIDENT

Pescatore

FORM No. 3370 ( 12- 61)

FLUMENDOSA IRRIGATION SCHEME

State of the Feeder Works and corresponding Distribution Canals: Time required to carry out the work.

Date of

Mr.

Room

Von der Golt 7o<3-:B

Date of Total granted commence- completion

A) Works approved and completed

Distribution system in the Trexenta reclamation area; Lot l; 800 Ha.(Project No.3414)

B) Works approved and in course being carried out

Distribution system of the Sanluri estate; 4000 Ha. (Project No.3890).

Supply and distribution systems for the Southwestern Land Reclamation Area; 3,900 Ha.(Project No. 3486).

East-west Distribution Canal (Project No. 4171)

Distribution system in \he Trexenta land reclamation area; Lot 2; 6oo Ha. (Project No. 4496).

South-east Distribution Canal; Section 2 (Project No. 4428).

South-east Distribution Canal; Section l; Lot 1 (Project No. 4497)

South-east Distribution Canal; Section l; Lot 2 (Project No. 4568).

in millions of lire ment of work of work

1RANSLATION SECTION 321/63

Translated From: Italian 3/25/63 By: JHH: sge

- 2

Distribution System to serve the A and B Districts of Saniassi; 1,800 Ha. (Project No. 4881).

C) Projects being investigated

Distribution system to serve 4,6oo Ha. located below Monastir; (Lot 1).

I

D) Projects in course of preparation

Distribution system to serve 5,300 Ha. located below Monastir (Lot 2)

Distribution system for the region bounded by Nuraminis, Villasor and Serramanna (4,000 Ha.)

Swnmary of Areas Served by the Distribution Systems

A. Works approved and completed B. Works approved and in course of being

carried out C. Projecttlbeing investigated D. Projects in course of preparation

Total

June 63 June 65

October 63 October 65

May 64

800 Ha.

8,300 Ha. 4,6oo Ha. 9,300 Ha.

23,000 Ha.

May 66

- 3 -

KEY TO MAP 1

Autonomous Corporation of the Flumendosa

General Plan of the Campidano di Cagliari Irrigation Scheme

Olive-green - Area covered by irrigation scheme (95,ooo Ha.)

- Principal irrigation ~-(b-.l~u-e-)~- channels

______ - Channels for pressure irrigation

Dark green

(blue)

........... (blue)

-(.,...r_e_d.,..) --

(green)

- Area irrigable with water from the three reservoirs of the Flumendosa.

- Tunnel

- Syphon

- 10 Kv electricity transmission line.

- Watermain

( Area covered 63,000 Ha. ~----.:( Area irrigated 41,000 Ha.

- 4 -

KEY TO MAP 2

Report on the State of Progress in August 1962.

(As for Map 1 wi th the following additions)

-(,,_r_ed':"'r)--

Green with diagonal bars

- Irrigation channels under construction.

- Land r~clamation area with works financed by CASMEZ.

Light Green- Area in which Cassa first intervened -not financed.

Yellow

Green

- Area proposed for financing under the ''Rebirth of Sardinia I plan

- Area proposed for financing under the Development Plan.

f

,, SCHEMA IRRIGUO DEL FLUMENDOSA

. Si:tuazione delle opere di distribuzione e relativ.i. .. canali ripartitori: tempi di attuazione.

A) Opere concesse ed ultimate

- rete di distribuzione nel subcomprensor~o della Trexenta 1° lotto Ha. 800l(Frogo n.3414)

B) Opere concesse ed in corso di esecuzione

- rete di distribuzione nell'azien-da di Sanluri Ha. 2000 (progo3890)

~- rete di adduzione e rete di distr! buzione peril comprensorio sud -ovest Ha. 3900 (prog. n. 3486)

- Canale ripartitore est-ovest (prog. no 4171)

- rete di distribuzione nel subcomprensorio della Trexenta 2° lotto Ha. 600 (prog. n. 4496)

- canale ripartitore sud-est 2° tronco (prog. n. 4428)

- canale ripartitore sud-est 1° tronco 1° lotto (progo n. 4497)

- canale ripartitore sud-est - 1° tro~ co 2° lotto (prog. no 4568)

- rete di distribuzione a servizio dei distretti A e B di Samassi Ha. 1800 (prog. n. 4881)

Importo con Data inizio cesso in m! lavori lioni di lire

299

336

lo213

2o4

931

779

505

16/7/60

8/11/60

15/11/60

20/4/61

12/8/61

21/10/61

28/10/61

15/11/62

31/10/62

1R~NSL~1ED

MAR 2 6 1903

\.B.R,D,

- . . .. ' ..

Data ulti mazione lavori

27/4/62 ~

8/7 /63 .;

14/5/63 /

20/6/63

11/4/64

20/10/63

27/10/63

14/11/64

30/4/64

./.

C)

D)

A) Cd). @I

- 2 -

Progetti in corso di istruttoria

- rete di distribuzione a serYi-zio di Ha. 4.600 posti a Valle di Monastir (1° lotto)

Progetti in corso di elaborazione

- rete di distribuzione a servizio di Hao 5.300 posti a Valle di Mo -nastir (2° lotto)

- rete di distri'buzione per la zo-na compresa tra Nuraminis,V:ilJ.asgr e Ser-ramanna (Ha. 4.000)

Importo px,ogetto milioni

2.624

2.500

1.700

Data presun ta inizio lavori

~ o63

& ottobre 63

Ar:y maggio 64

Data presunta ul timazi.2, ne lavori

~iugn.o 65

ottobre 65

maggio 66

Riepilogo zone serVite dalle reti di distribuzione

- Opere concesse ed ult:il:m.ate Hao 800

- Opere concesse ed in corso di esecuzione 11 8.300

- Progetti in corso di istruttoria " 40600

- Progetti in corso di elaborazione "

T·otale Hao 23.000

==========

CASS.A ~ER IL MEZZOGIORNO

Agricultural Division Planning & Programming

Office

M E M O R .A N D U M

Subject: Flum.endosa Irrigation Project

TRANSLATION Pd.P/mbg - 11.4.1963

Rome, April 10, 1963

We attach the list prepared by Southern Sardinia Amal~ mated Consortia, following a specific request by the IBRD represe~ tative.

In that connection, we deem it proper to point out that part of the elements included in the list reflects works which, at present, are not included under the Flumendosa Project. The reservoirs on Rios.Cosimo and Rio Lanessi fall within the irrigation district, but require further and deeper studies, and are not yet framed within the overall scheme.

It does not appear appropriate, therefore, to include them in the list for the Bank: we have marked in pencil the lists giving the amounts that, in the Division's opinion, should be considered for the I:m.D examining the overall picture of the subject project.

In that respect, we inform that shortly a historicillustrative report will be submitted on the Flumendosa Project, showing the planning development and the status to-date of the in vestments made: together we will also submit the eo:>nomic ana- -lysis based on the new project, as requested by the Bank represen tative. -

/s/ Nicola Fenicia

SERVIZIO BONIFICHE E T.F. Ufficio Piani e Program.mi

Roma, 10/4/1962

PD/tl

PROMEMORI

OGGETTO: Qomplesso irrieJJ:o del Flumendosa ~

Si trasm.ette l'al.legato elenco approntato dai Consorzi Riuniti della Sardegna Meridionale a seguito di specif'ica richiesta del Rappresentante della B,.I.R.s ••

In merito allo stesso si ritiene opportuno far pr~ sente come parte degli elementi compresi nell'elenco vengano ad interessare opere non facenti pa.rte, allo stato attuale, dello schema irriguo del Flumendosa•o Gli invasi a cui si allude inf'atti, (sul. rio s .• Cosimo e sul rio Lanese:i) pur ricadendo nel compreneorio irriguo devono ancora essere studiati a f ondo e se del caso inquadrati in tutto il complesso1

0

Non sem.bra quindi opportuno 0 in questa sede f'arne menzione e pertanto si e provveduto a segnare a matita sugli elenchi stessi gli importi che, a parere di queato Servizio, devono essere presi in considerazione nell'esame panoramico che la B.I.RoS. intende eseguire per 11 complesso in questi2 neo

A tal proposito si fa presente che entro breve saira trasmessa una relazione sto~ico-illustrativa dello schema Flumendosa indicanti gl.1 sviluppi del piano stesso e la si~ zione ad oggi degli interventi eseguitia unitamente sara anche inviato lo studio economico risultante dal. nuovo piano c,2 me appunto richiesto dal. Rappresentante della B.I.RoS•o

~ CAPO UFFICIO P.Po (Drro Nicola Fenicia)

- COMPLESSO I RRIGUO FLUMENDOSA -

- OPERE DI cor,IPETENZA DELL' ENTE FLUMENDOSA -

(~ f rue rA {k,t J t_g__Q.Ah.,__0__ PIANO DI ESECUZIONE DEI LAVORI ------------------------------

A) Serbatoi principali X - Flumendosa~ /Jta_(M, ~.JeMch ?:J

X TuIDLARGIA

Y. FLUr INEDIU

- MOGORO

FLUI,:INI M:.ANNU

SIMJ3IRI ZZI

- FLULIENDOSA-TuIU-

Costo

9451

5041

Avanzamento al 31.12.62

100%

5400 /9/Jf ~ ---- ---600 J

2400 v ,, 2290 f)fo_ ---

C) Gallerie 7 tu<. u ~ r_;; LARGIA 2724 ~ 100%

FLlTI.~INEDDU.,.FLU 1'1:ENDOSA 1700

µq:'<r f{Z_fr C~t {~-l'-<r:-d! di derivazione 4209 , !l,3':J 100%

D) Canale adduttore e opere connesse

~ · ,"[email protected]..., U1.?~-,

E)AL.~Centrali i .dro,F3lettriche \ ., 7d,,to-< G:e{1.c_ t I &-ulc-1 /fi?~lu~__,

F) Rete irrigua - 10

.~ ,1J t,{ tlH-t /_ 10t-<-

A/o/--(.,(} o t 1z__ 2°

G) Fasce frangivento

fw rA~t -tVLl? a kj It..{! 10 ,C(!PI 1

4265 v'

(Ev 100%

90%

intervento ( h.:i. 9015) 9000 30%

intervento (ha.?21,118)

14· 'Jso 15000

intervento (ha.22680) 22000 1tt!JltJ ---intervento (ha.15355) 15503 ~ ,,,.-a 3 ---

~ l?QO intervento 720 intervento 1210 intervento 1830 intervento 1240

!)"'() (} ~

Data di ultim.azione

1958

1958 115'10

1'j~8

1'31~ \'375

1964

1965

1967

1971

1977

t~("5 1~6,Z: -,~ "f-1 ~~11

r

H)

--(I ">- , • <./ ..,... : f -I e >/~A t.Lw) ,_/a~ ·· f , /.ud cti-<r V W, iC(' -

,( - srerimentazione irrigua 1320 21% Assistenza tecnica 6825 1% Riordino fondiario 3400 1% Studi agropedologici 713 15%

a,lr, ..,

S) I.a cl)~ c( /~~A.ft; ~ C:,{) //-.<-c/v.P l t-~

4/ f/;?Aj_fPd~(;(~ /-tvvt/C'f J

197 1977 197 197

2)

yfLOJi-.ANNO

1962

1963

1964

1965

1966

1967

1968

196j

1970

1971

1972

1973

1974

1975

1976

1977

1978

1979

- COMPLESSO IRRIGUO FLID,IENDOSA -- OPERE DI Cor.LPE TEN'ZA DELL' ENTE FLUivIENDOSA -

? l\.,,Cq AA.V..~-l- ~ t1 I\J\.A ~ o..v.. fl.!,1" iko fn .w..tZ:-t-

PROOO.AM:rvI.A DI~ VILU ~DELL I IRRIG.A~IONE

Co A(,c ~....o t <V\Jl,Q..

Superfice .

dominate ha

1780

6330

9370

13870

24170

36870

45590

58113

65863

71763

77563

78563

83384

86884

92384

95384

l ~ · fA,A.t, 6 superfice irrigabile

ha

412

4114

6090

9015

15750

23965

29634

37773

42810

46645

50416

51065

54200

56474

62000

H:;,l~K "4 t).,ll't (_/' Suerfice <J effettivamente irrigata ha

200

1000

1700

2500

4000

10000

15000

25000

35000

40000

45000

47000

50000

53000

58000

60000

61000

62000

( ~fe - COl::PLESSO I RRI GUO FLUI T:El'l"DOSA -

STIMA DELLE OPERE

ti~ - m.ilioni di lire

A) Serbatoi principali ~u ~o<~

B) Serbatoi secondari gu.ct.L l..,.,1.-""( ,'(.11.~e.t

I

C) ~ftlleria t<..(/1..A 1u e.J) d/., f f!A/J l I (Au a t uiv-.4 fk,((7

D) Canale adduttore e opere connesse

~oe ettriche f~ ./- ,I

1-vL ... ·'."!,.. ~Q'• '1.~ fc.J0t/'5. - ~ ~ C.,. .. -..i.,;;J<. F) R .;t . . l canali -principal1 ~ e e 1 rri gue ~ n · 1 1· ,J__ , ,.., •

canali distri bu tori oZ• \ '<.I •. ,,,oo • ... c

G) Fasce frangiv~nto u5t·il ... ~i"J 1U.:.J .. f- ~ l~e.. t~l f5 Fv ~ e. I t t ~ µJ ' \. ' r !., J ,...~ -r fl e 'l ,, ...e ~ ·') 1 c~· U'l J 1 .

H) Sperimentazione irrigua , assistenza ~~ 1 ~

tecnica , e riordino fondiario , studi 1 "'IA) "'/" K. io agropedologici

TOTALE

19 • 8 9 2 ./ + 3. !:t2 7

5. 290 ./

8. 633 V

4.265./

.,,_§ .-500 I 22.127i

39 . 376

5 . 000 V

122 . 341 I

& f, ,f{Jj

COMPLESSO IRRIGUO FLUMENDOSA

- STIM.A DELLE OPERE - f ~ ( · ~e v{ G,-.::H ... A<. S

~~ · · o.u i~.., waJ4» I -~ . I ~",\. ~i~ s-0,15

Irrigazione con le acque dei

( C--0"""'- .... --<lJv..O( . t ~) (_ lilt ' ;e a,t~ )

I •

serbatoi principali -(superf.dominata 63.000 ettari) (ettari irrigui 410000 ettari)

~II.A (l~e....zro,r1.s A) Serbatoi principali 190 892 /

~e (:_,:) it.....ol.o... ~-v I '

B) Serbatoi s condari

80633 v'

40265 ,/

0 ) Gall eri e I i..v4 1\-l el\, J.. (J/ZAA~ Ca..tt tlu.,J 1.tf~ v,~

D) Canale adduttore e opereoo.nnesse 14y ol'-<'el.t dl\.11! pv - 'I.. ~ ~.:+~

E) Centrali idroelettriche [ 5o50o] .J

F) Rete irrigua l ~ r4"""t·ov ~1 e..-i(.:l"'LK 40. 672 v

30300 ./ G) Fasce frangivento Wi~~C::if ~~ A~-\,o" .t,-0 ·140 J I" e/!..

H) Attivi ta complementar· f,,,.:~.t .-...P.,\t-di pubblico interesse 80140

T O T A L I

~o .nA. o u ~'-/' vS-o..-..P ~ /' ~1.. r ¥~ LJ) u.foL;µ, ,v1..i.,...\u o, 't--> Irrigazione con e acque dei

serbatoi secondari (superf.dominata 33.000 ettari) (ettari irrigui 210000 ettari)

5.290 ii"

20. 831 ./ 61.S'03

1. 700 v

4.118

Sub-totali (A+C+D+F) =

900402

730 462 (B+F) =

31.939

260 121 ~ ..

(in m i l i o n i d i L i r e )

- COMPLESSO IRRIGUO FLUMENDOS! -

1/vt!lV,-v; ~ i,.r, ~ Opere di competenza dell'Ente

zy~ o~,~ ~ ~AA,\ o-" (2,tHHJ ~ . . ~/~{ ~~ liu)..wo'Vrl' t:f t ~ct•'~/ olw~~ ~,, ~ . ~. ~~~ ~

Piano di spesa (relativo ai 62.000 Ha;.1 effettivarnente irrigati i comprendente: invasi, canali adduttori, rete di distribuzione e fasce frangivento)

I

1141.,u .. Anno Spesa Tot ale Wj "'=, J , ; lhPn - fJ~.A'..!..S

1952 1953 1954 1955 1956 1957 1958 1959 1960 1961 1962

1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977

716 1.013 f.355 2.718 4.704 40855 4.246 2.217 10128 1.042 2.959

3.552 3.303 5.275 7.085 7.565 7.019 7.689 6.317 6.185 6.121 3.999 3.~85 3.546 3.376 2.513

To tale £.

27.953

760630

J@ .. ~g3~ ------------------

Tab. 1

CONSORZI RIUNITI DI BO IFICA DELLA SARDEGNA RIDIO ALE =================================================---==----------0---------

r~ ... t:l..os"- I ~q~"'- ,.,_.,,.;, ·~c.,-""t- • CO LES O IRRIG O DEL l!'L DOSA a ti ---------------------------------

OPJSi-ili JJI COMPETENZA OONSORZIALE w.o'"&.--K 5 F" "",l,;d...,-{J....._ C, ..... St1~ ~ (o-- - ~j. . u{.wUt.h. - - - :V\..'.;~ --i:_:-.:_--~5;:_;;::_;--

1:~-~ r~ ~.ca- c..,~Jod~t-

(su Ha. 106.000 di cui 90.000 irrigabili rrcon gli invasiVprevisti dall'Ente Autonomo del Flumendosa • e Ha. 16.000 con gli altri invasi previsti dal Consorzio) (•) ~ - - - ,- ~~ ~ V.~Vw V\. \ ~4'.. ~ ~~~

STIMA DELLE OPERE -c:;~~--~s:~~-~oJ=-~ '1" (C<>--SS<>-

milion(l di lire .,:~<llL~ A)

B)-

' N-SVzAT<,-Vv?

SERBATOI (Rio Leni - Rio S.Lucia - Rio S.Cosimo - Rio Lanessi)

' ~ GALLERIE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . M ~ ; .. ,.:vv-- >~.J~ "'°~ ~ ~ ~ss~ LJ""C9--~S

C )- CANALI ADDUTTORI E OPERE CONNESSE ••••••••••••••••••••••••••••••••••••••••• M.~ ~5

D)- ;;;;7"~GUA )c7:~~ princ~ ..•••...•..•...•..•..•...........•.•.•.•••.

~ canali se ondari •••.•••••..•..•..........•...••......•.•••• '!)~ ~ w~ c..o ..... ~ ..Jt>'L1e.5

E )- OP 'RE DI SIST ZIONE IDRAULI CA ••••••••••••••••••.•••••••••••••••••••••••• [)

F )- RETE DI ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• R. '9-... ..,,.'! \"'-.

G)- RETE STR.ADALE •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• 1 . i • A, - • O · 0 .J:;; , I • ,r '"'V \""-i'\, ~ k ~ V'VL ,...._,

H )- FAS CE F~ G IVEl'l TO • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • ~ ~

I)- ACQUEDOTTI URA I ••••••••••••••••••••••••••••••••••••••••••••••••••••••••• ,~.s~).$t~""- .. P..,.:~_s

L )- ELETTRO])Q TTI •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• Svw,·c..L J1·~.s

M)- CENTRI DI SERVIZIO €~ ~·~tr ,(.L;;;.. ~~~ ... ·~c:;~~ ;~ tZv:: .. -~~·;.:,-a·~

N )- SPERIMENTAZIONI - AS ISTENZA TECNICA - RIORDINO FONDIARI ( ") •••••••••••••

::,

900

)..--400

§...840 ..

_lg..-720

21.200 -----

_.5-.-300

710

-500

~

~Yi?

4 ()(J

3.4 0 .

.,{3oo

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

NOTE - (I)

m TOT.AiiE • • • . • . • • • £. ~ 6h.f5"0

Tra i serbatoi previsti dall'En.te Autonomo del Flum.endosa e compreso quello su1· Rio Flu minimannu, l'utilizzazione delle cui acque a scopo irriguo e"°previstQ.nel piano genera= le del comprensorio di bonifica della Ma.rmilla, in istruttoria presso i competenti or~ ni dello Stato, restando impregiudicata la competenza per la realizzazione dell'opera.-

(11) La previsione di cui alla lettera N) e riferita: per quanto riguarda la sperimentazione ai 16.000 Ha. irrigabili con gli invasi consorziali; per quanto riguarda l'assistenza tecnica ad 81.000 Ha., di cui 65.000 irrigabili con le acque del edio Flumendosa_e non coperti dai nuclei attualmente concessi all'En.te Autonomo del Flumendosa dalla Cassa peril ezzogiorno e 16.000 irrigabili con gli invasi consorziali; per quanto rigua.rda il riordino fondiario ~106.000 Ha. comprensivi di quello relativo alla Trexenta gia in corso di studio a cura dell'Ente Autonomo del Flumendosa per incarico del Consorzio di Bonifica interessato .- . _ , . t.....· 1 OJV'-

• ~ - o . . . -•··A~ · ~~ ~ ~ ~o t~~~ ~~~..A &.J ~ (,) \ ~ ~ ~ r-~ ~L\A- \,1\/\,.·~.,,A. --J.- '\..l.~ .i{ tw. M~rJ-.:~d:j ~ ~·~ ~ ~ ~ ~ ~ ~~ ~. o-~.:;,:.~ Lr-~ c..o-r,.;:tt-.c.c.. l.......- J~ C.0"':S,~..;,-s~ lY"'I ~ t-0""'"\'t:rt.&A.t ~~~ ~t$1 c.J~ yt ,o-. "' c,.,ol., ·o· f r 'o ~ -

- d V)tv . ·• ·1111.i ~ .... ')} L p \fVIO PRES, EN, { ¥~-~~r ~ · ) L,... - eJ:- ..J ~ ,. 'J ·~ tr' ,c; .o.1.,., l.°'- . t ~ ~

( l ) eocr ~ · ~ ~ ~ r{ )'\.Vr- ~ : """' .\a..~ Vt -1,Q , , • .:), ,~\ ,-i / '-"(_~ • .,/ • ~ ...J :te "1(..e,l,.',.___ tR..,WU,.w ~.J'4, l. ' ..)A~ t'\...l.~IYt"-$ • .:... "-2.t>re. { t:'4,.,~~ ~~<.LI ts- 8 I 'J., N n "1' • - Co r;, "v ~J ~ 'u.- ~ . c..

~ "'- ~., l n v " ~ 1 ~ 'tJ.u'. t,\..\f,u..5 :{ A-$~·l """te.. Nv..,~ ~ ~ "F s~ • ~ d Jo6 0,)~ h~ c' .... ~ .... 'if"/ w-~~ ~O"- ....... ~ fJ -- - • • • ~ ~ ,- .J J....i ~ \J s u~ t,..I,',.,~ aJ ~"-'\.v""') '-'O ~ , (J Ov..,..J.._ \ b,uv<> i:~~ JL,.,,_ Co .... s.t-vC... ~ ~ o""" .~,; ~ A.A~ ~ ~ .iY'-4. -u,.,._ i"-4-.k~ Ci i.--saiti'~ . ~ Tu..x:~ ~~t.t T'~ 1- -c, "F~ ~ a... , (J"'"""'-~ · - o-

Tab. 2

CONSORZI RIUNITI DI l30NIFICA DELLA SARDEGNA MERIDIONALE ======,-::'=------===============:=w-========----================ ---------0---------

COMPLESSO IRRIGUO DEL FLUMENDOSA

~~· J~·~ f'~J~L!,K"' Wo'"l.,ILS ~ ut-·~ Co~~o~ o..,...t.. c:;(.C.\,t~r~

-----~--~---------~-----------~~-eo\1\.-~-r~~""" 5~ OPERE DI <X>MPETENZA CONSORZIALE ---------------------------~---

PIANO DI ESECOZIONE DEI LAVORI

?l f { (.8.. t ~"" 1\,1.-» -=----~~-~-~---~----~~- =--===========================================.=== -~=====--=========== ==-=-11 - COS~/ - 1 AV.ANZ.AMENTO I DATA DI 1r

( -~-' ~ I I . ti 1111 ~ ,, ~ . . .-...tlA ---~~-!~~! ___ j _~!! J!:!~=~~-1-~!~Z!Q!!~-·U I ~~:>VVV V -/' o..,j l)u. \'>I' ,36-v 1).~.;Ca. :. ~~.u,,:

II A)- SERBATOI: It

n,, Rio Leni . ·• . • • • • . • • • • • • • . • • . • • • • • • • 2. 800 19 66 l,·1

ff Rio S.Lucia . . • . • • • . . • • . • . . . . . . . . . . . . . 2.100 1967 11 fl Rio s. Cosimo • • • • • • • • • • • • • . • • • • • • • • • • • • ~ ~ If '~I I~ Rio Lanessi - ; • • • • • • . . • . • • • • . • • . . • • . • • • ~ v ~ 1,1,

:B)- GALLERIE: I Rio S. Lucia • • . . • . . . • . • . • . . • . • . . . . • . • . 900 1967 U

11 M I •

1111 OA'.-1,,. µ.vu... t'l"' ~ ~ ~ u...ss~

I,' C )- CANALI DUTTORI E OPERE OONNESSE: 'ti

Rio Leni • • • • • • • • • • • • • • • • • • • • • • . • • • 900 1966 11 R1· o s. Luci· a 600 1967 11

1 . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Rio s. Cosimo • • • • . • . • • • • • • . • . • . . • • • • • • • ~ 11 I Rio Lanessi • • • . • • . . . • . . . • • . • • . . • • • • • . ~ H H \ rv"\A'~ ·v..i1~~ ',I HD)- RETE IRRIGUA ALIMENTATA DAL: II Rio Leni •.•.••••••••.•••.•••••..•• 1968 1,1

u R S . II

io • Lucia • • • • • • • . • • • • • • • • • • • • • . • • • • 1970....,,,. f,f l l Rio s. Cosimo • • . . . • . . . . . • . . . . • . . • . • • • • • 1

Rio Latie ssi • . . • • . . . . . . • . . • . • . • • • . . . • . U 0 ~ - t v>~~~~t.. fl

I E )- SIST . ZIONE IDRAULICA. • • • • • • • • • • • • • • • • • • • • • • • • • • 1 38% 197 3 JI

\) ~"'"' ~w~'°\-·~ : H F )- RETE DI D~O: , '-- ,...__ ~· .. ,._. __ JI':".., Lt....,,,,. , ·o. . . I H

I'-' Tt.i: '-N"v-. (),,.~<;;JI.. ~·~ o- ·· : ~ ~ 1, 11

II a) nel com:p • irrig. con gli invasi :previsti u

dall 'Ente Autonomo del Flumendosa 11111

10 . t t I ,5,t:" ~ Lc:t,·~ 11\r 3 500 0 4aL 1965 II - in erven o A • • • • • • • • • • • • • • • • • . • • • • • • • • • · • , ll1 I, IJ - 20 intervento l."' " .......................... 5.000 1967 t

I - 3° intervento 1t .''......................... 6.500 1971 1

1

1 - 4° interven to t..( ': • • • • • • • • • • • • • • • • • • • • • • • • • 3. 000 1977 wJA- t'vv-' ~

b) zona ir ig. con le acque del Rio Leni l'\.t.{~·Y. • • I zona irrig. con le acque del Rio S.Lucia ••••••

I zona irrig. con le acque del Rio s.cosimo ••••.•

I zona irrig. con le acque del Rio La.nessi ••••.•

li G)- RETE STRADALE: ~ ~J~

1.200 960

ll dall 'Ente Autonomo del Flum.endosa . • • . • • • • :f. t-) H a) nel com:pr. irrig. con gli inva.si previsti l su ;

~ b) zona irrigabile con gli invasi consorziali ":'. ~ \>)

I I I I

~ - ~~~I 10 0 _1..-'frlfO !

H)- FASCE FRANGIVENTO: 5~~4 zona irrigabile con le acque del Rio Leni ' •••.• ] zona irrigabile con le acque del Rio S. Lucia .~ . ) zona irrigabile con le acque del Rio S.Cosim . t:~/ zona irrigabile con le acque del Rio Lanessi •••••

fl I )- ACQUEDOTTI RURAL!: ~ °"4~c:Cs 1

210 168

~ II a) nel compr. irrig. con gli invasi previsti I~ )f I II dall 'En te Au tonomo del Fl umen do sa •••.•.•. i,;;.J.."") I 4. 5 00 H b) zona irriga.bi1e con gli invasi consorziali • • • • I 4 oo ~ II I H L)- ELETTRODOTTI: t~_s...-..;~s:.o"" t .. /~ I II a) nel compr. irrig. con .gli invasi previsti J ~--) 11 dall 'En te Autonomo del Flumendosa •••.••••••. ~ • ) 1 3. 150 II b) zona irrigabile con gli invasi consorziali ~ .l> I 1 SO ~ I' M)- CENTRI DI SERVIZIO: 5e,w,u. If;~ .µt. ! i

a) nel compr. irrg. con gli invasi :previsti ~ ~ ~ ) dall 'lm.te Autonomo del Flumenaosa N° 8 • . . . • • b 1. 200

I b) zona irrigabi1e con gli invasi consorziali N ° 2 I -{ o o _JQ6" I ' t,...o . \.1~ 11 N)- SPERmENTAZIONE \ •••••••• ""' ••••••••••• ~e--, -~ JI ASSISTENZA TECNICA j . . . . . . . . . . ",t~ ~ 2E--

RI0RDINO FONDIARIO • • Y. • • • • • • • • • • • • • • • • • • • • • • • t ~t. ~8

16%

o, 1%

1971 1971 ~ ~

1977 1977

1968 1970

~

197'7 1977

1977 1977

LU I-z: U,J

0 er., ~ 0...

~ II

I' ,I II

H fl

·II n ll II II ti II n II II II II H II II lk II I

'

CONSORZI RIUNITI DI BONIFICA DELLA SARDEGNA MERIDIONALE =====:=:I::'..:..=========---==--======--======== ---------0---------

COMPLESSO IRRIGUO DEL FL~DOSA ----------------------------------OPERE DI 00:Ml?ETENZA OONSORZIALE -------------------------------

PIANO DI SPESA

(in milion <l-a lire)

r ~ T v.J~ r'"""ci._~ c.S~ ~ w-L·et- Co~so~ ~ ~ ~r-t.:t:

Tab. 3

r;::~---- ------------------------r1g51 I - ---r---r---r---r--:-y---r--~r----==r-----.-----------T-----~----T-----r--- -, --r --T--=t==--¥---------------

r:"::=' _ _w.~~~ ~ ~~:~-=_J ______ !2~~-1~:: ~:~ ~:~:~~= ~~:~:~ ~:= -~::_ -~~~-:-~:~_!_~::_ -~:~- -~:~- -~~=- -~~~-1-~~~- -~~=- -~~=- ~~~!~~: -~~~- -~~11 1 A)- SERBATOI • • • • • • • • • • • • • • • • • - I - - - - - - - - 1.000 1. 700 1. 500 700 - - ~ !,-080 1 - - - 1 I I I 11

B )- GALLERIE • • • • • • • • • • • • • • • • • 1 300 300 300 I 900 ,I I ,

C )- CANALI ADDUTTORI E OPERE I ..(. 5'00 I, I OONNESSE • • • • • • • • • • • • • • • • • • 300 500 500 200 -45'()1 ~ ~ ~ II

- -A ! ,v~ 6 ,91 I D)- RETE IRRIGUA • • • • • • • • • • • • • • t 800 1.572 1.800 1.340 700 700 I ~u I ~ i II E)- OPERE DI SISTEMAZIONE 380 I 1 1 -11. ooo

IDRAULICA • • • • • • • • • • • • • • • • • 1 .832 488 287 211 308 700 700 700 700 700 700 700 '7~ .. ~ -1 - - J.2.q I

I 1 ~ vi 1 ~ i ;FJO i t o 11co I 491 499,758 846

2.165 ~

1

\,f.11.000 1,~llrl'! 500 500 •· ~ F)- RETE DI DRENO ••• ••••• ••••• 10 1.350 11.0002.500 12.500 12.165 2.165 2.165 ;r"'i

I I 2S'O 2.if I }fJJ.1

8 .800 I G )- RETE STRADALE • • • • • • • • • • • • • 392 26 95 80 61 800 I 800 800 800 f 700 700 500 500 ..500 ~ !350 1350 ..,PAd\.T! ~

I 35 - '105 1.000 I

I 78 141 1252 560

>_?..) s-o so so , '?'o ~o JI J I I I 31-i _ 11

I H)- FASCE FRANGIVENTO • • • • • • • • • 2 1 :J':f ! ~ ;;pj" ~ :J1J" ';pJ ~ 1 - t - - 1 ~ I I S-20 I /y ·C/00

I)- ACQUEDOTTI RURAL!......... 100 200 200 460 460 46014601460 _.9,20'i 5 2 1 39

200 460 460 460 L)- ELETTRODOTTI . . . . . . . . . . . . . M)- CENTRI DI SERVI.ZTO ••••• •••

I SPERIMENTAZ NI ! 1 N )- ASSISTENZ TEW I CA f.1:\ .f . II RIORDINO ONDIARIO II i='~ S<l ~~

Col.t,. ~ ~t.R..

20 - 4 6 1 3 150

~ I I

1So 1 !ti.lo lo ¢ 326 300 300 250 250 .20012001,.200- j.0d"

1-1.S-~ I ~ ?.oc:> 300 300 250 250

200 200 200 200 ~~ I I I I

~~ pr1 ~ ~

3 .400 ~ f' J t,-0

~

:38 I I I I I I

I I

I I

TOTlLE •1 •••••• £. i-;;~~--- J

I II I II

6ij ~50 ~·

IL PRIMO PRES\DENTE

I

~~/&~

Record Removal Notice File Title

Power Agriculture and Industry Project - General Development - Italy - Loan 0150 - P037416 -Administration - Volume 4

Document Date

1959; 1962 Correspondents/ Participants

Subject/ Title

Document Type

Maps

1. Ente Autonomo Del Flumendosa Cagliari, Piano di Massima per La Razionale, 1959 (map)

The World Bank Group

Archives & Records Management

Barcode No.

1854145

2. Ente Autonomo Del Flumendosa, Piano Generale D-Irrigazione del Campidano di Cagliari, 1962 (map) 3. Ente Autonomo Del Flumendosa, Piano Generale D-Irrigazione del Campidano di Cagliari (map)

Exception(s)

Additional Comments

Oversized format too large to be scanned. Originals are available for re.search in the WBG Archives Reading Room, Washington, DC.

The item(s) identified above has/hav_e been removed in accordance with The World Bank Policy on Access to Information or other disclosure policies of the World Bank Group.

Withdrawn by

Sherrine M. Thompson

Date

August06,2018 Archives 01 (March 2017)

I should 11k your letter of

nts of Part ncpea Traapo

rt let r

uatio.n of S • o ol1, we

!or ther info tfon

I houl

and th 8 8 •

GTorelli/mh

Cleared with and cc: Messrs. Ba.um Kreuter Sella

pr il ll, 1963

l 3,

in:cerel7 70 a ,

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

Protessor Oabr.S.ela Pescatore Preeident,, Caasa peril Mez~giomo Piazza de1 Congrea.S. N. 20 (t.1JR) Rama., ltal.T

Dear Pro.f'eaaor Pe1cat.ore1

~ -~ ISb

April 9, 1963

We have been reviewing the infonnation submitted to the j\ank with respect to induat.rial borrowrs under Loans $0-IT, ll7- rl',

vl50-IT, 189-IT and 224-IT, and we "Hould like, 1n this connection, to make soma obsorvationa on the roport.ing requiremonts ot the ccr.panies covered under t.he above Loans. We al.so reter to Mr. s. R. Cope • s latter ot April ) 196.3 on ratio specifications.

Reporting re(lui.rementa !or industrial bon-owers whose proj octs are in operation have been agreed between us in the past. With t.i.e exception ot the Trinacria project, which ,dll be co.,ipl eted in t ho near tuture, these requirements now apply to all industrial borrcr.-rors undCZ" Loans SO-IT, ll7•IT, 150-IT, 189-IT and 224-l:T~ It seems ur;e.tul, therefore, to restate these requirements 1n order to ensure that t>.'O are 1n agreement, u to the due dateu and content ot the reports to be supplied. ·

Two reporta should be aubr:litted tor oach borrotYcr : an er.nu.al operating report, (green paper) and an annual financial s tate~ont (balance sheet, and profit and losa statement) both coverins the COTnpany•s tisca1 ;year. The operating report. should be 1n the Dank ' s posceseion no later than three months after the close of the 18Dr• and the financial et.ateniant, no later than six months after the close of tho fiscal :,ear it covcrs. U it 1e expected that a report will not be available by the due date, the Cassa Dhould 80 :1nt'orm tho Bank and indicate when we M'1' expect to receive it..

So tar we have received this 1ntcrmat1on regularly but rather late and ve are 1D poesession ot allot them. with two except.tens: SIL under Loan ll 7-IT and Cemcnterle d1 Augusta under Loan 150-IT. Their lat.oat financial. atatementa in our hand• an dated June 30, 1961. ily thu tw, t1nanc1al atatemente as ot June JO, 1962. hould prosuma.b~ be anUahle and• it ao. w abould appreciate 7our arranging to have tha Hilt. '° •. . ~ ~ Z:.,"2.-l-\

~ ~ ~ "' ( '

: 1.' ' . . .... f,

.-,.. \f<-4 ~ s-tJ '

I ) . Rt

- 2 -

April 9, 1963

To pomit. comparison or l inanoial reaulta in uuccesdw yo:u-o, tho f'iDancial. at.ater..ents hould be presented in the sario torn ch yc;rr, a."'ld no~ 1nf'omat.1on should bs uuppllod to rwce it poaGible to dotormine llhethar the apecified ro.tiou have been achiovod. A ctar.1ard f orm that. might, bo followed by each comparq 1a at.tac:hod; ti'.c form ey, ot course, be moditied, but all the item.a ahould b supplied.

An explanation ot tho important tea.turea ot t h :tinancial. statement• should bo attached.. No~, the report to the shareholder s a.r.id the Auditor'• Report and Certificate should auftice. However, i.t theso documents are too concise, u has eometim.ea beon th case in the past, the company ahould aupJ>J.1' all nace1aary aupplementary in£ol"t!'.ation.

We should appreciate it it 7ou would look over tho finoncinl statcrr.enta before aend1ng tha to the Bank and. attach arr., comments you think lllight. be UHtul to -~

Would J"Oll pl.eua let, u know whether W.. procedure me ta with your approval.

W1ih bea\ vilb8a.

EncrloPrU

cc. Mr • . Baum Mr. Sella

.. . .. 'r. ,,

, I

•

w. J. Amstron~ Chiet, Industry Divid.on

Departaant. ~ Technicnl Operaticno

j l ' ~

))!tit and Loss Statement,

Production (Voluu)

L !COHE

Net Salee ·• Other Income (apeoifT, it ~d)

Total Incame

EXPE~!SES

Coat of gooda sold Ad.-ninistrat.ive and. ••ll1na ~· Depreciation Interest on IBRD finanoe4 loan Intenat on other 1oau other expenaea Taxes

OPERATING PROFIT

llon- oparating incana ) ( ,,.,t ,,._ u -•-d) Non-operating expan1e1 ) ape-.,' ·~-·

. Net Profit tor Year before Tao!

' .

Income taua

Net Protit atter Tue1 •

•

Assets

Cash and banka Accounts reaei Table Inventoriea othera

Fixed Assets

f

Balance Sheet,

Other fixed aaeeta (it appropriateJ apec1ty, it required) Leas, Depreci&t.ion

Total net t1Dcl uaeta

TCJrAL ASSETS

Liabilities and Equitz:

Due to banks Accounts pqable Debt sernce tor long•tera debt. due within ona ;year Others

Total current liabil1tle1

IBRD financed loan Other long-tera loana (it ~teJ. apeoUy, it required)

Total long-teraloana

Share capital Shareholdera• advance• Legal. reserve Extra.ordinary' reaern Accumulated proti. ta ( or lo1H1)

FORM NO. 59 ( 2. 55)



DA TED: April 5, 1963

TO: Professor Gabriele Pescatore, President, Cass per il Mezzogiorno, Rome, Italyo

FROM: s. Ro Cope

F1LED UNDER: Ita.:cy' - Loan 117

SUMMARY: Reviewing of .r:tna.ncial information submitted to the Bank with ...L_

respect to industrial borrowers under Loans 117-rr, 150,;.rr and

189-rro

FORM NO. 59 ( 2. 55)

COMMUNICATION: ~~

DATED:

TO:

FROM: • • C


J'MlljMt,ore• ~. Cua ~ U 1Sa C . 20 ( . )•

FILED UNDER: Ita' - t\Jl ~4

• PlAM• •dt':I.M·

-· FORM No. 75 INTERNATIONAL BANK FOR

(5.58) RECONSTRUCTION AND DEVELOPMENT

Date

ROUTING SLIP

NAME ROOM NO.

I }I/~ tJ h "/ '""} . -... - -, - -- .... . - - ~ ....... /-

b J/JA k ~ A ~ ....., 1~ - ,_

, - - - . -

3 'w. ( _ ,,/) /D/1-// • V ~

y y,,_ £__ hs-- - - -

~~~ ! ~ ' ft,~ '~ction Note and Fi le -

Appropriate Disposition Note and Return

I Approval Prepare Reply

Comment Per Our Conversation

Full Report Recommendation Information Si anatu re In i ti a 1 To Handle

REMARKS I ~ ~ I

r ~ I I

I I

I

From ;vc_ .Pis - \.

FoRM No. 209 INTERNATIONAL DEVELOPMENl ASSOCIATION ( l-; 3 )I N1ERNATIONAL BA~~.;~;.;~~~~~~;~~~;~~ AND DEVELOPMENT

I INCOMING MAIL Dat PR 1 1963 '

ROUTING SLIP

V Mr. Baum 815 Mr. Mcivor 72L

Mr. Bochenski 416 Mr. Mel moth 522

Mr. Brake I - 625 Mr. Mende ls 1209

Mr. Broches 1004 Mr. Michaels 803

Mr. Calika 813 Mr. Moussa 70E

Mr. Cargi 11 621 Mr. Nuri ck 1004

Mr. Cavanaugh 700 Office of Information 228

Mr. Chaufou mi er 519 Office Services I AE

Mr. Cl ark 1004 Personnel Division 207

Mr. Col I ier 805 Mr. Poore 700 - -

~ ':ope 818 Mr. Reooiy 7A7 - -

Mr. Demuth 506 Mr. Reid 600

Mr. de Vries 513 Mr. Rist I 12C

Mr. de Wilde A318 Mr. Sagne 61f

Mr, Doucet 1209 Mr. Schmidt 42C

E. D. I. Mr. Ski 11 i ngs 71C

Mr. Fonte in 818 Mr. Stevenson 60C

Mr. Goodman 801 Mr. Street 611

Mr. G:ior A3 II Technical Operations 309 Mr. Hoffman 508 Travel Office IOI

Mr. Howe I I 801 Treasurer's SA:

Mr. Iverson 506 Mr. Twining 508

Mr. Jeffries 60E Mr. Waern 810

Mr. Kaup i sch 511 Mr. Wi 11 iams 705 - -

( Knapp I 21~ Mr, Wi Ison 1212

Mr. Kruithof 700 Mr. Woods 1212

Mr. Lejeune 621 Mr. Worthington 7Al6

Mr. Mason 50C Mr. Matter 42C

Remarks:

From: Communications Unit ( Ext. 2023)

.. o, .. a.

IND IRIZZO TELEGRAFICD CASMEZ • ROMA


NELL' ITALIA MERIDIONALE

(CASSA PE" II. MEZZOGIORNO)

P~ot. N. 5P.~-~-~-! ... Posiz. CF/.:PE/BM/ar

Allegoti .. . Y~!?:-...... . Risposto o ... .... ........... .. . .. .............. .

del ........................ . N . .. .. . .......... .

2 -, MAR, 1963 ROMA. ........ .... ................... . PIAZZA DEi CONORESiil N. 20 IE UR I

TEL. 15291

OGGEnoh.e.s.t.ito ... 1.50 .. IT ... -:-.. Finanz iamenti Industriali Partenopea Trasporti Sop.Ao

Spettole Banca Internazionale per la Ricostruzione e lo Sviluppo 1818 H Street, N.Wo ~

WASHINGTON 2/£• \1-J<-

Fa cendo seguito alla nota del 29 agosto 1962 all'oggetto, si- trasmettono qui uniti fotocppie della lette ra inviata dalla Partenopea Trasporti all' ISVEIMER e di alcuni allegati alla si tua zione :i;atrimoniale al 31.1201961, gia inviata con la nota succitatao

Come codesta Banca potra rilevare, non appare sufficientemente chiaro quanto esposto all' ultimo paragrafo della lettera suddetta circa i rapporti indebitamento/capitale proprio e liquidita, riferiti sempre alla situazione patrimoniale personale del Sigo DotolioSi ritiene comunque preferibile soprassedere alla richiesta di ulteriori chiarimenti,considerato l'ormai prossimo invio della nuova situazione alla data del 31.12.1962 che, in conformita allert>recise sollecitazioni fatte da questa Cassa all 'ISVEIMER ,dovra essere sottoposta dalla Beneficiaria in forma tale da rendere piu agevole l 1 esame delle risultanze finali.

Con i migliori saluti.

~

IL PRES IDENTE (Gab catore)

~ -¥-''lbs

.2 C ., E 0 ~ ., 0

~ C :,

C)

~ .;

c C> 0 ~ ., 0.

-0

0 C, . 0 ;_

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tNDIRIZZO TELEGRAFICO CASMEZ - ROMA


NELL' ITALIA MERIDIONALE


TRANSLATION Prat. N •... 5./ .. .. ........ ....... Posiz • .Gr/~E/BM/mbg

Allegati .......... ..... ... ... .

Risposta a .... ........................ .............. .

del ......... ......... .. ... ... ......... . N . ................ .

'"'SGETTO : .......................................... .

International Bank for Reconstruction and Development 1818 H Street, N.W. Washington 25, D.C.

Gentlemen:

ROMA . . . ..... . .......... ................ . VIA ANIENE, 14'

TEL. 849,4'20 - 28 - 27 - 28 - 29

Subject: Loan No. 150 IT - Industrial Projects: S.p.A. Partenopea Trasporti

Following our letter of August 29, 1962, we attach her~ to photostatic copies of the letter sent by Partenopea Trasporti to ISVEIMER together with some appendices to the financial statement as of December 31, 1961 already submitted with the letter mentioned above.

As you will note, it is not clear enough what indicated in the last paragraph of Partenopea Trasporti letter regarding the debt/own funds-liquidity rQ.tioi of the personal financial statement of Mr. Dotoli. However, we are of the opinion that it is better to supersede the request of further clarifications considering that the new statement as of December 31, 1962 should be shortly received. We have repeatedly urged ISVEIMER that such new statement be prepared by the Beneficiary in a form that will make easier the examination of the precise items and balances.

With best regards.

- Enclosures

for

/s/

Sincerely yours,

THE PRESIDENT

Cifarelli

'- '.

I..

..

\.

TRANSLATION MB/mbg - 23.3.1963

Letter addressed by PARTENOPEA TRASPORT! S.p.A. to ISVEIMER on December 31, 1962

Gentlemen: Subject: Financing of Industrial Projects with IBRD

Funds - Periodical Reports

-1'~~/ We refer to IB~comments (of which we were notified by

Mr. Sansone of your Inst· tion) to the Balance Sheet of our Company as of December 31, 1961 nd to the Statement of Mr. Dotoli's Personal Estate and wish to point out the following:

1. No change was brought to the nature of the accounts as shown in the Balance Sheet as of December 31, 1960: only the headings of some of · d. This had to be made with the view of setting up some transitory accounts following the moving of the factory from 14 Via Emanuele Gianturco to 310 Via delle Puglie and also on account of the expansion works of the former Viberti plant, which were being carried out at that time. These accounts have been consolidated in the Balance Sheet as of December 31,1961.

2. All assets have been shown in details. More precisely in the schedule 14 are itemized the loans entered into by our Company, the schedule 11 contains the breakdown of the aggregate amount of inventories and so on; on the other hand, we do not understand for what reason you have been induced to consider the inclusions of the inventories into the item "Fixed Assets" which would have represented an incorrect procedure under the accounting point of view.

3. The :particular nature of our Company does not require distinction between stored products and inventories; a well equipped workshop is operated for maintenance, extraordinary repairs, restoring, etc. of ATAN buses: manufactured goods are produced.

any actual in effect, common and so that no

4. All documents previously supplied by us do not include an Operating Statement inasmuch as with your letter of October 30, 1961 you were requiring Profit and Loss Statement only. Anyhow, we are enclosing herewith the itemized Operating Statement.

2.

5. The liquidity ratio bas actually undergone a very slight decrease say from 0.8/1 in 1960 to 0.67/1 in 1961. This has been occasioned by the fact that in 1961 were almost completed the expansion works of the new factory for which funds were provided by the Company inasmuch as the supplementary ISVEIMER loan of 150,000,000 lire was still undisbursed.

6. In effect the own funds/loans ratio is a,'20.

As regards the Statement of Mr. Dotoli's Personal Estate we do not understand your remarks/ for the absence of debit items > involve{ no own funds-loans ratio while the liquidity is represented by the whole estate of Mr. Dotoli.

We do hope to have answered all your questions and remain.

Sincerely yours,

PARTENOPEA TRASPORT!

/s/ The President

- 3 enclosures

[

RIW' , ..

PARTENOPEA TRASPORT! H .•. A .

OAPJTALE 800IALa LIT. lU,000,000 INTaRAMaNTE vaaaATO

o. 0. I. A , l'J'..o'!'

81 DIC. 1962 NAPOLJ, . .... . . ..

Spett.le

. ... ----

ISTITUTO PER IO SVILUPPO ECONOMICO DELL'ITALIA MERIDIONALE - ISVEIMER Servizio F1nanziario - Sez. 20 Via S. Giacomo, 19

Finanziamenti industriali con Fondi BIRS Rapporti periodici

N A :P O L I

Con riferimento alle osservazioni fatte dalla BIRS in relazione a quanta appare dal bilancio della ns. Sooieta al 31/12/61 ed alla Situazione :Person.ale del Grand. Uff. Arturo Dotoli, osservazioni trasmesseci peril tramite 4el Va. Esimio dr. Sansone, precisiamo quanto segue:

1) riepetto al bilancio esibito al 31/12/1960 non si e cambiata la natura di alcuna voce di conto, ma soltanto l'intestazione di qualche conto stesso. Cio si e verificato in quanto, alla data suddetta e stato necessario creare alcuni conti transitori in dipendenza del trasferimento dello stabilimento da via Emanuele Gianturco 114 a via Delle Pu.glie n° 310, nonche a causa dei lavori - in qQA.ll'epoca in corso - per l'ampliamento del complesso ex Viberti. Nel bilancio al 31/12/61 tali voci sono state riunite in conti unioi;

2) tutte le voci patrimoniali sono state analiticamente esposte in dettaglio. Piu precisam9nte l'allegato n° 14 riporta il dettaglio dei mutui, l'allegato n° 11 contiene la sfusione delle scorte di magazzi no e cosi via. Daltra parte, non riueciamo a comprendere quale elemento Vi abbia fatto ritenere che le scorte di magazzino fossero st§ te comprese negli investimenti fissi, cosa che e contabilmente ineeatta

3) la particolare natura della ns• Azienda rende superflua la netta dist~one ira il magazzino e le scorte di esercizio; infatti d1SJ>2. nendo di una vastissima officina meccanica per la gestione degli automezzi dell'ATAN (manutenzioni, riparazioni ordinarie, riparazioni straordinarie, ricostruzioni, etc) non vie alcuna produzione di manufatti;

4) ira l'intera 400l1Jl8Jltuione 4a noi a au MaJO r1aeaaT1 DOil • ooaRr9ao 11 •oonto eocmOllioo• 1D IU&JlM oon la Va. no-ta. clel ,o/10/61 oi av•t• riolliea-.0 aoltanto 11 •ocmto pro~it~• J)8r41-ie•. Ooaunque proyyediaao a rilleiterVi, all•aa• alla preNnt•, anohe l'•nal1a1 clel oonto eoonoaioos

5) il rapporto di liquidi'ia ba effett1T1111•n"- aubito una 11eT1aailla flesa1on.e, oio~ da o,8/1 nel 1960 a 0,67/1 nel 1961. 01b e evidentemente determinato dal fatto ahe aell1anno 1961 sono atati quaai interam.ente completati 1 lavori di amplialllen'k> del m10To

~tabilimenio facendtVi fronte soltanto oon mezzi propr11n quanto non era etato ancora ut111zze.to 11 tinansiamento 1ntegrat1wo dell'lsveiaer nel.la m.iaura di L. 150.000.000 •• ,

6) 11 rapporto fra mutui e autofinanziamenti e effettivam.ente di 6/20.

l'er qu.anto riE:da la Situazione Fatri:moniale 1-'ersonale del rut. pr~sidente G~d Uf'i',Az·turo Do»oli, non eiamo riusciti a compren dere il tenore delle oaaervazioni da Voi avanzate in quanto, non essendoci alouna voce debi~oria, non es1ete alc11n rapporto tra 1 mutu.i e il capitale proprio, mentre la liquidita comprende l'intero }*trimonio del predetto.

~Iella spercill.Za di av-3r contribui to a chiarire ogni Va. dubbio, porgiamo diatinti saluti.

PARTENOPEA TRASPORT! S.p.A.

Il P~te

All/}

(

If II a~

,I

• I

7 RA.I c C ~ P/ COPIA ' CONFORME

. , 1&

Allegato n° 11 alla Situazione Patrimoniale al 31/12/61 ~

![ ue, I

SCORTE DI ESERCIZI.O =====================

Ricambi ~ ~VJ Lubri!icanti ~(vv; ~ Grassi hM-,t. . Gomme nu ve /(1.,,i) f t.t'U...,# f

....... '(..4.. 't' ( Go e ricoperte e riparate •

Gasolio F Totale

Lit. 37. 709.·920. =

" 1 .850. 670. =

" · 1.690.336.z

" 2.809.628.=

" 7 .586.260.=

" 5.786.724.=

Lit. 57.373.547.=

=====---=-==-=--==--=-

ti

/

C O :P I A C

Allegato n° 14 alla Situazione :Patrimoniale al 31/12/61

, MU TU I --=-===-==-

(vedasi allegato alla precedente Situazione patrimoniale al 31/12/60).

Banca Nazionale del Lavoro

Mutuo di originarie Lit. 65.000.000.: a fron \e della cessione degli effetti rilasciati dall'Atan con avallo del Comt?,lle di Napo~i; tali effetti vengono incassati direttamente dall'Istituto fina.nziatore. Il .mutuo ba la .urata di anni 7, scadenza 1/7/1967.

Totale

Lit. 672.024.020.:

" 60.694.875.~

Lit. -==-=--==============

/

PARTENOPEA TRASP.ORTI ~.r.A.

CAPITAL• IIOOIAL• LIT. 198,000,000 INT:alaANKINT• v••••TO

o. 0 , I. 4, 17-

NAPOLI, .....

@~t jr~;"-Wr CONTO ECONOMJ:CO INDUSTRIALE 1961

1t I C A V I

- Ricavi di esercizio £ 1 • 65 t. 23 6 • 1 27 • =

C O S T I

- Consumi fl~'t){t, £ 602.157. 703. = Salari ~~ 11 264.918.556.a: Stipe1:1di _w~/; :l ;..(A " 46:197.046.= Contributi ttui ~Ll~b~ " 137 .089.259. a:

-tf)..}tot£~pp,rco v".G~~9-i...~ 6.180.000. = -~si urazion "r~~- .. Q- 2.609.549.= - Forza motrice } p6'1Nn/?, " 3.518.722.=

Illuminazione " 3.309.902.= - Acqua W~ Pt)~LL ~al 487.760.=

Consumi vari off'icina ~,- ' J 3 65. 304. = - Consumifyah'.~i~~ di~~ 918.438.=

Assisteb,a med:fca i't1d,~'J ~«.?ta«--Lt 4J. 635. = - D~~ ont~oJiP~~· one" 104.770.= - i<JlP!P~S....tJ, ~i 1-~istro app /A-'TA " 19.038.256. = - 'Rassa""ves'ti~rl.::' o ... ~et!s " 735.570.= - Minatt e varie ~ iZAI-~ " 1.117. 606.= - Pulizia lovali f!t..m~· if.~~ 231.840.= - Ril>Jrj.,.1~nitt.t.,manuten ioni 11 5.220.757.=

Stainph~r"'tecnic~ ance .leria 455.414.= Spese telefoniclie7~~~ " 818.532.= Tributi per formalitr-;a~e ~~ 94.809.=

- Spese per soclrsi stradali .. 854.894.= l!.t. . ..... ~ Ot.l,11(.J

Automezz -_fi-l. ervizio " 2.400.538.= !Jw,.., I Jd/ ~ " 1 .098.868.860. =

Utile lordo esercizio 1961 £ 552.367 .267 ••

===================ss

. Rlr.

PARTENOPEA TRASPORT! s . • . A .

OA PITALIC 8001ALa LIT. lU.000,000 IKTaaAMaKTIC 'V1Ca8ATO

Q. O . I . A . 1'76eO'I'

N APO L I •

T J _. Daa..Lo• P O. LJ8 , 3 10 - ~ &. , 991898

f ~l a tiA ~~ ltt1l.t.~ 'f 116' 1 ltJ y~t~

"CONTO PROFITTI E PERDITE"ESERCIZIO 1961

Profitti ~~T.! = Utile lordo industriale eserci~ iq 1961.~~" - Interessi attivi /{,l,tf.w-J ~~ - Utili au vendi te varie ~ a-... />c:,_,{k s

£ 514.420 •• " 550.641. = "89.929.841.= " 76.269.543. •

· ~ ~ 19.379.340 •• "85.388.681.=

Utile netto esercizio 1961

Dettaglio del conto "Contributi"

- Cassa soccorso F.M.D.A.I.

- Fondi Speciali Previdenza I.N.A.I.L.

- I.N.A.M. - I.N.F.A.Jl.A.I.

I.N.P.S.

Riparazioni - Riparazione - Riparazioni

Riparazione

£

" £

552.367 .267. = 29.291.755.:: 49.585·.912,=

272.031.466.=

359.213.468.= == ========:-=====

£

" " " " " "

3.973.363.= 74.631.•

33.859.773.= 10.436.336.= 21.521.999.=

529.731.= 66.693.426.=

£ 137.089.259.= =-====-=====-====

£ 855.268.= " 25.395.= " 3.795.786.= " 546.308.=

£ 5.220.757.= ----------------------------------

'

j

air.

PARTENOPEA TRASPORT! s .... A .

CA P I TA L • BOOJAL• LIT. lSll.000,000 I NTaRAMaNT• .... R.A TO

NA. P O LI, - ---------

Dettaglio del conto •sp_~~i~4 - Stipendi W~ /J ' '"' , £ 18.852.993.• - Emolum.enti Collegio Sindacale /~ u-; " 1.100.000.=

Contributi Social!/? ~'&/1~~ ?~~ " 4.964-.973.a: - Affitti vari ~ ti~ ~ ~·ol'u ~~ " 294.187.= - Bancarie e fidejussorie ~'":J ~ ~ f" ~ " 2.736.287.= - Cancelleria e Stampati -<f,La.,/.,~~ " 1.751.715.= - Consulenti ~~ " 7.977.095.=

Giornali librl e riviste /,'tt,,/J~ ~,,k"'IA4fll/f,~ " 166.255.= Illuminazione Uffici s. Giacortio 'foi,ytvt " 10.221.=

- Locomozioni TnNt'Yt.. '111Al••"'fv,vt~ F_ ~ · ~·t:ft " 6.937.039.= Nance-Regalie-Omaggi-Beneficenze-Su~s idi ~~ ( 1

~ ' 10.411.380.= Manutenzione autovetture ~ ~- ~ ~ " 25 .820. = Manutenzione~~Jfizi~}J~i ~~te;1le e " 193.892.= harche da bollof~Jrfa.~ol.1?ata-cambiali-reg.ni varie " 16.670.020.=

- l?ostali P#t>~ 'F ~ ~ ~-~ ~-et_ " 479.478.= - Rip.nee manu::,.nr~~e m~Li e macchine di ufficio " 459.765.•

Telefonig.fe f~ - " 423.810.= - Varie /~ ~~ ~ " 9.801.151.= - Imposte e Tasse Comunali e l?rovi~ ali T~'? /Jt' -z.gf:::':f.:;..p 1 1.315.755.= - Imposta A5g. R.M.6/2 ~ / ~ _"_/ _____ 8....,1 ... 6~.8 .... 4-5 __ ._=

Dettaglio del conto "Affitti Vari"

- Comune Napoli-fitto molo Via Foggia 1 trim. 61 - Bracale Stefano-fitto quartino Via S.Giacomo Genn.61

Bracale Giuseppe II II II " " "

£ 85.388.681.• ==================

£

" "

193.125.= 42.806.i= 58. 25 6. =

£ 294.187.= =======--===-===--

,

FORM No. 3370 ( 12- 61)

\

FLm ·-.imosA IRRIGATIO SCH™E

~tate oft Feeder Works and corresponding Distribution Canals; T~ required to carry out the work.

Mr.

Room

von d r olt 7~.3 - 13

Date of Date of

d completed

Distribution system 1n t e Troxent reclar.1a.tion area; Lot l; 800 Ha.(Proj ct No • .3414)

1.1.'ot l granted co.l'.ll.-nence- co pletion in millions of lire m nt of work of work

B) orke approved and in course bing carried ou~

Distribution system of h Sanluri estate;~ • ( oject No.3890) .

Supply and distribution syste s for the Southweotern Jiand eelamation Area; 3,900 lla..(Project No . 31166) .

st- t Diatribution C al (Project io. 4171)

Distribution oystem in the Trexenta land reel tion area; Lot 2; 600 Ha. (Pro.ject to. 4496) .

South-eat nist.ribution Canal; Secti on 2 (Project o. 4426) .

South- as~ Di tribution Canal; Secti on l; Lot l (Project N{) . uu97)

South st Distribution Canal; Section l; Lot 2 ( roj ct Uo. L..568).

TRANSI.ATION SECTION 321/63

Translated From: Italian 3/25/63 By:JHH:sge

•

.. 2 ...

Di t b ~ion y tem to serve. the dB District 0£ i;

l, O Ha. (Pro ect to. 1'881).

C) ~Pro~· .;;.;..;__.;;..;;.;;;;.t...,;;;;.;..;.....;,k:.;;..;.; ..

D) Project

A. a. c .. D.

Tot l

J 63 Jun 65

Octob r 63 Octob r 6S

64

800 H .

6,300 Ha .. 4,6oo Ha.

•

231000 H •

66

- 3 ..

KEY TO P l

utono ous Corpor tion of the Fl endos

Gen ral Plan of the C pidano 1 C liari Irri ~ation Sche. e

Olive- een - Area covered b irri ation sche (9S,ooo Ha. )

- Princip 11ITib~tion ~(-b_i_oo_J~- ct els

- Chann ls !or pressure -- -- - - irri6 ation

Dark rcen - a irri le vith ter froni the three res rvoirs of tl, Flumc.'I.dosa.

--~-----~-~~Tunnel (blue)

•••••••• •• • - Syphon (blue)

• 70 Kv electricity tr mission 11n . _(_r_e..,..d""") --

- W t rain _( __ g_r_e-en_J __

re covered 6J1000 H . ren irrig t 41,000 ti .

- 4 -

1( 2

eport on th St to of Fro ro• s in Aucust 1962.

(A for , p l with the f ollowi

__________ • Irrigation channels under construction. (red)

reen with di gonal

rs d r clan tion r

financed by CAS. z . 1th orks

Light Gre n- Area 1n which Cass first interve. -

Y llo

Green

not fin ced.

- Area propo ed ror fin cin unde the •Rebirth of ardini • plan

• Ara pro oeed for f i nnncing under the D velop ent Plan.

~·

BASIC DATA AIID FI NAL CONSTRUCTION REPORT

ITALY - CASSA PER IL MEZZOOIORNO

1. Borrower Guarantor

2. Loan Number

3. Loan Amount

4. Date Loan Signed

Cassa peril Mezzogiorno Republic of Italy

150 IT

Total $74.628 million For industrial projects t,21. 940

million

October 11, 1956

5 & 6. Effective Dates and Closing Dates.

Viberti Farino Fiat Cementerie di Augusta Cementerie di Sardegna Saint Gobain ABCD

Effective Date

4/23/57 5/10/57 5/10/57 6/6/57 6/6/57 6/ 6/57 9/17/58

Closing Date

6/30/59 12/31/59 6/30/60 6/30/59 6/30/60

12/31/61 12/31/60

Original closing date: June 30, 1959.

7. Period. of Grace

8. Term of Loan

9. Exchange Rates

10. TOD Report

11. TCD Report Date

12. Interest Rat e

13. Commitment Charges

14. Fiscal Year

Viberti (Partenopea) Farino Fiat Cementerie di Augusta Cementerie di Sardegna Saint Gobain ABCD

3 years

20 years

US$ 1 = Lit. 625 Lit. l million= US$ 1,600

TO 121a

October 3, 1956

5%

3/4%

December 31 April 30 December 31 June 30 December 31 December 31 September 30

- 2 -

15. Amortization

In semi-annual installments. First payment September 1959 $1,359,000

$3,146,000 Last payment September 1976

16. Participation (in whole loan)

17. Objectives

Bank of America National Trust & Savings Assn. UNESCO

a) To help meet the dollar impact of heavy capital investments made under the twelve year plan for the development of Southern Italy.

b) To provide Lire counterpart funds for industrial projects important for the development of Southern Italy.

18. Justification

Southern Italy is an underdeveloped region with large scale unemployment and average living standards only half as high as in Northern Italy. The 12 year plan being administered by the CASSA is interned to develop agriculture, power, roads, and industry in the area. Investments during the plan of about 2 billion dollars equivalent would threaten economic stability by causing increased demand for imports. The loans are required to help offset the effects of this demand with dollars. When the loan funds are received by the Italian monetary authorities, the lire equivalent is set aside as counterpart funds which are to be used to finance investment in selected industries which will further the development of the South.

19. Discussion of the Project

In October 1956, a loan of ~Vi4,628,000 was granted to the Cassa peril Mezzgiorno, of uhich originally $23,963,000 was aD.ocated to industrial projects:

Company

Viberti Farino Fiat Cementerie di Augusta Cementerie di Sardegna Saint Gobain ABCD Novilegni Chimica del Tirreno Vetreria di Latina

Project

Truck and bus bodies Cannery Automobiles Cement Cement Glass Pol;ye thy le ne Hardboard Fertilizer Pressed glass

Loan Allocation (In Mill. $ )

1.340 0.920 4.800 1.440 2.400 ii.ooo li.960 0.903 2.560 o.640

23.963

- 3 -

The three last projects w.i.th a total allocation of 1~4.103 million have been cancelled and ABCD received a supplementary allocation of$ 2.080 million equivalent.

Finally seven industrial projects with a total amount of $21.94 million were financed under the present loan:

Project

Viberti Forino Fiat Cementerie di Augusta Cementerie di Sardegna Saint Gobain ABCD

Total

Loan Allocation (In Mill.$)

1.34 0.92 4.80 1.44 2.40 4.00 7.04

21.94

Completion Date

6/S9 6/59 4/60 6/58 7/60 10/S9 6/60

The following discussion of the projects is based upon the original appraisal, Summary Progress Report as of November 21, 1960, as well as various End-Use reports and periodic inforrna tion provided by t he companies.

VIBERTI - Naples (ISVEll'iER) Loan Lit. 840 million ($1.34 million equivalent) (See Annex 1~, £, ~) The Officine Viberti S.p.A. is a privately owned company

operating two factories in Northern Italy producing truck and bus bodies and trailers. The company is a leading Italian firm in its field.

The project was for a new plant, located at Naples, with a yearly production capacity of 900 truck and bus bodies and 500 trailers.

At the time all project ;~la.11s were completed and construction was to start, it appeared t hat the Nilan-Naples highway would cross the building site. As a r esult, construction had to be delayed for one year, awaiting relocation of the highway. The project was finally completed and started operations in June 1959.

Shortly before completion, in March 1959, Dr. Angelo Viberti, sole owner and director of the company died in an accident. His death created a difficult situation for the company, which at the time of the accident was facing serious problems.

- 4 -

A new management, appointed after Dr. Viberti 1 s death, decided to review the whole structure of the company. One of the main conclusions was not to extend the existing production facilities and to abandon the idea of operating the Naples plant.

As a result of this decision discussions were initiated with the Partenopea Transporti Company of Naples. This finn holds a long-term contract with Naple I s Transport System for the maintenance of the city's bus fleet. An agreement was reached between both companies at the beginning of 1960, according to which Partenopea was to take over all assets and liabilities of the Naples plant, including the IBRD loan.

Following a request from the Cassa peril l"ie zzogiorno in Hay 1960, the Bank agreed to the principle of the proposed transfer of obligations from Viberti to Partenopea.

The contractual arrangements between ISVEINER and Viberti were modified to comply with the new situation. A loan contract was concluded between ISVEi hER and Partenopea, and the contract between ISVEiliER and Viberti was amended. Viberti has agreed in the new contract to guarantee the loan repayment in case of Partenopea 1 s default.

For minor legal reasons these contracts were not approved by the Cassa peril Meooogiorno until the end of 1962. At the request of Cassa the Bank has now agr eed officially to the new contract and to a corresponding amendment of the Loan Agreement No. 150-IT.

At the end of the construction period, total costs of fixed assets of the Naples plant amounted to Lit. 1,474 million, the amount of the initial appraisal estimate.

Since Partenopea took over the plant in 1960, an additional amount of about Lit. JOO million has been spent in new machinery, of which Lit. 150 million was financed by an ISVED1ER loan. This investment wa5 necessary to adapt the plant to its present use.

At present various kinds of mechanical work, mainly repair of busses and production of body-parts is performed in the plant.

The accounting period has changed twice. At first, the period from 1/1/59 to 12/31/59 was extended by four months until April 30, 1960. The following period was a normal 12 months, but then it was decided to come back again to the calendar year and the period starting April JO, 1961, was closed after eight months on December 31, 1961.

- 5 -

In the period from December 31, 1958, to April 30, 1960, a substantial loss of Lit. 479 million has been incurred (which is presumably a consequence of the company's reorganization period after Dr. Viberti I s death). In the following two periods the financial results improved again and a net profit of Lit. 146 million has been made which was transferred to reserves and funds for expected losses. Although Viberti i s at present facing tough competition, the recent results indicate a satisfactory development. The depreciation rate of about 9% appears reasonable.

In 1961, the current ratio was 1.66:1 as compared to a minimum of 1.75:1 agreed upon in the covenants. All other covenants were complied with.

Partenopea's balance sheet shows the heavy financial strain caused by the takeover of the Viberti plant. Debt/Equity ratio was at the end of 1961, 80:20 and the current ratio dropped to o.67:1, mainly due to a sharp increase in short-term borrowing. Althourh the accounts show a profit of Lit. 21 million for the 1961 period, total equity declined during the same period from Lit. 252 million to Lit. 181 million as a result of the diminution of reserves.

The main reason for the deteriorating situa t i on was a significant increase in labor cost, while a corresponding revision of the contract with the Naples Transport System is still pending. Unless this objective will be attained in the near future, Partenopea may face a very critical financial situation.

FCRINO - Nocera Inferiore, near Naples (ISVEil-'iER) Loan Lit. 575 million($ 0.920 million equivalent) ( See Annex 2)

Farino S.p.A. was established in 1954 as a vegetable cannery company. Shareholders are two farming companies, each of which represents a net worth of over Lit. l billion.

The project was for modernizing and expanding the existing production facilities for tomato paste, canned tomatoes and vegetables, and tomato juice.

During the construction period only a few minor changes were made with regard to the original plans, and the project was finished on schedule in the middle of 1958, al though some minor building work was delayed until 1959. The effective expenditures were Lit. 867 million, slightly less than the planned expenditure of Lit. 875 million.

- 6 -

On completion, the plant was the most modern of its kind in the region, and accounted for about 6% of the total Italian production of tomato products.

The new production facilities worked well from the start-up. Due to depressed market conditions, product ion in t he first year of operation amounted to about 75% of capacity. A slightly better market in 1960/61 increased the production to more than 9a-/o of rated capacity and in 1961/62 the full rated capacity was reached.

The instability of the market situation as regards prices was reflected in t he cor,ipany' s financial results. In the 1957/S8 period the loss (Lit. 119.0 million) represented ll% of tl1e company's equity and in the 1958/59 period the loss (Lit. 175.8 million) reached 22% of the Company's equity. At that time the total accumulated loss exceeded the share capital of Lit. 300 million by Lit. 60.7 million and ISVEINER withheld the undisbursed position of the IBRD loan (Lit. llO million) until a satisfactory financial reorganization was approved in 1959. The measure taken consisted of r educing the accumulated loss by the share capital, bringing the still remaining loss of Lit. 60.7 million forward to t he next period and reestablishing the f ormer share capital of Lit. 300 million by subscriptions of t he shareholders.

The results of 1959/60 showed, however, a new loss of Lit. 35.8 million. The 1960/61 period showed a small profit of Lit. 3.1 million which increased to Lit. 11.4 million in 1961/62.

The rnaj ori ty shareholder of Farino has developed some tentative measures to improve the situation of the company. They provide for increased marketing efforts in Italy and abroad, in order to increase sales. The necessary vegetables to be packed and processed are due to come from increased production of the principal shareholder's own f arms or to be purchased from small producers and to be r epacked by Farino. Moreover, an increased mechanizat ion of Forino 1 s operation~ involving Lit. 100 million investments to be financed partly by ISVEDIER are contemplated to reduce production costs.

The covenant providing an excess of current assets over cur~ent liabilities . of at least Lit. 300'"fflillion has no~ been fulfilled by Lit. ?4 .million, as shown in the Balance .Sheet as of April 30, 1962. All ~the~ covenants were met.

~

- 7 -

FIAT - Naples plant ( ISVETI1iER) Loan Lit . J. O billion U, 4. 80 million equivalent) (See Annex 3 )

The Fiat S. p .A. an automotive manufacturer was incorporated in 1906. Twenty- two percent of the company ' s shares are hel d by the Institute Finanziario Industriale; the balance is widely distr ibuted.

The present project was ori ginal ly designed for a new automobile assembl y plant of a small sized economy car to be located near ifapl es, with an annual capacity of 30, 000 cars , and a production of 200 tons of spare parts per year .

After several delays and chanr.es in the project conception, the production of spa.re parts was abandoned and the assembly line of the envisaged small size car changed into an assembly line of the l1odel 1100 light truck with a minimum capacity of 6, 800 units per year . The new program was approved by ISVEINER, the Cassa and the Bank.

The project completion was scheduled initially for early 1959. The redesigned plant was finished in April 1960, in accordance with the corresponding time schedule . The new plant is not a legally independent company. It is fully integrated in the Fiat corpora t ion .

The appraised project was based upon an estimated total cost of Lit . 6.5 billion for fixed assets and Lit . 0.5 billi on for the required working capital . The financing was scheduled to be Lit . 4 . 0 billion by Fiat and Lit . 3 . 0 billion by IBRD funds . The later revised plan call ed for only Lit . 5.5 bil lion, of which Lit . 5.0 billion was for fixed assets and Lit . 0.5 billion for working capital . Fiat's contribution decreased to Lit . 2.5 bill ion, while the IBRD loan was maintained at its original level .

When the plant was completed, Lit . 5. 0 billion was spent on fixed assets and Lit . 0. 7 billion for working .capital .

A partial assembly line of vehicles went into operation in February 1960, an::l by hay 1960, a daily output of 25 vehicles a day was reached, representing 100% of the plant capacity, instead of the plarin2d output of 80% for the first year.

Increasing de~and for the assembled truck induced the company to pass to a two shift operation and a daily output rate of 50 units by the end of 1960. During the year 1961, new facilities were installed at a cost of Lit. 300 million which brought the daily capacity to a normal one shift output of 50 units . The plant actually produced 13, 245 cars in 1961.

- 8 -

The firs t year's loss was estima t ed to be Lit. 400 million, but turned out to be only Lit. 270 million as a result of the higher than initially scheduled production. The 1961 results not only erased the previous year's loss but left a small surplus of Lit . 13 million.

No financial covenants were set .

The sat isfactory results of the plant and the anticipated market requirements has led Fiat to plan an increase of daily output from SO to 80 units. The expenditures for new inve stmeniBwill amount to only 230 million lire, and will be financed entirely by Fiat.

The Fiat company itself i s continuously improving its situation. In 1959, the profits were Lit . 19 . 7 billion (+19%) , in 1960 Lit . 23 . 6 billion (+20%), and in 1961 Lit. 26 . 4 billion (+12%) . Net sales were in excess of Lit . 596 billion.

CEMENTERIE DI AUGUSTA - Sicily ( IR.FIS ) Loan Lit. 900 million($ l . 44 million

equivalent) (See Annex 4~ and~)

The Cementerie di Augusta S. p.A . was establishe d in 1952 . Cine-half of the company's share capital is owne d by the Fiat holding company . The company operated a cement plant near Augusta , Sicily, with an annual capacity of 130,000 tons . The pr oject was designed to increase the production to an annual capacity of 300,000 tons by installing a second kiln and t he additional facilities required.

During the construction period the company decided on enlargement arn improvements of the original project design . Furthermore, additional installat ions were planned. The new plan re sulted in a capacity increase of 20% over the original plan, and a total capacity of 360,000 tons a year .

These modifications did not influence the time schedule and t he expanded plant was in operation on June 30, 1958 .

Final project costs amounted t o Lit. 2. 66 billion, compared to Lit. 1.60 billion in the original e stimate . The increase of 66% appears rather high since the capacity increase represented only 2('f/, . fvianagement explained the overrun was due to general price and wage inc r eases. The increase of about Lit . 1 . 0 billion was financed by a supplementary IRFIS loan of Lit . 250 million at 6 . 25% on hay 25, 1959, as well as depreciation arrl retained earnings .

l

- 9 -

At the time the enlarged f acilities were completed, the market was somewhat depressed and the total capacity could not be us ed immediately. During the year ending June 30, 1959, i.e. aft er one year's operation, the total output amounted to 285,000 tons, about 80% of rated capacity, while sales were 275,000 tons.

In 1959/60, sales improved and total production reached its full rated capacity of 360,000 tons.

Financial results of the company were influenced by the cement price reduction, ordered by the Italian Government, and profits did not reach the expected level.

A profit of Lit. 630 million was originally anticipated for each year to begin with the 1959/60 peri od, the depreciation ra t e to be about 8% . The effective ret profit in 1959/60 was, however, only Lit. 208 million at a depreciation rate of 3.75% and in 1960/61 Lit. 262 million at a depreciation rate of 4.8%.

The company has not conplied fully with the covenants. Minimum exces s of current assets over current liabilities fixed at Lit. 400 million after the first 12 months of operation has not been reached. Neither has the a greed minimum ratio of current asse t s to curr ent liabilities of 2:1 been a t tained. Until June 30, 1960, current liabilit ies were even higher than current assets (0.81:1). In the las t 3 ye ars the ratio improved, however, steadily. No dividends have been paid.

In the absence of any cement price increase, the company 's results are expected to improve only very slowly.

CEJ\iZNTERIE DI SARDEGNA - Sas sari, Sardinia (Ck) Loan Lit. 1.5 billion($ 2.4 million

equivalent) (See Anrnx 5~ and :£)

The Cementerie di Sar degna, S.p.A. is a wholly owned subsidiary of the Italcementi Company, Italy's largest cement producing group. At the time of the appraisal, the company operated already another cement plant near Cagliari in Southern Sardinia, with a capacity of 270,000 tons a year.

The project was for the construction of a cement plant near Sassari in Northern Sardinia with a capacity of 100,000 tons a year. The plant was expected to start operation in 1958.

- 10 -

Before constructi on got under way , the company decided to enlarge the capacity to lh0,000 tons a year. This modification af fected nearly all plant sections which had to be r edesigned accordingly. Construction start ed finally in May 1958, and was completed in July 1960.

Total cost of fixed a s se ts amounted at the end of t he construction period to Lit. 2.94 billion as compared to the original estimate of Lit. 2.35 billion. This 25% increase in cost s compares with a uCYt increase in capacity. It was financed out of surplus and a capital increase.

The 1960 produc t ion and sale s attained 102,000 tons al though the plant was only in operation for 6 months. In 1961, t he plant produced 170,000 tons exceeding the rated capacity by more than 2(Jf':, in order to satisfy the increased demand of the :market.

Net profits of the company reflect the price reductions decreed by the Government in 1958 . Returns on net worth declined constantly fran lh% in 1957 to 8% in 1961. Depreciation exceeded 7% in 19619 No dividends have been paid and yearly profits were incorporated in reserves. The company follows a very conservative financial policy.

The covenants have been observed.

The promising market expect a t ions for Sardinia seems to jus tify the company 's decision of installing a second kiln to bri T¥: t he plant's capaci ty to 300,000 tons a year by June 1963. The costs of enlargement are expected to be financed by t he company 's accumulated r eserves which were 3.4 billion at the end of 1961.

SAINT GOBAIN -(Italian branch), Caserta near Naples (ISVEil'iER ) Loan Lit. 2.5 billion rn /.i.O million equivalent) (See Annex 6)

The borrower is the I t alian subsidiary of the French Saint-Gobain Company. At the time of the appraisal, the company was already operating a flat-glass plant at Pisa.

It was originally planned t o erect a new plant at Caserta with an annual capacity of 0.65 million square meters of plate glass and 1.0 million square iooters of pressed glass. rviore favorable market revi ews during the construction period, however, made it advisable to enlarge the proj ect to a yearly capacity of 2.0 mill~on square rreters of plate glass and 1.8 million square meters of pressed glass.

- ll -

The pressed glass section was completed on schedule in October 1958, while the plate glass section fell nine months behind schedule . It was completed in October 1959. This delay was caused by retarded delivery of machinery as weil ae bad weather which held up construction work .

Investment costs of the new plant were originally estimated at Lit . 5. 38 billion, including interest during construction . The actual costs of the project were , however , Lit. 7 . 9 billion, an increase of 475; (Lit . 2. 52 billion) compared to the related capacity increase of 1305& .

The additional funds required for fixed assets and working capital were provided by an ISVEiliER loan of Lit . 1 . 0 billion and advances from the French group . Since the compl etion of the project, another Lit. 1 . 0 billion has been spent for supplementary machinery and fully financed by the Italian company.

The Caserta plant 1 s production of pressed glass in 1961 reached 1. 85 million square meters , representing 100% of rated capacity. The plate ~lass section, which started production in late 1959 produced only 1.1 million square meters er 55% of its rated capacity, due to several s t rikes during the year .

The company's earnings after the first full year of operation of the Caserta plant were estimated at Lit. 325 million, a tar~et th at could not be reached a s net profit turned out to be only Lit . 199 million in 1960 although depreciation of fixed assets were only 3% instead of the planned 8%.

The financial situation of the company remained strong. Current ratio in 1961 was 4. 3:1 and debt/equity ratio amounted to 27:73 due to the large advances of the French group .

Covenants agreed upon were fully complied with .

As building activity and automobile industry are expected to ex-pand substantially over the next years , the company is optimistic about its future prospects .

A. B. C.D. - Ragusa, Sicily (IRFIS) Loan Lit. 4. 4 billion( ; 7. 04 million equivalent) (See Annex 7~ and£)

The company, Asfalti Bitumi Cementi e Derivati S. p . A. (ABCD) is a 9Cf~ owned subsidiary of Calci e Cementi di Segni, which in turn is controlled by Bombrinri- Parodi-Delfino, a group with large interests in chemical and plastic raw materials .

- 12 -

The project was originally designed for a polyethylene plant with a capacity of 5, 000 tons a year , a special cement plant with a capacity of 40,000 tons a year and a crude oil stripping tower . These installations were to be added to an already existing cement and asphalt plant, using local bituminous limestone and oil deposits . This project was expanded in 1958 to bring the capacity of the polyethylene plant up to 12 , 000 tons a year , to add a second stripping tower and to install a 20,000 kwh ther.m.a.l power plant to produce 70-80 million kwh a year.

The special cement plant was completed in July 1957 , and has operated since then without any technical difficulty . It works currently at its full rated capacity of 40,000 tons a year .

The first stage of the polyethylene plant (10,000 tons capacity) was begun in the middle of 1957 and completed in mid-1960 . The expansion to the full capacity of 12,000 tons a year was finished at the end of 1961 and the installations were actually operating at more than 80% of their rated capacity.

The topping plant was completed at the end of 1959, and has been operating normally since then. Its production in the 1960/61 fiscal year attained almost 200, 000 tons or about 80% of its rated capacity. As soon as the consumption of the petrochemical plant will increase and operate at its full capacity, the topping plant providing the raw material is also expected to attain full rated capacity.

The electrical power plant which is using fuel produced by the topping unit, has been completed in 1961 and produced 77 million kwh in 1960/61, corresponding to its full capacity.

The tJll/tal eost of the p~oje~t, including stripping tower and special cement sections were original.ly estimated at Lit . 11. 45 billion. When all installations were practically completed the total expenditures amounted to 14. l billion as shown below:

Special cements Stripping tower Polyethylene plant Power plant

Sstimate (Lit. Hill . )

250 400

8,840 1,960

11,Gso

Actual (Lit. Mill . )

395 460

10,855 2, 390

iii , 100

• 13 -

The 23% cost increase was generally due to rising prices, mostly construction costs, during the 4 years construction period. In addition, increased automation and improvements as construction was under way accounted for higher costs.

In connection with the enlargements and cost increases the Bank has granted additional loans as shown below:

Lit. bill. $ E9.uiv. mill.

150 IT Original loan 3.1 4.96 150 IT Additional 11 1.3 2.o8 117 IT II II 1.5 2.40 189 IT ti II o.6 0.96

b3 10.40

The additional loans were obtained out of unallocated or cancelled fractions of the loans U'.7,~IT, -150-IT, and 189-IT.

The company's sales developed favoraoly and a sizeable percentage of the polyethylene production is being exported to several European countries.

Financial results were significantly influenced in 1961 by sales of polyethylene. Gross profit on sales - net sales are not communicated - rose to Lit. 1.364 billion, an increase of 150% over tl1e previous year . Net profits were , however, lower (Lit. 164 million in 1961 against Lit. 234 million in 1960) due to a large increase in the depreciation allowance as well as higher interest on loans.

Profits have been partially distributed to shareholders .

The current ratio, strained during the construction period and at a low of 0.7:1 in 1959/60, rose in 1960/61 to 1.5:1. It was expectE:d that the min:iJTJ.um current ratio of 2:1 would be reached in the first year of full operation, 1961/62.

A capital increase from Lit. 3 to 5 billion was planned at the end of 1961. This would improve the Debt/Equity ratio as at September 30, 1962.

Return on ret worth decreased from 5.4% in 1958 to 2.6% in 1961. These figures must, however, be considered unier the light of increased depreciation mentioned above.

All company products have satisfactory market expectations over the coming years, with perhaps the exception of asphalt products for which the market appears difficult as a result of the competition of synthetic products.

- 14 -

Competition from other manufactures of Polyethylene in Italy and Common Market countries is however expected to grow stronger in the following years.

The steadily increasing demand for cement products has led the company to install a third rotary kiln with a yearJ.y capacity of 150,000 tons of clinker. The construction is expected to be completed in early 1963.

20. Covenants

During the discussion of the proj ects, it has already been pointed out that several covenants have not been met. We are preparing now a letter to Cassa asking for the necessary steps to ensure the respect of the agreements.

February 8, 1963

Engineer: Eduardo de Alba

End-Use: Gunter H. Kreuter

Area: Warren Baum

cc: Messrs: Aldewereld, Ripman, Squire, Van Helden, Reid, Spottswood, Armstrong, Hathaway.

ANNEX la

VIBERTI

BALANCE SHEETS (Million Lit.)

Dec. 31 Apri.l JO Ap:ril JJ Dec. 3y 1958 1960 1961 .! 1961 2

ASSETS

Current Assets 5,951 5,016 4,768 4,632

Fixed Assets 3,760 2,429 2,297 2,920 Less: Depreciation 1,t2) 1,330 1,533 1,631

Net Fixed Assets , 3 1,099 764 1,289

Securities 457 3,365 3,012 3,011

Other Assets 65 169 154 141

TOTAL ASSETS 8,910 9,649 8,698 92073

LIABILITIES AND EQUITY

Current Liabilities 1,715 3,433 2,4SO 2,785

Loni -term Debt: ISVEIHER 673 Other 2,962 2,893 2,865 2,862

Total 3,635 2,893 2,865 2,862

Reserves - Employee Indemnity 549 626 682 722

Share Capital 2,939 3,000 3,000 3,000 Reserves 45 176 180 183

Profit (Loss) 27 (479) (479) ~479)

Total Equity 3,011 2,697 2,701 2.!704

TOTAL LIABILITIES & EQUITY 8,910 9,649 8,698 92073 -Current Ratio 3-47:1 1.46: 1 1.95:1 1.66:1 Long-term Debt/Equity Ratio S5:4S S2:48 !nd,9 .$1:h9

iJ The profit of Lit. 86 million was transferred to: Reserves Lit. 4 million -Fund for foreseen losses, included in liabilities 82 million.

'lJ The profit of 60 million was transferred to: Reserves Lit. 3 million - Fund for foreseen los 3es, included in liabilities 57 million.

~: No reason is given for this particular treatment of profits.

EXPENSES

Cost of goods sold

Depreciation

Achninistrative costs

Sales costs

Taxes and Financial

Other costs

TOTAL COSTS

H!COME

Sales

Financial incomes

Various incomes

TOTAL DJCC¥1E

Hef. rfofit

VIBERTI

PROFIT AND LOSS S TATEIYiENTS (Million Lit.)

Jan.1/Dec.)l Jan.1, 159 1958 AEr.30.!•60 y ll

charges

27 (479)

May l,•60 May 1, •61 Apr.JO.! 1 61 Dec.31, 1 61

7,502 4,556

293'];/ 13oY

432 303

907 554

416 250

454 97

10,004 5,890

9,814 5,741

46 26

230 183

10,090 5, 950

86 60

];/ For the periods from Jan. 1, 1958 to April JO, 1960 no detailed Profit and Loss Statements are available.

JI Including depreciation of fixed assets, patents, study of new productions etc.

PARTENOPEA TRANSPORTI


December 30 1959 1960

ASSETS

Current Assets 355 260

Fixed Assets 152 1,350 Less: Depreciation 136 216

TOTAL FIXED ASSETS 16 1,134

Other Assets 106 57

TOTAL ASSETS 477 1,451


Current Liabilities 304 327

Long-term Debt: ISVEINER n.a. Other 31 n.a.

TOTAL 31 m Share Capital 100 125

Reserves 22 109

Surplus 20 18

Total Equity 142 252

TOTAL LIABILITIES & EQUI'IY 477 1,451

Current Ratio 1.17:1 0.80:1

Long-term Debt/Equity Ratio 18:82 78:22

NOTE: Only highly sUIT!Inerized profit and loss statements are available, which do not allow any detailed analysis.

ANNEX le

1961

386

1,356 200 --

1,056

45

1,487

573

n.a. n.a. 733

125

35

21

181 -1,487

o.67:1

80:20

FORINO

BALANCE SHEETS {Million Lit".j

1959

ASSETS

Accounts Receivable & Cash 169.9

Invsntories: Finished products 204.3 Raw material & spare parts 120.5

Total Inventories 324.8

Total Current Assest 49Ii;f

Fixed Assets 981.0 Less: Depreciation 85.6

Net Fixed Assets 895.4

Other Assets 36.0

TOTAL ASSETS 1,426.1

LIABILITIES & EQIJT!Y

Accounts Payable 116.8 Suppliers' Credit Bank's short term 201.2 Other Current Liabilities

Total Current Liabilities 324.0

ISVEIMER . 465.4

Share Capital 300.0 Shareholders' advances 697.4 Previous years' lesses (184.9) Current year's Profit (losses)(l75.8)

Total Equity 636.7

TorAL LIABILITIES & EQUITY J,l.i26.l

CUrrent Ratio l.S2:l Long-term Debt/Equity Ratio 42:58

April 30 1960

132.3

248.0 214.2

462.2

594.5

983.0 110.5

872.5

38.9

1,!505.9

n.a. n.a. n.a. n.a.

193.4.Y

575.0

300.0 534.y (60.1 (35.9)

737.5

1,505.9

3.01: l 44:56

1961

131.8

343.5 254.7

598.2

730.0

992.5 110.5

882.0

45.3

li657.3

219.3 1.0

133.4 43.l

396.8

541.1

300.0 512.8 (96.5)

3.1

719.4

·1 6S7oB ! -

1~8h:l 43:57

ANNEX 2

1962

200.8

337.6 283.9

621.5

822.3

1,oo6.9 130.5

876.4

50.1

li749.4

293.7

207.8 44.9

546.4

505 .1

300.0 388.2 (1. 7) 11.4

697.9

1,149.4

l.51:1 42:58

1/ In available balance sheet shareholder's advances and total current - liabilities are not clearly separated.

NorE: Only summarized Profit and Loss statements are available for the ~- period ending 1958, 1959 and 1960.

ASSETS

Current Assets

Fixed Assets Less: Depreciation

Net fixed assets

Other assets

TOTAL ASSETS

LIABILITIES & EQUITY

Current Liabilities

Fiat advance

Long-term debt IBRD

FI AT

NAPLES PIANT


1,004

5,150 900

4,250

3

5,257

755

1,884

2,888

Profit or (loss) accumulated (270)

5,257

ANNEX 3

December 31,

947

5,288 1,609

3,679

3

4,629

937

1,024

2,655

-2-1 4,t629

NOTE: The balance sheets are theoretically computed by Fiat, but should reflect the correct profit or loss situation. A separate profit and loss statement is not available.

ANNEX 4a

Cfil',ENTERIE DI AUGUSTA


June JO

1959 1960 1961

ASSETS

Current Assets 1,065 1,155 1,081

Fixed Assets 5,126 5,245 5,251 Less Depreciation 731 926 1,174 Net Fixed Assets 4,395 4,319 4,077

Other Assets 2 12

TOTAL ASSETS S,46o 5,476 5,170 -LIABILITIES AND EQUITY

Current Liabilities 1,668 1,423 1,013

Long-term Debt f IBRD 867 n.a. n.a. .. Other 74S n.a. n.a . Total Long-term Debt 1,612 1,638 1,468

Share Capital 1,600 1,600 1,600 Surplus and Reserves 354 607 827 Current year's Profit 226 208 262

Total Equity 2,180 2,415 2,689

TOTAL LIABILITIES & EQUITY 5,460 5,476 5,170

Current Ratio o.64:1 0.81:1 1.07:1 Debt/Equity Ratio 42:58 40:60 35:65 Return on Net Worth 11.6% 9.4% 10. 8%

ANNEX 4~

CEMENTERJE DI AUGUSTA

P::lO?IT MID LOSS STATE1'1ENTS (Million Lit.)

1957/58 1958/59 1959/60 1960/61

EXPENSES

- Selling and administrative e.:xpenses 89 83 96 138

- Depreciation 187 192 195 249

- Inter est 60 123 180 175

- Taxes 40 33 57 99

TOrAL 376 4Jl 528 661

I HCDHE

Gross profit on sal es 610 657 735 921

Interest and other 1 2

TOI'AL 610 657 736 923

Net profit 234 226 208 262

CEMENTERIE DI SARDEGNA

BALANCE SHEETS (~1iillion Lit. )

· ASSETS

Current Assets Receivables 1/ Inventories -Other

Total Current Assets

Gross Fixed Assets - Cagliari - Sassari

Less: Depreciation Net Fixed Assets

Other Assets (Investments)

TOTAL AS&.TS

LIABILITIES & EQUITY

Current Liabilities "Other" Liabilities

Total Current and "Other"

CIS - IBRD Loan

Social Security and Dismissal Fund

Share Capital Surplus Current Year 1 s Profits

Total Equity

IOI'AiL. LIABILITIES & EQUITY

Current Ratio (Including "Other" Liabilities)

Long-Term Deb1'JEqllilty RatiD Return on Net Worth

2,567 387

24 2,978

2,641 33

1,406 1,268

750 182 932

70

70

1,000 1,780

394

3,174

4,246

3.2:1 0:100 14%

!/ Receivables include small amounts of cash.

3,011 313

29 3,353

2,706 699

l,~31 l, 74

5,227

1,289

1,289

331

76

1,000 2,174

357

3,531

~

2.6:1 9:91 11%

ANl'iEX Sa

December 31

2,397 249

2,b4b

5,154

l!IT~ 528

~

1,776

1,776

889

76

1,000 2,531

390

3,921

6,662

1.5:1 18:82 11%

3,500 513

4,013

6,137 2,097 4,040

634

8,687

2,268

2,268

1,444

94

2,000 2,430

451

4,881

8,687

1.76:1 23:77 10%

4,184 635

4,819

6,600 2,639 3,961

630

9,410

2,131

2,131

1,327

109

2,000 3,395

448

5,843

9,410

2.26:l 19:81 8%

ANNEX .Sb CEMENTERIE DI SARDEGNA

PHOTIT AND LOSS STAffliENT (Million Lit.)

December 31 1957 1958 1959 1900 1961

EXPENSES

Selling and other Expenses 181 128 150 306 296

Depreciation 58 125 135 431 542

Taxes and Interest 340 283 155 113 509

TOTAL 579 536 440 850 1,347

INCOME

Gross profit on sales 969 889 830 1,246 1,630

other Income 4 4 55 165

10TAL 973 893 830 1,301 1,795

Net Profit ~ 357 390 451 448

ST. GOBAIN Italian Branch

BALANCE SEEETS {Milll1on Lit.)

ASSETS

Cash on hand and banks Accounts receivable) Inventories )

Total current assets

Fixed as sets Less depreciation

Net fi xed assets

Other as sets

TOTAL ASSETS


Current Liabilities

Bank and ISVEINER-IBRD Loans Tax reserve Financial reserve Res erve for oven over haul

Total reserves

Capital originally as si gned C/A with parent company Special total reserve Current years profit

Total equity

Current Ratio Long-term Debt/Equity ratio

Return on Net •Jorth

1,639

4,081

5,720

7,144 3,287

3,857

107

9,684

915

220 899 249

1,368

5 6,286

690 420

7,401

6.3:1 0:100

6,0%

747 .1,354 1,808

3,909

11,455 3,791

7,664

135

11,708

837

l,? 06 391 890 249

1,530

5 6,741 1,004

385

8,135

ANNEX 6a

December 31

102 1,220 2,162

3,484

15,039 4,285

10,754

147

14,385

1,216

2,909 391

1,004 249

2,861

5 7,596

814 201

8,616

58 1,892 2,362

4,312

16,537 5,063

11,474

138

15,924

943

4,402 131

1,064

1,195

5 8,366

814 199

9,384

60 1,739 2,568

4,367

17,437 5,534

11,903

132

16,402

1,049

3,732 1/ 201

1,188

5 9,190

815 221

10,232

11,708 14,385 15,924 16,402

4.,7:1 l~-=~

5,0%

2.9:l 25:75

2,4%

4.6:.1 32:68

2,2%

4.2:1 27:73

2,2%

1J Includes Lit. 2.282 billion IBRD loan and Lit. 1.0 billion ISVEIMER loan

NOTE : Depreciations in Profit and Loss Statement cannot be clearly related to Balance Sheets.

ANNEX 6b

ST. GOBAIN Italian Branch

PROFIT AND LOSS STATEMENTS (Million Lit.. )

December 31 1957 1958 1959 1960 1961

EXPENSES

Cost of Goods Sold 5,548 S,491 6,193 8,093 9,182 Depreciation 705 652 498 947 63S Administrative and General

Expenses SS3 717 7S4 782 831 Interest and Other Expenses 26 59 118 258 234

TOTAL 6,832 6,919 7,563 10,080 10,882

INCOME

Net Sales 7,747 7,892 8,188 10,434 11,376 Interest 51 62 26 30 19 Other Income ~ 29 6 45 57

TOTAL 7,812 7,983 8,220 10,509 11,452

Net Profit before Taxes 980 l,o64 657 429 570 Income Taxes 560 679 456 230 349

Net Profit after Taxes 420 385 201 199 221

ASSETS Cash Accounts receivable Inventories

Total current assets

Securities Land, Real Estate, etc. hachinery and Equipment

Gross fixed assets Depreciation

Net fixed assets

Deferred

TOTAL ASSETS

LIADILITIES AND EQUITY

Current Liabilities Advance on loans Deferred

Tax and dismissal fund

Debentures Loans

Total long term debt Share capital Reserves Shareholders' advance CJrrent year's profits

Total equity

A.B.C.D.

~A!..,i._I- C , ; H. . T; (Mill ion Lit.)

TOTAL LIABILITIES & EQUITY

Current Ratio

Long-term Debt/Equity Ratio

Return on Net Worth

-~- ·- t:i• 7 a

September 30 1958 1959 196v

124 1,1G3

560

1,787 ()

u

1,338 4,423 5,761

550 5,211

7,u06

831 520

294

-2,208

2,208 2, 000

171 772 160

3,103

7,006

2.0:1 42:58

5.4%

26 942

1,512

2,480

2,v32 7, 909 9,991

6UJ 9,311

11,791

2,731

346

4,687

4,687 2, 000

134 1,672

171

11,791

u.9 :1

54:46

4.4%

17 895 616

1 , 52 '3

10 2,675

14,035 16,710

822 15,8.3J

17,426

2,279 1,390

417

1,500 6,060

7,56U 3,000

228 2,310

234

5,780

17,426

u. 7: 1

53:47

4.2%

1961

25 1 , 261 1, 3 ,Jl:

2 ,6 7(.;

10 2, %5

15,295 18,200

1,322 16,373

16

19,574

l,J04 1,500

405

489

1,500 7,4Ci6

3, 906 3,COO

240 3,G66

164

6,470

19,574

1. 5: 1

50 :42

2.6%

A~:1,EX 7b

A .. B.C.D.

PROFIT AND LOSS STA'm.iENTS (Million Lit.)

1957/58 1958/59 1959/60 1960/61

EXPENSES

Administrative costs 39 49 47 114 Interest ani discounts 102 69 41 507 Taxes 53 52 69 54 Depreciation 130 130 150 500 Others 12 18 13 -1!±

TOTAL 336 318 320 1,209

I NCOiviE

Gross profit on sales 487 479 544 1,364 Other income 9 10 10 9

TOTAL 496 489 554 1,373

Net Profit 160 171 234 164

• l )

- -a) a (117• )

}

Clear with . ec:

Juna #

;:)Cl'l)'tiellll01e:r .30 •

your•,

r . B. Cb k and A, D. Spottswood

O ticial Docum nts Fil a

Pi. ro Sella

TTALY - LOA?t

January JO, 196)

Attach d hereto .for saf."eke~ in your filee is a tae Borro r, dated J r.uary 19., 1963 (with Englieh tr tion)., return1n to the B nk copy o a letter ot the B nk, ted January 3, 1963, duly oonfi d by th Borro r, end.in the Proj ct eacr1ption or the Vibcrti oj t cont ined in para r ph VI o Part C or ch dule 2 to the Loan e nt (Southern Itnly Develop nt Proj eta) dated Uctober ll, 1956 or Loan o. l~O IT.

The att~ehed dooll!'l nts re in ood order.

Ple e have t. n reprodu d nd copins distributed in the usual nn r. 11 /

Cl • C ek Le ,al ilea

FORM No, 57

TO:

FROM :

SUBJECT:

":2.C-'1-~ } $1) INTERNATIONAL DEVELOPMENT I INTERNATIONAL BANK FOR

AS SO CIATION RE CONSTRUCTION AND DEVELOPMENT INTERNATIONAL FINANCE

CORPORATION

OFFICE MEMORANDUM Files Al A A

1 ,9.

Bruce M. Cheek) yv~

Italy - President of ENEL Appointed

DA TE: January 22 , 1963

According to "24 Ore" of January 10, 1963 , Signor Di Cagno has

been appointed head of the new State electrical enterprise , Ente

Nazionale Per l ' Energia Elettrica (ENEL)o Di Cagno is known to be

sympathetic t o the Christian Democrats and was former ly presi dent of

BREDA, a Government-owned engineering firmo BREDA has recently been

sold to FIAT .

It was reported that the Vice President of ENEL will be a Nenni

Socialist , or at least sponsored by the Socialistso

cc: Mr o Cope Mr . Piccagli Mr . Sella

.g .. E 0

"' .:;

'i: 0, 0

.. Q.

" o, .. a.

INDIRIZZD TELEQnAFICD C.t.~M EZ • RO/M,

CASSA PER OPERE STRAORDINARIE DI PUSBLICO INTERESSE

NELL' !TALIA MERIDIONALE

(CASSA PER! IL MEZZOGIORNO)

VIA Ar.iR8A -

5 IQ0440 CF fnE/VD/ :: . .t. c::;-:.·: .~:--:.; is/; :.:::!~ Prot. ~ . . ./.' .... ... : ......... . Posiz. ..(I... ar

Allegoti .. ... 1. ......... .

Risposto o .P~t~ ............................ . del .3 ... 1.,1.9.6.3. .... ... N ........... .. .•..

G-:,GEi·To,P.r.~.$ttt.Q .. :r:i'! .. J~O. J?:1 - Progett6 Vibert i ~.poA. Partenopea Trasportio-

Suettole

ROMA. ............... ... ... . .. : ...... . PIAZZA DEi CONGRE3~1 N . 20 IE UR l

TEL. 15281

Banca Internazionale per la Ricostruzione e lo Sviluppo 1818 H Street, N. W.

WASHINGI'Ol'J 25, D. C.

/ In rispos ta alla lettera del Sig. Cope in data 30101963 ed ~

conferma dell'accordo di auesta Cassa sulla mod ifica da aDnortare allo Accardo di ~restito BIRS/CASSA dell'11ol0o1956, in conseguenza del tra sferimento dello stabilimento Viberti di Napoli alla Sop.Ao Partenopea Trasporti, qui uni ta si rimette la copia della rela.ti va lettera di emen damento regolarmente controfirmata.

Si fa riserva di trasmettere a codesta Banca il relativo atto aggiunti vo al contratto di mutuo CASSA/ISVEHlER non appena lo stesso sar~ perfezionatoo

Con i mi gliori salutio

Q C .. e 0

~

.. 0.

..; 0 l:

----- -~-,,-----::----------=-----------

INO IA1 ZZ.J T E: LEGM.t.FICO t.J..:::::MLl • flO f.11 ..\

CASSA PER OPERE STRAORDINARI E DI PUBBLICO INTERESSE

NELL' !TA LIA MERIDIONAL.E

(CASSA PE R IL MEZZOGIORNO)

Prol. N . .......... ....... . .. .. Posiz.CEo.PE'.o BM/ar ROMA. . . ...... . ........ ... . .. ........ . PIAZZA OEI CONQR ESiiH N . 20 CE U R l

T EL. 112 91

All ego ti . .. ..... . ... ..... .

Rispos to o . ... ...... . . .. .. ........ . . ... .. ...... .

del .. . .. ........... .... ..... N ..... . .... . ..... .

:;ETTO: .. .. .. ...... .. ....... . . . .. .. ...... . .

International Bank for Reconstructio~ and Development 1818 H Street, N. Wo Washington 25, DoCo

Gentlemen, Subject: Loan 150 IT - Viberti S~poAo and Partenopea

Trasporti - Project.- ·

In reply to Mr. Cope's letter of January 3,1963 and in c-onfirmat ion of the Cassa concurrence on the amende ment to I.B~R.Do -- Cassa Loan Agreem~nt dated October 11,195E concerning the transfer of the Viberti plant in Naples to Partenopea Trasporti S.poAo, we attach hereto copy of the letter of amend; ent dµly . countersigned.

We shall submit to the Bank as soon as -executed the related supplementery agreement to Cassa/ISVEIM.ER Loan contracto

With best regards.

Isl Sincerely yours

THE PRES IDEllJT

Pescatore

January 17, 1963


Last month we received a letter from Sooieta Idroelettrica

Alto Liri calling attention to the fact that their electrical

undertaking would be transferred to ENEL, in accordance with the

nationalization law of December 12. A copy of our reply is ~~~ ' 1 lb~ .

attached. //' ~-()V'' .- \

As row, most recenUy from Mr. Knapp's letter of

January 4, we are studying the implications of this legislation

for our loans to the Cassa, and will be in touch with you later

on this subject.

Attachment

Prof. Gabriele Pescatore Cassa peril Mezzogiorno Piazza dei Congressi 20 (h1JR) Rom: ~~'Jttaly

BM~SRCope/rmc

Yours sincerely,

s. R. Cope Director of Operations

Europe

co: Mro Sella Mr. Povey Mr. Piccagli Mr. Baum

January 17, 1963

Oentl menc

Rer Loan l50:IT

I am to acknowledge and thank you for your letter

of December 14 informing us that, under th recent electricity

legislation, your undertaking will be transferred to the ENEL, the

new electricity agency of the government.

We are studying the implications of this legislation and

will be in touch with you about it in due course.

Yours sincerely,


Europe

cc; Cassa peril Mezzogiorno

Di.:rezion Oenerale Soci.eta Idroelettrioa Alto Liri Via Poli, 14 Rome• Italy ~~

BMCheek/SRCope/rmc cc: Mr. Baum cc& cleared withfMr. Sella

Mr. Povey Mr. Picoagli

Fil J a.ry ?, 1963

• • Torelli

Ital.ya orking Party eting on zotto Sud and PartenoE9a Projects.

~

1. A eet ot the orki Party was held on cember 26 to con-sid r th letter fro t Cassa concernin rzotto Sud and Partenopea. Mr. de Al , recently returned fro an nd-u vi it to Italy, re rt d extensively- on the status of th two oj cts.

2. zotto Sud s.p.A, ., a •a idiary of fattura Lan G etano Ma.rzotto e gli S.p.A., ia a textile u.f cturing establishment o r-ati in Southern Italy. It NQenUy r ue t ISVEIMER d the Ca s to e pt fr the r dual incre e of its share capital holder' dvanoes according to the schedule fixed 1n the co tent letter of rzotto to the dated Dece ber 6, 1957. Thie Sch ule provides t t the total capital of the co pm\Y shall incr e fro 1,525 million lire (950 of share ca ital 575 of shareholders• advano s) at the nd of the con truetion riod and fr the first year of operation to t le st 2,4oo million lire (1,500 of har c pital and 900 of hareholder • advances) at th en o.f th third y of o r tion. The co paey' • c pi tal

.h now r ched th fi s cified !or the first year or operation and it is pro s by rzotto, and pprov d by the cas and IS • t t thee be the final figures to which the c 1 co tted. zotto ha further ropos d that the capital resource be increa ed to 1.600 illion lire and. at the et e, that the hareholder • advance erged with the share capital. IS 'IMER h no objection to th 75 1111llion

incre e in capital re ources, t wish I to k ep th shareholders• dvance separ te d at lea.et at their present l vel, apparenUy in order to provide

tter protection for th loan in ev nt of lo aes. Thee tent letter so provide that th net working c pital hall be inore ed fr an ini

tial level or 1,200 llion lire to 2,100 million 11re after the third o rating 7e •

J. Mr. de Alba explain th t th re ons for this r~u at li in the changee th th :ve occurred in then ture of th operation or rzotto S • e c i pr uoing l er quality articles (ready-to-we clot ) with che per t bries. In di tion, about one-third of th . present roduction is de ror third ti• on a co asion basis. aohin ry ha reduc d ro ction t , d the time required for sales

coll ctio haa n con i er bl7 lo r than w s originally t tedo

AJJ a r ault or the5e chan a there isles n d for working capital for raw nsateriala, inventories, d receivables. Cassa and ISVEIMER ar atisfied that the co pany can operate on th basis of the lo er eapital-

1 t1on proposed. r. de also pointed out that Cass and ISVE'D ar nOll making loans in Southern Italy on ore favorable terms, h1ch makes it dlffio\llt for rzotto to compete with new textile compani s.

4. Th orking Party has conaequently a eeds

a) To r ove the requir ent in the co t letter that the c pital or arzott.o SUd be incr a ed beyond the figur s of 950 million lire of share capital and 575 million lire of hareholders• advanc • •pec1f1 d for the end of the first year of operations. "i th r ard to the propo al or zotto to increas the total c pital resourc to l,600 million lire and IS~ • '~ objection to the merger of share pital with aharehold rs• ad.vanes, the Working Party concluded that ither arrange-ent would be atisfactory to the Bank, but that it would ready to

accept the sug estion by ISVt;IMER that the eharehold rs' advances be kept separate.

b) Tor ove the requir ent in the co tment letter that the net work1n capital maintained at the 1 vela specified, provided• howev r, that the liquidity ratio of 2:1111 aintained. It was noted that. the financial info tion uppl1ed by rzotto does not 1nd.1cat vheth r or not th.is provi ion is nuw beina complied with.

5. It was also agreed that the Banlc woulds nd Cassa. brief state-nt of the kind or f'inanci 1 info tion that Marzotto should be requested

to aupply in the futur.

6. Pa.rteno~ i a c0111pany oper ting in the !1eld of repair and -... .......... t ance or trucks and bl ea in apleso Several years ago it took over the Vibert1 plant 1n Naples; Viberti had been a borrower tro the Cassa und r Loa"'\ 150-IT. but has en in serious firumoial difficulty sinCii!l the death of its owner. Accordingly, the Bank had 0 reed 1n principle to the sale or the compaey to Part nopea (letter ot May 6. 1960). · Partenopea has be regularly servici the loan. to which Viberti remains a ntor.

7. The Bank hae nO'., been r quested by Cass to approve forma.l.ly the legal documents providing for th tr er ot the Vib rt~ company to Parteno~a and the assumption by Partenopea of the obl1 ations to the Bank6 Mr. Sella 1ndieated that th documents appeared to be in good order bit ~at he would lilt to examine th again before giving a final opinion. (Mr. Sell.a confi e.ubeequently that the doc ent were satisfactory).

8., Mr. de Al· noted that Mr. Dotoli, the principal shareholder 0£ Part nopea and a guarantor of the loan ass by Partenopea, has not been willing for tax reasons to provide ISVEIMER and Cassa with adequate financial eta ents on hie company. He has agr d, however, to provide a fuller financial report on the co pany as of Oec ber 31, 1962.

Cleared with & oca

l~ Terelll/rmc ~CBaum

Mr. de Alba Mr. Sella Mro Kreut r

,,

C 0

p y.·.

INTERNATIONAL BANK FOR

RECONSTRUCTION AND DEVELOPMENT WASHINGTON 2!5, D. C.

January 3, 1963


Loan No . 150-IT - Viberti Project and Partenopea Trasporti S.~

In reply to your l etter of November 20, 1962, (your reference: · Prat. N. 5/23658/CF/PE/vD/az) I am pleased to inform you that the Bank has reviewed the documents attached thereto, concerning the transfer of the Viberti plant in Naples to Partenopea Trasporti S. p.A., and has found them satisfactory.

With reference to the last paragraph of your letter, we wish to confirm our agreement that, pursuant to Section 3.01 (b) of the Loan Agreement (Southern Italy Development Project) between us of October 11, 1956, as heretofore amended, said Agreement is hereby further amended by inserting the following new sentence at the end of paragraph VI of part C of Schedule 2 to said Agreement:

11 Upon transfer of said plant from Officine Viberti S.p.A. to Partenopea Trasporti S.p.A. pursuant to a contract dated July 27, 196o, said plant shall be ovmed and operated by Partenopea Trasporti s.p.A. for the purpose of bus and truck maintenance and repairs, with a capacity of about 600 vehicles."

Please confirm your agreement with the foregoing amendment by signing the enclosed copy of this letter and returning it to us.

We shall look forward to receiving a copy of the consequential amendment to the Cassa-Isveimer agreement.

With best wishes.

Enclosure

s. R. Cope Director of Operatic

Europe

Professor Gabriele Pescatore President, Cassa peril Mezzogiorno Piazza <lei Congressi N. 20 (EUR) Rome, Italy

FORM No. 57 (5- 48)

TO:

FROM:

SUBJECT:

INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT

f, FICE MEMORANDUM Mr. WoJo Arms ong DATE: January 3, 1962

E. de Alba z ~ ~ -'·

Partenopea Transporti and Mro Dotolirs Financial Statements as at December 31, 1961 (Loan 150-IT)

Cassa has submitted for approval to the Bank the contract between ISVEIMER and Partenopea in which the latter takes over the obligation to repay Viberti's loan and acquires all the facilities at the truck and bus body plant at Naples. The transfer of the industrial facilities does not relieve Viberti of its obligation to repay the loan in case of default by Partenopea. ISVEIMER has also obtained the personal guaranty of Mr. Dotoli, whose family owns Partenopeao ISVEIMER, of course, has a first mortgage not onl.y in the original Viberti plant, but also in the adaptations of the plant for bus maintenance and servicing built by Partenopea at a cost of several hundred million lire. At the working party meeting vmich took place on December 26, 1962, it was decided to go ahead with the preparation of the legal documents and approve the transfer of Vibert~loan to Partenopeao

· In my memo of November 9, 1962, to you from Rome, I recommended that Partenopea1s contract should not be approved until the clarification of Partenopeats and Dotolits financial statements as at December 31, 1961, which was requested by Cassa to ISVEIMER in their letter of August 27, 1962, had been obtained. In my meetings with Cassa on my return from India in early December, I was informed that Mro Dotoli had refused to provide any clarification of these statements on ' the basis that it may provoke a full investigation of his operations by the Italian tax authorities . On the other hand, Mr. Dotoli o~fered to prepare Partenopea's statements as at December 31, 1962, as requested by Cassa and have either Cassa or ISVEIMER officials discuss with his accountants any items which may require further clarification. ISVEil1ER's management is strongly in favor of Mro Dotoli's offer and Cassa 1 s officials are willing to accept it.

It appears that under the circumstances it is not IDrthwhile to press for any clarification of December 1961 statements, but to make a thorough check of the December 1962 statements as soon as they are readyo Cassa should be notified of our position.

E.deAlba:mf

cc: Messrs. Baum, Cheek, Sella

FORM No . 57

TO:

FROM:

SUBJECT:

INTERNATIONAL DEVELOPMENT I INTERNATIONAL BANK FOR ASSOCIATION RECO~STRUCTION AND DEVELOPMENT

INTERNATIONAL FINANCE CO RP ORATION

OFFICE MEMORANDUM Mro ~j, ! o Cope

w o c~ 'laUlll

DATE: January J , 1962

Partenopea Trasporti SopoAo; attached letter to the Cassa .

Partenopea is an Italian company operating in the field of repair and maintenance of trucks and buses in Naples. In 1960 it took over the Viberti plant in Naples; Viberti, which had been a borrower from the "Cassa" under Loan 150-IT for 840 million lire ($1oJ4 million), ran into financial difficulties following the death of its ownero The Bank agreed in principle to the sale of the plant to Partenopea by letter of May 6, 1960. Since the transfer, Partenopea has been regularly servicing the loan, to which Viberti remains a guarantoro The Bank has now been requested by the Cassa formally to approve the legal documents covering this operation and to amend the loan agreement accordinglyo

The Working Party, in its meeting of December 26, recommended approval of the docUlllents, subject to a final examination of them by the Legal Departmento Mro Sella has nQJ<found the docUlllents to be satisfactory, and the attached letter.-/so informs the Cassa and provides for the appropriate amendment to Section JoOl(b) of the Loan .Agreement between the Bank and the Cassa of October 11, 19560

Attachmento-

cc: Mr. de Alba Mr o Sella Mr .. Kreuter Mr. Verheyen

January .3, 1963


In reply to your letter of Novemb r 20, 1962, (your reference: Prot. N. 5/23658/CF/PE/vD/az) I ample sed to inform you that the Bank has reviewed the docum nts ttached thereto., concerning the tr sf'er of the Viberti plant in N ple to Partenopea Tr sporti S. p .A., and has found them satisfactory.

With ref rence to the last r gr ph of your letter, w wish to confirm our agreement that, pursuant to S ction J . 01 (b) of the Loan Agreem nt (Southern Italy Development Project) between us of October ll, 1956, as heretofore amended, said Agreement is hereby further amended by inserting the following new en tence at the end of paragr ph VI: of part C of Schedule 2 to said Agreement:

"Upon transfer o! said plant from O:fficine Viberti s.p.A. to Partenope Trasport! S.p.A. pursuant to a contract dated July 27, 1960, said plant hall be owned and oper ted by Partenop Tr porti S. p .A. for the purpo e of bu and truck maintenance and repairs, with capacity of bout 600 vehicles . "

Please confirm your agreement with the foregoing amendment by signing the enclosed copy of thi letter and returning it to us .

We shall look forward to receiving a copy of quential ndment to the C ssa-Isveimer greement.

With best wishes .

Sino rely yours,

Enclosure

s. R. Cope Director of Operations

Europe

Professor Gabriele Pescatore sident, C ss& per 11 Mezzogiorno

Piazza dei Congressi N. 20 (EUR) Rome, Italy

Cleared with & cc: Mr. de Alba Mr. Kreuter Mr. Verheyen

ll(l.(lC71lt>87 )l,

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SOCIETA IDROELET'IRICA ALTO LJRI

ROMA December 14, 1962 Via Poli, 14 Tel. 663

INTERNATIONAL BANK FIB / RECOID'IRUCTION AND DEVE~NI'

WASHINGTON

And cc to:

CASSA P:ffi IL MEZZOGICRNO

With reference to our agreements and particularly to the

Project Agreement (n. 50 IT) signed in Washington on October 11,

195£:>, we beg to inform you, to any effect, that the Italian Parliament

has passed the bill establishing the Electric Power Agency (ENEL) to

which our concern will be transferred by law.

The text of this law was published on the Official Gazette of

the Italian Republic, n. 316 of December 12, 1962.

• I

.. SOCIETA IDROELETTRICA ALTO LI RI PER AZIONI - SEDE LEGALE IN FROSINONE - DIREZIONE GENERALE IN ROMA

CAPITALE SOCIALE L. 5.000.000.000 VERSATO

DIREZIONE GENERALE ROMA 14 Dicembre 1962

Spett.

BANCA INTERNAZIONALE PER LA RICOSTRUZIONE E LO SVILUPPO

WASHINGTON

e per conoscenza

Alla CASSA PER IL ME Z ZOGIORNO

ROM A

Via Poli, 14 Tel. 663

RACCOMANDAT A

Con riferimento agli accordi in atto e in particolare all' "Accordo di progetto 11 (progetto n. 50 IT.) s tipulato a Washington il giorno 11 ottobre 1956, ci pregiamo segnalare, ad o gni effetto , l' avvenuta approvazione da parte del Parlamento Italiano della Legge istitutiv a dell1Ente Nazionale per 11 E n ergia Elettrica - E ' N E L - in applicazione della quale la nostra impresa sara obbligatoriamente ad esso trasferita.

La predetta Legge e stata teste promulgata e pubblicata sulla Gazz etta Ufficiale della Repubblica Italiana n. 316 del 12 corr.

Ci e gradito 11 incontro per porgerVi i nostri distinti saluti.

SOGiETA IOriGELETTRICA ALTO LHU

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FORM No. 26 ( 2- 62)

DATE OF WIRE:

LOG NO.:

10:

FIOM:

INTERNATIONAL DEVELOPMENT INTERNATIONAL BANK FOR IN TERNAT IONAL FI NANCE ASSOCIATION RECONSTRUCTION AND DEVELOPMENT CORP ORATION

NOVEMBER 7, 1962

WU 3

INTBAFRAD

ROMA

3

FOR ARMSTRONG

INCOMING WIRE

2043

ACTION ffiPY:

INFORvtA TION COPY:

DEffiDED BY:

ROUTING

TECHNICAL OPERATIONS

RETUJUIBD ROME STAYING GRAND HOTEL. REKREUTER FUCHS LETTMS FULL

ATTENTION BE GIVEN THEIR RECOMMENDATIONS FOR PARTENOPEA AND

CHASNALLA . REPORTS ON ITALIAN PROJECTS VISITED TO IIB PREPARED

AND SENT DURING WEEKEND . PROCEEDING TO INDIA AS SCHEDULED NOVE.HBER 1 2.

FAMILY NOTIFICATION BEING MADE

DEALBA

ORIGINAL LB

'Ui' B

;y, FO

8, ~.~, .LJ\1.,,.,1 ·orv, • ·O,~

TO: Mr. E. de Alba

FROM: w:. J. Armstrong

OFFICE MEMORANDUM

DATE: October 19, 1962

SUBJECT: Terms of Reference - EndJlee Visits to Italian Industrial Projects (Loans 117-IT; 150-IT; 189-IT and 224-IT), IISC0 1s Coal Project and Private Coal Sector (Loans 307-IN and 292-IN) and Preliminary Investigations of IISCO and TATA Programs

You should proceed to London, Rome and India about October 22, 1962 to inspect the Priyate Coal Sector and IISCO Caal projects and to make a preliminary investigation of IISCO and TATA programso Also on your way to India you should visit Cassa offices in Rome and inspect the SINCAT, VibertiPartenopea, Farino and Trinacria projects.

In the course of appraisal and end use investigations, you should review the technical and financial aspects and examine the borrowers• operational and financial position. As related to the individual projects, you should:

ITALIAN INDUSTRIAL PROJECTS (Loans 117-IT; 150-IT; 189-IT and 224-IT)

(1) Meet with SINCAT officials in Rome and, if possible, visit installations at Priolo and main offices in Milan. Investigate financial situation of the Company and their operating forecasts for 1963 and 1964.

(2) Visit Viberti's plant at Naples and determine why Cassa has not approved contracts between ISVEIMER and Partenopea-Viberti. Try to clear up this situation during your visit.

(3) Visit Forino's plant at Nocera Inferiore and find out if they have implemented V alsechi' s plan, agreed upon last year, to improve Forino 1 s operation.

(4) Visit Trinacria's plant now being completed at Caltanisetta and investigate their start up and marketing plans as well as plans for installing the kainite processing plant.

(5) Check final cost and technical details of shafts, winding engines and underground haulage of P ascuasia mine. ·

" 2 -

IISCO COAL PROJECT (LOAN 307-IN)

(1) Visit ICC offices in London and discuss any revision to cost estimates as well as status of ropeway tenders.

(2) Review status of project with special emphasis on steps to be taken to make this loan effective.

(3) Review revision of cost estimates especially the increases in local currency component.

(4) Review possible effect of the new retention price on the project and the financial position of the company.

(S) Determine if ICC and IISCO have the qualified coal mining knowhow to carry the project to completion.

(6) Review action to be taken to complete the project on schedule.

PRIVATE COAL SECTOR LOAN 292-IN

(1) Review status of import licenses and financing of mining projects.

(2) Make field visits to selected mining projects to determine if production targets at end of the Plan are expected to be achieved and make a reasonable estimate, if possible, of likely production.

(3) Check transportation and power supply problems.

(4) Advise on implementation of a progress reporting system, using forms already provided to Coal Controller and Joint Working Committee.

(S) Determine use of loan funds by existing closing date and possible need for extension.

IISCO'S PROGRAM

You should concentrate your investigation on IISCO'S plans to use fully the potential capacity of the extension program financed by the Bank.

(1) Iron ore processing should be investigated considering not only screening and washing but also the possibility of improving blast furnace loads through sintering, pelletizing or bricketing of iron ore fines.

- 3 -

(2) Regarding the proposed thermo-power plant at Chasnalla you should investigate alternat ive solutions of joint operations with TATA at Jamadoba as well as the disposal of middlings at a central power station at one of the Government-owned washeries near Chasnalla.

(3) Special attention should be given to a possible continuous casting plant, investigating not only the technicalities of the process but also the sources of molten steel, namely additional production from the existing melting shop through oxygen lancing or some other methods, as well as the balance of requirements from a proposed electric furnace. While in Europe (probably in Germany) visit some Concast installations to familiarize yourself with their technical and economic characteristics. Also determine if there is finishing mill capacity to process the Concast plant production of 9" blooms. Determine if the blast furnaces can supply the pig iron requirements of the melting shop and Kulti•s foundry.

(4) Investigate availability of scrap for the electric furnace feed including the possibility of using skulls.

(5) Study carefully project cost estimates especially local fund requirements. Obtain forecast of financial statements and cash flow.

TATA'S PROORAM

(1) Investigate iron ore processing plans, not only screening and washing of ore but also the possibility of improving blast furnace load through combination of sintering ( already being practiced) as well as pelletizing and bricketing.

(2) Investigate thoroughly proposed expansion of coke production facilities considering the possible reduction in coke requirements due to:

(a) improvement in the quality of coal, iron ore and limestone;

(b) intensive use of sintered, pelletized and bricketed materials;

(c) fuel and steam injection of the blast furnaces; and

(d) any other improvements in blast furnace operation.

-4-(3) Coal nu.ning operations - You should make yourself

familiar with TATA 1s coal "alternative" plans and while end-using Private Coal Sector and IISCO loans, gather as much information as possible on cost of mining operations similar to Jamadoba's.

(4) Power plant - As suggested for IISCO's power plant, you should study and discuss with TATA the same alternatives.

(5) Study carefully all cost estimates and obtain the necessary forecasts of financial statements and cash flows.

You should send brief reports after your visits to London, Germany and Italy and periodic reports of progress of your work in India .. You should keep in touch with Mr. Jeffries who is expected to be in India during the same time and to Join you during the later part of your mission and the Bank's office in Delhi informed of your arrival and changes of location.

It is expected that this trip will require 6 to 8 weeks~ Upon return, you should prepare back"to-office reports to be followed by the fuller report required for each specific project~

EdeAlba:lh

Cleared and copies to: cc to:

Messrs. Jeffries, Pollan, Fligler and Cheek. Messrs. Clark, Baum, Povey and Casson

FORM No. 26 COPY

(8. 59

INTERNATIONAL BANK FOR INTERNATIONAL FINANCE RECONSTRUCTION AND DEVELOPMENT INCOMING WIRE CORPORA Tl ON

DA1E OF ROUTING WIRE: OOTOBEa 19• J.962 lJ4

LCXi NO.: WU 10 ACTION COPY: TOOHNIOAL OPERATIOtB

10: ARMSTROm nttBAFRAD INFORMATION COPY:

FR0\1: ROO DECODED BY:

TEXT:

5/20991 j

REUR CABLE OCTOBER l6 C11:NCUR DE ALBA VISIT FROM OCTOBER 28

THROUGH NOVEMBER 4 AS INDICATED. INFORM THAf Nov»mm l AND 2

RELIGIOUS HOLIDAYS AND Nov»mm 3 BANK HOLIDAY FOR mFIS. SUGGEST

DEFINITIVE AR.RAW»mN.rS FOR VISITS SICILY BE TAKEN m ROME MEF:.rOO

ON OCTOBER 29 WHICH JEFIS WILL ATTElID RIDARUS

GABRIELE PESCATORE PRESIDENTE CASSA. MEZZIG<IORNO

0

DUPLICA1E

Mr. • J . strong tob r 17, 1962

E.

s

Privat

t :y 25, 1962., the Im.port License er enin C ttee d approv and forwarded to th Coal Controller 22 licen tor c tegorie land 2 or tho Li.st ot ods tor a total ount or w . 4 Ulion and 1,657 licene under c tegoriee, 3, 4 and 5 for a total ount of .;.6. 1 million. Th Coal Cont.roller had pproved and fo rd to th "Licen Authoritie "19 licenses under cats ocy 2 for . 2 mill.ion nd 1 , 639 licen es under categories 3, 4, and 5 tor 5. 2 million. At t t th Lie sing uthorities d issued only on lien under cat or:, 2 tor 22,0CX) d 507 lien un er c te orie 3, 4, and 5 !or " .7 million.

June 14, 1962, the sent a lett r to the Coal Controll r pproving 70 additional. co mining project , bringing the tot 1 n r

of projects under cate orie 1, nd 2 to 117 with an stim&t or ign ex.ch.u1g requir ent of O million.

inc that date, axe pt for nt or our 1 tt r, d some rather unconvincing r rk bout th lon riod requir d for pur-chas of sp re rt by the Coal ontroll r, no info tion what ever has b n receiv regarding thi loan and no disbursements under &DJ' category have so f r been de by the Bank' Tr sury.

At rq last eating in Gal.cu.tta with • Talwar, the Coal Controller., in this year, it was a r ed that the pro re repor fo l ha v n him an th Joint orking tt e would b tudied and adapted to the special r port.in conditions of thi loan. lso, it was t t in my next trip ( t t d t t t tim in S pt er), w 'W'Ould re o th f'inal form to be used and, while end-usin proj cts, we would have the opportunity to !ill up o e forms ford onstr tion to Controller's offic

nd JWC st ff.

e have ollow in th n spa.pere the b ttle till oing on betw n the Government and the private coal ector. The in issues are:

() Coal pric d quat to provide fair return to ble the coal. compa.ni a to plow-back the funds r quired for their expan ion, and

(b) Financing of the tunds not ener t d by th com nies needed for th expan ~on nd which th~ ve.nunent is co tted to help to provid .

el y of o t two y rs alreadT in th of th coal progr , and th refore an end-u vi it with exten iv work ppe rs imper tiv during thi all.

~-""' ~~'il.t, ~07 ~ ~ ~-i..i.,~

-2-

IISC01 s C

De pite our efforts, thi lo i not y t ett otive. Still pendin, so l gal doc ents inclUding:

( ) "Th ubordination by Indi th ecuriti s held 7th

d the State Bank of Ind of

(b) 11 h usual. l asp cts of t

l opinion of I O's l wyer cov ring 11 l • "

l re important ia c lianoe with th clause requiring t t the Ba.nk should b ti !ied U t t c ha ri hts on the land need d tor th minin o eration , sand ath ri etc. Some of the doc ents and contract b tween IJVC, the Bihar ' v rnment and II v b en receiv only in d.r ft form.

It i v ry import t to di cu wit th International Construction C pany 1n London the st tu o the negotiations with upplier nd con-tr ctor for th in rt or th proj ct which we v approv in June this y r, subj ct to th loan b coming ffective. The local currency

ima.te v b en increased out of proportion for the minin opar tions in Jun •s progre s report, and it may be advi ble to cl rout with ICC revised cost e tillls.te befor the loan b com s ffective.

The sit tion of~ d lica.t due to th depressed rk t for fert.iliz r 1n It nd a.bro dl' nd the trong peti-tion on petro-ch cala caused by th lowering of tari!'f within th C on

w 11 as the d p · of plastics by U. • uf cturer • To complicate tt rs, Ca per il 1azzo iorno is financing · anc proJ ct in rdinia tor the production of petro-ch cals including poly-ethyl e other terial al o produced by SI C. T. The condition of the loan to Rumianc pp r to b the following:

( ) ir ct hand-out of 20~ of th value of ti.xod set when th in tallations r c plet d.

(b) i.nancin of up to 70 or th tot cot of th proj ct J' int r st.

(c) Sp ci l electric power ra.to.

(d) Tax ption, etc.

Th se conditions financin mor than 50 or th lu bout 7~. thorough tudy of~ C in of'fices in an ar e ential.

position unt nabl inc they r of th proj ct t int r at rates of 'e ituation, includit visits to th

-3-

Vib rti' position i , I ........ ,.,,.n,~..--... rtenop , ISVE -, -C have not yet b

~ ing repayment or Viberti' s l on chedul •

th contr cts a proved. ~

to nted.

Trinaoria, the la.st industrial. project in Italy, i pr ctic lly plet • Several m.odifioa.tio , such th 3rd ha.ft d th location

kainito processing plant, v not been officially notiti to the •

here is no info tion al or rding the exploit tion of Corvillo ' s mine.

oon

:a

end-u trip inc udin vi it to don, nt, selt-nux intel'"irl&), It l.y d Ind

OS ible.

cc: rs. J rtri s Pollan Povey C sson Ch ek

FORM No . 59 ( 2- 55)



DAT ED: October 17, 1962

TO: Professor Pescatore, Cassa per il Mezzogirono, Rome, Italyo

FROM: Wo J • Armstrong

FILED UNDER: Ita.l;y" - Loan 224

/ SUMMARY: Confirmation of cable dated October J.6 regarding the visit of

Mro de Alba to Italy in November, and Octobero

Form No. 27 (7-61)

INTERNATIONAL DEVELOPMENT INTERNATIONAL BANK FOR

RECONSTRUCTION AND DEVELOPMENT

INTERNAT IONAL FINANCE

CORPORATION ASSOCIATION

TO : CASME%

ROME

OUTGOING WIRE

DATE: OCTOBER 16, 1962

CLASS·OF LT SERVICE:

COUNTRY : rrAJX

TEXT :

Cable No.:

FOR PESCATCRE EE ALBA EXP:&:TED TO VISIT ITALY FROM OCTOBER TWENTIEIGHT

TO NOVEMBE:R FOUR TO INSPIDT FOLWWDn PROJFlJTS ON DA.TES AND AT P.tACF.s

INDICATED BEIDW1

SINCAT OCTOBER Nh'N'l'IHINE RCME STOP PARTENOPE.A. AND FORINO OCTOBER mm.TI

AND THIR'l'IOWE MAPLES STOP TRINA.CRIA NOvmBER TWO CALTANISETTA STOP VISIT

IRFlS NOVEMBm ONE PA.LffiMO w.-r·ER FOL™ RID.ARIS

ABMSTRO

NOT TO BE TRANSMITTED

MESSAGE AUT HORIZED BY : CLEARANCES AND COPY DISTRIBUT ION:

NAME

DEPT.

W. J • AmBTRONG, CHIEF

DIDUSTRI DIVISION, TJil:HNICA.L OPmATIONS DEPARTMEN'r

SIGNATURE -------=-------,---------::--:---::-:( S1GNATURE OF INDIVI D UAL A UTHORIZ ED TO . APPROVE)

E. deAll>a,lar ORIGINAL (File Copy)

( IMPORTANT: See gu ide for preparing form)

""" 'Z.. '2- l\ ~ ~ ~, ~ \ 15'1> ,,,,

~ ~l~~

For Use by Archives Division

Checked for Dispatch: -================

r


TO: Mr. J. Filippi

FROM: A. D. Spottswood

OFFICE MEMORANDUM

V SUBJECT: Terms of Reference - Rome and Beirut

Date: June 20, 1962

En route to Cyprus you should stop in Rome to talk with the Cassa about the financial aspects of the 4 irrigation projects, as requested by the Agriculture Division. You should explain to the Cassa what type of information the Agriculture Division needs on cost estimates and expenditures for the work remaining to be done on these projects.

Upon completion of your assignment in Cyprus, you should proceed to Mauritius to join Mr. Bartsch for the appraisal of the Mauritius power project.

On your way from Cyprus to Mauritius , you should stop briefly in Beirut to discuss with the Litani River Authority the present status of the reorganization of their accounting system.

After your return to the Bank you 1'1ill prepare memoranda summarizing the results of your discussions in Rome and Beirut.

cc: Mr. Aldewereld, Mr. Squire(~), Miss Van Gasse (2), Division Files (2), Operational Files (4), End-Use (2), Mr. Collier,'Mr. Goodman, Mr. Reid.

,~

--..

FORM No. 75 (2-60)

'NTERNATIONAL FINANCE CORPORATION

INTERNATIONAL BANK FOR RECONSTRUCTION ANO DEVELOPMENT

ROUTING SLIP

NAME /

Mr. Peter R~i/ \7

.

Date

,.

INTERNATIONAL DEVELOPMENT ASSOCIATION

June 13 ROOM NO.

1 To Handle Note and File ~

~

,propriate Disposition Note and Return App rova 1 Prepare Replv Comment Per Our Conversation Ful 1 Report Recommendation Information Si anatu re In i ti a 1 Send . On

REMARKS

Will you acknowledge this as a follow-up to Groenveld's letter of April 24 to Gabriele Pescatore of the Cassa.

From

Bruce M. Cheek

Mr A. D. Spottswood

L, J. C. Evans

Irrigation rojects in Italy

June 14, 1962

I spoke to you about 4r Fillppi•s forthcom ng tr vel and you kindly agr ed that he might spend a day, hile in ome, talking with the Cassa about fin ncial aspects of the four irrigation projects (loans 117, 150 and 189-IT).

\/'" roenveld's last end-use visit on these projects is ated

June 1, 1962. We hav sked the Cassa for reports on th financial aspects of the projects and Mr Filippi might d sc11ss and explain what is needed with the object of having some up-to-date information sub itt d to us soon on expenditures to date, revised cost sti ates, sources of funds employed and schedules of financing for the remaining work to be done on these projects • .

FORM Nr>. 57 (5 - 48)

')..Q.'1 -


OFFICE MEMORANDUM DATE: June 13, 1962

Mr. Groenveld has recently sul:Initted his final report on inspections conducted in January with respect to four irrigation projects in which the Bank has invested $61 millioz-ce 1956.

As indicated in the attached report , he is generally satisfied with progress and the use of Bank resources . His recommendations relate essentially to a better flow of information on various matters from the Cassa to the Bank and to the need for the Cassa to consult us before proceeding with project changes . In particular, the Cassa had stopped sending quarterly financial reports when the Bank's funds had been fully disbursed (as early as the end of 1959) and changes in projects of a quite substantial nature were being considered and even ma.de without adequate consultation of the Bank.

His recommendations are as follows: .

(1) Catania - Despite some delays caused by technical difficulties the project is developing in a satisfactory way and it will prove to be very beneficial to the area. The Cassa should be asked to inform us as to what action has been taken with respect to the delays in the construction of the 1:arrage and the tunnel by ESE. There are no other problems requiring attention, but it would be advisable to request again a speedier preparation of the annual report on agricultural developments .

(2 Flumendosa - No action is recommended f or this project.

(3) Volturno - No action is required at this time, but it is advisable to remind the Cassa of its obligation to inform us on possible changes in the project, and also on the desirability of having an estimate of the value of agricultural production included in the 1960 report on agricultural developments .

(4) Fortore - It is recommended to send a letter to the Cassa stating (a) that we regret not to have been informed earlier and in more detail about the impending changes in the project and to remind them of their obligation to consult the Bank prior to approving the final plans for the project; (b) that we would like to be informed of the reasons why the tunnel is preferred over the barrage and diversion canal; (c) that they promised to send a re- estimate of the expected benefits; and (d) that they are obliged to send regularly the requested annual reports on agricultural developments .

Mr. Reid' s letter of }lay 1 to Gabriele Pescatore (see attached Operational File) takes up these points . There has been no reply to this letter, in particular concerning the resumption of financial reporting, compensation in the Catania project , construction changes in Volturno, and the virtual revamping of the Fortore project and consequent need for a new economic justification.

-~ '

v--1 /

• p • Reid

n. Groenveld

ITALY

June 1, 1962

Report n End-U Visit to Four Irrigation Project Jan!1&1196

INTRODUCTIO

1 . Thr of the Lo made by the Bank to I included allocati ns for irrig tion project .

N ot Loan Da of Project Number Agree t

Catania 117-IT 6- 1- 56

int perio 1956/58

mount Allocated to Irrigation

20 lion

•

//

~

Fl ndosa 150- IT 11-11- 56 Volturno 189-IT 2- 28-58

25 million j.. , 9 mlllion ,,r

ortore 189-IT 2-28- 58 7 .44 milll,:(~ 2. This report on th above projects is based on n nd-u inspec-tion visit fro January 5, 1962 to January- 19j 1962. In th Cas Head-quarters di cussion were held with rs. Vicinelli, Laona (new Director of the grieulture Division) ., de P and F r zinni. Fi ldtrips re de to each of the four project • On these trips, I s acco panied by Dr. B -tolucci from the Casa.

CATANIA P OJECT

De eri. ption

) . Th. project ould irrigate bout 30, 000 hectare or the C tani Plain, mainly with ter from the b sin of the S eto River . Water will be

d behind a number of dams (all co tructed) of which only t P zill D is financed r Bank Loan 117- IT . Fr the Pozillo Dam, th r run through the d of the S z Ri er ( n ffluen to the S t o) to a barrage t Contr sto. From there it 11 be conducted by tunnel through a p er plant to intak tructures at P t mo. By- thee intak structures, th :ter would b led int t lo - lev 1 canals and two high• lev l canal • The ar a will be rved by a c 1 ta syste of distribution wrks.

Progress of Work

4. The Pozill D w s completed in 1959. was scheduled for completion in 1961, but the

to two cau ea--first , the electricit co :p plant up am changed its pro r of wat r rel

Th barrag at Contrasto ve been s . These

SE) wH ch oper s po r sea which would result in

2

5. Plans to construct t bove ork report of Nov mber 1957 and in a letter from the Oas of Nov: ber 30, 1957. The end-use port states that the loct ci y company (ESE) h s by g nt

· th th C s (ERAS) d the Consorzio undertaken to co let3 the wor s by April 31, 1959. In c of a delay, ESE will h :v to ppJ..y ter to the irrigation can l by o h r (p sumab ) • part of th contri u-tion ( of the Ca sa through E S) i retained in thi obli~ati io not fulfilled.

7. A orary in ha di d ter tr th S to iv r into the o low-1 vel canals for th past two years. ll inta~ tructure

ost completed including the syphon fort right high- le'V11 canal.

8 . irrigabl ar h been di vid d into our actions called lotto •" Lotto A incl the lo r land north of the Dit ino ·-:v r

(another arnuent to t.h S to) . Lotto B includes lo r land outh of th t rt er. The hig r north rn portion or plain is call d Lotto c, and finally, Lotto D include the hi her outh rn ar a .

State of Completion or Di tribution Wor

!I Ar Lotto a

A 7,000 ha Comp1 ted in 1961, exc pt 2,000 h, subj ct to noodi •

B 1,000 Compl ted in 1961.

C 6, 500 ha •or , co pl ted in l961J the balance in 1962.

D 6, ,oo 11a For 7 , completed in 1961J the a.nc in 19 2 and 1963.

Y The 'lot o include at pre nt 27,000 h ; the b anc of area ha ot t been included in a "lotto. 11

proj ct

..

.3

9. S land in the lowest ction or Lotto i subject to flooding by the Dittaino River and the lowst ction or th Si.mete Ri r . For ars., the Ministry of Public 'Work has been construoting regulation work f'or th riv r , bu.t, progress has been slow. There were rious tlood in. 1961 and part of th river control work were damaged. It is ~cted that the riv rs will be unde.r complete control by 1965.

Extent of Irrigation

lo. The temporary intake, stru.ct\U",e at Ba.r:ca de· Paterno supplied water to th main canal for Lotto A in 196o, and 1n 1961 t Lottos A and B. Th :x.tent of irrigation in thes two ars and the future p ogram i shown below.

Present and Future Area under Irrisation (1.,000 hectares)

Lotto 1960 1961 1962 196)

A , 5 5 , B ,,.. ,, 7 7 C ... .. 3 6 D - .. ... 2 - - - -

Total 5 8 15 20

Th full a.rea of 30,000 hectares will be irrlga d by 19651 when the r gu.la.,.. tion orks on the Simeto and Dittaino River will be com.pl ted.

11. The original construction ech dule cal.led for comp tion ot all works by 1961. The report on the end-us visit of 1960 stimated that almost th ntire are fou.ld be able to obtain ter in 1962, The further delays are, caused by the already mentioned difficulties with re pect to the barrage and th tunnel and by tbe Ull8%.pee d heavy flooding of the Ditt ino River d it fluent • The . noods did d e to alr d$' eonstructed dist-ribution o and they led the Consor ill1!1 to the deoi:don not to complete work in the Lotto and D until the ri r re under control.

The . Develoent of Agri.cul.tu:re

12. The prospects for d velo nt of an intensive griculture in the project area quite good. The f ;r eager to u v ter and, on the t1hole, capable. Th Oonsorno has a good agricultural division 11lhich cooperates mth the tield ervic of the Ministry of Agriculture and lt.i.th th Agricultural College in the re •

13. The Oonsorzio is preparing th annual report on th agricultural situation in the project area which will be submitted shortly. On th bass ot the mission• · tindings., some main figures and data are disou sed low. '!'hey show that the trends observed in recent yeu continue and they give confide e th t the project wrks will be u d by the tanners to t

4

Land Use (in hectares)

.1925 1957 . · .. 1929 1960

Arab]! 1 nd 24,000 23,800 23,640 2.3,950 Truck cro1' .500 500 500 350 Orchards .3, 700 4,400 4, 880 5,170 Grassland 1,aoo 1,300 980 5JO

Total 30,000 30,000 10, 000 )0,000

14. The irrigated area was 6,0l5 hectares (partly by pumps). Iniga .... tion was mainly used for sugar beet, cotton, artichoke , vegetables, citrus and other fruits .

15. The alread)r reported trend towar a more intens-ive ti.culture continues. This can i . a . be demonstrated by the development of the live .. stock industry. The number of cattle increased from 4i700 in 1959 to 5,850 in 1960., wher as th number of go tsalld she p decreased from .3.200 in 1959 to 2,800 in 1960. Live weight of all animals per hectare agricultural land bas increased steadily si'nce 1955. It wa then 52 per hect rising to 67 1n 1959 and 73 in l96o.

16. The val:ue o! gro s mark&table prodllctio increa d considerably during the last six 7eara. It was stimated at ) . 9 billion lire in l9$5J 5. 2 billion lire in 1959; and 5.5 billion lire in l96o. This inorea is almost entirely due to the development or o1trus production. Th value or the citrus crop increased from. 1. 8 billion lire in 1955 to 2.5 billion li in 1959 and. 3. 2 billion lire in 1960, orb~ 1.4 billion lire ,ove:r the last six years.

17. Th original cost estimate of the project s 29. 2 billion lire. This sum wa reduced to L 27. 7 billion in 1959. The allocation in Loan 117- I'l for the irrigation project the equivalent of · 20 million, or t 12. 5 billion. This has been fu!j.;y; disbursed in the period 19$5/S7. _.,. =--18. cent financial ta not yet available . Tat C ssa was or th ( . ~ opinion that it did not have to continu th · preparation and u'bmis.sion of · quarterly' fin al · re ort.s after the ~ea Loans had bean disbursed. The Ias ial progress r port wa reoeiv n ece.mber 9 a the third quarter or that year. The Cassa ha been urg d o by • Filippi) to resum financial reporting in the agreed upon y, and promised to do so. A rep~ covering 1960 and 1961 c be expected 1n May 1962.

'

19. The costs of construction will not be considerably h1ghe:- than the original esti tes.

!J The citrus area'expanded from '2, 500 ha in 1955 to 3,635 ha in 196.o. Further expansion took place sine that yea.r.

Conciusion

~ . Gespite so dolays cau d by technical di.t'ficultie the proj ct ~ valoping in a sati i"acto::cy . y and it will prove to be v ry b nefici l to the are · • The C ssa should asked to inform us s to t ction ha been ken with respeo to the delays in the c truotion ot. th barrage and the tunnel ~

21 Cniere are no other prob requir at ntiona but it would . le to quest again a speedier pa.ration or nnual report on

agricultural. velopment~ .;-~ J_,,,:t;._~ IJGv-6:i.. .

FL~NDO PROJECT

D script.ion

***

22 . The project includes the building of two high (Flumen and ) , a ain canal (partially in tunnel) ovei- a high plateau, at do,m tru.ctures, d a twork or canals to irrigate ultimately about 50,000 h eta.res in th& Cagllarl Pl.a.in. he irrigation of a 11 a on th plateau, near T xenta, is incl d in the pr ject. 'l'vo hydropo r plants and a potable water Sllpply were to connected with the roj ct, but re not !inan d fr<>lll t Bank Loan.

23. Some changes 1n original p ject de ertption were a~roved by 1 tt r of July ll, 196o. The e change did not tact th basicc aracteristics of the rojeot.

24. T irriga d area will finally inclu 65.,000 hectare , but fe additional dams will hav to be built to that end. The construction work !'or the distribution system fort are ve been divided into thre 6 gs.

The two high d s and the connecting tunnel re co leted in r 1958. The main cana.l. over the high pla au (pa.rt 1n tunnel)

irrigabl ar re completed in January 1961. Work is now in progress on th conda.ry canals and <listribu on syste • 'l'h major cana.l.s would be 11$ km long and the distribution networ. ould i clud 2, 000 km of all canals and pi • Approxima.t ly l,000 hectare in the Trexenta area irri ted in 1961 and it expected that about 4,ooo hectares in the Trexenta and Sanluri re will rec ive ter this year.

26. The ata of progre a or t main units of works i shown in th table below. The first stage or 23,100 hectares «il l under irriga ... tion by 1968.

27 . The econd stag including 201 000 hectares will be planned in the meantime. Th third stage of 7, 000 hectares will be tackled later.

6

TABLE 1

State or Work•

Type of Work

A.

Mulargia D lumando Dam

C onmcting tunnel ain canal to irrigable

B. Irrigation Works for First State or 23;100 ha

Section 1, Traxenta (2,000 ha)

Sect1.on 3, Sanluri (2, 200 ha)

Seetion 4, Western ar a (4, 000 ha)

Ma.in canal aero s the C pi o Plain

Southeast canal (for region 5, 8,800 ha)

State as of Dec r 311 1961

Completed February 1958 Completed April 19S8 Completed Sep ber 1958 Completed January 1961

1st tranch, contracted, 95 completed.

2nd tranch, contracted, to be co pleted February 196).

Contr ted, 3 c0111pleted, to be finished y 1962.

Contracted, 15% conipleted, to be fin1 hed y 196).

Contr cted, l~p c pleted, to be finished Nove r 1962.

Contracted, to be co October 196.).

ted

Prog xpansion ot Imsation

Areas 1, 3, 4J 8,200 ha Are s 2, 1st tranch or 6 J Balance, about Total fir t stage

bout 7, 100 ha a,ooo

23,100 ha

Under irrigation in 1964. Under irr~ation in 196,. Under irrig tion in 1968.

28 . 'l'be original schedule of construction called for co let.ion of the ma.in work in 1958. Delays occurred mainly becau or changes in the origtnal plans.

29 . he irrigation works re supposed to b built ov r a ten-year period tarting in 1958. By 1968, 50,000 hectares were to be under irrigation. There is now good chanc that by 1968 St ge 11 including bout half' the area, w.111 be under irrigation. o schedule for Stages 2 and 3 ha been established. Delays in the work are du to a variety or rea on , such a change

7

sign of work , r consi ration 0£ t di tribution \ sh to coo c l tion of the syste with effort to prepa.1'9

rs for the proper u or the irrigation facilities.

Financial A pecta

30. allocated to the Fl L 17 . 06 billio • Thi

y .

31. orks

En ady co

do pr pared sta nt hewing th co or th d tho e now under contract.

1 ndo D tul rgia D

Connecting Tunnel Di rsi.on unne1 Trans-pla u canal

T

C o

Ste down tructur and rel.a d vorks

!11'.iain canals and n twor s for 50, 000 ha

ow con tr cted t twor for 8, 200 ha

canals Other wor

Total

2

TO port

8, 240 4,625 1, 11S 3, 220 2,460)

) 3,545 1,085)

16,15,

-

A C 31, 1961

8, 796 4,923 2,464 3, .500 .3,176)

) .3, 449 273)

--

ll 29, 6o3

A compari on betw, en the original cost st te c.nd th recent figur s shows that for individual ite the final figure re ry clo tot original st • It could expec d that the total co o:r the project will not

bo eon de bly higher than the a t · t •

Action to Prom.ot,e Irrigated Agriculture

32 . ported rli r , the nte Fl . ndosa has v r;r good agricul-tural vision_ which orka mainly in the ollowing f · lds s

8

a) planning or detailed distribution networks, windbreaks and o her on-fa improve nts;

b) experimentation, education and extensionJ and

c) re-distribution or land, ither under the Land Refo Lav, or on a voluntary basi •

33. The Ente operate two exp rimental t , a training $Chool and several courses and a oil laboratory. Thi inatitution ia equipped with very modern instniments and has a capacity of 1, 500 complete teats a year. The land reto section of the nte ha built two acbools tor ttler and a servic center in an impo:rtant n reform area" (la Zeppara) .

34. The annual report on gricul tural condi tiona and developments in ..19 s ce1ved recentl • It appears that weather conditions were r ther t :vorable hat ye r , xcept for heavy ra.1.na in December. For the area as lihole (the Ente covers 2,0,000 bee a), there is still little change in th cropping pattem. Durum whe t will remain th principal. c~ until irrigation reads. Where irrigation is already available ( i ther from pumpa or from the project works), there is a marked shirt toward intensive farming. Sugar beets give on tbes lands v r:, high yields (up to 60 uns per hectare), and artichoke prove to be v ry profitable . A quantity hae

en exported. Foddar crops are also pr nt in these as. Fruita would find a veey good ket, since Sardinia i• atUl i.mpnrting fruit fr th8 ma:l.nland. Some tanners have bought improved dairy herds and they are doi very 11. The number of cattle ha increased fro 10,800 in 19!>9 to 12, )00 in 1960 in the Flumendosa a . The nWllber or sheep increased tr 187 ,ooo to 192,000 in the s period.

35. A rev larger farmer in airy,<'1' irrigated area or Trexenta haVi stabllshed a mixed type of farming .:!:I. The managers kaep record ot expenses am revenues. It ppears that they achieve an aver~tt gross revenue of L 600.,ooo per hectare (al.moat 1 , 000 per hectare) .:t, and nat revenue of_I, 1!>01000 to L 2001 000 r hectar . The capital invested in the r rm 1/ was about L 2. 6 m.i,Jlio r eta.re. On the basis o! th .figures, oas output would be about 23 per cent of capital which is satia ... r ctory. It i too arly to y whether smaller farmers could achieve similar r sults, but .fran all indications, there is good cha.no that they vill approximate the abov figures. However, even if they would not reach this lev 1 , the economics of th project ould probably better than th very consenative estimate or the TO report .

,6. A jor field or activity for the land ref'om ction ia the organization o:t farm cooperatives. Six such aaaoc:1.ationa are now in operation. In the already nt.-ioned la Zeppa.ra a, 84 houses }ulve b en completed. Eight settlers who did not et th raquir nt had to be vio d.

f; Fodder crops for milk cattle, sugar be ts, artichoke , vegetable , tc. 71/ This i about, tvic the amount est1ma.t d in the TO report . J/ About L 1 , 000,000 1n public work plus about l,6oo,ooo in private worksJ

this is higher than the expected aver e for the project area.

Recommended Action

37. C No action is

VOLTURNO PROJECT

Descript,ion

9

""commended tor this proJec~

***

)8 . The project works include a barrag across the Vol turno River and two canal systems (one on each side of th river) to irrigate ul.tbatel y about 40, 000 hectares of land l ocated between the city of Capua and the Tyrrhenian Sea.

39. Pro'Vision was made for the construction of a power plant at tha barrage, but this plant is not part of the Bank project . southwestern corner or the project area will be irrigated With treated sewage water from Naples, but the treatment plant is not to be financed from the Loan.

4o. Some changes in the lqout of the distribution system re under consideration (see under Prog~ s} .

Progress of Works

41. The barrage was completed in 19,9, and the two ms.in canals were essentially cOlllpleted in 1961. The distribution systems on about 10, 000 hectares were com:plete-d during the l st two years and irrigation on a limited scale has coJ'lll11enced.

42. Work is now progressing on distribution systems for an additional. 4, 600 hectaresJ these works w1ll be completed by the end of 1962, so that

in 1963, l.4,600 hectares of land will be irrigable.

43. Detailed engineering has been cozu.plet d for 6, 600 hectares, and these works are to be constructed during the next two years . Engimering is in hand on a.n additional 6, 000 hectares and this area will be irrigabl e by 1966. By that year, a total ot 27,000 hectares will be under irrigation.

44. Pl.ans for the remaining 131 000 hectares ___ at present being reconsidered". This acreage includes:

a) a rather high region of about ),000 hectares which was to be served by pW!lps. Under investigation is a plan to buil d a new highlevel canal :which would en.a.bl irrigation of thie are by gravity.

b) the southern 101000 hectares of the project region. Part of this section could prob bly more economically be served by tubewells . If that proves to be the ca s, then a comparable area of land southeast of the present project bourdacy will be included in the project.,, to replace the p~ ?ing area. This additional area woul.d otherwise remain a ciry farming region.

10

45. Thee inv stigations led to a po tpo ent f the detailed ngineer-ing for these ections. lo definite ch dul for th construction or dis. tr1but1on works tor thee ction could be given at this t • Som det Ue

re given in Tabl l .

TABLE l

State of Distribution Works

A r e a. Hectares

A. Ri@t Bank

l) tower area, ne r se 2,400

2) Upper area, ar Capua 6, 200

3) Low r area. north .of (l) 6, 000

B. I.aft Bank

4) Lower are , e.r se 6,600

5) Up r area, near Capua 6,000

Progres

Y a r 1960 1961

Area under irrigation 2. 0 2.4

Financial Af!P cts

Stat or forks s of Janu311: 19 2

Irrigati gan in 1960.

Work co plated for l/4 ot a.re, under construction in balance of area1 irrigation in 1963.

Detail d ngineering, construe ... tion in 1964/ 6$J i.rrlg tion 1966.

Detailed engineering being screened by Cassa, construction in l96)/64J irrigation in 1965 Y. forks completedJ irrigation in 1962.

1962 1964 1965 1966

8.4 14.6 14.6 20. 6 21 . 0

46. In Loan 189-IT, an ount of bout L 5.61 billion ($9 million) wa inc1ud d for th Vol turno project. Thi ount h b en wi.thdr w over the year 1, 58 through 1961. Tb latest financial quart -rly port cover th .tourt.h quarter of J,9§o. The C then ~t d the p paration ot ~but resumed collecti then ces ary data. I report coverl the year 1961 could be expected in April 1962.

Y Except a section of 600 ha., along t riifer, where reallocation or land will be necessary.

11

47,. On th b eis or available tr ntary da.t , the following prelim-inary revie of expenditur s can be giv n,

di tu r

or Irrigation

Before Sept 1957 Sept 1957•Jun 1, 1960

1960

2,186 1,S11

850 720

s,267 Jan- ov 1961

Total sp nt I stimat d CQ ts

L 10,432 million 17,912

For Reel tion

2, 310 l,66$

750 440

5,165 6,541

48. The amount spont for irrigation includ the cost of the barrage ( bout L 1,880) and th rest is for the main canaJ. and the networks for about one fifth of the area (sa.y, 81 000 hectares) . The balance (about L 12 .. 5 billion) should be adequate to cover th.a costs of the networks for the remaining 321000 h ctares.

49 . The reclamation works (river re lation, drainage, dikes, etc . ) ha~ largely been complet d.

Action to Promote Irrigated Agriculture

So. In this re ct , the t or t Consor io tor th Volturno i uch lighter than th t of t ndo • Th r rs int Volturno

area are much easi r inclined to u the now f cilitie, and they are more commercially mind d th tho in Sardinia. Th work or t Consorzio, per .. formed in cooperation with the Ministry of Agricultur , incl ude ad.vi or,

rvic s, rectifying 1 nd fragment tion in o e ver., limited ar , and pro otion of mar ting and proce sing<:£ farm products.

51. The Consorzio ha. pr pared the annual port on agricultur development in 1959; thie report receiv din M y 1960. It was not quite atisfactory, becau it did not giv timate of t value of ·\ agricultural production in tbs r port ar. During th vi it, the mis ion

s ivon an advance copy of the report on 1960 which n did not inclu rictign ot1 +,be value or product:' on. Th Conso:rz1o was aske to incl

th s ction 1n the final version of the x-eport, which should ach th Bank ort •

52 . Aecordi to the pr liminary r port on 1960, the ituation essentially t same as in 1959, except that 2, 000 hectares ere actually i.rrig ad ·th ter fro th proj ct. The weather in l96o must hav been v ry tavorabl for crops in the Volturno a, beoaus the yield ?,'tr hee ... tare are considerably higher for the variou crops th tho ntioned in the technic 1 report . The are in orchards (particul rly' peaches and ar ) increas d slightly, but significant progres can only be expected after the

12

period covered by the report on 1960. In order to impr<mt rketing taoilitie in the area., the Consorzio participate& in the financing or fruit marketing center in "la Ricci.a", and of a cooperative prooee ing plant for l:uffal.o milk a.nd for fruit.

Recommended Acti,on

$3. \ No action is requ.ired at this time, but it ie advisable to remind the Ca:ssk- or it obligation to inform us on possible changes in theJroject, and al.so on the desirability or having an esti te ot the value or agricultural. production included in the 1960 report on agricultural developments']

FORI'ORE IRRIGATION PROJECT

Description

***

S4. The original project descript.ion, on the basi ot which the project was included in Loan 189-IT, read eubstantial.ly a !ollawa

55. An arthen dam (60 met ra high, 432 meters long) would be built across the Fortore River at Occhito. The would f'orm r servoir with a useful capacity or 2SO million cubic ters.

56. The water would be released into the Fortore Ri rand be diverted by a barrage at Santa Maria. A sys of canal• would be built commanding by gravity an area or 66, 000 hectares in the plain around the city of Foggia. With an average application or 6,000 cubic tera per hectare at the farmgate, the system would be able to irrigate ea.ch year 36,000 h ctares. About 60 per cent of the commanded are of each tam would be irrigat d dllring any one ason.

57 .. At the ti or loan negotiations in 1956, detailed plans were available for the dam and the barrage. Engineering work vaa pl"Qceeding on the diversion canal and the principal me.1n canal. Only general plans had been made for the distribution system.

58. During the process of designing of the canals and distribution works, certain changes were de in th.e original rough layout . These changes were reflected in a draft. revision of the project description, dated July 18, 1960. Basically, the project remained very simil ar to tha original eche , although the project area would be enlarged.

59. On October 12, 1960, letter 81.gned by Mr. Reid vas sent to the , ) Cassa asking tor ore definite information. As no answer vaa received, further inquiry was made on September 13. 1961. To this l ttar the Banlc received a communication from the Cassa dated November 20, 1961.

60. It appeared then that the project had been changed very consider-ably. Tb Occhito D and reservoir were retained, but instead of releasing water into the river, water would be conducted through a tunnel to the plain. The plain would in part be served by a system of pressure pipes instead or canals. This system would allow the farmers to use either canal or sprinkle

•

13

irrigation. This innov tion uld reduce the a; rag ter pplication per hectare to L.,800 cubic ters per a:r which woo.ld enable an expansion of

the co d refl'Jto 130,000 . ctare (ann ly to be irrig ted about $0,000 hectare) !4

61. During th end-use visit, the chan~ s were d1 a din detail. It appe d that th revi d project had been de ign d by Ing. Carlo Lotti of R , ,mo presented his r ort; on F bruary 101 1961. The Cas nd other ecr eni bodies have . tudied I • Lotti • s report 8,!!d th~y have ccwted in principle the cbanged :p;oject. The detail d n ering plans for the r;sure tunnel ha'Y1 en approved. E i eri for the di$trlbution tem is now proce ding. A de cription of the in feature of the revised project was received on pril 9, 1962.

62. It i till too arly for a "final" project seription. An interim de cription would read as follow t

Fortore lrrl.g tion Proj ct ~Interim D scription)

This project is designed to provid irrigation to about 130,000 beet s long the 1 r reach of the Fortore Riv r and in the plain around the city ot Foggia. It includer, the following wor 1

)

b)

e)

Dam and Re rvoir. An earthe dam would b co tru.cted acroe th Portore River at th Occhito gap. Th d would b 60

tera high and would ha a length of 432 ters along the crest. It would ere. a reservoir with f'ul capacity or 250 million cubic ter .

Tunnel. An intake structure on th right side or the dam t 170 ter abov alevel would conduct the water into a tunnel wich would b 15.8 km long with a capacity or 30 cubic meters per cond. The tunnel would relea t r at 153 tar abovi seale'VI 1 near Finooch1 to.

Distribution Syste (Preliminary: ,Description). Th co ded area wouid include 130,000 h eta.res belo th lev 1 or 1.53 meter • It would be bounded by the Fortore River in the north, the Candelaro stream in th e st.,. the Cervaro stre in the south and in the west, by line t the lev l. ot about 13S

ter • Fr the exit or tbs tunnel at Finocchi to the ter would be conducted in two di ctions,

. ) through presGUre pi ich would run about 10 in a rth aaterly direction. At the nd or this pipe, part or

the ter would enter another pipe to irrig te the land on the right or the Fortore River, the re t ould con .. due d through a pi to a canal on the east side of the district; this c would begin t a level of llO ters nd end at lev lot 97 ter J

'fl Loss s in the riverbed and ain canal will be liminated by the u or th tunnel.

14

ii) through a canal (partly in tunnel) along th& st side o:f the distri.ct, beginning at a 1 v l of 153 tar and ending at level or 123 meters.

The east and .st canals would 'be connected by six main pipes. At the head of each main pipe a small reservoir would take care of sudd .n changes in de~d. For the ame rea n the distribution net• work would have a capacity of 120 per cent of thee t ted demand. Most of the land 1e at a level ot 50 r to 100 ters apove ... level, and the pipe qst.em. 'Will enabl owners ot land t a level or 20 meter below the intake or the pipe to pply either canal 1rrlga ... tion or sprinkl e irrigation.

6J . The envisaged cropping pa.ttaJ/'Il ha also be n changed. Thi hae been done for two reason • First-1 additional land , on which grapes and olives are grown, w ~ included in the proj ct; second., the expeci:.ation as to the profitabilit,7 of animal husbandry 81J conqared to fruit and vege ... table growing hav ch nged in favor of the latter. A comparison of the cropping pattern assumed for the original and ro.r the r vi ~ d proj et follow 1

Forage crops Vegetable IS Second crops Fruit Grapes, olives

Ori~.· 1 vised - in per cent r 40 5 ,o 5 -100

10 10 40 10

~ Ave:rage water requirement

including losse 6,530 ml/ha 7,$20 m3/ha

4,100 m3/ha 4,800 m3/ha

The cost estimate £or the irrigation works has of course changed very considerab-ly~

Cost of Irrigation Wor~ · (in million ii.re)

TOD Report

Dam 5,$00 Barrage and di version canal 2,500 Tunnel --Main canals --Distribution networks 24,000 Accessory works ""-

Total 32,000

Present Est te - 21 5,Soo 6:514 L2

9,374 hl,060

586 63,096

i7 Probably <llossar to L S,800 mil ion. "'!/ The tunnel would be more than t dee as expensi v as the barr ge am diver-•

sion ·canal . The only justification for this particular modification iD the proje.ct seems to be that some transportation losses of water re avoid d. One m.igh:t, however• question the wisdom of this change in design.

STATUS OF ITALIAN PROJECT REPORTS

As at January 31 1 1962

L a t e s t Re12orts

Loan Annual {QEeratingl Financial Statements End-Use _!!2!. Project Year Ended Received Year Ended Received Visited Received N o t e s

50-IT Lanificio de Maratea Dec. Jl, 1960 Mar. 21, 1961 Mar. Jl, 1961 Dec. 15; 1961 Oct. 1961 No end-use report prepared by Cassa. Visited by de Alba Akragas Dec. Jl, 1960 July u, 1961 Dec. Jl, 1959 Mar. Jl, 1961 Nov. 1961 Jan. 26, 1962 Financial statements long overdue. Dalmine Dec. Jl, 1960 Mar. J, 1961 Dec. Jl, 1960 Oct. 10, 1961 Nov. 1961 Jan. 26, 1962 Calce e Cementi di Segni Mar. Jl, 1961 Dec. 15, 1961 Mar. Jl, 1961 Dec. 15, 1961 Plant at Scafa not visited during last five years. Cementir Dec. Jl, 1959 Mar. 21, 1960 Dec. Jl, 1959 July 19, 1960 Nov, 1961 Jan. 26, 1962 End-use report does not i nclude overdue financial

statements.

117-IT Cementerie Siciliane June JO, 1961 Dec. 20, 1961 June JO, 1960 Jan, Jl, 1961 Nov. 1961 Jan. 26 , 1962 Fin~ncial statements not i ncluded in the end-use report. SIL •June JO, 1961 Jan. 17, 1962 Dec. Jl, 1960 Nov. 6, 1961 Nov. 1961 Jan. 26, 1962 •semi-annual operating report. Augusta Petrolchimica Dec. Jl, 1959 Jan. 21, 1961 June JO, 1960 Jan. 21, 1961 Oct. 1961 Visited by de Alba. No financial statements available

then. Overdue. SINCAT Reported under 224-IT. ABCD Reported under 150-IT.

150-IT Forino Dec. Jl, 1960 May 23, 1961 Apr. JO, 1961 Oct. 20, 1961 Oct. 1961 Visited by de Alba. No end-use report prepared by Cassa. Viberti (Partenopea) Apr. JO, 1961 Jan. 26, 1962 Oct. 1961 Partenopea visited by de Alba. Financial st~tements as

at December Jl, 1960 recei ved. FIAT Dec. 31,. 1960 Dec. 15, 1961 Nov. 1961 Jan. 26, 1962 Annual operating report as at December Jl, 1960 overdue. Cementerie di Augusta June JO, 1960 Feb. 10, 1961 June JO, 1961 Jan. 26, 1962 Nov. 1961 Jan. 26, 1962 Cementerie di Sardegna June JO, 1961 Dec. 15, 1961 June JO, 1961 Dec. 15, 1961 Nov. 1961 Jan. 26, 1962 Saint Gobain Dec. Jl, 1960 Dec. 26, 1961 Dec. Jl, 1960 Dec. 26, 1961 Nov. 1961 Jan. 26, 1962 ABCD Dec. Jl, 1960 May 18, 1961 Sep. ;JO, 1961 Jan. 26, 1962 Nov. 1961 Jan. 26, 1962

189-IT Trinacria Dec. Jl, 1960 Dec. 6, 1961 Prel. 8/31/61 Oct. 9, 1961 Oct. 1961 Jan. 26 , 1962 Project under construct i on. Reporting quarterly.

1961 Latest Sept. JO, 1961.

Montecatini Dec. Jl, 1960 June 29, Dec. Jl, 1960 June 29, 1961 Nov. 1961 Jan. 26, 1962 Marzotto •June JO, 1961 Sep. JO, 1961 Prel. 10/Jl/61 Jan. 26, 1962 Nov. 1961 Jan. 26, 1962 •semi Annual Operating Report. CONE Dec. Jl, 1960 Sep. 18, 1961 Dec. Jl, 1960 Sep. 18, 1961 Nov. 1961 Jan. 26 , 1962 SINCAT Reported under 224-IT. ABCD Reported under 150-IT.

224-IT SINCAT •June JO, 1961 Nov. 8, 1961 Prel. 6/30/61 Nov. 8, 1961 Nov. 1961 •semi Annual. Visited by de Alba. No end-use report

1961 prepared by Cassa.

Celene •Sep. JO, 1961 Nov. 8, Dec. Jl, 1960 Aug. 29, 1961 Nov. 1961 *Quart erly report. Visi ted by de Alba. No end-use repor t prepared by Cassa.

FORM NO . 59 ( 2- 55)



DATED: January 191 1962

TO:IBRD

FROM: Cassa per il Mezzogiorno, Rome, Ita.:cy.

F1LED UNDER: I~ - Loan 189

SUMMARY: End-Use Visits. Attaching report illustrating situation of projects

net visi tad by" Mro de ilbao

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CASSA PER IL MEZZOGIORNO

Foglio n. 2. .......... .

by the suretor for the cited guaranty. Both Cassa and IRFIS agree on ABCD's request. We would

therefore apprecia e receiving from the Bank1if agreable, the approval as to IRFIS giving up the suretyship granted

--,...----~·nanziaria per Opere Pubbliche ed Imprese Industriali, behalf of the Beneficiary.

With best regardso

Sincerely yours, for THE PRESIDENT

Isl Tavassi Lagreca

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INDIRIZZO T E LEORA,r l CO : CAeME Z - ROMA


NELL'ITALIA MERIOIONALE


Pro t. N . ..... .. ... . . .. Posiz .... CF!PF/BM/ ar

TRA.NSLATI ON

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Allegoti ...... .. ............ . ROMA ......... . . . ... . . .. . . ........ . . ... . .. .. .

Risposto a .

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':;GETTO :

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International Bank for Reconstruction and Development 1818 H Street, N.W. Washington 25, D.C.

Gentlemen,

PI A ZZ A DEi C O NG R ESSI N . 20 fEURI

TEL , 152 91

Subject: Loans 117 IT and 150 IT - Industrial Project -Sopoko A.B.C.Do-

As known by the Bank, the loan contracts executed between IRFIS and A.B.CoDo with the utilization of the funds of Loans 117 and 150 IT, were provided with collateral guaran· ty - in addition to the special lien and mortgage incribed over the plants and the installations belonging ·to the b nefi ci ary - represented by the joint suretyship granted by Soc. CALCI E CEMENTI DI SEGNI and Soc. Finanziaria per Opere Pubbliche ed Imprese Industriali both having headquarters in Romeo

Sop.Ao A.B.CoDo have now filed an application with IRFIS to the effect of being relieved from the obbli ation of keeping the Soc. Finanz.i.ar.ia ~ p.e.i:e ::u iche ed Im rese nus r1a 1 sure yshi~ with the understanding that the EX~g uaranty such as formerly granted by the other suretor Soco CALCI E CEMENT! DI SEGNI would be maintained into forceo

As pointed out by IRFIS the above application was filed by the Beneficiary with t e view of relieving the CoJIU)any's balance sheet from the commission they are charged with

L

CASSA PER IL MEZZOGIORNO

2.-

formulata. Si prega pertanto codesta Banca, se d'accordo, di voler esprimere la propria approvazione all.a rinuncia da parte dell 1 IRFIS alla garanzia fidejussoria prestata in favore della Beneficiaria dalla Societa Finanziaria per Opere Pubbliche ed Imprese Industriali di Roma.

Con i migliori saluti .

w:::,_~SIDENTE ~u~briele Pescatore)

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INDIRIZZO TELEGRAFlCO CASMEZ • ROMA


NELL' ITALIA MERIOIONALE

S./ 823i (CASSA PER IL MEZZOGIORNO)

VI.A AERE.A 7 MAR 1962

Pro!. N. ··············· · ······ Poslz.OF./PE/BM/ar aeltuenellarlspona RO MA ................................ . PIAZZA OEI CONGRESS! N. 20 IE U Rl

TEL.- G BQ1 Allegoli ........ ... . ..... .

Risposle e ............. ... . ... ................. .

del ... ...... . ........ ....... N. ----·········--· ~ GGETTO,P-r~s:ti:ti..n ...... 1.1.7 ... e.. 150 IT

Progetti indust riali - Sop.Ao k;·B.·C.·D.·-· ······---·········· ·· ···· ······· Spettole

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Banca Internazionale per la Ricostruzione e lo Sviluppo 1818 H Street, NoWo

WASHINGTON 25, DoC.

Come noto a codesta Banca i contratti di mutuo stipul a ti dall 1 IRFIS con la Sopo.Ao .A.B. C.Do, me diante utilizzo dei fondi provenienti dai prestiti n. 117 e 150 IT, sono assistiti oltre che da privilegio speciale e da ipoteca sugli impianti e le attrezzature dells Societa Beneficiaria, anche da garanzia fidejussoria solidale e indivisi bile prestata dalla Saco Calci e Cementi di Segni e dalla Societa Finanziaria per Opere Pubbliche di Imprese Industriali, ambedue di Romao

La Societa .A.B.C.Do ha ora avanzato richiesta all'IRFIS per esser e esonerats dsll'obbli o di far prestare la garanzia fidejussoria dells Soc. Finanziaria per Opere Pubbliche ed Imprese Industriali mantenendo in essere la sola fidejussione dalla Societa Calci e Cementi di Segnio

L'IRFIS ha precissto che la richiesta della Beneficiaria, ha lo scopo di sgravare il bilancio dells Societa dall'onere derivsnte dalla commissione che per tale garanzia deve psga re alla Societa fidejubenteo

Sia questa Cassa che l'IRFIS esprimono parere favorevole all'accoglimento dells richiesta della S.poAo .AoBoCoD., . come ~ .. soprs

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VIA AEREA

rrot .• N . .. .. . 9.~.~~~-- l'oslz. CF/P.F/BM/ ar A&ltarenellarlsposta ·-13 APR.1962

ROMA .......... . - ...... , ........ . .... . PIAZZA DEi CONGRESS! N. 20 IE UR J

Allegoli •• 2 ... .. ........ . TEL. Q 9 9'J

Risposto o ............ . ........ . ... . .. ....... .. .

del ... .. . ....... .. . ......... N. ······· ·· · ···-··

;GETTO, 'l'.:r~.~.AI.i.~-~-i.o.n~ .. dQ.cUIIlent azione - Comprensorio di Bonifica del Campidano di Cagliari.-_ ...... ...... ........ . ........................................... .. ........ .

Spet t .le Banca Internazionale per la Ricostruzione e lo Sviluppo 1818 H Street, N.W • WASHINGTON 25, D.O.

Uni ta alla presente si trasmet t e nel testo italiano la documentazione qui appresso elencata, che il Sig. Groenveld richiese in ~ccasione della visita fatta al Comprensorio di Bonifica del Campidano di Cagliari.

- Raccolta di appunti a cura dell'Uff icio Campi Sperimentali, sui corsi per maes t ranze irrigue;

- relazioni preliminare anno 1961 dell' nte Autonomo del Flumendosa;

- inchiesta condot t a dal Comune di Milis; - indagine sulla struttura dell'agricoltura condotta dall'Ente

Autonomo del Flumendosa; - carta 1;100.000 del Comprensorio irriguo~

Si fa riserva di inviare quanto prima la relativa traduzione inglese.

Con i migliori s aluti.

IL PRESIDENr E (Gabriele Pescatore)

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INOIRIZZO TfLEBRAFICO CASMEZ - ROMA

CASSA PER OPERE STRAORDINARIE 01 PUBBLICO INTERESSE



Prot: N. -····-·--···--·- --· -·· Poslz.C.F/P.F/BM/ ar Allegati -----·-·--·--- - --·

Risposla a ···-----·- --- ------------ - --- - --------

del ---- --···---------------- N. ··-··-· · ·-···--·

GGETTO, . ·---. -------··-- ... _ .... ..... ____ . _

International Bank for Reconstruction and Development 1818 Sreet, N. W. Washington 25, D.C.

Gentlemen,

ROMA, ___ _A: r?.C~~--_lJ __ __ k. PIAZZA DEi CONGResI1-N. 20 IE u Al

TEL. B 8991

Subject: Repotts on the COJ:Ilpidano di Cagliari Irrigation Project.-

We are enclosing herewith the italian text of the reports which were requested by Mr. Groenveld on the occasion of his end - use visit to the Campidano di Cagliari Irrigation Project :

v-anote book of the Experimental Field Department on the vocational training courses for irrigation workers;

apreliminary report of the Flumendosa Agency for the year/961; - results of the inv dstigation conducted by the Commune of

Milis ; r esults of the investigation conducted by the Flumendosa Agency on .the structure of Agricoltur e;

- a map of the irrigation district, Scale 1: 1000000. The english translation of the first two reports

will follow in due course. With best regards.


Isl Tavassi La Greca

(which includes five p r c t conti enc e ) i till preliminary, a only a ro h esti-

Prog ss of ~ork

• Construction of th 2001 000 cubic ter o

ppro:rlmately o d d to build the

structure of the built. Th d bu cent of thi or ha finished 1964.

67 . centr in aut

Con tructi

69. Originally, it xp ct d that irrigation of gin 1n 1962, am that by 1965, 40,000 c

70. The project ainl.y bee or the r

cution is th very riously' behind ch dul , u~ ot th principle of the sch •

71 . n ount of L 4.64 billion ( 7A ion) w: alloc d to th

the

0

Fortore proj ct under Loan 189-.IT . Thi · aunt has b n withdrawn in th ar 1958/61, d it w u ed to bur the C for expenditure

on the co truction of th and or he dr nd river control rk included in the project. Th lat t financi report s the ituation as of October l , 1960.

I

16

Spent as of October 11 1960

n t. Atte;i-

Cost Estimat '!/.9L51 Total

Dam S,407 73 1,219 1,292 Barrag 1,400 -· ·- ..... Main can l 8,000 ..... Network a,ooo .. - .. - .... Engine ring .354 90 147 2)7 Drainage and river

~ 674 control 8 948 ~ Total 12:109 , L11,20.3 , The Cassa ha be n asked to ree:ume the financial reporting and a report cov, ring the ala.nee of 1960 and 1961 can be xpected in y 1962.

72. 'l' government (through the Ca ) was expected to contribute 92 per cent of the expenditures for the project. Beeaus of th <""ext nsiv . rEt,Visiona of the project the Reel ation Consortium must re-negotiate with the government the share of th expenditure which the government ould b willing to contribute. It has requested 100 r c nt contributio from the government for the costs 0£ the tunnel and th in ca.nal.s. The con .. ventionaJ. fomula {87.5 per cent for the government) would pparently apply to the balance of the works.

Recommended Action

73. Lit is recommended to s nd a latter to the Cassa stating (a) that we regret not to have been informed earlier and in more detail about th impending changes in the project and to remind th m of their obllg tion to consult the Bank prior to pproving final plans for th projectJ (b) that

would like to be informed of the ason why th tunnel is pret rre over the barrage and diversion cana.l.J (o) that they promi .d to end a re-estimate of' the xpected b fitSJ and (d) that they are obliged to s nd regularly the requested annual reports on agricultural developments:)"

i7 This corresponds to the amount withdrawn in 1958/60.

cc: Messrs . apenhans Spottswood~iliP.pi Cheek ~

DG/web

.

.. _ INDIRIZZO T E I.EC RAFICO; CASMEZ - ROMA


N E LL'ITALIA MERIDIONALE

( C ,\ S S A P E R I L M E Z Z O G I O R N O )

TRANSLATION

Prot. N.J~.0-~3 .. .. .. Posiz . CJ§/PE/MBG/mbg Allcgat i

Risposta a

del ...

OGGETTO:

.. ... N .

Int erna ti ona 1 :Bank :for Reconstruction and Development 1818 H Street, N.W. Washington 25, D.C.

Gentlemen: Subject: Submission o:f the Flumendosa Agency Report

:for 1961

With re:ference to our letter No. 5/08922 o:f April 4, 1962, we attach hereto the English translation o:f the preliminary 1961 report o:f the Flumendosa Agency. The Italian copy o:f this report has been already submitted to the :Bank with the above-mentioned letter.

With best regards.

- Enclosure

Sincerely yours,

:for THE PRESIDENT /s/ Tavassi' La- Greca

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C A S SA PER OPERE STRAORD INA RI E DI PUBBLICO IN TE R ESS E

N EL L ' ITALIA MERIDION A LE

(C ASSA PER IL M EZ ZOGIORNO )

PER VlA AEREA

Prul N. J 2 0 2 ~ .... Posiz. CF/PE/MBG/mbg tlaeltarenellarlsposta ROMA . 6 GIU. 1962

Allcgati

Risposta a

1 P IAZZA DE! CONG RES SJ N. 20 (EUR )

Tl!L. 9991

del ..

OGGETTO:

N.

Invi.o ... rapporto per il 19 61 de.ll.'Ente __ Autonomo Fl~endosa

Banca Internazionale per la Ricostru.zione e lo Sviluppo 1818 H Street, N.W. Washington ·25, D.Co

Con riferimento alla lettera Cassa n. 5/08922 del 4 aprile 1962, si allega alla presente la traduzione inglese della relazione preliminare per l'anno 1961 dell'Ente Autonomo Flu mendosao La copia italiana. di detto rapparto e gia. stata in.vi.§_ ta alla Banca con la suddetta nota o

Distinti salutio

/

~ PRESIDENTE Gabriele Pescatore)

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RECEWEO oettERAL nu::s

CORRi:S pQ \ltle.\'l CE

\%2 JUN -8 PM 3: S7

End..Use Visit January 1962.

FORM 0. 57 • , :; . 48)


OFFICE MEMORANDUM TO: Mr. P.A. Re~dtY,{J) .

-.) FROM; n. Groonvo;Ld

DATE: June 1, 1962

SUBJECT: ITALY Report on End-Use Visit to Four I rrigation Projects

January 1962

INTRODUCTION

1. Three of the Loans made by the Bank to Italy in . the period 1956/58 ·included allocations for irrigation projects .

Name of Loan · Date of Amount Allocated !'roject Number Agreement to Irri~ation

Catania 117-IT 6- 1-56 $20 million Flu.rnendosa y/150-IT 11-11-56 $25 million Volturno 189-IT 2-28-58 $ ·9 million Fortore 189-IT 2-28-58 $ 7.44 million

2. ·This report on the above projects is based on an end-use inspec-tion visit from Janua!"IJ 5, 1962 to January 19, 1962. In the Cassa Headquarters discussions were held with Messrs . Vicinelli, Leone (new Director of the Agriculture Division), de Palma and Ferazinni. Fieldtrips were made to each of the four projects. On these trips, I was accompanied by Dr. Bar-tolucci from the Cassa. ·

CATANIA PROJECT

Description

3. The project would irrigate about 30,000 hectares of the Catania Plain, mainly with water from the basin of the Simeto River. Water will be stored behind a number of dams (all constructed) of which only the Pozillo Dam is financed from Bank Loan 117-IT. From the Pozillo Dam, the water runs through the bed of the Salzo River (an affluent to the Simeto) to a barrage at Contrasto. From there it will be conducted by a tunnel through a power plant to intake structures at Barca de Paterno. By these intake structures, the water would be led into two low-level canals and two highlevel canals. The area will be served by a complete system of distribution works .

Progress of Works

4. The Pozillo Dam wa~ completed in 1959. The barrage at Contrasto was scheduled for completion in 1961, but there have been delays. These are

· due to two causes--first, the electricity company (ESE) which operates power pl~nts upstream changed its program of water releases which would result in

. .. 2

periodic higher water levels at Contrasto than originally planned and, therefore, requiring modification of the barrage . Secondly, the eight gates were dAli.vore later th n schedulaa., but they are now beina installoa.. Ther are also delays in the construction of the tunnel between the barrage and the intake structures, due to unexpected excavation problems. The contractors now plan to have the barrage and the tunnel finished during the summer 1962, and this seems possible .

5. Plans to construct the above works were stated in an end-use report · of November 1957 and in a letter from the Cassa of November 30, 1957. The end-use report states that the electricity company (ESE) has by agreement with the Cassa (ERAS) and th~ Consorzio undertaken to complete the works by April 31, 1959. In case of a delay, ESE will have to supply water to the irrigation canals by other means (pre sumably pumps). A pa.rt of the contribution ( of the Cassa through ERAS) is retained in case this obligation is not fulfilled.

6. The text of the agr~ement is not in our files, but it seems appro-priate to inquire whether the Cassa has in fact retained part of its contribution to ESE, or if that is not the case, what measures the Cassa has taken to re-imburse the Consorzio for the inconveniences caused by the deJay in building the barrage and the tunnel.

7. A temporary intake has diverted water from the Simeto River into the two low-level canals for the past two years. All intake structures are almost completed including the syphon for the right high-level canal.

8. The irrigable area has been divided into four sections called 11 lottos. 11 Lotto A includes the lower land north of the Dittaino River (another affluent to the Simeto). Lotto B includes lower land south of that river. The higher northwestern portion of . the plain is called Lotto c, and finaJ..ly, Lotto D includes the higher southwestern area.

State of Completion of Distribution Works

y' Lotto A r e a State of Completion

A 7,000 ha Completed in 1961, except 2,000 ha, subject to flooding.

B 7,000 ha Completed in 1961.

C 6,500 ha For 9a/,, completed in 1961; the balance in 1962.

·D 6,500 ha For ?CJ!,, completed in 1961; the· baJ..ance in 1962 and 1963.

Y The 11 lottos11 include at present 27,000 ha; the balance of the project area has not yet been included in a "lotto."

3

9. Some land in the lowest section of Lotto A is subject to fl ooding by the Dittaino Rive~ and the lowcGt section of the Simeto River. For years, the Ministry of Public Works has boon constru.ctine r egulo.t i on works £or these rivers , but progress has been slow. There were serious floods in 1961 and part of the new river control works were damaged. It is expected t hat the rivers ·will be under complete control by 1965.

Extent of Irrjgation·

io. The temporary intake structure at Barca de Paterno supplied water to the main canal for Lotto A in 1960, and in 1961 :to Lottos A and B. The

extent of irrieation in thes~ two years and the f uture program is shown below.

Present and Future Area under Irri ation 1,000 hect ares

Lotto

A B C D

Total

1960 '

5

5

1961

5 3

8

1962

5 7 3

15

1963

5 7-6 2

20

The full area of 30,000 hectares will be irrigated by 1965, when the regulation works on the Simeto and Dittaino Rivers will be completed.

11. The original construction schedule called for completion of all works by 1961. The report on the end-use visit of 1960 estimated that almost the entire area would be able to obtain water in 1962. The further delays are caused by the already mentioned difficulties with respect to the barrage and the tunnel and by the unexpected heavy flooding of the Dittaino River and its affluents. These floods did damage to already constructed distribution canals and they led the Consorsium to the decision not to complete work in the Lottos A and D until the rivers were under control. , .

The Development of Agriculture .

12. The prospects for development of an in~ensive agriculture in the project area are quite good. The farmers are. eager to use water and, on the whole, capable. The Consorzio has a good agricultural division which cooperates with the field service of the Ministry of Agriculture and with the Agricultural College in the area.

13. The Consorzio is preparing the annual report on the agricultural situation in the project area 1-Jhich will be submitted shortly. On the baas of the miss.ion's findings , some main figures and data are discussed below. They show that the trends observed in.recent years continue and they give confidence that the project works will be used by the farmers to great advantage for the area.

- - ~-- -- -~ -~~---- ..c..-----~-- ..:..

4

Land U s e (in he ctares)

1955 1957 1959 · 1960

Arable land 24, 000 23,800 23,640 23,950 Truck cro~7 500 500 500 350 Orchards _ 3,700 4,400 4,880 5,170 Grassland 1;800 1 ,300 980 530

Total 30,oop 30,000 . 30,000 30,000

14. The irrigated area was 6,0l.5 hectares (partly by pumps). Irriga-tion was mainly used for sugar beets , cotton, artichokes, vegetables, citrus and other fruits.

' 15. The alr eady reported trend toward a more intensive agriculture continues. This can i.a. be demonstrated by the development of the livestock industry. The number of cattle increased from 4,700 in 1959 to 5,850 in 1960, whereas the number of goats and sheep decreased from 3,200 in 1959 to 2.,800 in 1960. Live weight of all animals per hectare agricultural land has increased steadily since 1955. It was then 52 kg per hectare rising to 67 in 1959 and 73 in 1960.

16. The value of gross marketable production increased considerably during the last six years. It was estimated at 3.9 billion lire in 1955; 5.2 billion lire in 19.59; and 5 • .5 billion lire in 1960. This increase is almost entirely due to the development of citrus production. The value of the citrus crop increased from 1.8 billion lire in 1955 to 2.s billion lire in 1959 and 3J2 billion lire :trl 1960, or by 1.4 billion lire over ~he last six years.

Financial Aspects

17. The original cost estimate of the project was 29.2 billion lire . This sum was reduced to L 27.7 billion in 1959. The allocation in Loan 117-IT for the irrigation project was the equivalent of $20 million, or L 12.5 billion. This sum has been fully disbursed in the period 1955/57.

18. Recent financial data are not yet available. The Cassa was of the opinion that it did not have to continue the preparation and submission of quarterly financial reports after the three Loans had been disbursed. The last financial progress report was received in December 1959 and it covers the third quarter of that year. The Cassa has been urged (also by Mr. Filippi) to resume financial reporting in the agreed upon way, and promised to do so. A report covering 1960 and 1961 can be expected in May 1962.

19. The costs of construction will not be considerably higher than the original estimates.

1/ The citrus area expanded from 2,500 ha .in 1955 to 3,635 ha in 1960. Further expansion took place since that year.

-- - ·- · • -- - ..:::... -= ~ .. -- ~ - --- --_.;.~ ~

Conclusion

20. Daspite ~ome dalays caused by technical difficulties the project is developing in a satisfactory way and it will prove to be very beneficial to the area. The Cassa should be asked to inform us as to what action has been taken with respect to the delays in the c.onstruction of the barrage and the tunnel by ESE.

21. There are no other problems requirl.Ilg attention, but it would be advisable to request again a speedier preparation of the annual report on agricultural developments..

FLU:MENDOSA PROJECT

Description

22. The project includes the building of two high dams (Flumendosa and Mulargia), a main canal (partially in tunnel) over a high plateau, stepdown structures, and a network of canals to irrigate ultimately about 50,000 hectares in the Cagliari Plain. The irrigation of a small area on the plateau, near Trexenta, is included in the project. Two hydropower plants and a potable water supply system were to be coruaected with the project, but vrere not financed from the Bank Loan.

23. Some changes in the original project description were approved by letter of July 11, 1960. These changes did not affect the basic characteristics of the project.

24. The irrigated area will finally include 65,000 hectares, but a few additional dams will have to be built to that end. The construction works for the distribution system for the area have been divided into three stages.

Progress of Works

25. The two high dams and the connecting tunnel were completed in September 1958. The main canal over the high plateau (part in tunnel) to the irrigable area were completed in January 1961. Work is now in progress on the secondary canals and distribu'tiion systems. The major canals would be 175 km long and the distribution network would include 2,000 km of small canals and pipes. Approximately 1,000 hectares in the Trexenta area were irrigated in 1961 and it is expected that about 4,000 hectares in ·the Trexenta and Sanluri areas will receive water this year.

· 26. The state of progress of the main units of works is shown in the table below. The first stage of 23,100 hectares will be under irrigation by 1968.

27. The 'second stage including. 20,000 hectares will be planned in the meantime. The third stage of. 7 ,ooo hectares will be tackled later.

.

l

6

T AB LE 1

S t a t e of lf ork s

Type of Work

A. Main Horks

· Mulargia Dam Flumendosa Dam Connecting tunnel . Mai n canal to irrigable area

B. I rrigation Wor ks f or First State of 23,100 ha

Section 1, Trexenta (2,0CX) ha)

Section 3, Sanluri (2,200 ha)

Section 4, Western area (4,000 ha)

Main canal across the Campidano Plain

Southeast canal (for region 5, 8,800 ha)

State as of December 31, 1961

Completed February 1958 Compl~ted April 1958 Completed September 1958 Completed January 1961

1st tranch, contracted, 95% completed.

2nd tranch, .contracted, to be completed February 1963.

Contracted, 30% completed, to be finished Hay 1962.

Contracted, 15% completed, to be ·finished May 1963.

Contracted, 15% completed, to be finished November 1962.

Contracted, to be completed October 1963.

Program for Expansion of Irrigation

Areas 1,3,4; 8,200 ha Areas 2, 1st tranch of. 6; Balanc~, about Total first stage

about 7,100 -ha · 8, 000

23,100 ha

Under irrigation in 1964. Under irrigation in 1965. Under irrigation in 1968.

28. · The original schedule of construction called for completion of the main works in 1958. Delays occurred mainly because of changes in the original plans.

290 . The irrigation works were supposed to be built over a ten-year period starting in ' l958. By 1968, 5.0,000 .hecta~es were to be under irrigation, There is now a good chance that by 1968 Sta~e . l, including about half the area, will be under irrigationo No schedule for Stages 2 and 3 has been established. Delays in these works are due to a variety of reasons, such as changes

7

. in the design of the main works, reconsi deration of the distribution system and the wish to coordinate completion of the system with efforts to prepare 'l..ho .:i'nnn.er~ fo'!' the pr-op r u o of thb irrigation ro.oili'bi a.

Financial Aspe cts

30. In Loan 150-IT, an amount of L 15 .6 billion ($25 million) was allocated to the Flumendosa project. The amount was later increased to L 17.06 billion. This sum was withdrawn in the period 1957 through 1960. The Cassa then terminated the preparation of quarterly financial reports. They are now preparing a report covering the period July 1, 1960 through the end of 1961. This report could be expected in May.

31. The Ente Flurnendosa prepared a statement showing the costs of the works already completed and those now under contract.

' TABLE 2

C o s t E s t i m a t e s (in .million lite)

Flumendosa Dam Mulargia Dam Connecting Tunnel Diversion tunnel Trans-plateau canal Step-down structures and related

works · Main canals and networks for

50,000 ha Now contracted:

networks for 8,200 ha canals

Other works

Total

TO Report

8,240 4,625 1,715 3,220 2,460)

) 3,545 1,085)

16,755

13,452

51,552

As of Dec 31, 1961

8,796 4,923 2,464 3,500 3,176)

) 3,449 273)

2,598 3,873

L1 29,603 .

A comparison between the original cost estimate and the recent figures shows that for. the individual items the final figures are very close to the original estimates. It could be expected that the total costs of the project will not be considerably higher than the estimate.

Action to Promote Irrigated Agriculture

32. As reported earlier, the Ente Flumendosa has a very good agricul-tural division which works mainly in the following fields:

1/ Works completed, or contracted.

8

a) plann:i.ng of detailed distribution networks, windbreaks and other on- farm.improvements;

b) experimentation, education and extension; and

c") re- distribution of land, either under the Land Reform Law, or on a voluntary basis.

33. The Ente operates two experimental farms, a training school and several courses and a soils laboratory. This institution is equipped with very modern instruments and has a capacity of 1,500 complete tests a year. The land reform section of the Ente has built two schools for settlers and a service center in an important 11 reform area" (la Zeppara).

31..t.. The annual report on agricultural conditions and developments in 1960 was received recently . It appears that weather conditions were rather favorable in that year, exceRt for heavy rains in December. For the area as a whole (the Ente covers 250,000 hectares), there is still little change in the cropping pattern. Durum wheat will remai n the principal crop unt il irrigation spreads. Where irrigation is already available (either from pumps or from the project works), there is a marked shift toward intensive farming. Sugar beets give on these lands very high yields (up to 60 tons per hectar~), and artichokes prove to be very profitabl~ . A quantity has been exported. Fodder crops are also prominent in these areas. Fruits would f ind a very good market, since Sardinia is still importing fruit from the mainland. Some farmers have bought improved dairy herds and they are doing very well. The number of cattle has increased from 10,800 in 1959 to 12,300 in 1960 in the Fl umendosa area. The number of sheep increased from 187,000 to 192,000 in the same period.

35. A few larger farmers in the alr~~dy irrigated area of Trexenta have established a mixed type of farming .Y. The managers keep records of expenses and revenues. It appears that they achieve an avera2~ gross revenue of L 600,000 per hectare (almost $1,000 per hectare)-~ and a net revenue of~ 150,000 to L 200,000 per hectare . The capital iI11Tested in the farms ]./ was about L 2.6 million per hectare. On the basis of these figures, eross output would be about 23 per cent of capital which is satisfactory. It is too early to say ,.Jb.ether smaller farme rs could achieve similar results, but from all indications, there is a good chance that they will approximate the above figures. However, even if they would not reach this level, the economics of the project would probably be better than the very conservative estimate of the TO report.

36. A major field of activity for the land reform section is the organization of farm cooperatives. Six such associations are now in operation. In the already me~tioned la Zeppara area, 84 houses have been completed. Eight settlers who did not meet the requirements had to be evicted.

!f Fodder crops for .milk cattle, sugar beets, artichokes, vegetables, etc. Y This is about twice the amount estimated in the TO report. 1./ About L l,000,000 in public works plus about 1,600,000 in private works;

this is higher than the expected average for the project area.

9 .

Recommended Action

37. No aotion is recommandod for this proje ct.

VOLTURNO PROJE9T

Description

38 . The project works incl ude a barrage across, the Volturno River and two canal systems (one on ec\,ch side of the river) to irrigate ultimately about 40,000 hectar es of l and located bet ween the city or ·capua ·and the Tyrrhenian Sea.

39 . Provision was made for the , construction of a power plant at t he barrage , but this pl ant is not part of the Bank project. A southwestern corner of the project ar ea wi~l be irrigat ed with treated sewage water f rom Naples~ but the treat ment plant is not to be financed from the Loan.

40. Some changes in the layout of the distribution system are under considerati on (see under Progr ess of Works).

Progre ss of Works

41a The barrage was completed in 1959, and the two main canals were essentially completed in 1961. The distribution systems on about 10,000 hectares were completed during the last two ·years and irrigation on a limited s cale has commenced.

42 . Work i s now progressing on distribution systems for an additional 4, 600 hectares ; t he se works wi:11 be completed by the end of 1962, so that

in 1963, 14,600 hectares of land will be irrigablea ·

43. Detailed engineering has been completed for 6,600 hectares, and these works are to be constructed during the next two years. Eng~ering is in hand on an additional 6,000 hectares and this area will be irrigable by 1966. By that year, a total of 27,000 hectares will be under irrigation.

44. Plans for the remaining 13,000 hectares are at present being reconsidered. This acreage includes :

a) a rather high region of about 3,000 hectares which was to be served by pumps. Under i nvestigation is a plan to build a new hi gh-level canal which would enable irrigation of this area by gravi ty.

bY the southern 10,000 hectares of the project region. Part of this secti on could probably more economically be served by tubewells. If that proves to be the case, then a comparable area of land southeast of the present project boundary will be included in the project, to replace the pumping area. This additional area would otherwise remain a dry farming region.

10

45. Thesei investigations led to a postponement of the detailed engineer-ing for these sections . No definite schedule for the construction of distribution works for these sections could be given at this time. Some details are given in Table 1.

TABLE 1

State of Distribution Works

A r e a . Hectares

A. Ri 9ht Bank

1) Lower area, near sea 2.,400

2) Upper area, near Capua 6,200

3) Lower area, north of (1) 6,000

B. Left Bank

4) .Lower area, near sea 6,600

S) Upper area, near Capua 6,000

State of1

Works as of January 1962

Irrigation began in 1960.

Works .completed for 1/4 of area, under construction in balance of area; irrigation in 1963.

· Detailed engineering, construction in 1964/65; irrigation 1966.

Detailed engineering being screened by Cassa, construction in 1963/64; irrigation in 1965 1/. Works completed; irrigation in 1962.

Progress of Expansion of Irrigation (in 1,000 hectares)

Y e a r 1960 1961 1962 1963 1964 1965 1966

Area under irrigation 2.0 2.4 . . 8.4 14.6 14.6 20.6 27.0

Financial Aspects

46.· In Loan 189-IT, an amount of .about L 5.61 hillion .($9 million) · was included for the Volturno project. This amount has been withdrawn over the years 1958 through 1961. The latest financial quarterly report covers the fourth quarter of 1960. The Cassa then terminated the preparation of financial reports, but resumed collecting the necessary data. A report covering the year ·1961 could be expected in Ap~l 1962.

1/ Except a section of 800 ha, along the river, where reallocation of land will be necessary.

11

47 . On the basis of avail2ble f r agmentary data, the following prelim-inary r eview of expenditures can be given :

Before Sept 1957 Sept 1957- Jun 1,

1960 Jan-Nov 1961

Total spent Estimated costs

E x p e n d i t u r e s (in million lire)

For Irrigation

2,186 1960 1,511

850 720

5,267 L 10,432 million

. 17,912

1

For Reclamation

2,310 1,665

750 · 440

s,165

6,541

48. The amount spent for irrigation includes the costs of the barrage (about L 1 , 880 ) and the rest is for the main canaJ.s and the networks for about one fifth of the area (say, 8,000 hectares). The balance (about L 12.5 billion) should be adequate to cover the costs of the networks for the remaining 32,000 hectareso

49. The reclamation works (river regulation, drainage, dikes, etc.) have largely been completed.

Action to Promote Irrigated Agricultur e

50. In this respect, the task of the Consorzio for the Volturno is much lighter than that of the Ente Flurnendosa. The farmers in the Volturno area are rrruch easier inclined to use the new facilities, and they are more commercially minded than those in Sardinia. The work of the Consorzio, performed in cooperation with the Ministry of Agriculture, includes advisory services, rectifying land fragmentation in some very limited areas, and promotion of marketing and processing cf farm products.

51. The Consorzio has prepared the annual report on agricultural developments in 1959; this report was received in May 1960. It was not

· quite satisfactory, because it did not give an estimate of the value ·of agricultural production in the report year. During the visit, the mission was given ~n advance copy of the report on 1960 which again did not include a section on the value of production. The Consorzio was asked to include this section in the finaJ. version of the report, which should reach the Bank shortly.

52. According to the preliminary report on 1960, the situation was essentially the same as in 1959, except that 2,000 hectares were actually irrigated with water from the project. The weather in 1960 must have been very favorable for crops in the Volturno area, because the yields per hectare are considerably higher for the various crops than those mentioned in the technical report. The area in orchards (particularly peaches and pears) increased slightly, but significant progress can only be expected after the

12

period covered by the report on 1960. In order to improve marketing facilities in the area, the Consorzio participates in the financing of a fruit marketing center in "la Riocia11 , and of a cooperative processing plant for buffalo milJc .and f or fruit.

Recommended Action

53. No action is required at this time, but it is advisable to r emind the Cassa of its obligation to inform us on possible changes in theµ-oject, and also on the desirability of having an estimate of the value of agricultural ·production included in the 1960 report on agripultural developments.

** * FORTORE IRRIGATION PROJECT

Description '

54. The original project description, on the basis of which the project was i ncluded in Loan 189-IT, read substantially as follows.

55. An earthen dam (60 meters high, 432 meters long) would be built across the Fortore River at Occhito . The dam would form a reservoir with a useful capacity of 250 million cubic meters.

56. The water would be released into the Fortore River· and be diverted by a barrage at Santa Maria. A system of canals would be built commanding by gravity an area of 66,000 hectares in the plain around the city of Foggia. With an average application of 6,000 cubic meters per hectare at the farmgate, the system would be able to irrigate each yeaT 36,000 hectares. About 60 per cent of the commanded area of each farm would be irrigated during any one season.

57. At the time of loan negotiations in 1956, detailed plans were available for the dam and the barrage . Engineering· work was proceeding on the diversion canal and the principal main canal. Only general plans had been made for the distribution system.

58. During the process of designing of the canals and distribution works , certain changes were made in the original rough layout. These changes were reflected in a draft revision of the project description, dated July 18, 1960. Basically, the project remained very similar to the original scheme, although the project area would be enlarged.

59. On October 12, 1960, a letter signed by Mr. Reid was sent to the Cassa asking for more definite ·information. As no answer was received, a further inquiry was ·made on September -13, 1961. To this letter the Bank received a connnunication from the Cassa dated November 20, 1961.

60 . It appeared then that the project had been changed very consider-ably. The Occhito Dam and reservoir were retained, but instead of releasing wate r into the river, water would be conducted through a tunnel to the plain •

. The plain would in part be served by a system of pressure pipes instead of canals. This system would allow the farmers to use either canal or sprinkle

l

13

irrieation. This innovation would r educe the average water application ·per hectare to 4, 800 cubic meters per year which would enable an expansion of

tho comman<i.ed ar ea1

to 130,000 hectares (annually to be irrigated about 50,000 hectares) l . . 61. During the end- use visi t, these changes were discussed in detail. It appeared that the revised pr oj ect had been designed by Ing . Carlo Lotti of Rome, who presented his repor~ on February 10, 1961. The Cassa and other screening bodies have studied I ng . Lotti's report and they have accepted in principle t he changed project. The detailed engineering plans f or the pressure tunnel have been approved. Engineering for the distribution system is now proceeding. A description of the main features of the r evised project was received on April 9, 1962.

62. It is still too early for a 11 final 11 project description. An interim description would read as f ollows:

Fortere Irrigation Project (Interim Description)

This project is designed to provide irrigation ·to about 130,000 hectares along the lower reaches of the Fortore River and in the plain around the city of Foggia. It includes the following works:

a) Dam and Reservoir. An earthen dam would be constructed across the Fort.ore . River at t he Occhito gap . The dam would be 60 meters high and would have a length of 432 meters along the crest. It would create a r eservoir with a useful capacity of 250 million cubic meters.

b) Tunnel. An intake structure .on the right side of the dam at 170 meters above sealevel would conduct the water int o a tunnel which would be 15.8 km long with a capacity of 30 cubic meters per second. The tunnel would release water at 153 meters. above · sealevel near Finocchito.

c) Distribution System (Preliminary Description). The commanded area would include 130,000 hectares below the level of 153 meters. It would be bounded by the Fortore River in the north, the Candelaro stream in the east , the Cervaro stream in the · south and in the west, by a line at the level of about 135 meters. From the exit of the turmel at Finocchito the water would be conducted in two directions:

i) through a pressure pipe which would run about 10 km in a northeasterly direction. At t he end of this pipe, pa.rt of the water would enter another pipe to irrigate the land on the right bank of the Fortore River; the rest would be conducted through a pipe to a canal on the east side of the district; this canal would begin at a level of 110 rooters and end at a level of 97 meters;

"};;/ Losses in the riverbed and main canal will be eliminated by the use of the tunnel.

' - (' .· ....

14

ii) through a canal (partly in tunnel) along the west side of the district, beginning at a level of 153 meters and ending at a level or 123 meters.

The east and west canals would be connected by six main pipes. At the head of each main pipe a small reservoir would take care of . sudden changes. in demand. For t he same reason the distribution network would have a capacity of 120 per cent ·of the estimated demand. Most of the land is at a level of 50 meters to 100 meters above sealevel, and the pipe system will enable owners of land at a level of 20 meters below the intake of the pipe to apply,either canal irrigation or sprinkle irrig~tion.

63. The envisaged cropping pattern hap also been changed. This has been done for two reasons. First, additional lands, ' on which grapes and olives are grown, were included in the project; second, the expectations as to the profitability of an'bnal husbandry as comµi.red to fruit and vegetable growing have changed in favor of the latter. A comparison of the cropping pattern assumed for the original and for the ,reviseq prpjeg~ !o1l9w§·

Forage crops Vegetables Second crops Fruit Grapes, olives

Average water requirements including losses

Original Revised (in per cent)

40 s so 5

100

6,530 m3/ha 7,520 m3/ha

10 10 40 10 30

100

4,100 m3/h~ 4,800 m3/ha

The cost estimate for the irrigation works has of course changed very · . considerably:

Costs of Irrigation Works (in million lire)

Dam Barrage and diversion canal Tunnel Main canals Distribution networks Accessory works

Total

TOD Report

s,soo 2,500

24,000

32,000

Present Estimate Z1

5,500

6:514 L2

9,374 41,060

588 63,096

1/ Probably classer to L 5,800 million. ?} The tunnel would be more than twice as expensive as the barrage and diver

sion canal. The only justification for this particular modification in the project seems to be that some transportation losses of water are avoided. One might, however, question the wisdom of this change in design.

64. The new cost estimate (which includes five per cent contingencies and 15 per cent overhead costs) is still preliminary, as only a rough estimat cou db made of tho costs of th0 di~tri'oution network. However, it seems likely t hat the revised project will cost almost twice as much as the original. However, the actually irrigated ·area will increase from 36,000 hectares to 50,000 hectares, so that the costs per hectare will increase from about L 900,000 per hectare to L 1,260,000 per hectare (or from $1,500 per he ctare to $2,000 per hectare).

65. No new est:iJnate s of benefits has been made yet. It has been assumed by the Italians that benefits would increase •pro rate the expansion of the area. That is, however, not necessarily the case. The added lands may be of a different quality and also the cropping pattern in the sprinkle irrigation areas will not be the same as what was expected under the canal irrigation scheme . The Consorzio has , therefore, been asked to review the economic justification of the project and to send us the result of this review. This review can be expected in May 1962.

' Progress of Work

66. Construction of the dam started in August 1958. Approx:iJnately 200,000 cubic meters of earth had to be remove-d for the foundation of the dam. Approximately one third of the three million cubic meters of earth needed to build tho dam had been placed by January 1962. The concrete structures of the dam (except the intake for the new tunnel) have been built. The dam abutments require extensive grouting. Sixty-five per cent of this work has been completed. · It is expected that the dam will be finished in 1964.

67 . The design of the tunnel has been completed. Approval by the central authorities is expected this sUllllm r and construction could start· in autumn 1962. It · would take 'f our years to co~plete the tunnel.

68 . Construction of the distribution system could start in the meantime, so that by 1966, part of the area would be ready for irrigation. No estimate of the time of completion of the project is available.

69. Originally, it was expected that irrigation of some land could begin in 1962, and that by 1965, 40,000 hectares would be served by canals.

70. The project execution is thus very seriously behind schedule, mainly because of the· restudy of the principles of the scheme.

Financial Aspects

71. An amount of L 4.64 billion ($74 million) was allocated to the Fortore project under Loan 189-IT . This amount has been withdravm in the years 1958/61, and it was used to re:iJnburse the Cassa for expenditures on the construction of the dam and of the drainage and river control works included in the project. The latest financial report gives the situation as of October 1, 1960.

. . 16

Amounts Spent as of October 1, 1960

Dam Barrage Main canal Network Enr;ineering Drainage and river

Cost Estimate

5,407 1,400 8,000 8, 000

354

s pent Before After 30/8/57 1/9/57

73 1,219

147

Total

1,292

237

control Total

8,948 32,109

90

4,125 4,288

1,54§ l 5,674 , 1 7,203

The Cassa has been asked to ~esume t he financial reporting and a report covering t he balance of 1960 and 1961 can be expected in May 1962.

?2 . T ~ov rnmont (t hrough t h~ e ~ea ) was expected to contribute 92 per cent of the expenditures f or the project. ·Because of the extensive revi sions of the project the Reclamation Consortium must re-negotiate with the government the share of the expenditures which the government would be willing to contributeo It has requested a 100 per cent contribution from the government for the costs of the tunnel and the main canals. The conventional fo:nnula (87.5 per cent for the government) would apparently apply to the balance of the works.

Recommended Action

73. It is recormnended to . send a letter to the Cassa stating (a) that we regret not to have been informed earlier and in more detail about the impending changes in the project and to. remind them of their obligation to consult the Bank prior to approving the final.plans for the project; (b) that we would like to be informed of the reasons why the tunnel is preferred over the barrage and diversion canal; (c) that they promised to send a re-estimate of the expected benefits; and (d) that they are obliged to send regularly the requested annual reports on agricultural developments.

Y This corresponds to the amount withdrarn in 1958/60.

cc: Messrs. Wapenhans Spottswood/Filippi Cheek

00/web

FORM No, 59 ( 2. 55)

COMMUNICATION:

DATED:

TO:

FROM:

FILED UNDER:

SUMMARY:


•

Professor Gabriele Pescatore, President Cassa Per I1 Mezzogiorno Piazza Dei Congressi N. 20 {Eur} Rome, Italy

Dear Professor Pescatore; j

fay 17, 1962

Re. LQans 117 & l,50 IT - Industrial Projects /

I should like to ackno'Wledge your letters of March 17 and May 5 (Prot. N. 5/6235 Posiz. CF/PE/FJl!/ar and Prot. N. 10081 Posiz. CF/PE/FM/ar) concerning the guar&ntees related to the above Bank loans. In the first place, however, may I ask you to accept our sincere apologies for the delay in replying to your March letter which was inadvertently misplaced.

We have reviewed the request that the ABCD should be relieved of its obligation to maintain the guarantee of the Soc. Fina.nziaria. per Opere Pubbliche ed Imprese Industriali di Roma.. In the circumstances you explained in your earlier letter, including the agreement of Calci e Cementi di Segni to remain sole guarantor, the Bank has no objection to the guarantee of the Soo. Fina.nzia.ria being discontinued.

a.1~:eb cc: Messrs. Povey

Upper Sella Baum

Yours sincerely,


Europe

FORM NO. 59 ( 2. 55)


COMMUNICATION: Meaoralldtll&

DAT ED: liq 14, 1962

TO: Legal F1l88

FROM: PJ. Sella

F1LED UNDER: I~ • Loan 189

SUMMARY:

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FORM NO. 59 ( 2. 55)


COMMUN! CATION: MMIM:":!mdum

DATED: l4 1962 TO: Mr. Bruce Che .

F1LED UNDER: Ital}r - Loan 189

~ SUMMARY: I - Loans ll 7IT - l SO !T ( 189 IT) • ABCD pto •

FORM No. 57 (5 . 48)

TO:

FROM:

SUBJECT:


OFFICE MEMORANDUM Mr . Piero Sella DATE:

J .L. Upper c:/1) / Loans 117 :~~ ~50 -IT: ABCD Request to Relieve

One of Two Joint Suretors of Obligations.

May 11, 1962

Mr . de Alba left the attached letter dated March 17, 1962 with me for review in conjunction with the documents relating t o the change in the amortization schedule for ABCD, which were subsequently received and reviewed. lhis let~e~ unfortunately, was misplaced among other papers and overlooked at the time the other documents were reviewedo

The reason stated by ABCD for wishing to relieve the Soc. Finanziaria per Opere Pubbliche ed Imprese Industriali of suretyship is to avoid the commissions being paid to the Societa. IRFIS and the Cassa support the proposal of the company. Calci e Cementi di Segni agrees to assume sole suretyship for the loan.

Logically it seems to me that, if there was reason for /) having the ~oint suret~bip at the time of loan agreement, there is I n'A doubly good reason now that problems have been encountered with the

~ J _project. If the company's finances are so tight that the payment

Y of a commission to a suretor becomes onerous, then there must be good reason for retaining the suretyship1

On the other hand, Calci e Cementi di Segni is a responsible and historically profitable company, as well as a borrower under Loan ,50 ... IT , and we may wish to rely unon the jud_gment of IREI.S and tru Cas~a in this caseo The amount of the commission paid to the Sccieta is not given.

JLUpper/lh

FORM NO. 75 (2 - 60) INTERNATIONAL BANK FOR

RECONSTRUCTION AND DEVELOPMENT

Date ROUTING SLIP

ROOM HO.

To Handle Note and File --------+-- -+--------- ----< Appropriate Disposition Note and Return Approval Prepare Repl Comment Per Our Conversation Ful 1 Report Recommendation Information i nature Initial Send On

REMARKS

From

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IND1Rl%%O TELEGRAfll'ICO 2 CA.MEZ - ROMA



(CASSA PEA IL MEZZOGIORNO)

. ESPRESSO - VIA AEREA 10081

Prot. N.... ... . .. Posiz.CFIPE/BM/ar dadtllre•llarlsposl4

Allegoti . .

Risposto a . PIAZZA DEi CONGAESSI N . 20 CEUR I

TEL . !529t

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r'~GETTO ,Presti ti n. 117 e 150 IT rogetti Indtistriali- Sope.Ao k.BoC.D.- Spetti.le

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Banca Inteniazionale per la Ricostruzione e lo Sviluppo 1818 H Street, No • WASHINGTON 25, D.O.

A seguito della nota n. 5/6235 del 1~arzo 1962 di cui all'oggetto, si prega codesta Banca di voler oonfermare con cortese solleci tudine la sua accettazione o ineno"-'della richiesta avanzata dalla S.p.A. AoBoCoDo intesa ad ottenere l'esonero dall'obbligo del mantenimento in vigore della fidejussione della Soc·. Finanziaria per Opere Pubbliche ed Imprese Industriali di Roma in dipendenza dei contratti di mutuo stipulati con 1' IRFIS..

Con i migliori salutif.

/ /

/ /~IL PRESIDENTE (Gabriele Pescatore)

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INDIRIZZO TELEGRAFICO t CABMEZ • ROMA

CASSA PER OPERE STRAOROINARIE DI PUBBLICO INTERESSE



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PIAZZA DEi CONGRRSS I N. 20 (EUR>

TEL. 52.91

International Bank for Reconstruction and Development 1818 H Street, N •• Washington 25 DoC.

Gentlemen, Subject: Loans 117 and 150 IT - Industrial Projects

- SopaA. A.B.C.Da

Witli further reference to our letter 516235 of March 17}1962 on the subject, we would appreciate receiving your prompt notification as to whether the Bank agree or not on~AoB.C.Do re u~st of being relieved from the obligation of main aining into force the oco Finanziaria Oper e Pubbliohe ea Imprese In ustriali,Roma sure ys i...P connected to tlie existing loan contracts with IRFISa

With best regards.

Isl


Tavassi La Greca

Proteasor Gabriele Pescatore President, Cassa peril Mezzogiorno Piazza del Congressi, 20 (EUR) Rome, Italy


May l; 1962

After an extended tour to several countries, Mr. Groenveld, who visitea the Cassa in January, finally returned to the Bank and we have now had an opportunity to read his reports. Let me begin with expressing our appreciation of the pleasant way in which the officials of the Cassa (especially Dr. Leon, Dr. Vicinelli and Dr. de P~lma) assisted Mr. Groenveld during his stay in Italy.

With respect to the Catania project (Loan 117-IT), we are concerned with the delay in the completion of the Contrasto Barrage and of the tunnel between the barrage and the intake structures for the irrigation canals. It is our understanding that the Cassa, the Consorzio and the electricity company, ESE, concluded in 1957 an agreement by which ESE undertook to mal<e special arrangements for the supply of irrigation water in case the barrage and tunnel would not be completed by April 30, 1959. Mr. Groenveld reports that no such arrangements have been made and we wonder what steps the Cassa and/or the Consorzio have taken to execute the agreement with ESE. For instance., has ESE paid some compensation to the Consorzio?

We have been pleased to read about the progress of irrigation in the Catania Plain, and about how farmers are preparing themselves for profitable use of the new facilities constructed under the project.

The Flumendosa ro ect Loan 10-IT appears to be developing favorably., although more slowly than was expected. We especially appreciate the thDrough way in which tµe Agriculture Division of the Ente Flumendosa prepares the farmers in the region for modern, irrigated farming.

The Volturno project (Loan ~89-IT) appears also to be making good progress. Mr. Groenveld reports that some changes in the original layout of the canals are under consideration (eog. for the high region in the north of the project area, and for an area left of the river where there are possibilities of groundwater development). We would appreciate being kept informed at an early date regarding such contemplated changes.

2

This applies a fortiori for the Fortore project (Loan 189-IT). Although your letter of-November 20, 1961 gave us some information on the impending changes in the distribution system of the project, we were not aware that the changes contemplated (which had been outlined in a report by Ing. Carlo Lotti, dated February 10, 1961) would practically constitute a new project. We have now received, by your letter of April 9, 1962, a technical. description of the revised project. We gather from the documents received that the costs of the irrigation works (excluding drainage, road building, wind breaks, etc.) would increase from an estimate of L 32,000 million in the original project to a present estimate of L 63,000 million. The area actuaJ.ly to be irrigated in any one year would increase from 36,000 hectares to 50,000 hectares, and the costs per hectare from L 900,000 to L 1,260,000. The question arises whether such a change in plans can be justified on economic grounds. In this cormection Mr. Groenveld, while in Italy, requested a re-estimate of the economic benefits and we should be most interested to receive this information as soon as possible.

We wuld al.so appreciate receiving the first armual report on agricultural developments in the Fortore area. No such report has been received yet for the Fortore project.

:Mr. Groenveld and Mr. Filippi have al.so asked for a resumption of the quarterly reporting of financial data on each of the four projects. We hope to receive the first updating reports very soon and trust that the Cassa will continue to submit such quarterly reports regularly.

cc: Messrs. Spottswood/Piccagli Collier

Cleared by :Mr. Piccagli

ro/web

Sincerely yours,

P.A. Reid Chief, Agriculture Division Department of Technical Operations

FORM No. 59 (2- 55)


COMMUNICATION: Eetter

DAT ED: Mccy- 1 1 1962

TO: Professor Gabriele Pescatore, Presidentf Cassa per il Mezzogiorno, Piazza del Congressi, 20 (EURJ , Rome, Ital.Yo

FROM: P. A. Heid

F1LED UNDER: Italy - Loan 189

SUMMARY: Paragraph L,0

The Flumendosa project (Loan 150-IT) appears to be

developing favorably, although more slowly than was expected. We

especially appreciate the thorough w.q in which the Agriculture

Division of the Ente Flumendosa prepares the farmers in the region

for modern, irrigated larming.

t01'9&

Italy - Loan 0150 - P037416 - Administration

Documents