Doclucnt of

The World Bank

FOR OMCIL& USE ONLY

AAIX j 3 I/f- A)Ji;ep:t No. P-5422-TU

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$300 MILLION

TO

THE TURKISH ELECTRICITY AUTHORITY (TEK)

FOR THE TEK RESTRUCTURING PROJECT

* . MAY 21, 1991

This document has retrieted distribution and may be usd by recpienb only in the performance oftheir official duties. Its contents may not otherwise be discloed without World Bank authorization.

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CURRENCY EQUIVALENTS

Currenc- Unit Turkish Lira (TL)US$1.00 TL 3704 (March 1991)TL 1.00 US$0.000270TL 1,000,000 US$270,000

MEASURES AND EOUIVALENTS

1 Kilometer (km) 1,000 meters (m) 0.6214 miles (mi)1 Meter (m) = 39.37 inches (in)1 Kilocalorie (kcal) 3.97 British Thermal Units (BTU)1 Kilovolt (kV) = 1,000 Volts (V)1 Kilovolt ampere (kVa) = 1,000 Volt - amperes (VA)1 Megawatt (MW) = 1,000 kilowatts (KW)=l million Watts1 Gigawatt-hour (GWh) 1,000,000 Kilowatt-hours (kWh)

PRINCIPAL ABBREVIATIONS AND ACRONYMS

DSI - Devlet Su Isleri (State Hydraulic Works)ESAL - Energy Sector Adjustment LoanFMIP - Financial Management Improvement ProgramGOT - Government of TurkeyICB - International Competitive BiddingICG - Internal Cash GenerationLCB - Local Competitive BiddingLIB - Limited International BiddingMENR - Ministry of Energy and Natural ResourcesMIS - Management Information SystemOMIP - Operational Management Improvement ProgramPSBR - Private Sector Borrowing RequirementsSEE - State Economic EnterpriseSPO - State Planning OrganizationTEK - Turkiye Electrik Kurumu (Turkish Electricity Authority)

FOR OMCIAL VW ONLY

TURISH ELECTRICITY AUJTHORITY

TEK RESTRUCTURING PROJECT

LOAN AN PROECT SUMMR

Borrower: Turkish Electricity Authority (TEK)

Guarantor. Republic of Turkey

Amount: US$300 million equivalent

leSms: Seventeen years, including a five-year grace period,at tho Bank's standard variable interest rate.

Financing Plan for total investments in he nover subsector (1991-94): ̂/

USS millionLocal Eoreign Total

Public Sector S.540 1.713 7.253

- TEK-Net ICG 890 890GOT Equity 1,373 - 1,373Customer Deposits 40 - 40Bank Loan 300 300Other Borrowing 1.146 2785

Subtotal - TEK 3,942 1.446 5.388

- DSI-PPA 1,598 - 1,598GOT 26Z 267

Subtotal - DSI 1.598 267 1.865

Private Sector 714 1_568 2.282

Total 6,254 3,281 9,535

A/ Rounded.

Economic Rate of Return: 16X

Staff ApDraisal Report No.: 9385-TU

mg: IBRD 23018

This document has a restricted distribution and may be used by recipients only . t! performanof their official duties. Its contents may not otherwise be diclosod without We -,ld BanK authorizaltio.

MEMORANDUM AND RECOMMENDATION OF THE PRESIDENTOF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT

TO THE EXECUTIVE DIRECTORSON A PROPOSED LOAN TO

THE TKISH ELECTRICITY AUTHORITYFOR THE TEK RESTRUCTURING PROJECT

1. The following memorandum on a proposed loan of US$300 million equivalent tothe Turkish Electricity Authority (TEK) at the Bank's standard variable interest rate,repayable over seventeen years including a five-year grace period, is submitted forapproval. The Loan, which would be guaranteed by the Government of Turkey (GOT) withTEK bearing the foreign exchange risk, would assist in the restructuring of TEK'scapital and debt, improving the utility's management and in expanding its transmissionand distribution capacity.

2. Project Setting and Background. Turkey's dependence on imported energy hasincreased over the last two decades and it is expected to remain high beyond theturn of this century. The Government's long term Energy Strategy calls for theaccelerated development of domestic hydropower potential and lignite deposits.Substantial investments were launched to this effect following the second round ofincreases in the price of oil in 1978/79, which ultimately succeeded in overcomingthe crippling energy shortages of the early 1980s. The Government has, however,confronted increasing difficulties in implementing its strategy. Lignite developmentwas virtually suspended because of environmental concerns, and instead imports ofnatural gas from the USSR have increased, and negotiations for importing gas fromAlgeria have been concluded. The development of hydropower potential experiencedsignificant cost overruns in the wake of accelerating domestic inflation and sizeabledevaluations of the nominal exchange rate in the second half of the 1980s. In aneffort to reduce the fiscal deficit and restrain inflation, public sector investmentwas reduced significantly in all sectors, including in the power subsector. Giventhat the ongoing hydropower development program could not be stopped in the tracks,resources were diverted away from transmission and distribution investments, leadingto an imbalance in the composition of subsector assets, which must be corrected beforethe major hydropower schemes currently under implementation in eastern Turkey comeon stream between 1991 and 1994 to provide about 2400 KW of now generating capacity.High voltage transmission facilities to evacuate power from the new plants to the mainload centers located in the western part of the country are now the main feature ofpower investments in the Sixth Plan (1990-94), which calls for restricting publicsector investment in power generation projects and extending and reinforcing thetransmission and distribution networks.

3. Lessons Learned. TEK, the Turkish Electricity Authority, is a Public EconomicEnterprise (PEE), responsible for a large proportion of such investment, except forhydropower schemes which DSI, the State Hydraulic Works, builds and then turns overto TEK. PCRs on three past Bank financed projects in the power subsector (Loans1023-TU, 1844-TU and 2650-TU) noted major problems with regard to TEK's performance,including, in particular, weak financial management, absence of strategic corporateplanning, lack of autonomy, and inadequate tariff levels. The Bank's Energy SectorAdjustment Loan (Loan 2856-TU) addressed several policy and institutional issuesacross the sector as a whiole, although progress in the power subsector, particularlyin the area of financial and tariff policy, was less than planned. TEK's financialsituation has deteriorated in the last three years, which constrains severely theuLtility's role as a potential buyer and distributor of electricity as well as a majorsource of subsector investment. TEN's situation is especially worrisome, given thatTEK: (a) enjoys a virtual monopoly in the generation, distribution and transmissionof electric power; (b) is one of the two largest public/state economic enterprisesin the country; and (c) is a major contributor to the Public Sector's BorrowingRequirements (PSBR).

4. Rationale for Bank Involvement. The deteriorating economic environment sincelate 1987, coupled with a concomitant serious erosion of TEK's electricity tariffsln real terms, resulted in TEK not complying with important financial covenants agreedwith the Bank since 1988, particularly in regard to internal cash generation and shortterm liquidity. Financial pressures forced TEK to borrow, especially from foreigncommercial banks at shorter maturities, to complete major generation projects as wellas to meet other financLal obligations. The sharp increase in TEK's debt-service onforeign loans caused by the accelerated devaluation of the nominal exchange rate ofthe Turkish Lira through 1989, and the continued debt-financing of a relatively highlevel of investments, plunged the utility into financial distress. The absence ofan agreement with the Bank on the rationalization of power investments brought theBank's new lending to the subsector to a halt since 1988. TEK emerged as a majorcontributor to the PSBR. The Government's request in 1989 for the Bank's help inrestructuring TEK enabled a renewed dialogue with GOT and TEK. The proposed reformprogram for the power subsector, to be implemented during the Sixth Plan, would deepenthe reforms supported under ESAL, focussing on a medium-term corporate restructuringprogram for TEK, which woild rehabilitate the utility's finances and, in the process,restore compliance with the above financial covenants.

S. The Government has formulated this program with the assistance of the Bank.After a three-year period of policy drift in the subsector, a consensus has emergedon the major policy issues, leading to initiation of reforms toward rationalizingtariffs, subsector investments, instituting environmental safeguards, and increasingautonomy and accountability of TEK. Bank lending for the highest priority componentsof the 1991-94 time-slice of TEK's medium-term investment program would be a vehiclefor offering support to the program for restructuring TEK and the power subsector,as well as for strengthening local capacity to assess the environmental impacts ofsubsector investments. In the absence of the Bank's assistance, the restructuringof TEK and its restoration to financial solvency would be exposed to considerableuncertainty.

6. Project Objectives. The main objectlves of the proposed Loan are to support:(a) the corporate restructuring of TEK in the context of the Government's StateEconomic Enterprise (SEE) reform program; and (b) the implementation of an agreedmedium term least-cost investment program for the power subsector in both the publicand private sectors during the period 1990-1994, and the strengthening of localcapacity to assess their environmental impact.

7. Project Deserintion. The proposed Loan of US$300 million would: (a) supportthe implementation of a Corporate Restructuring Program for TEK which includes: (i)a reform of electricity pricing policy; (ii) a reform of TEK's management practices;and (iii) restructuring of TEK's capital and debt including conversion of part of itinto equity; (b) partially finance the foreign exchange cost of a time-slice (1991-94) of TEK's least-cost investment program; and (c) finance technical assistance tobuild up TEK's capability to carry out environmental impact assessments and for (a)and (b) above. The specific investments under such least-cost program to be financedfrom the proposed Loan would be subject to Bank approval, and incorporated in TEK'sannual Corporate Performance Plan for the year concerned together with the financingplan. Retroactive financing amounting to a maximum of US$30 million would be providedfor expenditures incurred during the twelve month period prior to Loan signature.

8. Summary of Agreements and Recommendations. The Government and TEK have agreedto a least-cost investment program for the power subsector, composed of ongoing andnew projects for TEK and DSI, as well as for the private sector, for the period 1990-94, including a financing plan for the public sector. GOT/TEK have agreed to carryout by December 31, 1992, a reform of tariff policy which will enable TEK to settariffs to ensure compliance with the agreed financial criteria, on the basis of the

3

economic costs of electricity supply. In the absence of a proper costing basis forformulating tariff policy, GOT/TEK have since March 1990, made monthly adjustmentsto TEK's tariffs to maintain them at US 6 cents/kWh (net of levies and taxes), roughlyequivalent to the long term marginal cost of electricity supply. GOT/TEK have agreedto continue such monthly increases until the tariff reform is implemented. This wouldprotect TEK's financial viability and its debt-service capacity in a high-inflationand uncertain macroeconomic environment. To reform its management practices, TEK hasagreed to implement: (a) a Financial Management Improvement Program (FMIP) by December1992; (b) with the assistance of an experienced electric utility, to be contractedby February 29, 1992, on the basis of bidding documents to be issued by October 31,1991, an Operational Management Improvement Program (OMIP) which would include: (i)developing a costing basis for TEK's operations; (ii) designing and implementing aprogram to enhance TEK's efficiency in operations; (iii) developing, by September30, 1992, a tariff setting framework; and (iv) establishing commercially-orientedcost centers and instituting transfer pricing within TEK; and (c) a ManagementIniormation System by December 1993. The proposed operation has been reviewed underthe Bank's procedures for environmental assessment (Operational Directive 4.00, AnnexA) and placed in environmental screening category B. The operati..Jn will not requirethe preparation of an environmental assessment; however, an env1t.onmental review hasbeen prepared of the main transmission line investment. To reduce adverseenvironmental impacts and strengthen the utility's environmental assessment capacity,TEK has agreed: (a) to implement the recommendations of the environmental reviewcarried out with Bank assistance of proposed transmission system investment to befinanced under the Project during final design and construction; and (b) to establishan independent department of the environment and to staff it in a manner satisfactoryfor the Bank by June 30, 1992.

9. To assist TEK's financial rehabilitation program, GOT has agreed: (a) toincrease prior to effectiveness, TEK's paid-up capital through debt to equityconversion and fresh capital injections; and (b) to take all necessary measures, tocause all its departments, agencies and wholly-owned companies to settle theirelectricity bills within three months of billing. In addition, TEK has agreed: (a)to maintain a current ratio of at least 1.0 in 1993 and thereafter, and accountsreceivable levels at no more than 3 months billing in 1992 and at no more than 2months billing thereafter; (b) to maintain a debt service coverage ratio of 1.1 for1992 and 1.5 for 1993 and thereafter; (c) to achieve an internal cash generation levelof 10% for 1992, 25% for 1993, 30% for 1994 and 35% thereafter; (d) to appointinternational auditors to audit TEK's accounts; and (e) by June 30, of each year, tofurnish to the Bank TEK's audit report together with the annual accounts for thepreceding year. Other effectiveness conditions are: (a) TEK to contract financialadvisors to assist TEK in implementing the FMIP; and (b) GOT/TEK to maintain tariffsat effectiveness at no less than US 6 cents/kWh, net of all taxes and levies.

10. To strengthen TEK's autonomy, accountability and corporate planning, theutility has agreed, no later than October 31, of each year, to review with the Bankand agree with the Government a Corporate Performance Plan (CPP) for the followingfiscal year setting forth for such year: (a) the physical targets, including theinvestment time-slice to be carried out and the components thereof to be financedfrom the proposed Loan; (b) the financial targets and the measures for financialrestructuring and implementation of the FMIP; (c) the operational andcommercialization targets, including actions towards implementation of the OMIP; and(d) the levels of services, borrowing needs, ftnancing plan and tariff levels andstructure. To facilitate monitoring, TEK has agreed to: (a) establish before July1, 1991 a subcommittee of its Board of Directors, headed by an Assistant GeneralManager cum Board Member, to oversee the implementation of the restructuring program;and (b) by December 31, each year, to furnish to the Bank, TEK's Corporate PerformancePlan approved by the Government for the ensuing year. Finally, GOT/TEK have agreed

-4-

to pursue further restructuring options for TEK, including divestiture/privatization,under the framework of an overall SEE reform program for the country which is to becarried out with Bank assistance.

11. Benefits. Largely as a result of rationalized tariff policies and of improvedfinancial discipline, it would be possible for the Government gradually to reduce itsfinancial transfers to TEK, these being no longer necessary after 1994. TEK wouldcontinue to borrow abroad to finance its investment program, but after 1992, netborrowings would be slowing down. The term structure of the company's debt and itscreditworthiness would improve, as would TEK's net worth and growth prospects. TEK'snet borrowing is also expected to decline considerably in relation to GNP, from 1.5%in 1989 to 0.2% in 1991, and to become negative in 1994. Increased operating income,expected once major hydropower plant and associated transmission links are completed,will contribute to TEK's ability to service its debt. From a macro balances viewpoint, the program would help the country to reduce its resource gap, as TEK'sinvestment-savings gap as a share of GNP would fall considerably, from 1.9X in 1989to about 0.7% in 1991, and become negative in 1994, which should also contribute tofiscal adjustment. This would be reflected in a decline of TEK's contribution to thePSBR (i.e., its net borrowings, net of GOT's budgetary transfers and support funds),which has already been falling from 1.4% of GNP in 1989 to 1.0 in 1990, and 0.7% in1991. TEK, the Government and the Bank jointly conducted an intensive review of theprojects that merit inclusion in the agreed least-cost investment program for theperiod 1990-94, covering generation, transmission and distribution investments in theentire power subsector. The time-slice of TEK's investment program to be financedunder the proposed Project is part of the least-cost program of power subsectorinvestments in Turkey, for which the economic rate of return is estimated at 161.

12. Risks. The main risk is the possibility that the restructuring of TEK willnot be implemented successfully and that the enterprise will continue to experiencea deteriorating financial position, with adverse effects on the fiscal position ofthe Government. Despite TEK's poor track record in earlier reform attempts, thecommitment of the Government and of TEK's management to the proposed program ofreforms reduce this risk to a level commensurate with the expected benefits of theProject. The Bank's preparation and appraisal of the Project has catalyzed thedevelopment of a consensus across Turkey's political spectrum that the problems ofTEK need to be confronted, and that the company's finances need to be restructuredso that TEK would no longer contribute heavily to the public sector's deficit. Theannual Corporate Performance Plan and the Bank's approval of the specific expendituresto be financed every year under the proposed Loan would be an effective mechanism forthe Bank and the Government to monitor implementation of key decisions and actions.

RECOMMENDATIO

13. I am satisfied that the Loan would comply with the Articles of Agreement ofthe Bank and I recommend that the Executive Directors approve the proposed Loan.

Barber B. ConablePresident

Attacbments

Washington, D.C.May 21, 1991

-5-

Schedule A

TURKISM ELECTRICITY UTHORTY (TEX)

ZLU1t RESTRUCTNIt&E:

Total Investments snd Financing Plan in the Power Subsector (CYs 1991-94):

Investment Program (USS Million)Local Forelgn Total

Public Sector- TEK 3,942 1,446 5,388- DSI 1,598 267 1,865

Private Sector- CEAS & KEPEZ 185 262 447- Others 529 1,306 1,835

Total 6,254 3,281 9,535

Financing Plan

P-ublig Sector- TEK-Net ICG 890 - 890

GOT Equity 1,373 - 1,373Customer Deposits 40 - 40Bank Loan 300 300Other Borrowing 1.639 1.146 2.785

Subtotal - TEK 3.942 1.446 5.388

* - DSI-PPA 1,598 - 1,598GOT - 267 269

Subtotal - DSI 1.598 267 1.865

Private Sector- CEAS & KEPEZ 185 262 447Others 529 1,306 1,835

Total 6,254 3,281 9,535

6--h 6

TUBRISH ELECTRICITY AUTHORITY (TEK)

K RESTZU=ING PRCJ=

Procuremnt Method and Disbursements (1991-94)(US$ million)

------- - Procureamt Mbthod-----------------It z 1CB 0thT Sotal

380 kV TranmissioL Lines 213.5 (179.4) - 213.5 (178.4)

SUbstations 58.7 (50.2) - 5.7 (50.2)

Distribution Equip. 71.8 (54.3) - 71.9 (54.3)

transmission Spares 7.0 (6.1) 7.0 (6.1)

Tecmical Assistance - 11.6 (10.0) 11.6 (10.0)

Total (Bank) 344.1 (283.0) 18.6 (18.1) 362.7 (300.0)

Didt

~~I~~fag~~~1 (~UShWffllon)

(1) Goods (including associated 290.0 (a) 1002 of foreign expendituresworks and services) and 1002 of local espenditures

(ox-factory costs) witb respectto contracts for aoods only; and

(b) 85X with respect to turn-keycontracts providing for the supplyof soods in addition to associatedworks and services.

(2) Training, Technical Service and 10.0 1002Consultancy

Estimated Disbursement Sohedule

tUS Mniin)

MYS&l 45 86 100 75

CuAultive 45 125 225 300

-7-

Schedule C

TURKEY

TURKISH ELECTRICITY AUTHORITY (TEK-

TEK RESTRUCTURING PROJECT

Timetable of Key Project Processing Events

(a) Time taken to prepare: 20 Months

(b) Prepared by: TEK and Government of Turkey

(c) First Bank Mission: 08/14/89

(d) Appraisal Mission Departure: 05/14/90

(e) Negotiations: 04/22/91

(f) Planned Date of Effectiveness: 09/15/91

(g) Relevant PCRs: - Third Transmission Project(Loan 2322-TU)

- Elbistan Project (Loans 1023-TUand 2650-TU)

-8-Schedule D

THE STATUS OF BANK GROUP CPERATIONS IN TURKEY Page 1 of 2

A. STATEMENT OF BANK LOANS ANQ IDA CREDITS(As of March 31. 1991)

Amount (Sail lion)Loan Fiscal less cancellations)No. Year Borrower Purpose Bank IDA Undisbursed

Seventy-f ive Loans, six S-Loans and 14 credits have been fully disbursed 5,068.17 196.15of which SECALs, SALs and Program Loans. a/

Ln. 1818-TU 1980 RepublIc of Turkey SAL 200.00 0.00Lni. 1915-TU 1981 Republic of Turkey SAL 75.00 0.00Ln. 1987-TU 1981 Repubtic of Turkey SAL Il 300.00 0.00Ln. 2158-TU 1982 Republic of Turkey SAL III 304.50 0.00Ln. 2321-TU 1983 Republic of Turkey SAL IV 300.80 0.00Ln. 2441-TU 1984 Republic of Turkey SAL V 376.00 0.00Ln. 2585-TU 1985 Republic of Turkey ASAL 250.19 0.00Ln. 80160-TU 1987 Republic of Turkey FSAL 1 32.25 0.00Ln. 80190-TU 1987 Republic of Turkey FSAL 1 20.00 0.00Ln. 80220-TU1988 Republic of Turkey ESAL 30.59 0.00Ln. S0240-TU1989 Republic of Turkey FSAL It 29.68 0.00

Sub-Total 1,919.01 0.00

Ln. 2400-TU 1984 Republic of Turkey Technical Assistance to SEEs 3.67 1.18Ln. 2405-TU 1984 Republic of Turkey Agr. Extension and Research 72.20 26.76Ln. 2433-TU 1984 Republic of Turkey IAEE Extension 115.30 40.51Ln. 2439-TU 1985 Republic of Turkey Second Highway 186.40 6.65Ln. 2535-TU 1985 Republic of Turkey Third Ports 129.50 72.17Ln. 2536-TU 1985 Republic of Turkey Industrial Schools 57.70 29.25Ln. 2586-TU 1985 TEK Fourth TEK Transmission 142.00 16.23Ln. 2602-TU 1986 TEK Power Systems Operations Asst. 140.00 104.83Ln. 2647-TU 1986 Republic of Turkey Small- and 4edium-Scale Industry 100.00 1.98Ln. 2655-TU 1986 Republic of Turkey Kayraktepe Hydropower 200.00 180.83Ln. 2663-TU 1986 Republic of Turkey Drainage & On-Farm Development 255.00 213.80Ln. 2714-TU 1986 Repubtic of Turkey Financial Sector Adj. Loan 300.00 4.94Ln. 2739-TU 1987 Republic of Turkey Railways II 197.00 69.81Ln. 2750-TU 1987 Republic of Turkey Sir Hydropowar 132.00 15.15Ln. 2776-TU 1987 Republic of Turkey Non-Formal Vocational Training 58.50 53.10Ln. 2818-TU 1987 IZSU tzmir Water Sup. & Sewerage 184.00 149.37Ln. 2819-TU 1987 Republic of Turkey Cukurova Urban Development 120.00 108.16*Ln. 2856-TU 1987 Republic of Turkey Energy Sector Adjustment Loan 325.00 57.92Ln. 2888-TU 1988 ISKI Istanbul Water Supply 218.00 152.44Ln. 2901-TU 1988 TSKO, SYK8, and Industrial Export Development 300.00 15.56

Republic of TurkeyLn. 2922-TU 1988 Republic of Turkey Industrial Training II 115.80 92.97*Ln. 2964-TU 1988 Republic of Turkey FSAL SI 400.00 100.00Ln. 3057-TU 1989 Republic of Turkey Health 75.00 74.38Ln. 3067-TU 1989 Republic of Turkey SYI It 204.50 127.92Ln. 3077-TU 1989 Republic of Turkey Agro-Industry 150.00 137.89Ln. 3090-TU 1989 Republic of Turkey Third Agricultural Credit 250.00 121.31Ln. 3151-TU 1990 ASKI Ankara Sewerage 173.00 171.92Ln. 3177-TU 1990 Republic of Turkey Second Agricultural Extension 63.00 62.00Ln. 3192-TU 1990 Republic of Turkey National Education 90.20 90.20Ln. 3296-TU 1990 Republic of Turkey Technology DeveLopment 100.00 100.00

Total 9,925.94 196.15 2,399.23of which has be repaid 2.580.69 39.19

Total now outstan - 7-345.25 156.96Amounts sold 3.55of which has been repaid 3.55

Total now held by the Sank and IDA b/ 7,341.70 156.96Total undisbursed 2,399.23

a/ Approved during or after FY80.b/ Prior to exchange adjustments.* SECAL

-9-Schedule DPage 2 of 2

THE STATUS Of BANK GROUP OPERATIONS IN TURKEY

S. STATEMENT OF IFC INVESTWENTS(As of March 31, 1991)

iless cance Lltions)Date Borrower Purpose Loan Equity Total1970/a6t86/85890 ACS Glass Glass manufacturing 20.79 3.64 24.431973 Akdeniz Tourism 0.33 0.87 0.601974 Aksa Textiles 10.00 0.00 10.001976/79 Asil Celik Machinery B equipment 12.00 5.82 17.821975 Asian Cement manufacturing 10.60 0.00 10.601974/77 Borusan Iron & Steel 3.60 0.50 4.101986 Cam Elyaf Glass manufacturing 7.94 0.00 7.941990 Conrad Restaurants & Hotels 45.00 4.00 49.001989 Disbank Comnercial banks 60.00 0.00 60.001975/78/81/83 Ooktas Iron & Steel 7.50 2.85 10.351989 Dusa Textiles 25.00 0.00 25.001979 Ege osan Motorcycles & bicycles 2.15 0.00 2.151988 Elginkan Manufacturing 16.45 0.00 16.451986/89 Eska Turism Tourism 9.08 0.00 9.081987 Guney Textiles 16.48 0.00 16.481988 IGFK Leasing 0.00 0.71 0.711988 Interbank Multipurpose banks 60.00 0.00 60.001979/80/82/84/85 Isas Metals & motor vehicles 8.85 4.59 13.441989 Isko Textiles 33.24 0.00 33.241990 Kamelya Restaurants & Hotels 12.09 0.00 12.091975 Kartaltepe Textiles 1.30 0.00 1.301991 Kepez Electric Utilities 25.00 0.00 25.001989/90 Kiris Hotel Restaurants & Hotels 13.03 0.00 13.031981/89 Kirklareli Glass manufacturing 33.42 0.00 33.421991 Koy Tur Slaughtering 8.60 4.00 12.601991 Kula Textiles 18.88 0.00 18.881982 Man Motors Motor Vehicles 7.89 0.00 7.891985 Manas Motor Vehicles 6.47 0.00 6.471980 enssa Textiles 4.00 0.00 4.001990 Mersin Restaurants & Notels 12.50 0.00 12.501971 Nasas Metal manufacturing 8.57 1.85 10.421984 Pinar Slaughtering 3.90 0.00 3.901989 Ram Dis Other 4.75 0.00 4.751989 Sanko Textiles 6.37 0.00 6.371989 Sariville Restaurants & Hotels 2.66 2.15 4.811975 .1sa Resins & Plastic manufacturing 15.00 0.00 15.001989 ..4S Textiles 7.72 0.00 7.721972 Sifas Textiles 3.15 1.94 5.091986/90 Silksr Tourism 24.17 4.91 29.081990 Simplot Food Products 9.13 0.00 9.131979/81/83/84/89 Trakya Cam Glass manufacturing 88.63 15.03 103.661964t66/67/72/73/ TSKB DFC 60.00 5.93 65.93

75t76/77/80/831990 Turkish Fund Merchant Bank 0.00 8.85 8.851970/71/82/83 Viking Paper manufacturing Z.;0 0.87 3.37

Total Gross Commitments 728.74 67.91 796.65

Less: Cancellations, Terminations ExchangeAdjustments, Prepayments and Sales 366.99 3°.43 406.42

Total Comfitments now held by IFC 361.75 28.48 390.23

IBRD 230

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