2 CHAPTER I. FM OPERAIN: LG AND SEC WORK

## OVERVIEW OF LENDING

# L&pding Statistics

3. In FY90 a total of 18 PHN projects were approved by the Board, valued at US$933.4 million. This reflects significant increase in lending volume over FY89 levels. As stowvn In Annex 1 the number of FY90 operations increased over those in FY89 (11) by 7, or 64 percent; and the value of FY90 lending increased over that of FY89 (USS550 million) by US$383 million or 70 percent. The PFIN share of total Bank lending continues to grow. In FY87, PHN lending accounted for 0.3 percent of total Bank lending for that year. In FY88 and FY89, PHN's share of Bank's lending grew te 1.6 percent and 2.6 percent, respectively. In FY90, this level has, reached a high of 4.5 percent, a 42 percent increase over that of FY89, and is targeted for continued growth over the next few years, as illutrated by an ever-expanding pipeline (paras. _158-159)._ 4. Of the 18 operations categorized under the PHN portfolio, 12 were straight PHN projects, valued at US$813.5 million, and arother six were social development projects, valued at US$119.9 million. Statistics on th-- i2 straight PHt. projects are presented in 13Ibles 1 and 2 and discussed in the section immeliately below, entitled *PHN Projects.! Statistics on the six social development projects are presented in Tbble 3 and discussed in the section of this chapter, entitled 'Social Development Projects."

## PHN Projects

5. lIbble 1 shows the countries, project titles, and loan amounts for straight PHN projects, by region, with regional comparisons for FY89. Africa, with four projects again, doubled its loan volume. Asia went from four projects to two and was the only region with lower loan volume. EMENA, with a very large loan to Morocco, increased its lending by 50 percent with no increase in the number of projects. LAC went from one pruject to four, with a large increase in lending volume, attnbutable, in large part, to the Northeast Brazil Basic Health project. Of the 11 countries on the FY90 list, three were also on the FY89 list (Nigeria, India, and Brazil). Seven of the 12 projects were funded by IDA, four by IBRD, and one jointly.

6. In five of the 12 FY90 PHN projects Bank funds were supplemented by external funds of cofinanciers in the amount of US$32.9 million. lbldng the five cofinanced projects in aggregate, cofinancing -mounted to 16 percent of total project costs or an additionality to Bank's funds of 25 percent. Broken down by region, these levels amount to 18 and 29 percent, respectively, for Africa and 12 and 18 percent, respectively, for LAC, 7. A comparison of the approvals for FY90 with the FY90 lending program table included in the FY89 Review shows the fluidity of the lending program for straight PHN projects, even at the start of a fiscal year. At the start of FY90 the program called for 16 Board presentations. Seven of these were not in fact approved during FY90 (Ghana H/P II, Mali P/H, Senegal P/H II, lbgo P/H, Jordan H, Argentina H and M n H/N). All of these are now programmed for FY91 with the exception of Argentina, which is included in the FY92 lending program. The nine remaining projects were supplemented by three that had not been included **q** the original program: two were advanced (India P VII and Morocco H) and the Kenya P IV was a quickresponse operation (Annex 5, paras. 5-11).