CV-/ 5 e- t7L

Document of

The World Bank

FOR OFFICIAL USE ONLY

NT QI~O3 dIE epy

1epc'rt 5o. :P-- 5890 Ho Tyvp: (PM)Ti- t lTe: N'0TITION & HEALTH Pr I Ed C TAluthor: GANT'ANNA, A Reopt No. P-5890-HO

Ext.: :39251 ficoom: Ea'2Cj2¢7 rDert. r LA2>HF

MEMORANDUM AND RECOMMEDATION

OF THE

PRESIDENT OF THE

INTERNATIONAL DEVELOPMENT ASSOCIATION

TO THE

EXECUTIVE DIRECTORS

ON A

PROPOSED CREDIT

IN THE AMOUNT EQUIVALENT TO SDR 17.8 MILLION

TO

THE REPUBLIC OF HONDURAS

FOR A

NUTRITION AND WEALTH PROJECT

DECEMBER 14, 1992

Country Department IIHuman Resources Operations DivisionLatin America and the Caribbean Regional Office

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

their ofricial duties. its contents may not otherwise be disclosed without World Bank authorization.

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CURRENCY & EOUIVALENT UN1TS

US$S - 5.40 Lempiras (July 1992)SDRI.0 US$1.4045 (October 1992)

WEIGHTS & MEASURES

1 Hectare (ha) = 10,000 m2

1 Metric ton (mt) = 1,000 kg1 Kilometer = 1,000 m

iISCAL YEAR

January 1 - December 31

ACRONYMS

BFLH Breast-Feeding League of HondurasBMI Maternal Child Coupon Program (Bono Materno Infantil)

BMW1F Women Head of Household Coupon Program (Bono Mujer Jefe deFamilia)

FHIS Honduran Social Investment Fund (Fondo Hondurefio de Inversi6n Socia,or "SIF")

FHIS-I First Honduran Social Investment Fund ProjectFHIS-Il Second Honduran Social Investment Fund Project

GDP Gross Domestic ProductGNP Gross National ProductGOH Government of HondurasGPO General Procurement Office (Proveedur(a General de la Rep(blCa)IDA Inernional Development Association

JUNTA Local Water and Santion Board (Junta Adinmstradora de Agua)MOE Ministry of EducaticnMOH Ministry of Health

PAHO Pan-American Health OrganizationPRAF Family Assistance Program (Programa de Asignaci6n Familiar, or "FAP")SCES Social Cabinet Executive Secretariat

UNDP United Nations Development ProgrammeUNICEF United Nations International Children's Emergency Fund

USAID U.S. Agency for Itrnational DevelopmentWFP World Food Program

FOR OMCIAL USE ONLY

NtrfRMON DB

CREDIT AND PROJECT SUMMARY

Republic of Hondura

EMOWU Ag :du- The Ministry of Public Health (MOH)The Family Assistance Program (PRAF)Sal Cabinet Executive Secretariat (SCES)

lkeficiaries: Targeted poor groups in rural and urban marginal areas, particularlymothers and young children under eight years of age, in 13 departments ofthe county with the highwst malnutition rates

Amount: SDR17.8 mfllion (US$25.0 million equivalent)

Tm: Standard IDA terms with 40 years maturity, including 10 years of grace

..n ncing Plals ... Loc a l Foreisn TotalUS$ milliooa

Government of Honduras 9.45 1.78 11.23Beneiciaries 0.69 0.29 0.98IDA 12.06 12.94 25.00USAID (ESF) 1.80 1.20 3.00World Food Program 6.00 4.00 10.00UNDP 0.14 0.19 0.33UNMCEF 0.11 0.00 0.11PAHO 0.01 0.07 0.08Other Donors 2.10 1.40 3.50L'

TOTAL IA 26 21.87 54.23

Economi,c IRateof Rea: Not applicable

Staff AXrsisaReport: Report No. 11235-HO; dated December 14, 1992

map: IBRD No. 24083

I m. owmnut is puming dimuion with donot intead in the p_eoe.

This document has a restrited distribution and may be used by recipients or. .: .- he performanceof their official duties. Its contents may not otherwise be disclosed without World Bank authorization.

MORANDUM AND RECOMENDATION OF THE PRESIDENTOF THE INTERNATIONAL DEVELOPMENT ASSOCIATION

TO THE EXECIMUTM DIRECTORSON A PROPOSED CREDIT TO TU3E REPUBUIC OF HONDURAS

FOR A NUTRTON AND HEALTH PROJECT

1. I submit for your appoval the following memorandum and recommeon on a proposedcredit to the Republic of Honduras for SDR17.8 milion (JS$25.0 million equivalent) to help fiane aNutrition and Heath project. Ibe credit would be repayable on standard IDA terins, with a maturt of 40yes, including 10 yea of grce. Ihe project would be co-financed with other donors for US$17.0million equivaent Te tota project cost is esdmated at US$54.2 million eq"ivalent.

2. Honduras, with an estmated populuon of 5.1 million in 1991, is one of thepoorest countres in dte Western Hemisphere. Its 1991 gross national product (GNP) per capita of US$570is higher only than that of Haiti, Guyan, and Nicagua in the Westen Hemisphere. Althou socialindcato have inproved over the last 20 years, hy are stll very low: between 1972 and 1991, estmatesof average life expecta increased fiom 53.1 years to 66.3 yeas and infant moraity declined from 124.9to 50.0 per 1,000 live births. Extreme poverty affcts over 50% of the national popu:;ion and nearly 80%of the rural powlaon. The pwerty problem is aggraved by the rapid populton growth of about 2.8%per yea, arising from high fertility raes (5.2 cildren per woman of childbi age). Mantitonamong children aged 0-5 incesed from 38% in 1987 to 46% in 1990 and 20% of the cildren are bornundevegh; 38% of households lack apppriate excreta disposal and 36% do not have aoess to safewater. The prmary health care system reaches about 60% of its trget population; and the populabon isgenerally ignot about hygiene, corrt nutritional pracdtes and preventive health cae. Maternalmorlity is estmated to average 221 per 100,000 live births. hese indiato are much worse in ruralareas. Across popuation groups, AIDS has smufaced as a seious public heath threat, par larwly in thenorthwestern coastl region of the country.

3. Since March 1990, the Honduran Goverment (GOH) has carried out a comprehensiveeconomic stabilization and adjus_m program designed to correct distortions ng from past

_ac mimanmi_ q- I mand to lay the foundaton for sutaied economic grwth over te medium-tm. Good pc rfrmace during 1991 suggest tsat the economy is recoverwg from Ihe1990 recession and atess toD the GOlfs sasfatory i p of the economic reform progms.

4. Implemeion of te sabilization and adjusment program has had a derse im p ndiffert sectors of the economy and on te popuaion. Liberaization of the exhage rate and decontolof agricultal prices have increased earnings forgrulture and importitug inustry woers,while causing purchasing power losses for uban dwellers and net consmers of food in rual areas. Theimpact of these facts on the real income of te poore famiies has raised profound conerns that: o)heath and nutrition indcators may declin in the shortem, prculady amog pregnant and nnmothers and den under five, who are most vuna; and (h) parens may wiraw children fromschool and put them to work. he sness of sich poteti develoments, when viewed agat thebackgrud of Honduras' undelying chonic poverty, spured the GOH to establish two innovaive safynet programs in 1990: the Honduran Social Inestnent Fund (FH), which finances labor-intensive socialand eoomomic . in uctmo, social series, and iformal sectr subprojects; and the Famiy AsstancePgam (PRAF), which provides nutitio asstace through food coupons for the most vunerblegroups of the population.

5. PRA FoodCQo" . The GOH establised the PRAF in March 1990. A fispilot food coupon program began in May 1990, directed towards poor primary schoo hildken of women-heads of hoeholb s(Bow Mi#erJeft de FoamIa, MF), and distibutd gh the Mumay of

ucation (MOE) in prm sdcools in sevon d q . In 1991, the BMF benef±ed sm 120,000sdiool cildren, with food coupons equiv t to US$37 per year for each child, financing about 17% of

their food requrement. A second pilot food coupon program targeted to poor dhildren under five andpregnant and mnsing mothers (Bono Materno Ilf , BhM was stated in December 1990 with IDAmipport provided under the first Honduran Social _nvesm Fund Project H ) (Cr. 2212-HO). TheBMI is distributed rough the Mnistry of Health (MOH) prmary heath care centers on a monthly basi.in 1991, the BMI rewhd about 56,000 women and chfldren in three departments, with food couponsequivalen to US$44 per year fot each cild and mother, financing aboti 20% of dteir food requirements.The food couons ae used by the beneficiaries to purhase food and oter basic necessities at local stores.The PRAF food coupon eeditues in 1991 amounted to about US$6.0 million equivalent

6. Lessons From Previous Bank Grurm Tnvolywn. A review of past experience of BankGrotp projects, shows that success health projects had: (i) a reklively simple dtszgn Cfn) lbiity toaccommodate changes during im)ple on; and (ii) ases of long term sustainability though costrecovery mechanims established on affordable basis. SuccesUl nutrition projects were chaactezed by:(0 use of good tagetig crria; () combination of mntion Ineventom with health care and eduAin;and (Mii) provision of nutrition assistance reaching the earliest phases of infancy and childhood, includingassistance to pregnant women, to benefit cildren before manutrition may cause pmanent damage. Thedesign of the proposed project incorporates the above lessons as wel a specfic lessons on nutionassistance leaed from previous Bank Group fi g of pilot food copon progmras and support forpolicy on food stamps. Ihe evaluation of a pilot food coupon progam under FHIS-I has shown thatprogram expanson is jusied and that the PRAF food coupon programs are more cost-effec to providenutrition assistance in Hondura an in-ldnd food distribution programs. Bodt the BMI and the BMJF aewell-targeted, have positive impacts on family income, fost ieased use of prmay he and educationservices by the target groups, and have led to a shift in the demand for health services towards preventiveservices, which are cost-effective and poverty oriented. Under the BMI, preventive health careconsultations rose by 131% at participaing falities in 1991, compared to the same period in 1990.Among primy schools participaig in the 3MJF, enrollment rates rose on avge by about 12%,compared to a historic annual increase of 3%. Education performance has also imroved through lowerdropout and repetition rates. The evaluation also showed that the GOH should: Oi imprve the quality ofte MOH health services and facdites to sustai the Icreased demand for priay heath services; and C@)develop and implement a comprehensive long-ntm nutrition str .

7. I b i OWgUM. The proposed project world help achieve the following objectv: (a)prot groups pariclarly vulnerable to the economic adjustment process by dchnig nutrition ceto impv the nutrition status of children and pregan and nursing women among the poorest semens ofte population; (b) supo the development and impl on of lon-M nutrition policy forHonduras; (c) reduce matenal, child and ifnt mority and mofbidity rates by improvw acess to basichealth services and safe water supply and santtion, improvig the qalty of services provided by theMOH, and by supportng heath, nutrition, and family planning educatn acdvities; (d) strengthen theiutional capacity of the MOH, the PRAP and the Social Cabinet Executiw Seretat (CES) forsector planning, progm formulation, monitoring, and evauaton, and improv effiecy in theprourementof drugs; and (e) contol the spread of AIDS.

8. Rationale for ]DA Involvem. IDA involvement In the proposed project follows tesuccessfil BM fod coupn plot pogram (pa. 6). The proposed project is onsse with IDA'scounty and social secor assistance sategy to spport GOH ef to alleviate povrty and prevnt adeteroration in the nutritional status of the populon most at rik to the impact of the economic adjustmeprogram, whfle strengthening the adminisaive capaciy of the line mises. It is in line with the GOH0policy letter of November 18, 1992, descrIbing its main objectivds and broad s for the nutrition adhealth sector. Furhermore, the project would foster more efficien allocation of resoures in the health andnutrton sectors, and promote the deivey of nutrition asitance on a sustainable basis. IDA supportwould also assist GOH effrt to mobilze dono assistance to contl the pread of H1V inlfction andAIDS.

9. P m ie Ihe project would prode for: (a) n_Da 1g nutrtionasstnedevlpinfg a lgrmnutritI olicy (US$32.2 million equiaent to 59% of total project cost) through:(i) formation and Implemention of a longer-term nutrition policy (0.2%); oi) expion of the PRAFfood coupon programs to about 255,000 poor, pregnant and nursing women, children under five, andprimy shool ildren in the 13 departnents with the highest malnutrition rates (55%); (iii) technicalassistance to stengthen PRAF's institutional capacty to adminster the progrm in the project area (2%);(Iv) nutrition education for health staf, communiy workers and mothers focusing on breast-fe andweaning and early childhood feeding practices (2%); and (v) annual nutrition censuses at public primaryscools (1 %); (b) strenheing the delivery of basic 4ealth servie (JS$16.7 million equivalent to 31% oftotal project cost) including: (i) rehabilitation of about 130 health care centers and construction of anetmated 30 additional health centers in priority rural areas where services are curenty not available(7%); (1) improvement of MOH institional capadt through additional staff, staff taining and supevisionand insudtonl support to the project unit of the MOH (6%); (iii) basic drugs for the primary health carenework and technical assistance to improve the efficiency of pharmaceutcal procurement (13%); and (iv)support of the formulation and implementation of a medium-term national AIDS con:rol program (4%)X (c)jngnWpmL f fl v (S$4.1 million equivalent to 7% of total project cost) through: (1)provision of rura water supply and sanitation supported by commuiity participation, benefitW about60,000 people in poor unserved communities in fbur departments (7.9%); and (ii) a medical waste disposa;taiing program (0.1%); and (d) Moigtrng, evauationa auditin (US$1.2 million equivent to 2% ofttal project cmst) including institutional strengtheniag of te SCES.

10. The project cost is esimated at US$54.2 miltion equivalent with a foreign exchangea 'ponent of US$21.9 miltion (40%). The proposed IDA credit of SDR17.8 million (US$25.0 millioneqAlent) would represent 46% of tot project cosL A breakdown of costs and th finaing plan areslown in Schedule A. Amounts and methods of procrement and dibursenent and the dibursementschedule are shown in Schedule B. A timetable of key project processing events and the stabus of BankGroup operaions in Honduras are given in Schedules C andc D, respectively. Ihe Staff Apprs ReportNo. 11235-HO, dated December 14, 1992, is also attached.

11. Proiectalilv. Helth and envirornental health services provided under the projectwould be susaned over time thmugh: (I) collecton of fees by local water boards to ensure opea andmantean of water and sanitaton services, and seting up of user charges by local health units to coverpart of their eaing costs; Cu) budgetary provisions to ensure aproe fnding for ru t primaryhealth care ependitures, to be reviewed in anual project reviews; and (il) improvements in proementof esenti drugs to permit meeting minirmum requirements at lower cost. Sstinablit of nutioionasssn would be ensured through: (i inceased partcipation of the Government In program findingover the project life; (d) clear tgeting and exit criteria that would limit the nuber of programbeneficiaries; (ii) mobilization of additional resoums for the PRAF food coupon program from the donorcmmmunity to sustain the program beyond the life of the project; and (iv) implementadon of a long-emnutrition assistance policy.

12. Project hnplemenbonT project would be implemented over thrse yeans. The projectexecuting agencies would be the PRAF, the MOH, and the SCES. PRAF would implement the foodcoupon program. IThe MOBH woud inplement the health services, health studies, includIg formulation ofa longer-term nutrition policy, envroental health, and nutriton education components of the projectthrough a project unit already operating i its Planning Department, and woud delegate the adminof the civil works for the rehilitation and construcdon of health cenrs under the project to the FHISthrough an executing agency agreement. To assist in the impleention of the nutrition educationcomponent, the MOH would contract technical assistance from the United Nations Children's EmergencyFund UNCEF) and a specialized Non-Governmental Organization (NGO), the Breast-Feeding Le ofHondua (BFLH). The Government has presented a signed 4reement between MOH, BFLH, andUNICEF st_sfcty to IDA to support the implemtaton of the tition education component For the

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procurment of drugs, the MOH would use the services of UNICEF and would receive technical assistanceunder the project. The Government presented a schedule for the procurement of drugs for 1993,sasfctory to IDA. The SCES would be responsible for coordinaing project Implementation, reporting toIDA, implementing the annual nutrition censuses at public primary schools, and would receive tchnicalassistance under the project.

13. Actiors Agreil. IDuring nedations, agreements were reached that: tO the Borrower,through MOH, would formulate a long-term nutrition policy by November 15, 1993, discuss it with IDAduring the firt annual review of the project, prepare an action plan, satisfactory to IDA, and implement itby December 31, 1995; (ii) PRAF would carry out the expansion of the food coupon programs with duediligence and efficiency and in conformity with appropriate administrave, public health, technical,managerial and finmcial practices, and in accordance with PRAF's Operational Manual, satisfactory toIDA; ffii that the following criteria would not be modified without IDA approval: [a] targedng andexpanding the food coupon progrms which would be incrporated in PRAF's Operational Manual; Nbselection of health cers to be upgraded and location of health centers to be costucted; and [cl selecdonof localities for constrction of water supply and sanitation systems that would be incorporated in the WaterSupply &nd Sanitation Maual; (iv) MOH would ensure that the Project Unit is at all times headed by aqualified professional and asisted by qualified and adequate staff, satisfactory to IDA; (v) MOH wouldconduct procurement of drugs financed by IDA from UNICEF, according to procurment scheduessatisfactory to IDA; (vi) MOH would enter into contracts with and set tariffs to be chaged by Local Waterand Sanitation Boards (YUNTAs), supervise their operations and fmances, test the quality of the water atleast once a year, and take remedial actions, if necessary; (vii) MOH would carry out a study of cost-recovery of health services satsfory to IIDA by no later than December 10, 1993, discuss therecommendations of the study with IDA during the fis annual review of the project, prepare an actionplan, satsfctry to IDA, to implement these recommendations by January 31, 1994, commenceimplementation immediately thereafter and complete it no later than December 10, 1995; (viii) theBorrower would provide US$11.2 milion equivalent in countepart funds according to a schedulesasfctory to IDA; moreover, the Borrower would obtain additional donor fining totaling US$3.5million equivalent for the food coupon component by Sepember 30, 1993, and that if unable to do so, theBorrower would provide such amount as incremental counterpart funds out of its 1995 annual budget; (ix)SCES would ensure coordination of project implementation in acrdanc with project pformamceindicators and would submit to IDA semi-anual reports, not later than March 31 and September 30 ofeach year, covering project implementation indicators satisctory to IDA; and (x) the Borrower wouldunderake annual project implemettion reviews, in collaboration with IDA, not later than December 10 ofeach year, and prepare an action plan, acceptable to IDA, by January 31 of each subsequent year, andwold implement it thereafter.

14. Codion of Ef l would be: .) appoval and adoptdon of a sasfactory OpeatonaMaal for the Food Coupon Programs by PRAF; (i) approval and adoption of a saiactory WaterSupply and Sanitation Operational Mana by MOH; (ii) signatre of an agreement between FEIlS andMOH for administraion of civil works under the project, acceptable to IDA; and (lv) signamre of financingagreements totalling US$13.5 million equivalen for the project wih other diors.

15. Conditiom gf U isbusenment woud be: (i) for the AIDS Control Progm, the Borrowerwould provide IDA with a sasfcry AIDS Control Program and finacing plan for the 1993-1995period; and (i) for the dnrgs componet, a purchasing agreement between MOH and UNICEF Gm theprocurement of drugs would have been signed.

16. Proect lkneff". The main beneft of the project would be to: (J) prevent a deroration inthe nutritional status of the popuation most at risk to the impact of the economic adjustment program,through the distbution of food coupons; (ii) support longer-tm mrition and health sectr policyformulation and implementation; (IlII) reduce maternal, child and infant morWtay and mobidity rates by

Improving access to basic healh services and safe water supplies and sanitation; (iv) increase the coverageand efficiency of primary educaton rugh increased uroliment and lower repetiion and dropout rates;(v) Improve poor children's capacity to learn drough better nutrition and greater school atendance; (vi)strenghen the nstional capacity of the MOHN SCES and PRAF; and (vii) help curtail the spread ofADS.

17. Enviromune s.The project would have a positive impact on the environmert byincreasing the supply of potable water and basic sanitation albeit on a relatively small scale, and would havea B rating. The project would: (1) protect water sources supplying the systems built; (ii) use standard safetyprocedures in all project works involving rehabilitation, instlation, and operation of medical equipment;and (iii) provide for the safe handling of hazardous medical wastes.

18. Support for Women. The project would have a positive impact on women, benefittingdirecy about 120,000 pregnant and nursing women in lower-income households at risk of malnutrion andmothers of children attendig grades one to three of primay school. Women beneficiaries would gainincome transrs in the form of food coupons that would increase their resources to buy food and betterfeed themselves and their families. Moreover, the health stats of women would be improved as theywould gain increased access to preventive health services, especially nutrition and family planningeducation, comprehensive prena and postnat care, scheduled scr6aning and treatment for risk facors,and proper guidance as to the benefits of breast-feeding and appropriate weaning practices. The projectwould improve women's chances to avoid high-risk pregnancies, helping them gain adequate weight duringpregnancy and have safer deliveries, thus minimizing the chance of having low-weight babies with poorsvival proects and dying of childbirth complications.

19. Ris&. The main risks associated with the project are: O) management constraints affectingPRAF's operational capacity to administer expanded food coupon programs, and to adjust them to theGovernment's longer-erm nution policy; the project would reduce this risk through Imstitionalsgthening of PRAF; (i) delays in improving the quality of basic health services in the project area dueto instittional constraints facing the MOH; the project would reduce or eliminate this risk throughinstitutional sarentng of the MOH, annual reviews of project implementation, and improved health andnutrition expenditure conmls and budget plaming at the MOH. Risks (i) and (ii) would also be addressedthrough close IDA supervision, especily in the food coupon program, which is a new area for the Bankgroup; and (jii) uncertain sustainability of the PRAF fDod coupon programs beyond project support; thisrisk would be reduced by: (a) assisting the GOH in securing donor participation for the formulation andimplementation of a long-erm national nutrition assistance strategy; and (b) attactg additional donorassistance for furter support of the PRAF food coupon programs.

20. Recommeion. I am satisfied that the proposed credit would comply with the Articles ofAgreement of the Associaion and recommend that the Executive Directors approve it

Lewis T. PrestonPresident

AttachmentsWashington, D.C.December 14, 1992

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le APage 1 of 1

MQND1R^NUDM AND H IQ,POJECT

ESTIMATED COSTS & FINANCING PLAN

B Sc PROLEcr onSTS l otingees) 1

- - US$ millionL ONIB ASSTAl:

A. Nutrition Policy 0.01 0.10 0.11B. PRAF Food Coupons 21.00 9.00 30.00C. PRAF Technical Assistance 0.34 0.61 0.95D. Nutrition Education 0.55 0.31 0.86E. Nutition School Census 0.27 0.03 0.30

SubtoWal 22.17 10.05 32.22

11. HA. Primaxy ReaPh Care Cemers 2.00 1.90 3.90B. Human Resources Development 3.37 0.02 3.39C. Basic Drugs 0.78 6.43 7.21D. AIDS Program 0.68 1.48 2.16

Subtot 6.83 9.83 16.66

m. ENVIoNhENTAL l 2.79 1.32 4.11

IV. MQRIXIGALQIiANDAUND 1NQ 0.57 0.67 1.24

IOTAL ECF 7 am6

FEMANCN PLAN:

US$ millionGovaernmt of Honduras 9.45 1.78 11.23Beneficiaies 0.69 0.29 0.98IDA 12.06 12.94 25.00USAID (ESF) 1.80 1.20 3.00World Food Program 6.00 4.00 10.00UNDP 0.14 0.19 0.33UNICEF 0.11 0.00 0.11PAHO 0.01 0.07 0.08Oiler Donors 2.10 1.40 3.50#

1 Net oftoxuam ...

2'li Govrmaitt a pifliAng disuseawo with downWors itad in the project.

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EScedule BPage 1 of 2

WEIRN LAND HEALTH EQ1RECT

PROCUREMENT METrHODS BY CATEGORY(13S$ million)

PROCUREMENT METIODC ATEG O RY NCB}LCB|E RbF TOTAnJiL

_~ ~~ ~C _ .. B . I -- 1

Equipment and Vehicles 0.9 20 0.5" 3.4(0.9) (2.0) (0.3) (3.4)

Basic Drugs 4.7kP 2.3 7.0(4.7) (4.7)

Food Coupons 6.02P 24.0 30.0(6.0) (6.0)

Civil Works 1.6 2.8" 1.0 5.4(1.6) (2.8) (4.4)

Consultants 4.60 0.5 5.1(4.6) (4.6)

Salaries 1.9g' 1.4 3.3(1.9) (1-9)

TOTArXiL, 0.9 3.6 20.5 29.2 54.2(0.9) (3.6) (20.5) (25.0)

Ni,wes: Figures in panthese ae the amnt esmated to be fuanced by IDA.NIP t Not IDA Financed.5' 5hopj!ing.

Procred from UNICEF.Not subjec to procuremn.

* Conutants, taining and other sevice oontrats pocured under pocedwures acceptable to IDA.

3

-8 -

Paoe 2 of 2

DISBURSEMENTS

WITHDRAWALS OF THE PROCEEDS OF THE LOAN

AMOUNT OP THECATEGORY LOAN ALLOCATED % OF IDITRES

(EXFRE9SED IN SDR TO BE FIqANCEDEQ.IVALENT)

(1) Food Sult 4,270,000 34% of lo*a expedtu up to an sgmp* amountof SDR2,130,000; 20% of looa wpenditures up toan a_oret amount of SDR3,50,0;: and 9% oflocal expiturs after

(2) Mdimns 3,050,000 100% up to an eare8de amount of SDR1,420,000;75% lup to an aggregt amount of SDR2460,000;ad 30% theafte

(3) Cil Wot 2,840,000 100%

(4) Equipment,tools, and

PRAP 200,000 100%MOH 1,00,000 100%SCES 30,000 100%

(S) Conultat'

MtAP" 380,000 100%MOB 2,140,000 100%SCES 290,000 100%

(6) aaries 1,140,000 100% of locd expenses up to an ag_ge amount ofSDR500,000; 75% of local expass p to anagregte amout of SDR930,000; and 30% of localexpemmthereafter

Unallocated 1,960,000

Total 17,800,000

l Includes consutants' sevices for tal a e, tning, and sudies.

ESTIMATED DISBURSEMENT TIMETABLE

rRD Fscal Year1993 1994 199S 1996IAnnul 4.8V 9.4 7.7 3.1

Cumuatve 4.8 14.2 21.9 25.0

U Includes Speia Aout deposit of US$2.0 millio

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ffMO-ANDHEBALTHf

TIMETABLE OF KEY PROJECT PROCESSING EVENTS

(a) Time taken to prepare 7 months

(I" Preta by MOH, PRAF, SCES and MOP

i) First Bank group mission October 1991

(d) Apprais mission departure June 1992

(e) Negotiations December 1992

(g) Planned date of effectiveness February 1993

(g) List of relevant PCRs and PPARs Not appliable

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ScheduleDPage 1 of 2

HOND1)NUTRMONAD HEALTH PRECT

STATUS OF BANK GROUP OPERATIONS IN HONDURASAs of September 30, 1992

CRE01T/ I FISCAL I IAOU4T IN USS MILLION (LESS CANCELLATION)LOAN NO. YEAR SORROWER PURPOSE BANK IDA | UNDISBURSFD

31 loans and 14 credits fully disbursed 519.81 135.50

Of which SECALs, SALs, and Program Loans"

Ln. 2990-HDS 1989 Honduras Structural AdJustment 50.00

Cr. 2208-HDS 1991 Honduras Structural Adjustment 20.00Cr. 2306-1-HDS 192 Honduras Energy Sctr Str. AdJ. 31.50

Subtotal50.00 51.50

Ln. 2421-HDS 1984 Honduras Uater Supply 19.60 9.08Ln. 2703-HDS 1986 Honduras Industrial Credit 37.40 4.28Ln. 2804-KDS 1987 Honduras Primary Education 4.40 3.15Ln. 2991-HDS 1989 Honduras Agricultural Credit 25.00 1.65Ln. 3257-HDS* 1991 Honduras Structural AdJ. It 90.00 25.00Cr. 2212-HDS 1991 Honduras Soc. Inv. Fund 20.00 1.59Cr. 2306-HDS' 1992 Honduras Energy Sctr Str. AdJ. 50.60 33.02Cr. 2401-HDS 1992 Honduras Soc. Irv. Fund II 10.20 10.80

Cr. 2417-IDS2 19M Honduras Norazan Dam Emerguncy 12.00 12.81

Total 696.21 229.30 101.38Of which has been repaid 257.73 10.67

Total now held by Bank and IDA 438.48 218.63

Amount Sold 4.46Of which has been repaid 4.46

total Undisbursed 43.16 58.22 101.38

Approved after FY802 Not yet effective* SAL, SECAL, or Program Loan* Difference due to exchange fluctuations between SDR and USt.

Schedule DPagp 2 of 2

HOMURASS1WIION AND14= PROQJECrT

STATEMENT OF IFC INVESTMENTS IN HONDURASAs of September 30, 1992

(US$ Millions)

FISCAL - A ORIGINAL GROSS COMMITMENTS HELD HELD BY UN0ISBURSEDYEAR OBLIG0R TYPE OF (USS MILLION) BY PARTICI- (INCLUDING)

COMMITTED BUSINESS IFC IFC PARTICI- IFC PANTS .. JTICI-|LOAN EWtlTY PARTS | TOTAL PAIITS

1964/66 Emp. do Curtidos Centro-Americana Tannery 0.20 0.08 0.10 0.38 - -S.A. (ECCASA) Ml

1969/70 Cia. Pino Cetulosa de Centro- Pulp and Paper 0.00 0.08 - 0.08Americana (COPINO) a

1978 Textiles Rio Lindo, S.A. de C.V. Textiles and 3.77 1.00 6.00 10.77 2.97Fibres

1986 Granjas Mariffas Shrimp Factory 0.00 0.58 - 0.58 0.58Total Gross Comnitments kL 3.97 1.72 6.10 11.80Less Cancellations, Ter-fnatins, Repayments and Sales 2.00 0.15 6.10 8.25Total Commitments Now Helt sz 1.97 1.58 0.00 3.55 3.55Total Undisbursed Commitments 0.00 0.00 0.00 0.00 -

a Investments which have been fully cancelled, terminated, wrltten-off, sold, redeemed or repaid.E Gross Coamitments consist of approved and siged projects.

t Held Coamitments consist of disbursed and undisbursed investments.

MAP SECTION

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-, * ~~~~~~~~~~~~~~~~~HONDURAS~~~ 'b" ~~~~~~MALNUTRITION RATES OF CHILDREN ~

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