World Bank Document...to the long term role of science and technology in Brazil's economic ... behavioral patterns of firms, relations between management and employees, and relations

Document of

The World Bank

FOR OFFICIAL USE ONLY

Report No. P-5349-BR

MEMORANDUM AND RECOMMENDATION

OF THE

PRESIDENT OF THE

INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT

TO THE

EXECUTIVE DIRECTORS

ON A PROPOSED LOAN

IN AN AMOUNT EQUIVALENT TO US$150 MILLION

TO THE PEDERATIVE REPUBLIC OF BRAZIL

FOR A

SCIENCE RESEARCH AND TRAINING PROJECT

October 19, 1990

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

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CURRENCY EQUIVALENTSCurrency Unit CruzeiroU$1.00 = Cr$51.251

Cr$1.00 - US$0.02

FISCAL YEAR

January 1--December 31

ABBREVIATIONS AND ACRONYMS

CNPq National Council for Scientific and TechnologicalDevelopment

FESA Foreign Exchange Expenditures Special Account

FINEP Agency for Financing of Studies and Projects

GEA Special Advisory Group

R&D Research and Development

PADCT Support Program for Scientific and Technological Development

SCT Science and Technology Secretariat

CAPES Coordinating Agency for Training of High Level Personnel

lOfficial rate on May 18, 1990

FOR OFFICIAL USE ONLY

BRAZIL

SCIENCE RESEARCH AND TRAINING PROJECT

Loan Summary

Borrower: Federative Republic of Brazil

Amount: US$150 million equivalent

Terms: Repayment in 15 years, including five years ofgrace, with interest at th.e Bank's standardvariable rate

Financing Plan: US$ Million

IBRD 150.0Government of Brazil 150.0

Total 300.0

Staff AppraisalReport: 8811-BR

MaR: 20444-R

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

MEMORANDUM AND RECOMMEND.TION OF THE PRESIDENTOF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT

TO THE EXECUTIVE DIRECTORSON A PROPOSED LOAN

TO THE FEDERATIVE REPUBLIC OF BRAZILFOR A SCIENCE RESEARCH AND TRAINING PROJECT

l. I submit for your approval the following memorandum and recommendationon a proposed loan to the Federative Republic of Brazil for US$150 millionequivalent to help finance programs to strengthen Brazil's human resources andresearch capacity in science. The loan would be at the Bank's standardvariable interest rate, with a maturity of 15 years, including five years ofgrace.

2. Background. Capacity building in science and technology is a criticalinput to productivity growth. Because of uncertain and non-appropriablereturns to research and externalities to graduate training, the public sectormust finance most basic science research and training, as well as areas suchas development of industrial measurements and standards. In Brazil, totalinvestment in research and development (R&D) currently amounts to about 0.7Zof GDP, 80Z of which is publicly financed. Economic returns to Brazil'spublic investments in science, which require a long gestation period, havebeen threatened by policies which limited competition and thus did notencourage technological innovation in the productive sector. The Government'stechnology transfer and intellectual property rights laws and regulations havealso probably discouraged productive sector innovation. The newadministration in Brazil, in a major step towards eliminating barriers tocompetition, recently adopted a comprehensive trade reform program which hasdone away with most quantitative restrictions on imports. The Government isalso currently reviewing its policies in areas such as intellectual propertyrights and technology transfer with a view to making policy changes. Theactions taken to date, as well as those being contemplated, are expected toenhance economic growth by strengthening Brazil's capacity to respond to andadapt science and technology to local conditions.

3. In the early 1980s. development of Brazil's capacity in science researchwas in jeopardy because of highly centralized and bureaucratic decision-making, lack of continuity in funding, and inadequate attention to emergingareas and to support services. In 1985, in an attempt to develop keyscientific areas and to improve the management of public funds, Brazilinitiated the Support Program for Scientific and Technological Development(PADCT), which was partially financed by the Bank (Loan 2489-BR, US$72million). PADCT provides support through competitive grants for basicresearch and graduate training in chemistry and chemical engineering,biotechnology, geosciences and mineral technology, and instrumentation. Theseareas were chosen on the basis of their perceived importance for futureeconomic development and on the relative inadequacy of their human resourcesbase. PADCT also finances the support areas of science information, scienceresearch consumables, maintenance of scientific equipment, science planningand management, science education in primary and secondary schools, and basicindustrial technology (i.e. measurement, standards and quality control). The

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program currently accounts for 6Z of the Government's effort in R&D directedat universities and research institutes, most of which is in the form ofscholarships, salary support, and non-competitive direct institutionalsupport.

4. After an initial period of skepticism both within and outsideGovernment, PADCT has successfully introduced and strengthened processes suchas science community participation in sub-sector planning, peer review, andopen competition for grants, and overall has demonstrated a superior system ofresource allocation in the sector. Until recencly, implementation sufferedfrom long delays in importing scientific equipment because of excessivelycentralized management as well as Government requirements for licensing ofimports. Since May 1989, new PADCT leadership has inproved the importationprocess considerably. The recent trade reform will help to ensure thatimportation continues to proceed smoothly. At present, all loan funds in thisfirst project are committed for research contracts, training and equipment.Because of the lag time in purchasing equipment and utilizing scholarships,about 742 of loan funds were disbursed by August 30, 1990. The project willclose December 1991, one year after the original closing date.

5. Rationale for Bank Involvement. The Bank's strategy in Brazilemphasizes efficient resource allocation, especially in the public sector, andthe appropriate targeting and delivery of support systems to the poor. Themain focus of the Bank's human resources strategy in Brazil is on redirectionof public spending to those social programs that are largely public goods,especially basic education and health services. Bank support for scienceresearch and graduate-level training is an important element of this strategy,since it supports long-term human resource development through a set ofactivities the private sector will not finance, and helps to ensure improvedmanagement of public sector investments.

6. Proiect Obiectives and Description. The objectives of the project areto continue to strengthen research capacity in key scientific and supportareas, including human resources development, and to consolidate institutionalreforms. The project also seeks to improve science sector management andencourage policies designed to improve the economic environment fortechnological innovation. The loan will help finance a time slice of theUS$300 million first phase of a planned eight year US$600 million Governmentprogram to strengthen science research and training. Specifically the projectwill finance the purchase of equipment, local and overseas training, researchexpenses, consultant services, information services, publications, andmonitoring and evaluation for an estimated 900 training and research programsin the areas currently being supported under PADCT I (see para. 3) as well asin the two new areas of new materials and environmental science. In addition,the project supports two studies. A policy study will review issues relatedto the long term role of science and technology in Brazil's economicdevelopment and will make recommendations to improve public sector managementof the sector, including policies which would foster increased private sectortechnological innovation. A study on the productivity and internationalcompetitiveness of Brazilian industry will complement current Government

3

policy changes through reviewing and making recommendations for changes inbehavioral patterns of firms, relations between management and employees, andrelations between the productive sector, government, education, and thescience and technology community.

7. As under PADCT I, an Executive Secretariat within the Secretariat ofScience and Technology (SCT) will coordinate the project. Technicalcommittees, consisting mainly of scientists, engineers, and businessmen,decided on the allocation of resources within and between sub-programs. Bankstaff and consultants reviewed and approved the objectives and allocationsof the sub-programs to ensure an adequate level of specificity and anappropriate balance between basic and applied research. Compared with PADCTI, the sub-program objectives have greater emphasis on engineering and othertypes of applied research and training, as well as increased emphasis onindustry/university collaboration, all of which will help to ensure thatresearch to be financed under the project will have long-term payoffs inincreased productivity and development of new products. In the course ofproject implementation independent committees, consisting mainly ofscientists, engineers, and businessmen, will select, on the basis of opencompetition, research and training projects to be financed under the project.Brazil's two main autonomous science funding agencies, the National Councilfor Scientific and Technological Development (CNPq) and the Agency forFinancing of Studies and Projects (FINEP), as well as the Coordinating Agencyfor Training of High Level Personnel (CAPES), a department of the Ministry ofEducation, will administer and monitor contracts awarded under PADCT. Aninternational advisory group of renowned scientists (GEA) will meet yearly toprovide an independent review of progress and of the relevance of PADCT toBrazil's development needs. In accordance with PADCT operational guidelines,each sub-program has set aside funds for dissemination of research resultsthrough a variety of seminars, meetings, newsletters, and publications. Inaddition, a specific objective of the basic industrial technology sub-programis to develop a network of centers providing information to industry groups onlatest developments in the sector.

8. The project will be carried out over five years. The total cost isestimated at US$300.0 million, which amounts to half of the planned Governmentprogram to be undertaken over eight years. The Government is seekingadditional external financing for the second half of the program which wouldbegin three years from now. The foreign exchange component is US$103.4million (35X of project costs). A breakdown of costs and the financing planare shown in Schedule A. Amounts and methods of procurement and ofdisbursements and the disbursement schedule are shown in Schedule B.Retroactive financing of up to US$200,000 will be provided to initiate thepolicy study. A timetable of key project processing events and the status ofBank operations in Brazil are given in Schedules C and D. A map is alsoattached. The Staff Appraisal Report No. 8811-BR, dated October 19, 1990, isalso available.

4

9. Agreed Actions. Conditions of effectiveness will be: (a) the Governmentwill allocate adequate counterpart funds for the first calendar year ofproject implementation; (b) the Government will sign agreements with FINEP andCNPq for these agencies to implement their respective parts of the project;(c) the Government will prepare terms of reference and a work programacceptable to the Bank for undertaking the policy study; and (d) theGovernment will prepare terms of reference acceptable to the Bank forundertaking the productivity study and will select Commission members whoseexperience and qualifications shall be acceptable to the Bank. Conditions andassurances are as follows: (a) Any changes in PADCT operational guidelines,sub-program documents, as well as allocations among sub-programs, shall beacceptable to the Bank. The key features of the operational guidelines are:(i) decisions on award of sub-projects shall be in the hands of technicalcommittees consisting mainly of members of the science and businesscommunities; (ii) research awards shall be made on a competitive basis; (iii)awards shall be made taking in due consideration the need to strengthenexisting centers of excellence, and to provide multi-year support, inaccordance with guidelines for minimum and average size of grants stated inthe operational guidelines; (iv) inflation corrections shall be made to ensurethat the objectives of awards can be attained; (v) an international advisorygroup (GEA) shall meet regularly to provide an independent analysis of projectimplementation and effectiveness; and (vi) a special technical committee, withexperts whose qualifications and experience shall be acceptable to the Bank,will be established no later than two months after the date of loaneffectiveness, and will review all proposals for improvement of scientificmetrology services. (b) The policy study shall be completed six months afterloan signing; the productivity study shall be completed by October 30, 1992;the Bank shall have an opportunity to comment on drafts of both studies; andthe Government shall inform the Bank of all actions it will take based on therecommendations of both studies. (c) The qualifications and experience of theproject director shall be acceptable to the Bank. (d) The Government willprepare and send to the Bank on an annual basis each May 30 a review offinancing of science and technology, including PADCT II, covering sources anduses of funds, based on criteria acceptable to the Bank. (e) Two years afterloan signing, or after 60X of loan funds are committed, whichever comes first,the Bank and the Government will review progress in project implementation.On the basis of the review the Government will adjust operational guidelinesand sub-program objectives, and strategy and reallocate funds among sub-programs as necessary. A condition of disbursement for funding of theproductivity study is the preparation by Government through SCT of a detailedwork program for the study, satisfactory to the Bank.

10. Benefits. The project will increase human resource capacity in science,i.mprove the efficiency of resource allocation in science and technology, andfoster increased understanding and public debate on policies affecting thereturns to investment in science research and training. Through thesebenefits, the project will enhance economic growth by strengthening Brazil'scapacity to respond to and adapt science and technology to local conditions.

5

Project beneficiaries are estimated to include 2,400 Brazilian scientists,6,600 graduate science students, 25,700 undergraduate students, 135,000primary and secondary teachers and 5,400,000 students, 7,300 technicians, 80research institutes, 60 universities, and an undetermined ntunber of otherusers of science and technology and information services.

11. Risks. Institutional change, including devolving decision-making to thescientific community and decentralizing the system of importation, as well asstrengthening the Government's own planning and analytical capacity, is adelicate and complex process. The risk that these changes will not besolidified or that counterpart funds will not be made available will beminimized by the strong support for the project, especially its objective ofdecentralized decision-making, by the scientific community as a whole and theconsiderable influence of this group on the Government, by the high quality ofrecently appointed Government officials responsible for the sector, and byproject-mandated annual and mid-term reviews. A long term risk to achievementof the goal of encouraging technological innovation in the private sectorwould be continued macroeconomic instability as well as trade and otherrestrictions on competition. This risk would be met in part through projectsupported studies as well as through the Bank's overall dialogue with theGovernment on these issues. As a means of increasing competition, theGovernment recently eliminated most quantitative restrictions on imports andis implementing a number of additional steps which will eventually help toincrease the long-term economic returns to investment in science.

12. Recommendation. I am satisfied that the proposed loan would comply withthe Articles of Agreement of the Bank and recommend that the ExecutiveDirectors approve the proposed loan.

Barber B. ConablePresident

AttachmentsWashington, D.C.October 19, 1990

Schedule A

BRAZIL

SCIENCE RESEARCH AND TRAINING PROJECT

ESTIMATED COSTS AND FINANCING FLAN

Estimated Costs

Local Foreign Total X----------- (tuS$ millions)----------

(a) Research Subprograms

-Biotechnology 22.8 17.2 40.0 13.3-Chemistry and Chemical Engineering 34.0 20.4 54.4 18.2-Geosciences and Mineral Technology 25.7 12.0 37.7 12.5-Instrumentation 14.0 4.8 18.8 6.3-Environment 10.5 4.2 14.7 4.9-New Materials 14.8 21.2 36.0 12.0

(b) Support Subprograms

-Science Planning and Management 3.3 1.5 4.8 1.6-Science Education 17.1 4.9 22.0 7.3-Science Information 5.8 0.4 6.2 2.1-Consumables 4.4 2.4 6.8 2.3-Basic Industrial Technology 24.3 12.1 36.4 12.1

Subtotals 185.9 102.6 288.5 96.2Z

(c) Studies 1.9 0.3 2.2 0.72

(d) Administration 8.8 0.5 9.3 3.1Z

Totals 196.6 103.4 300.0 100?

Financing Plan

Local Foreign Total 2------------(us$ millions)---------

-Government of Brazil 150.0 0.0 150.0 50.0-IBRD 46.6 103.4 150.0 50.0

Totals 196.6 103.4 300.0 1002

Schedule BPage 1 of 2

BRAZIL

SCIENCE RESEARCH AND TRAINING PROJECT

PROCUREMENT METHODS AND DISBURSEMENT SCHEDULE

Procurement Methods/8

Procurement Method/D-------------- _--_-----------------_----_______---------__-----

Category ICB LIB IS DC OI LCB LS OL -Totals

Civil Works/c 3.1 3.1(0.8) (0.8)

Goods 3.1 34.3 18.7 6.2 47.0 25.1 134.4(3.1) (34.3) (18.7) (6.2) (11.3) (6.0) (79.6)

Training 26.0 13.4 39.4(26.0) (3.4) (29.4)

Cortrultants/d 15.0 10.5 25.5(15.0) (2.6) (17.6)

Research Expenses 88.3 88.3(21.6) (21.6)

Admninistration 1.0 8.3 9.3(1.0) (0-0) (1.0)

-Totals 3.1 34.3 18.7 6.2 42.0 50.1 25.1 120.5 300.0(3.1) (34.3) (18.7) (6.2) (42.0) (12.1) (6.0) (27.6) (150.0)

-------------------------------------------------------------- __-----------

/a Figures in parenthesis are the amounts financed by the Bank.

lb ICB = International Competitive Bidding; LIB = LimitedInternational Bidding; IS - International Shopping; DC - DirectContracting; 01 - Other International (overseas training andconsultants); LCB = Local Competitive Bidding; LS = LocalShopping; OL = Other Local (training, consultants, researchexpenses, information services, and administration)

Ic Refurbishing and adaptation of existing facilities toaccommodate laboratory equipment.

Id Includes US$2.2 million for studies.

Schedule BPage 2 of 2

Disbursement Schedule (in millions of US$)

Bank FY 1991 1992 1993 1994 1995 1996

-Annual 23/* 47 42 26 10 2-Cumulative 23 70 112 138 148 150

/* Including US$18 million deposited in Special Accounts (FESA and CESA).

Disbursements Amount

Civil works, goods $149,100,000 100Z of foreign andservices, and training 25Z of local expenditures.for subprograms

Administration $500,000 10O? of foreign expenditures.

Policy study $200,000 10O of foreign and25% of local expenditures.

Productivity study $200,000 100% of foreign expenditures.

Schedule C

BRAZIL

SCIENCE RESEARCH AND TRAINING PROJECT

TIMETABLE OF KEY PROCESSING EVENTS

(a) Preparation time: 18 months

(b) Prepared by: Government of Brazilwith strongparticipation of thescience and technologycommunity

(c) First IBRD mission: July 1989

(d) Appraisal mission departure date: May 7, 1990

(e) Negotiations: September, 1990

(f) Planned date of effectivenesst March 1, 1991

Schedule DP-ag-e 1ot 3

THE STATUS OF BANK GROUP OPERATIONS IN BRAZIL

A. SUMMARY STATEMENT OF LOANS

(As of September 30, 1990)

Amount lessLoan 1 Year Borrower Purpose Cancellation Undisbursed

(US$ Millions)

One Hundred and twenty three loans fully disbursed 8,560.07

2060 1982 Brazil Agriculture 67.0 7.52163 1982 Brazil Agriculture 26.4 2.72269 1983 Brazil Rural Development 33.8 11.92353 1984 Brazil Agriculture 38.0 13.02060-1 1984 Brazil Agriculture 22.8 10.82364 1984 ELETROBRAS Power 250.0 78.12365 1984 ELETROBRAS Power 222.8 0.32366 1984 Brazil Education 20.0 7.02412 1984 Brazil Education 40.0 15.42446 1984 Brazil Federal Highways 210.0 5.42447 1984 State of Sao Paulo Health 55.5 8.72448 1984 Brazil Health Studies 2.0 0.32488 1985 Brazil Development Banking 300.0 11.82489 1985 Brazil Education 72.0 17.42523 1985 Brazil Rural Development 61.3 34.82524 1985 Brazil Rural Development 61.4 36.42532 1985 Brazil Rural WS&S Pllot 15.0 5.82563 1985 Brazil Railways 200.0 85.32564 1985 ELETROBRAS Power Transmission 400.0 258.82565 1985 ELETROBRAS Power Distribution 312.0 139.52593 1985 Brazil Land Tenure 100.0 66.42623 1986 State of Santa Catarina Urban Development 24.5 14.32645 1986 Brazil Urban Reconstruction 98.6 -2679 1986 Brazil Agriculture 155.0 101.52680 1986 Brazil Irrigation Eng. 48.0 23.82681 1986 Brazil Urban Development 55.0 46.42699 1986 Brazil Health 59.5 45.32718 1986 Brazil Rural Development 92.0 54.62719 1986 Brazil Irrigation 57.0 5.6*2721 1986 Brazil Public Sector 29.0 20.52727 1986 Brazil Credit & Marketing'-

Reform 500.0 5.02761 1987 Brazil Rural Development 171.0 136.02762 1987 Brazil Rural Development 78.0 59.72763 1987 Brazil Rural Development 122.0 90.42810 1987 Brazil Education 74.5 69.62822 1987 Brazil Urban Transport 12.3 -2830 1987 State of Sao Paulo State Highway 174.0 101.22831 1987 Brazil Ind.Pollution Control 50.0 38.02857 1987 PEPASA RailwaY Rehabilitation 100.0 76.02860 1987 Brazil Rural Development 60.0 46.42861 1987 Brazil Rural Development 55.0 45.32862 1987 Brazil Rural Development 84.0 70.92863 1987 Brazil Rural Development 42.0 33.42864 1987 Brazil Livestock Disease

Control 51.0 43.72883 1988 Centrais Eletricas Resettlement &

Brasileiras S.A. Irrigation 132.0 30.62895 1988 State of Minas Gerais Forestry Development 48.5 33.1

Schedule D

Page 2 of 3

A. SUMMARY STATEMENT OF LOANS (Continued)

(As of September 30, 1990)

Amount lessLoan t Year Borrower Purpose Cancellation Undisbursed

(US$ Millions)

2931 1988 Brazil Disease Control 109.0 96.32941 1988 PORTOBRAS Port Technical Assist. 20.0 16.82950 1988 Brazil Irrigation Subsector 195.0 170.02960 1988 Brazil Agro-Industries Credit 300.0 153.72971 1988 Brazil Agricultural Credit 300.0 72.02975 1988 CEF Rio Flood Reconst. 175.0 143.02983 1988 CEF Municipal & Low-Income 80.0 61.43013 1989 Brazil Irrigation 71.0 60.83018 1989 State of Parana Land Management 63.0 55.63043 1989 Cia de Gas de Sao Paulo Natural Gas Dist. 94.0 83.93072 1989 Brazil Amazon Basin Malaria

Control 99.0 80.03100 1989 State of Parana Municipal Development 100.0 94.93102 1989 Cia Saneamento Basico

Sao Paulo Water Sector 280.0 263.53129 1990 State of Rio Grando do Sul Municipal Development 100.0 93.03130 1990 Brazil Agricultural Research 47.0 44.93135 1/ 1990 Brazil Basic Health 267.0 267.03160 I/ 1990 State of Santa Catarina Land Management 33.0 33.03169 TI/ 1990 Brazil Highways Manatemnt

and Rehabilitation 310.0 310.03170 1/ 1990 Brazil Irrigation 210.0 210.03173 I/ 1990 Brazil Environmental 117.0 117.02883-I 1/ 1990 ELETROBRAS Resettlement & Irrig. 100.0 100.03227 1/- 1990 ELETROBRAS Power Trans. & Conserv. 385.0 385.0

Total 16,898.01 2/Of which has been repaid to the Bank 5.317.17

Total now outstanding 11',580.84

Amount sold 45.83Of which has been repaid 45.83 45.83

Total now held by Bank 11.535.01

Total undisbursed 4,920.11

1/ Not yet effective.

2/ No IDA credits have been made to Brazil.

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

SCI DA-Pagl 3 of 3

8. STATB4E4T OF IFC UNVESTM2TS(a. of Sept 30. 1990)

Amount in LS11 millionPiocRl Y-or Obliger

Type of Buasines Loan. E. ity Total

1957 Siemna do 9reeil ClIa do Elatricidede Eloctrical Equip_ont 2.00 - 2.001951 Ol;nkraft, S.A. Celuloeo * Papal Pulp and Poper 1.20 - 1.201968 D.L.R. Pisaticog do &*rpil, SA. Aut emeti. Part. 0.46 - 0.451958 Wil;ys-Onerlend do 0ai*1, S.A. - Industrie * C"Frcie Mater Vehicle. 2.45 - 2.451959 Companhii Min-lra do Cimento Portland, S.A. Ceont 1.20 - 1.201959 Ch*apion C.luloee, S.A. Pulp 4.00 - 4.001986/1988/1972 Aces Villar S.A. Stl 8.00 1.93 9.931967/1972 Ultrfertil, S.A. - Industri * Corcio do Fortilizocte Fertilizers 8.22 8.05 11.251969 Petroqliica Unilo. SA. Petrochemicals 5.50 2.88 8.381970 Poliolofines, S.A. Induatris e Coorcio Petrochemical* 6 60 2.88 8 381971 lteno. S.A. Induetria a Co_ercio Petrchmicals 4 60 1 44 6 041971 Rio Crand- - Ceepenhia de Cel.loue do Sul Pulp 4.90 - 4 901972/1976/1981/1987 Companhis do Cil nto Noaional de Mince Coolnt 199,14 8.70 205.841973/74/77/81/83/84 Compenhie Siderorgica de Ouan.bra - C05T"A Steel 76897 16.27 92.241973 Capitol Market Development Fund - FU.MAP Capital Market Denelopaent 8.00 - 5.001973/1978/1983 EBprema do Dbo-nvolvimento 4e Rcursa Minerals - COiIN,S.A Nickel Mining and Refining 83.00 8.74 93.741974 Industrisa VYillreI . S.A. Eleator A Ind. Equipment 8.00 - 6.001974 Fabrics de Tecldo Tatuape, S.A. Textile 89.80 - 89.801975/1979 Cepuona Corbono Industries Ltd. Carbon Black 8.13 1.19 7.371975 Ocitano Norde-t. S.A Petrochemical* 10.00 - lC.O01976 Santisto Industris - To.til do Nordote, S.A. TostilI. 6.48 1.00 7.451976/1980 Tecanor S.A. - Teati I Ceterinenso do Nordoate Tnti le- 16.20 - 16.201977 FRi S.A. Producton Metalurgicao Iron & Aluminu. Ceatintp 20.00 - 20.001977 Mineracco Rio do Norte S.A. Mining 16.00 - 18.001978 Cim Iol Siderurgis S.A. Iron *nd Seel 8.38 8.00 11.381979 Volvo do Brasil lMotore oe Veiculo, S.A. Motor Vehicles 60.00 8.98 88.931980 Herine do NordJot. S.A. - Malhas Ready-made Garments 2.00 - 2.001980 Denda do PFrm S/A - Denpose - Agriculture, Induatria r

Comorcio de 01c ginea- Palm-0il 3.0 1.00 4.501980 Villaree Industrias de B"e S.A. VIBASA Iron and Steel 3.00 - 5.001980 PPi - Copepnhia Induatrial de Pol ipropi long Chemicals A Petrochemical. 31.00 2.00 33.001980 io)tilaris Cienorto SA. Cheoicals a Petrochemicalo - 0.25 0.231980 Sot-.* Amoenlm Qu' ica * Mineral S/A Fertilizers 83.00 6.00 41.001980/1981/1987 Polirul PFtroqui-icr Chemicols A Potrocheeicels 43.00 8.00 49.001981 8ra i lpar meony & Capitol Market. - 1.80 1.801981 Ceeasnhia 8ru-ileira do Agerpecuoria - C0ORAPE Food and Food Proceecinq 8.80 3.00 8.801981 Triunfo Cheicele A Petrechemicala 43.00 4.10 80.101982 Ciento CAUE Cement A Con-t. Material 40,00 5.00 46.001982 Agrilecaing S.A. MFony Capital Market S0.00 0.46 30.451983 Clo Riocronden. de Perticipecoeo (CRP) Money Capitol Market - 0.11 0.11198S Atl-o Frigorifico Food end ed Procaing 1.8.00 - 13.001983 ComaPnhis Dende do Asop (CODEPA) Palo Oil 8.10 - 6.10

1983 PTSA - Papal de Impronao S.A. Pulp a Paper Product. 8O .0 9.87 90.471983 oeec/SA Food end Food Proceosing \ 3 .00 2.80 8.801983 CIKAH Coment A Con-t. Material. 33.00 - 36.00l19 Nitroelor Produtoe Cheicelo Petrocheriasle 3.00 3.70 8 701984 Ctpanhia Alceolquiicm Nacicool Chemcal. & Petrachoeicmls 20.00 4 00 24 001983 Quleica de Sehis Chemicle A Petrechmicole 3.80 1.80 8 30197 See Paulo Alprarstet Textiles and Fabrics 30.00 - 30.001987 Amps Flereorl * Caluleo - AMCE Pulp and Paper Products 14.00 - 14.001958 Fabrlel Carioec do Catnlisoder - FCC Chmlcol- 20.80 - 20.801988 Equity Fund of Brasil Capital Market Institutiona - 20.80 20.801998 S.A. Comerio * Industrial - PRICA0 Food and Food Procesaing 20.00 - 20.001988 Banco Soeano D"vopoont/Finance 20.00 - 20.001988 Banco Itau Devolopsont/Finance 30.00 - 30.001988 Minoaro-e. 8raoleir o Reunidos Mining 20.00 - 20.001988 Unibaneo - Unidio deo an." Or"alIeiro. OD elopmont/Finncm 30.00 - 30.001988 Durtes. B.A. Pulp and Paper Product. 7.37 - 7.371988 Cobrace Ianey A Capitol markto 40.00 5.00 43.001988 Srait.l Tactile. and Fibers 0.10 - 0.101988 Sensor Tentiloe end Fiber. 8.20 1.30 4.801988 Mainho Testile and Fibera 4.00 - 4.001988 Toalis Taxtile. and Fiber* 1.90 - 1. 901989 COPSE Chemicals I Patrochesical. S0.00 - 60.001980/1986/1969 ElW Chtmicolr A Petrocheoicala 13.00 - 15.001989 PCC Pulp A Paper Product. 18.49 8.71 22.201989 POLrTENO Chemical. A Petrochemical. 18.80 6.50 26.001990 Bahia Sul Pulp & Paper 40.00 16.00 88.00

Totsl rosr Comitmnt. 1,388.40 1t2.30 1,880.70Lre. Cencel ltiono. Teroination. Repsyment. and Saleo 911BB ZL7B 986i. sTostl Comitmento NMe Hld by TFC 4768.2 88.80 868.02Total Undieburoed -aZ 7ZA 74 L.1l

_ _ _ ~~~~~~~~~~ ~ ~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~IBRD -20444R

V E N E Z U E L A ,2J2, (FRENCF 0 0 I [st oj u /SURINAhbefUIAN;

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