public disclosure authorized egypt review of the...

Report No. 6421-EGT

EgyptReview of the Finances of theDecentralized Public Sector(In Two Volumes) Volume Il: AnnexesMarch 1987

Europe, Middle East and North Africa Region

FOR OFFICIAL USE ONLY

Document of the World Bank

This report has a restricted distribution and may be used by recipientsonly in the performance of their official duties. Its contents may not otherwisebe disclosed without World Bank authorization.

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ARAB REPUBLIC OF EGYPT

Currency

Egyptian pound (LE) trade figures have beenconverted into dollars by using the following-xchange rates:

1974 - 1975: 1.00 LE = 2.56 US $1976 : 1.00 LE = 2.21 US $1977 . 1.00 LE = 2.07 US $1978 : 1.00 LE = 1.85 US $1979 * 1.00 LE = 1.43 US $1980/81 : 1.00 LE = 1.35 US $1981/82 : 1.00 LE = 1.23 US $1982/83 : 1.00 LE = 1.16 US $1983/84 : 1.00 LE = 1.08 US $1984/85 : 1.00 LE = 0.93 US $1985/86 : 1.00 LE = 0.72 US $

Fiscal Year

July 1 to June 30

FOR OMCIL UE ONLY

Abbreviations

CAPHAS = Central .gency for Public Mobilization and StatisticsCHEMICOKE = Nasr General for Coke and ChemicalsEEA = Egyptian Electricity AuthorityETC = Eastern Tobacco CompanyGNP = Gross National ProductRADISOLB Egyptian iron & Steel ComplexMEHAILA = Mehalla El Kubra CompanyNASCO Nasr Automobile CompanySEMADCO = Societe El Nasr D'Engrais et D'Industriep ChimiquesTCC = Tourah Cement Company

This documert has a restrited distribution and may be wed by recipients only in the performanceof their official duties. Its contents may not otnerwise be dicbced without Word Bank authorization.

TABLE OF CNTENTS...........................

VOLUME 2 i ANNEXES

ArvNX Page No.

A-1. DeritQion of the Sasl¢ Abounts. I

A-2. The NeIsurment of Capital Stock. 2

A-3. Montfinanfl Putlic Enterprls Talet. 4

B 1. Et Nasr Fertilisr (ENDtCO) a Tbes". 13

3.2. Nesr Coke (CNENICME) 8 Tables. 23

833. ADISOL s Tables 29

8.4. NM Automobile Cuww (NASC) i Tables. 38

3-5. 1ehalla El-Kubra Coapn HNEHALA) i Tables. 48

8 6. stemrn Tobcco Coawny CETC) a Talb". 57

5-7. Tourah Cemnt Cany (TCC) a Tablu andEstimation of Demand for Cmnt. 64

o-8. Egyptis Electricity Authority (KA) 8 tables. 75

The report i8 based on the findings of two missions which visitedEgypt in November-December 1985 and April-May 1986. The mission membersincluded: Sadiq Ahmed (chief of mission), Ajay Chhibber (pztroleum),Ahmed Galal (industry), Srivan Chutikamoltham (industry), Arne Drud(modelling), Robert Wildeman (urban transport) and Arun Banerjee (watersupply). Kathleen Jordan (Research Assistant), Cengiz Yucel (railways)and Ipe Mathai (power) contributed to the report in Washington.

-1 - ANNEX A-1

DERIVATION OF THE BASIC ACCOUNTS

The interpretation of the financial performance of NPEs are based onthree basic accounts:

- the Balance Sheet- the Profit and Loss Account- the Sources and Uses of Funds

The format of these financial statements are based on work done in the IMF. Amajor issue arises in the derivation of NPE saving and, therefore, their rateof return. This is regarding the treatment of government transactions. Thedefinition of saving (current surplus) suggested by the IMF includes alltransfers from the government as revenues and ali transfers by enterprises tothe government as expenditures. Since a key objective of this study is tounderstand the net financial burden imposed by NPEs on the rest of the economyincluding the government, it is more appropriate to exclude governmenttransactions. Thus, all explicit subsidies are excluded from the operatingsurplus of NPEs and profit transfers by NPEs are included in their surplus.l/However, all taxes, including profit taxes, are considered businessexpenditures.

The NPE saving (current surplus) is therefore defined as thedifference betweea total current and transfer revenues except governmenttransfers, and all current expenses except dividend payments to thegovernment. The overall deficit is defined as the gap between total capitalexpenditure (the sum of fixed investment and net change in NPE inventories)and the current surplus (saving). The gross rate of return is defined as theratio of current surplus to gross capital employed. The latter is obtained asthe sun of gross fixed assets and inventories (from the balance sheet). Netrate of return is obtained as the ratio of current surplus less depreciationfor the year and gross capital employed less accumulated depreciation.

l/ Subsidies are often provided to compensate for non-commercial objectivesimposed by the government on public enterprises. This study is notconcerned with a normative evaluation of NPE performance.

-2- AMNEX A-2

THE MEASUREMENT OF CAPITAL SIOCK

The value of fixed assets reported in company accounts are based onhistorical costs. Due to inflation, the book-value of assets often grosslyunderstates the replacement value of those assets. This has twoconsequences: first the actual rate of return is overstated and second,depreciation allowances are inadequate to maintain the real value of assetsintact. In order to avoid the distortions in the measurement of thefinancial performance of enterprises, the book-value of capital estimatesare revalued using a methodology known as the 'perpetual inventorytechnique', The version of this technique we follow in the study is due tothe well known Chicago economist, Arnold Earberger.L' He used thistechnique for deriving the real capital stock and estimating financial andsocial rates of return for many developing countries.

The Perpetual Inventory Technique

Rarberger's suggested methodology for measuring the net capitalstock involves the following procedure:

- first, compile a series on annual gross capital formation;

- next, decompose the series into three components: machinery andequipment, buildings and inventory;

- apply appropriate price indices to revalue annual investments interms of the prices of the base years;

- select appropriate depreciation rates; Harberger assumed averageasset lives of 4C years for buildings and 12.5 years formachinery and equipment, yielding annual depreciation rates of2.5 and 8.0 percent respectively;

- derive an initial estimate of the capital stock for each of thethree components by using the formula shown below:

Kt = l+r * Itd+r

where r = rate of growth of capital stock, Kd - rate of depreciationIt Investment in time, t

1/ A.C. Harberger, "Perspectives on Capital and Techuology in LessDeveloped Countries," in Conteumorary Economic Analysis, edited byM. J. Artis and A.R. Nobay, Croom Belen, London, 1977.

3 - ANNEX A-2

The main assumption required to derive the value of 'r' is that theeconomy was operating in 'normal' circumstances in the base period, implyingthat the different types of capital stock grew at the same rate as output.Also, to avoid random fluctuations, the base year value of investment istaken as an average of three years.

Apply the perpetual inventory technique to derive the capital stockseries for the period concerned.

.4.

Armx A-3

Nonfinrnetal Pubice Enterprises................................

Table No. Page No.

1. Consolidatd Rasance wheet: Pubile Sector Caq,nes. 5

2. Aggegoate Profit nd Loss Statuant: Public SectorCompanies. 6

3. Sources and Uses of funds: PubLic Sector Companies. 7

4. Neasures of Finmial Performane: Pubilic Sector Companies. a5. Estiamtion of Publie Eeno1mi Authorities Surptus. 9

6a. Overall altances of Non-Finanelot Publie Enterprioses. 10

6b. Overall Balaneos of PEs (in pereentaes). 10

7. Budgetery Impact of Pubie Enterprises. t1

8. Vatue Added : Public Sector Coempnies. 12

9. Employment nd Weas : Publie Sector Companies. 12

-5-

Table 1: CONSOLIDATED BALANCR SMUT - PUBLIC SECTOR COKPMNISS(In millions of gytian Pounds)

1973 1974 1975 1976 1977 1979 198081 198182 19823 19/1.

1. Liabilitiesa. et lWorth 1814.7 2047.8 2541.6 29f2.3 3623.2 5790.8 7131.3 7990.0 8500.3 9175.4h b. Borowrins & other

tlabiltiesO) LOn terM 493.3 6OM.9 612.3 599.1 708.8 1211.8 1762.2 265.8 344.2 4342.1it) Swt Tem 1746.2 2258.8 3162.? 3838.6 4702.6 1618.3 9632.0 11478.0 11311.4 13140.6III) Subtotal 2239.5 291.? 3M.0 4437.6 5411.4 9890.1 1139.3 13943.8 14757.6 17482.7

2. Asseta. Gross fixed ssets 2123.3 2S01.8 2913.0 3110.3 4160.0 6936.0 8890.3 10661.4 12211.9 14199.4b. lesst Accmalated

depreo:aticn 844.4 -945.2 -1058.6 .1140.9 *1332.0 .024.3 *2443.5 29S9.0 -3347.0 .4121.6C. equals: net fixe

assets 127.8 1556.5 1854.4 2239.4 2828.0 4911.7 64.8 M2. 864.9 10077.8d. other to's term

ssets 87.2 443.7 527.8 59.? 551.5 44.9 414.9 679.7 725.1 8&.7a. current assets 2388.2 2966.3 393.4 4610.8 5655.1 10324.3 11663.9 13531.7 13868.0 15993.6

3. Total net ats 4054.2 4965.6 6316.6 7389.9 904.6 15680.9 8525.5 21933.7 23257.9 6958.1Totl net lialebSftes 4054.2 4965.6 6316.6 7589.9 9034.6 15680.9 1525.5 21933.7 23257.9 26958.1

$airce: CAMS-Firacial and Ecenmec Statistics for Pulic Conglhes, vaiou iss_.......................................................

-6-

Table 2: AGGREGATE PROFIT AND LOSS STATEMENT - PUBLIC SECTOR COEPANIES(In millions of gptin Pounds)

...................................................................................................................................................................

1973 1974 1975 1976 1977 1976 17 1980/l 1981/82 1982W83 1983/84

...................................................................................................................................................................

I.Vlue of Productiona. Turnover 2048.4 2445.8 3031.6 3430.7 4034.6 4744.6 6510.4 81".9 9655.3 10109.5 11407.4b. le": Indirect taxes -269.3 -321.6 *363.S '394.5 U489.2 569.4 7t5.3 S 9f.6 .97.3 -oM.* -210.9c. ptus: subsidies 16.2 22.6 30.5 34.3 105.3 120.0 210.7 379.0 46.9 420.4 474.9d. a Operating Incm 195.3 2146.9 2698.5 3070.4 3660.7 4295.4 599. 74.1 906I0 9622.9 11111.3e. plus: change In inventory of

finished and uwitiaed goods 35.T 86.2 131.6 179.1 169.4 220.0 34 39.6 324.3 140.7 162.4f.8 Value of Proixtion 1830.9 2233.1 2830.1 324.5 360.1 4515.4 6209.6 801.9 93923 993.7 11273.t

2. oprating Expediturea. Use of goods and 696.8 1056.5 1419.9 1536.3 1617.3 2147.0 300.0 9.9 4673.2 474.2 535.7?

Services 239.1 291.6 355.7 433.8 501.6 580.0 82.1 1W7.9 15.t 1360.1 1423.6b. isge 348.4 373.9 456.3 546.9 634.4 733.1 10011.1 1S.1 1421.1 20.9 242.4c. Deprcition 11T.1 135.1 156.8 179.7 242.0 325.9 40.7 40.3 6W.9 7M2.? 870.3

*.ther prey (rent) 18.6 22.2 26.5 31.5 37.8 45.3 5S4.1 6.9 107.1 85.2 126.7d. Subtotat 1622.1 1879.3 2414.1 2732.3 3233.1 31.3 5 .0 6f9.1 61.1 8967.1 1020 .?

3. Operating surpAu(If -2d) 206.9 353.8 415.9 506.J 607.0 64.1 9O1.6 1056.4 911.2 1016.5 1065.0

4. Intrst 118.4 132.3 147.8 186.1 223.9 S9.3 517.3 863.5 II6".6 1299.4 1567.8

5. Orating Surptus lees intestbefore tax 90.4 221.5 266.1 322.1 353.1 414.8 364.3 213.3 -M. 282.9 502.8

6. Direct taxe 46.3 97.6 105.5 123.0 150.1 162.5 J.5 26.3 39.2 M3.5 353.7

7. Operating Surplus less fnterestofter tax 44.1 123.9 162.6 199.1 233.0 252.2 155.8 063.0 54. *591.4 *856.5

S. Nrn-Operating fncoew & expenditura. non-operating incom 185.5 246.1 304.8 320.0 510.3 13.8 919.5 1290.1 1545 1603.2 1930.1b. non-operating expdIture 41.0 49.3 81.4 80.3 161.0 406.1 17.3 230.4 225.T 244.0 256.5c. net non-operating Irnom

(Ss-8b) U1.5 196.8 223.4 239.7 329.2 405.7 TU4.2 1059.? 1316.7 1359.2 1643.6

9. Net profit after tax(C+4c) 188.6 320.7 386.1 436.8 542.2 657.9 903.0 996.7 752.0 767.9 767.1

...................................................................................................................................................................

Source: CAPUS op.cft.

- 7 -

Table 3: SOURCS AN USES OF FUMDS - PUBLIC SECTOR COPANIES(In millions of Eypti Pounds)

................. I.....................................................................................................................

1974 193 1976 197 1979 10/81 1981/82 1982 98M/......................................................................................................................................

ScuaCtS

1. Sa4l Firenclra. tsrvs 4 Vurplu 88.0 146.3 130.7 128.1 233. 215.5 238.6 341.3 474.2b. Iess: DAe¢lt 12.4 *9.0 19.1 .36.5 *34.9 .6.8 *187.5 *249.6 352.8c. Prevf* 176.7 172.1 10.8 317.2 S5?.0 411.0 8S1.9 759.4 802.9W-Toutl Wtetl 1ren 277.1 09.4 315.6 48.9 74S.7 S61.7 90.0 851.2 924.2

2. Elxtent FUr m ¢a. OAwd Up & got Pert 56.8 W2.8 19.3 433.1 684S 611.4 4S1.1 267.1 625.4b. L Te Go ISreul 16, ' *46.6 *13.2 109.? 2641 347.0 103.6 960.4 895.9

&d)ToteI xtea FHumming 22.4 251.2 184.1 542.9 90.? 95.3 1154.7 1247.6 1521.3

3. uren Lialutit.ea. Crfftoe 174.2 410.9 20t.9 337. 110.8 128.7 672.0 -1112.6 636.3b. Oise Credit Sct 190.3 311.? 2V4.2 318.4 611.5 44.7 55.4 627.6 S4.9a. W* CrdIft 148.1 181.3 22.? 20.9 190.5 81.5 614.6 318.4 618.1

St*.tote Curret Uiabitities 512.6 905.9 05.8 o 4.0 19n.9 M5S.8 165.9 '146.6 1829.2

TOTAL _uam 1012.1 144.5 1175.6 1815.0 3869.3 2175.9 303.7 195.1 4274.8

1.Long tema. fixed Ir _stots 3A. 411.2 487.3 759.? 1388.0 1301.9 1771.1 1550.4 196W.6b. Othw Lw* To 56.6 04.1 11.9 11.7 '53.3 '20.1 264.8 4§.4 161.6

1wtoUt Lef teim 435.0 49S.3 499.2 M.5 1334. 12B2.6 205.9 159S.8 2149.2

2. Curret AStS. In S?ee 307.0 433.6 3. 427.3 701.4 4.9 682.6 488.4 703.2b. Oebte 93.3 2. 223.5 144.7 5. 210.0 0 2.0 '244.4 72.6c. Oise "W tN 130.4 188.5 101.0 171.5 321.7 25.3 153.0 98.1 266.6d. Cab in sof & son" 46.4 50. 3.5 100.8 789.7 79.2 190.3 S.9 373.1

S 'toti Curret Asset 5.1 99.2 67.4 1044.3 2 4.6 893.1 1167.9 336.3 2125.6

TOtAL wU 1012.1 148.5 1175.6 185.8 389.3 217S.9 3903.7 1932.1 4274.8

.....................................................................................................................................$*m CaP, ap.oet.

Lotse 4s MEUS OF FINUACIAL P*FORANCE - PUBLIC SECTOR COANIEB(In millions of Egptia Pounds)

1973 1974 1975 1976 197? 197S ! 1979 1980/81 1981r82 1982/83 1983/61

.......................................... I........................................................................ ........................................................................................................

1. a. Operating surplus 20D.9 353.S 115.9 508.2 607.0 684.1 901.6 1056.8 93f.2 1016.5 1065.0b. Depreciation 117.1 135.1 155.8 179.7 242.0 325.9 400.7 489.3 607.9 722.7 870.3c. Operating surplus

including depreciation 326.0 488.9 571.7 687.9 849.0 1010.0 1302.3 1546.1 1539.2 1739.3 1935.3

2. a. Nat non-operatingincome 144.5 196.8 223.4 239.7 329.2 405.7 747.2 1059.7 1316.7 1359.2 164.6

b. Current xpenses 164.7 229.9 253.3 309.1 374.0 431.9 745.6 1119.8 1496.0 1607.9 1921.5of which:lntereat 118.4 132.3 147.8 186.1 223.9 269.3 517.3 613.5 1166.8 1?99.4 1567.STaxes 46.3 97.6 105.S 123.0 150.1 16t.5 226.5 276.3 329.2 308.5 353.7

cGowt. tewaer 16.2 6V.7 35.5 56.2 45.0 204.8 259.6 426.2 59W.7 595.6 589.Sd. Current aurp.ue

(1c+2a-2b-20) 289.3 38.1 506.4 562.4 759.2 779.0 1013.9 1059.8 762.2 894.S 1067.9

3. Return to capitala. Csh intareat 35.9 33.5 43.3 80.6 96.7 132.3 197.5 2J8.7 389.? 454.0 559.5

b. Cash rant 5.3 8.3 9.3 10.0 10.7 12.0 13.0 15.9 48.2 8.8 48.SC. Gross return

(2&3.38b) 330.7 429.9 S59.0 652.9 868.7 923.3 54.4 1364.4 1200.1 1407.6 1676.0d. let return

(3Se-b) 213.6 294.6 403.2 473.2 626.7 597.4 853.7 875.2 592.1 661.9 85.6

4. Capital Stocka. Gross cag tal

(book-vatuei 3213.4 3898.9 4m.7 5569.5 6956.6 8613.? 11135.4 13820.1 16273.8 16312.6 21003.40. accumilated depreciation 544.4 915.2 1058.6 1160.9 1332.0 1649.3 2024.3 2443.5 2939.0 3547.0 4121.6c. tet capital 2368.9 2953.7 3675.2 4406.6 564.6 6964.4 9111.1 11376.6 13.7 14765.6 16861.8

5. Retvaued Capitala. et capital 3575.0 4346.0 5381.0 7495.0 9261.0 1146?.0 14065.0 18520.0 2 0.0 2?1.8 32411.4b. Daprciation 143.0 161.0 205.0 270.0 324.0 401.0 477.0 68.0 7s.o 86".o 1121.0c. Net rturn(3c-Sb) 187. 268.9 354.0 382.9 544.7 5*2.3 m.4 796.4 485.1 53.6 SSS.0

"MO ITM (2)i1 Graoss rate of return on

book-value capital (3cS/4a) 10.3 11.0 11.8 11.7 12.5 10.7 11.3 9.9 7.4 7.7 8.0ii) Not rate of return an

book-valtu capital (a4c) 9.0 10.0 11.0 1O.7 11.1 8.6 9.4 7.7 4.4 4.6 4.8iii) Net rat. of retun on

retued capital (Sc/se) S.3 6.2 6.6 S.1 5.0 4.6 5.5 4.3 2.2 2.0 1.?

.................................................................................................................................................... ............................................................................... ........

Source: CAFIAS, ap.cit. ; IOI nti"ts.

, Eatfutad

-9-

Table 5: ESTIMATION OF PUBLIC ECONO0IC AUTHORITIES SURPLUS(In millions of Egyptian Pounds)

...................................................................................................................................................................

1973 1974 1975 1976 197 19?8 ¶9 1980/61 196Vt2 19IS3 1941161.

1. Cwrnt defict(-) 34.0 37.0 39.0 42.0 55.0 58.0 60.0 4.4 100.4 127.6 192.82. Current su2si1s(.) 3.5 4.1 5.9 10.2 11.3 17.6 27.4 27.0 41.2 38.4 56.3S. OtCur trarftra(d) 40.0 50.0 *4.0 89.0 95.0 101.0 119.7 251.8 74.6 23.5 292.24. ttwmstwnt 22.wA0(.) 132.0 199.0 33.0 4.0 569.0 981.0 1091.0 1260.0 1268.0 1749.0 1t99.0S. Dquvaidtfow() _S.0 57.0 69.0 61.0 99.0 128.0 161.0 19.0 237.0 268.0 347.06. i.netmet "*if-f .) 17.0 20.0 27.0 43.0 35.0 9.0 11. 170.0 236.0 19. 194.0?. Pwt tIt nsfej.) 121.0 140. 11.7 176.5 241.3 341.6 420.6 1592.9 1MA. 1330. 1467.4

9. currnot sAurpiC5e406.74*t23) 111.5 126.4 91.6 159.3 23.8 388.0 484.7 1846.7 1186.0 1428.1 1536.1

10. Overait durpiwn(9-4) -40.S -72.6 *244.2 *306.? 353.2 *S93.0 .606.3 566.7 .6.0 .20.9 -40\.9II. Currait surplu of

of L £ SIms Camis 22.0 23.0 61.0 173.0 286.0 37.0 526.0 2068.0 1812.0 141.0 169.012. invt. expaens 28.0 42.0 99. 102.0 153.0 37.0 347.0 312.0 341.0 346.0 388.013. OveralL surpLus.1% I Susa Cais .6.0 *19.0 *3L.0 71.0 133.0 9.0 179.0 175.0 14,71.0 1142.0 1311.0

Source Ninistry of r1im" aid t63 Istftvetes.

- 10 -

Table 6a: OVRALL RALANCES OF FINANCIA PUBLIC ENTERPRISES(In million, of Eapti= Pounds)

1974 19?5 1976 197 19 1979 198O/8l 1981/t2 1982/m 190/84

................... ................................ ,,,,........... ..... ,........ ......................... ...

t. Curet Suptlus/Deficit(-)

a. Econ. AuthoritieS 126.4 91.8 159.3 235.8 311.0 48.7 tA.J 1184.0 1428.1 1536.1b. Pubtlc Cornms 31.1 506.4 562.4 759.2 779.0 1043.9 1059.8 ?62.2 894.8 1067.9C. Total 514.5 598.2 n2l.? 995.0 116.0 8.6 290.5 1948.2 2322.9 2604.0

2. Capel Expediturae(.)

a. Lo. ahoritie 19.0 36.0 46.0 58.0 91.0 101.0 1280.0 126.0 1749.0 1939.0. fblic fComl" 685.5 834.? 871.3 12.7 1517.1 168.7 2297.9 25".3 225.3 2970.4

C. Total 854.5 1170.? 1337.3 1U 23S.1 24.? 3s5.9 37m.3 43.3 4909.4

3. oweall Surpl

camou. Dj&thorttesCle.2a) *7.6 *244.2 *306.7 353.2 -M5.0 46.3 So.? -8.0 -330.9 -402.9

b. PUblt Cotpeni0t+2b}) .25*4 .33.3 305.9 .515.5 -7331 *63. .12.1 *43.1 1?30.5 *1902.5

c. TotattSe3b) *370.0 *5n.5 -615.6 *8S.7 *1331.1 -1246.1 *651.4 10.1 .3051.4 2305.4

NEW tTDP t mae pri.0 43.0 5218.0 ?. 044.0 9 .o 127.0 17311.0 20#21.0 22.0 27491.0

.........................................................................................................................................................

sowe coM, Itinistry of Ft nu,w 03 fttlmte.

able 6b: OVELRAUL LANS OF NPl'S(In Percentaps)

197 l94 197 1976 1M 1M '1 W/t 1982/U

.....................................................................................................................................................

1. Orent 8urp eff cit

a. lcw AutheftfIw 3.1 2.9 1.8 2.4 2A 4.0 3.6 10 5.9 6.1b. PAlic r_uies 7.9 8.9 . 6.4 9.1 6.0 8.2 6.1 3.8 3.9C. total 11.0 11.9 11.5 l.? 11.9 l1.9 1.O `16.8 9.6 10.0

2. Cepital l_editwo

a. Ban. Authmeritfia 4.2 4.6 6.4 6.9 7. 10.0 8.6 7.3 6.3 7.5b. Ahlfe Comiea 10.7 15.4 16.0 13.0 5.3 15.$ 1SJ 13.3 12.4 11.3c. Totat 14.9 20.4 22.4 19.9 223 2.5 21.8 0.5 18.7 18.8

3. Owalt 84rp1w/oeffelt

a. Ieo. PAueitie 1.1 -1.7 .4.? 4.6 A 4.2 *6.1 .4.6 3S *0. .1.4b. Pibc Cmmim" .2.8 *.9 46.S *4*6 *6.2 .7.1 *S.6 -7.1 -8.6 7.5c. Total '3.9 **.5 -11.0 *9.2 *10.4 -1A 6 9.8 .8 *9.0 -8.8

.....................................................................................................................................................

sam Tabl 60

- 11 -

able 7: BUDGETARY IMPACT OF PUBLIC ENTERPRISES(In millions of Egyptian Pounds)

............................................................................................................................................................

1973 1974 1975 1976 1977 1978 1979 1980181 1981/82 1982/83 1983/84

............ I...............................................................................................................................................

1. Ecoromic Authoritieea. reasury Outftlosi) Current deficit 34.0 37.0 39.0 42.0 55.0 58.0 60.0 64.4 100.4 127.6 192.8

") Sudidies 3.3 4.1 5.9 10.2 11.3 17.6 27.4 27.0 41.2 38.4 56.3

iii) Other trasfers 40.0 50.0 75.0 89.0 95.0 101.0 119.7 251.8 746.6 239.5 292.2

iv)lnvestment furd5 135.0 179.0 309.0 422.7 554.3 886.8 981.0 1089.5 1032.4 1558.4 1744.4

v) total outftow 212.3 270.1 4P8.9 563.9 715.8 1063.4 1188.1 1432.7 1920.6 1963.9 2285.7

b. Treasury Inflowi) Profit trasfer 121.0 140.3 117.? 176.5 263.3 341.6 420.8 1592.9 1393.2 1330.6 1467.4

"1) Enerey boats 0.0 0.0 0.0 0.0 0.0 0.0 0.0 228.0 208.0 2S.0 69

"if) Aaftleatton 0.0 93.0 176.0 200.0 217.0 453.0 460.0 641.0 366.0 128.0 364

lv) Totat lnfftlw 121.0 235.5 293.7 376.5 540.3 794.6 880.8 2461.9 1967.2 1483.6 1900.4

c. Net ugtary Surdsm-()(ib-1¶) 91.S 34.6 135.2 187.4 175.S 266.8 307.3 t1029.2 t

46 .6 480.3 385.3

2. Public Caq2snea. Tresury Outflowsi) Saheidies 16.2 67.7 35.5 56.2 45.0 169.8 194.9 267.4 383.8 436.7 464.5

ii) Othe trcsters 0.0 0.0 0.0 0.0 0.0 35.0 64.9 158.8 213.9 159.1 125

ii) lIwesteat f%#* 120.0 248.5 228.3 234.8 414.2 508.3 647.2 m.5 586.7 819.9 843.1

iv) total outflow 136.2 316.2 263.8 291.0 459.2 13.1 907.0 1199.7 1184.4 141S.7 1432.6

b. Treasuy InflowsI) Profit tranfeS 92.6 115.7 167.3 212.9 95.6 165.8 69.4 111.7 242.5 283.0 254.7

f) GoverC ot bandb 0.0 13.4 15.2 19.4 16.0 26.0 31.0 18.6 35.7 40.0 41.4

iti) Total intlow 92.6 129.1 t82.5 232.3 111.6 191.8 100.4 130.3 278.2 323.0 296.1

C. Net sudotaty Surdunml-)(2b-2a) 43.6 187.1 81.3 58.7 347.6 521.3 806.6 1069.4 906.2 1092.7 1136.5

111. Total rudtry flurdet)C2c.lc) 135.1 221.7 216.5 246.1 523.1 790.1 1113.9 40.2 859.6 1573.0 1521.8

;:: ITEIISSudg.gurden as % of U0P1) gEo. Autlhotitf 2.5 0.8 2.6 2.8 2.1 2.7 2.4 5.9 0.2 2.1 1.4

ii) Pftlc Cowin 1.2 4.3 1.6 0.9 4.2 5.3 6.3 6.2 4.5 4.7 4.1

ii) Total 3.7 5.1 4.1 3.7 6.3 8.1 8.8 a.2 4.3 6.8 S.5

".gurden as X ofnatilal ficlt deficit 25.3 24.9 14.5 19.5 37.0 35.1 32.6 1.5 16.8 32.9 30.2

............................................................................................................................................................

Sourest CDSS Utnitry of Finace rd IR lanstiastes.i agtive urdn Xtpl" * positive imt on the btdget.

- 12 -

Table 8: VALUE ADDED - PUBLIC SECTOR COPANIES(In millions of Egptian Pounds)

............ .................................................... ........................................................ ,,,

1913 1974 197S 1974 1917 1918 1919 13641S 1941J3OM t F t 19t.............................................

................... ....................................................................,,. .

op "tub #Att? ihttt MA1.9 5.8 015.9 5.2 0.0 4J.1 0.6 105.8 "31. 1016.5 10.0VW* U484 7.9 463 48.9 64 j.1 101.1 13.1 161.1 3 .9 14.4oprtatta. 110.1 133.1 MlA I1.? 84. 25 40C.? 489.3 40.9 72.7 100.3sent ItA 22.2 26.5 31.5 3.0 45 54.1 45.9 147.1 5.2 V16.7Pta: lllrw t ts M60. 3A 3a.$ 394.5 49.2 1.A M7 3 98.4 974.3 107.0 7.9tau aIdles 14.2 2.6 305 343 105.3 1.o 210.7 319.0 40.9 420.4 474.9OM WAM 944.1 ¶11S.9 ITA 6.r 19D 5.0 2W.9 125.0 341.9 4.7 4165.8 40.4

Lom d4sr.et4us 117.1 135.1 155.8 t79.7 22.0 325.9 400. 4893 40.9 n2.? "ea

1 iWm 829.0 1048.6 121.9 1'4.9 143.0 191t.9 031. 2997.7 33t . 3443 930.1.......................................... ....... ............................ ........................................................................

...........

Mmu X, , 0p.41t.ta :W 4. p.t....

!~kL9: IPLIOYTw AND WAGES - PUBLIC SECTOR C014pANIES............................................ ..................................................................................

,. ,.. ....... #.....10? tsr4 19 1 19#5 197 1918 19r9 1560/8 1981/58 1928 196344

........................ ..................... .................. I..................................................................................................

To48j l e CU fttVn IAn) 34.4 51.9 456.3 5196 44. 4 33M.? 1 .1 1W.? MM31.1 2054.9 242.4_Oer of vOr9eft 000) 17.0 90.4 100.4 .5 1038.4 10St.6 t12S.t 5180.3 12S1.9 12S1.9 127.0

Aver"* tea (LE pe tatr) 379.9 381.4 4545. 5S5o.? 610.9 1124.4V1 df c tPrejinw aU IIaI . 2233.1 31 32. 380.t 451S.4 269.6 t25.9 2.3 998.? tIm.?Avvqs ProAactIa, Cj'er uerbr) 1996.6 2217.7 28193.r 3153.8 369. 4174.6 8a 6799.8 I5M.3 97M4.r 8 64

............................................ ........................................................................

........... ...................................

*13-

Annex -1................ *

EL NASA FERTILISER (1110=)..............................

Toble No. Page No.

1. Nftrogen Fertilizer Production Facilities in Egypt,1U84. 14

2. Nitrogen Fertf lier Iblete fn Eypt. 14

3. Sipply/Demnd for Nitrogen fortilifers fn Egypt19s/ 1999j2000. 15

4. ReccwenW vs Actual Applfcstion Rates of Nitrogenos Fertilizerfor Major Crop In Egpt. 16

5. Conolfdatod BSalet Sheet. 16

6. Cowolidated Profit & Loss Stetwunt. 17

T. Sources an Use of Funds. 18

8. Measures of Financil Perforanme. 19

9. Budgetery Inprct. 20

10. Banking Effect. 20

lIe. Internatfonal Fertflizer Prie. 21

11b. International Fartiltzer Pr(ce Index. 21

12a. Egpti Farmato Price of Nitrogn Fertflifar. 22

12b. Egyptt Nitrog Fortiliser Price Index. 22

- 14 - ANNEX 8B1-14 - .........

Table 1: NITROGEN FERTILIZER PRODUCTION FACILITIES IN EGYPT, 1983/84

Nitrogen Daily Annual Achievable AchievableContent Capacity Capacity 1/ Production 2/ Capacity Production 2/

Production -- ----- ............... ............ . . . Utilization ..... .... O.n-streamProduct PLants (9d N) (t.p.d. prod.) (t.p.d. prod.) (t.p.d. prod.) Rata (Z) (t.p.d. nutrient) Date.......................................................................................................................................

Anuoniun Sulphate Suez 21.0 303 99,990 84,992 8S 17,848 1984

Aumonlun Nitrate Aswan 31.0 1.100 363,000 308,550 8S 95 651 1960Helwan 33.5 365 120,450 63,000 52 21,105 1971Talkha 1 31.0 1,200 396,000 330,000 83 ¶02,300 1975

Caltcum Nitrate Suez 15.5 800 264,000 260,000 98 40,300 1950

Urea Talkha 11 46.5 1,725 569,250 450,000 80 209,250 1981Abu Qir 46.5 1.550 511,500 450,000 a8 209,250 1979

TOTAL 69,704

,....................................................................................................................................

Source: The British Sulphur Corp. Ltd., "The Comparative Study of Ammcniun Nitrate Fertilizer Projects in Egypt, "1984.

1/ Based an 330 operatfng days per arrum2/ Based on intonmation supplied by cperating componles. N.). The comparatively lou fertilizer production

achievable at Meltan is becauce sam of the mmaonia produced on-siteo I diverted Into the proAction of-mmi. nftric acid and pure muciun nitrate for the menufacture of explosives.

Table 2: NITROGEN FERTILIZER BALANCE IN EGYPT('000 TPY of N)

Year Production import Export Consumptfon Balance....................................................................

1972/73 151.8 290.0 0.0 360.9 80.9197 3/74 50.7 260.0 0.0 358.2 C47.5)

1974/75 100.2 263.5 0.0 360.0 3.7

1975/76 150.5 227.4 0.0 415.0 (37.1)

1976/77 169.9 227.3 0.0 427.7 (30.5)1977/78 195.2 258.2 0.0 459.5 (6.1)1978179 215.5 333.1 0.0 490.5 59.11979/80 263.9 208.1 0.0 500.0 (28.0)

1980/81 400.5 164.4 1.0 554.0 9.51981/82 519.0 131.0 0.0 653.0 (3.0)1983/84 696.0 15.0 81.0 n2.0 (97.0)

...................................................................

Source: Minfstry of Industry, Arab Republic of Eypgt.

ANNEX B-1-15 - .........

Table 3: SUPPLY/DUYN FOR NITROGEN RTILIZERS IN EYT,1983/84 - 1999/2000 IMED ON D1)1D FORECAST OF THE GOFI

('000 TPY of N)

1983/84 198919o 1"94/95 1999/2000...................................................................

Production 1/..........

Ammonium Sulphate 18 18 18 18Amonium Nitrate 219 102 5/ 102 102Calcium Nitrate 40 40 40 40Urea 419 419 419 419

Total 696 579 579 579

Imports (Ammonfum

Sulphate) 2/ 1S 15 15 15

Exports (Ure") 3/ 81

Demand

GOFI 72? 83? 930 1023Britfsh Sulphur m 818 863World Bank (Nigh case) 870 940WorId Sank (Low case) 700 760

Deficit

GOFI 4/ 97 243 336 429British Sulphur 181 224 269World Bank (Nigh case) 276 346World Bank (Low case) 106 166

Source: The Brftish Sulphur Corp., Ltd.: "The Comparative Study ofAmonium Nitrate Fertilizer Projects In Egypt, 1984; andUortd Bank estimate.

1/ Achfevable productfon at present time.2/ Approximately 70,000 tonnes of amonium sulphate are expected to

continue being imported from the USSR under an existinginter- Government agrement.

3! Surplus urea presently avalatble for export Is expected tobe consumed domestfcatty as the deficit Increases.

41 Estimated by the COFl, Egpt ir 1982.5/ Assumes major repair or replacme nt Is not completed at Aswan

and Netwen.

ANNEX 8-1- 1 6 - bX l

Table 4s RECOMI D VS ACTUAL APpLICATION RATES OF NITROGENOUSFERTILIZER FOR MAJOR CROPs IN EgT

(Ks8/feddan of lOOn N)

.....................................................................................

1973/74 1974/75 1975/76................... ................... ............. .....

Recom. Actual.* Recom. Actual.* Recom. Actual.*.....................................................................................

Cotton 37.8 40.6 47.9 40.6 50.4 50.4wheat 52.7 50.4 46.3 50.4 49.4 50.4Barley 31.0 23.3 31.0 31.0 31.0 31.0

maize 48.2 50.4 59.7 50.4 62.0 58.1

Rice 31.0 31.0 31.0 31.0 31.0 31.0

sesame 15.5 13.5 27.6 1S.S 27.7 27.1

Legumes 7.8 7.8 7.8 7.8 7.8 7.8

onion & vegetables 65.9 54.3 65.9 46.5 65.9 69.8

Source: Ministry of Agriculture, Arab Republic of Egypt

* Average application rate.

Table 5: SwIADCO - CONSOLIDATED SAIANCE SHEET('000 Le)

.....................................................................................................................

1976 1977 1978 1979 19601191 1981/82 19828 1983184 198K185.......................................................................................................................

1. tfebitities

S. Net Worth 46092 6 8773 104701 122815 136092 144953 151700 149661

b. Borrowings & other Liabilitiesi) Lono term 39232 38028 4971S 80696 78776 3244 70916 716399 71386

") Short term 12349 15278 11671 2 4 3502 289 2617 34513 38823

iii) Sub total 51581 53306 6136 104260 102278 103713 909 110912 110209

2. Asets

a. Gross fixed assets 100522 112812 13889 198933 226521 241321 253649 265406 236156

b. lass: Accuwtslted 16073 18958 2243 26062 42002 6259 7416 99856 80599

depreciation

c. net fixed assets 8447 93S54 116426 172891 184S19 1782 166033 16S550 15557?

d. other long term 1040 1040 1040 1040 826 826 1148 1720 1720

asets

*. Current assets 12186 21216 314" 35030 378 60617 74866 9S342 102393

TOTAL NET ASSETS 97673 116110 1499 201 225093 2960 24204 262612 259870

TOTAL LIABILITIES 97673 116110 148959 208P61 22509 385 2M0 262612 259170

Sourcae El ossr Fertlizer Co. (SEADCO) VWd 1M calculations.

ANNEX 9-1

-17-

Table 6: SEMACO - CONSOLIDATED PROFIT MM WSS STATEMENT('000 LE)

1976 1977 1978 1979 1980/81 1981/82 1982/83 1983/84 1984/85................. ..................................... - * ............ -.... *.....................

1. Value of Productiona. Turnover 9357 11549 13159 16043 49217 75247 67420 64723 66580b. Leos: Indirect Taxes 200 182 208 803 1149 1230 1142 1248 1745c. Plus: Subsidies 1750 2881 5810 7841 15051 21593 23895 26000 24951d. a Operating Income 10907 14248 18761 23081 63119 95610 90173 89475 89786e. Plus: chane in irw of

fin & unfin ooods 42 -804 152 79 899 .634 295 1462 -1042f. a Value of Production 10949 13444 18913 23160 64018 94976 90468 90937 88744

2. Operating Expenditurea. Use of goods and

services 5300 6912 7622 10862 22567 24861 25413 28800 31108b. Wages 4326 5517 6591 7426 14053 21504 20973 25173 33159C. Doepreiation 2480 3052 3922 4085 14574 21435 25077 . 15430 14412d. Other prov (rent) 598 54 533 579 1903 1886 2012 2200 22170. Subtotal 12704 15995 18648 22952 53097 69686 73475 71603 80896

3. -per1tfn2) S1755 .2551 245 208 '0921 25290 16993 19334 7848

4. Interest 4093 3675 6305 3627 6558 10023 10309 27591 25959

5. Op 9urp less fnterestbefore tax (3-4) 5848 -6226 -6060 -3419 4363 15267 6684 -8257 -18111

6. Direct taxoo 17 8 9 11 10 4 4 2 0

7. Op Surp less interestafter tax (3-4-6) -5865 -6234 *6069 3430 45 15263 6680 -8259 -18111

8. xn-op nome & expa. eoP inco 2546 9816 4481 4083 3081 7494 9350 27559 23945b. qNon exp. 94 147 45 440 140 191 211 208 267

c. Net freop incm 2452 9669 4436 3643 2941 7303 9139 M51 23678

9. Net Profit After tax.(7#fc) -3413 3435 -1633 213 7294 22566 15819 19092 5567

10. Vtw-added (If-2a) 5649 6532 11291 12298 41451 70115 650M5 . 62137 57636

.. r.....................................................................................................................Sowb: SEIOCO wd 101tD catcutatfor.

- 18 - A B-1

Table 7: SKADCO - SOURCES AND USES OF FUNDS('000 LI)

........................ ................................... ......................... ............................. :

197 1978M 19 0 90/81 1981/82 1983 1983/U 194/85

SUJRCES

1. Self financing

a. Reerves and Surptus 653 376 431 4868 1084 2394 3584 975b. Less:Deficit *1 3749 0 0 0 0 0 0c. Ptus:Provisions 5110 2774 3384 18433 3318 30924 1563 *22271Sub-Total Self Financing 5762 6899 3815 23301 34234 33318 19187 *21298

2. External Financing

a. own Capital&Govt.Par 13m 21335 16932 1053 0 0 0 0b. Laog tenm borrowing -1204 11687 30981 1920 *3532 .4328 54S8 5013Sub-totaL External Financing 12629 33042 4793 8833 -3532 4328 5483 S013

3. Current LiabiLitiesa. Credits -256 539 2826 52 11197 3483 9561 404b. Misc.Credits S86 331 2925 2411 1045 -351 652 3181c. Bank Credits 2599 -4477 6142 -2525 7 M 1543 -1878 1533Sub-total Current Liab. 229 -3607 11893 *62 4967 -22M 8a33 4310

TOTAL SOURCES 21320 36334 63621 32072 35669 26699 33005 -21999

USES

4. Long Term

a. Fixed Investments 12290 26057 60084 27568 14800 12128 11957 .29250b. Other tong term 0 0 0 -214 0 322 572 0Sub-total Long Term 12290 26057 60064 27354 14800 12450 12529 29250

5. Current Assetsa. Inventories 7067 3849 7543 8691 9218 13312 16503 10310b. Debtors 421 236 489 -603 -29T 1593 1059 39mc. Nisc.Debts 1S42 853 838 3364 -2458 1356 1371 1534d. Cash 0 5339 -5333 -6 14406 *2012 1543 8566Sub-totaL Current Assets 9030 10277 3537 4718 20869 14249 20476 751

TOTAL USES 21320 36334 63621 32072 35669 26699 33005 -21999

.....................................................................................................

Source: Et Nassr Fertilizer Co. (SOMm) w IOJ cglculatia.

- 19 - ANNEX B-1

Table 8: SEMADCO - MEASURES OF FJNANCIAL PERFORMANCE('000 LE)

1976 1977 1978 1979 1980/81 1981/82 1982/83 1983/84 1984/85

1. a. Operating surplus net of dsp. .1755 -2551 245 208 10921 25290 16993 19334 7848b. plus: depreciation 2480 3052 3922 4085 14574 21435 25077 15430 14412c. Operating surplus before dep. 725 501 4167 4293 25495 46725 42070 34764 22260

2. a. Net non-operating income 2452 9669 4436 3643 2941 7303 9139 27351 23678b. Current expenses

of shich: interest 4093 3675 6305 3627 6558 10023 10309 27591 25959: taxes 17 8 9 11 10 4 4 2 0

c. Govt. transfers 1750 2881 5810 7841 15051 21593 23895 26000 24951d. Current surplus -2683 3606 *3521 -3543 6817 22408 17001 8522 -4972

(lc+2a-2b 2c)3. Return on Capital

a. Actual intel3st 392 349 2535 427 5558 4711 4059 4691 5859b. Actual rent 8 7 8 9 7 9 12 11 14c. Gross return (2d+3a43b) -2283 3962 -978 -3107 12382 27128 21072 13224 901

4. Total Capital Expenditurea. Fixed investment 12290 26057 60084 27568 14800 12128 11957b. Change in inventory 7067 3849 7543 8691 9218 13312 16503 10310C. Equats total new investment 19357 29906 67627 36259 24018 25440 28460 10310

5. Saving - Investment Gap (2d-4c) -15751 -33427 -71170 -29442 -1610 -8439 -19938 -44532 a/

Source: SEMADCO and IBRD calculations.

a/ Adjusted to reflect the reduction in SEKADCO's capital stock as reflected in the Sources and Uses of Funds.

- 20 - ANNEX 8 1

Table 9: SEADCO - BUDGETARY IMPACT('I000 LE)

....................................................................................................................

1977 1978 1979 1980/81 1981/82 1982/83 1983/84 1984/85.......................................... ..........................................................................

t. TREASURY ATFL0W

a. Subsfdf s 2881 5810 7841 15051 21593 23895 26000 24951

b. Net Irwestment Funds 12629 33042 47913 8833 *3532 as *4328 a/ 5483 *5013 a/

c. Total Outflow 15510 38852 55754 23884 18061 19567 31483 1998

2. TREASURY INFLOU

a. Nasr Bank Transfer 0 0 0 106 213 152 204 31

b. Mgt Profit Shar 0 0 0 0 269 47 240 0

C. Govt Profit Share 0 0 0 0 5639 4119 5410. 850

d. Re rvefor Govt Bons 0 0 0 215 523 372 500 76

H. Total Inflow 0 0 0 321 6644 4690 6354 957

3. NET WDGOETARY SURPLUS/(8UtVN) *15510 *388S2 55754 235S3 11417 -14877 -25129 18981

,....................................................................................................................

Source: SENADCO

e/ Anortization psy)ut ewcesd inwstumnt funda ricelved.

Table 10: SIKADCOBANKING EMCT('000 LE)

....................................................................................................................

1976 1977 19?8 1979 1960/81 1981/82 1982/83 1983/84 1964/85

Bank d tposlts 0 0 4000 0 0 1000 5000 5000 0Sau Overdratts S735 7005 0 4715 6466 0 0 0 0

Surplus (dfticft) .57* -7005 4000 -4715 -6466 10000 5000 S000 0

S...................................................................................................................

Swourc: SEMADO and IMR c tculttons.

ANNEX E-1-21 -.........

Table lla: INTNATIONAL FERTILIZER PRICES(US$/MT)

................. ............. ....................................... ..... ..

1975 1976 1977 1978 1979 1980 1981* 19"2**

Urea 198 112 127 145 173 221 216 190TSP 203 91 98 98 142 180 161 175Potassium Chloride 81 55 51 56 77 116 11 105

Source: The World Bank: "Fertilizer Sector Review," 1984 draft.

* Until July 1, 19817- Estimated, since July 1, 1981

Table llb: INTERNATIONAL FERTILIZER PRICE INDEX(1975 - 100)

............................................................................................

1975 1976 1977 1978 1979 1980 1981 1982

Urea 100 57 64 73 87 112 109 96TSP 100 45 48 48 70 88 79 86Potassium Chloride 100 67 58 64 95 143 138 130

J

Source: Calculated from above date.

ANNEX B-1-22-

Table 12a: EGYPT - FARMIGATE PRICES OF NITROGEN FERTILIZER1965 - 1982 (LE/MT)

...............................................................................

Product 1965-78 1979 1980 1981 1982...............................................................................

Calcium Ammonium Nitrate (15.5%) 26.0 28.7 35.0 35.0 47.6Ammonium Sulphate (20.6%) 28.0 32.0 41.0 41.0 57.0Ammonium Nitrate (26%) 34.8 - n.s.Ammonium Nitrate (31%) 41.8 46.i 59.1 59.1 81.8Ammonium Nitrate (33.5%) 44.8 49.8 63.8 63.8 88.1Urea (46%) 64.0 7C.4 89.2 89.2 121.6

Source: Bank of Agriculture & Cooperative Credit, Egypt.

Table 12b: EGYPT - NITROGEN FERTILIZER PRICE INDEX(1975 = 100)

............................... ................................................................. .......................

Product 1965-78 1979 1980 1981 1982...............................................................................

Calcium Ammonium Nitrate (15.5%) 100 110 135 135 190Ammonium Sulphate (20.6%) 100 114 146 146 191Ammonium Nitrate (26%) 100 - n.a.Ammonium Nitrate (31%) 100 110 141 141 190Ammonium Nitrate (33.5%) 100 111 142 142 195

Urea (46%) 100 110 139 139 190

......... ....................Caco thea

Source: Calcutated from the above data.

*2.n

m -2............

a COn (lMCON)........ 0.......... w......

Totabl No. P" v......... p

1. ConsollW hlino &t. 24

2. Aent OM *Vftat StM . 24

3. Sourc ard UWs of *ul. 25

4. mtidted Proit I Lo tatemn. 26

S. NIsu of finricAt Wor . 27

6. 8udiotery 1. t . 28

ANNEJX 8-2

- 24 -

TabLe 1: - CONSOLIDATED MALA SC T('1000 IS)

....................................................................................................................

1976 1977 1978 1979 1980/81 1981/82 1982/83 1983/84 1984/85............. I.......................................................................................................

1. Liabilities

a. Net Worth 41453 44076 47523 54770 52489 24565 25609 13179 26675

b. Borrowings & other liabilitiesI) Long term 1260 1014 16719 22365 35853 39862 54845 57381 66223

ii) Short tera 34333 40623 61602 M60 94513 138958 134220 168618 149462Mii) Sub-totat 35593 61637 821 100125 130396 178820 189065 225999 215685

2. Assets

a. Gross fixed assets 5860 64549 73253 93951 102698 113487 125247 134037 152385

b. less: Accumuated 1o?16 2184 25027 29939 37391 42894 48713 54636 60363depreciation

c. net fixed assets 42706 48226 64012 65307 M93 76534 79401 92022

d. othar torg term 0 0 0 212 212 212 212 212 212assets

e. Current asts 37M2 63007 77618 90671 117366 132580 1379M8 159565 150126

TOTAL NET ASSETS 77046 105713 12584 1549.5 182S85 20335 214674 23917 242TOTAL LIABILITIES 7706 105713 125844 154895 182815 203385 214674 239178 2360

Source: Nlar Coke and 131 calcalations.

Table 2: NASR COKE - ASSET AND CAPITAL SBcsUUA('000 LIT)

....................................................................................................................

1976 1977 197a 19 191960/81 1981/62 196m 193/84 196415....................................................................................................................

1. ASSETSa. Curret Assets 37202 6300T 77618 90671 11736 132580 13795 159565 150126b. Net fixed A ts 3 4 42106 482 64012 63 7053 6 790 92022e. Oter I,w tmwnts 0 0 0 212 212 212 212 212 212

Total 7704 105713 12544 15485 182I 5 203385 214674 239178 2 0

2. LIBILITIESa. Currant Liabilitie 3433 06 61602 7770 94543 13958 134230 168618 14942b. Lw*- tem Debt 1260 1014 16719 22365 356 39162 54845 5731 66223C. Eqfity 41453 44076 4732 54770 5M9 24565 2S41 1l17 26675

Total 706 105713 125844 154895 18185 21335 21674 2391T8 2360

....................................................................................................................

sore nor C**Q.

AINEX 9-2

- 25 -

Table 3: NASR COKE - SOURCES AND USES OF FUNDS('000 LE)

......................... ............................................................... ......

1977 1978 1979 1980/81 1981/82 1982/83 1983/84 1984/85...........................................................................................................

SOURtES

1. Self Financinga. Reserves and Surplus 591 724 317 272 185 324 442 481b. Less:Duficit 0 0 0 -26867 .31682 -38875 .18619 5863c. Ptus:Provisions 4812 5266 9380 31766 8015 7693 6727 12879Sub-Total Self Financing 5403 5990 9697 5171 -23482 -3858 -11450 19223

2. External Financinga. Own CapitaltGovt.Par 347 641 2462 0 1061 3M1 4943 0b. Long term borrowing *246 15705 5646 1348 4009 14983 2536 8842Sub-total External Financing 101 16346 8108 13488 5070 52704 7479 8842

3. Current Liabilitiesa. Credits 3976 13560 5013 -11977 4385 123 6147 5994b. Nisc.Credits -1303 -143 8372 161 1564 *15927 429 136c. Bank Credits 23617 -12438 2773 28599 38466 11066 27822 -25286Sub-total Current Liab. 26290 979 16158 16783 44415 -4738 34398 .19156

TOTAL SOURCES 31794 23315 33963 35442 26003 17108 30427 8909

USES

4. Long Terma. Fixed Iewestments 5989 8704 20698 8747 1078 11760 8790 18348b. Other lon term 0 0 212 0 0 0 0 0Sub-total Long Term 5989 8704 20910 8747 10789 11760 8790 18348

5. Current Assetsa. Inventories 5457 10633 3930 10635 13259 -7585 13869 -14938b. Debtors 17163 5660 11622 -10466 728 2296 -4755 8755c. fisc.Debts 2697 -1381 -2769 26995 153 4747 -638 303d. Cash 488 -301 270 -469 1074 5890 13161 -3559Sub-total Current Assets 25805 14611 13053 26695 15214 5348 21637 -9439

TOTAL USES 31794 23315 33963 35442 26003 17108 3027 8909

...........................................................................................................

Source: Catcutated from Nasr Coke balance sheet.

ANEX B-2

-26-

Table 4s NAM COIU - CISOLIDTfD ROFIT SMD IAOS BSTMINT('000 LX)

.............................................. ...........................................................................

1S76 1977 1976 1979 130/81 131/82 198 198/84 1984/85.............................................. ..........................................................................

1. Value of Pro ctina. Turnover 39470 42 543 ?98 622 7 6 8ow 78041 106443b. Less: Indfrect Tax Z7 3296 391 569 8m67 11149 9389 7761 8S45c. Plus: Ssfdifs N00 1W9 1M 35O 49414 U480 4682 47101 51914d. a Operatfrig Incm 3596 4 5209 M776 10318 111317 117870 117381 149812e. Plus: chwge In inv of

fin & unf in gods -$1 151 64 1899 #308 844 *2239 221 1616f. a Value of Proluction 37511 416 35 726 0 10540 119661 1151al 117602 151428

2. Operating EpVwdturea. Use of goods ad

services 2W9 30 39 69 O40 116149 10452 96467 97654b. wes 2746 72 393 486? 7545 11046 11738 14142 16692c. Depreciation 31 3219 35 4830 521 578 6146 6471 6395d. Other prov (rent) 57 57 574 13 180 2011 2103 215Z 219?e. Subtotal 3 3143 477 66180 1005016 134964 127 92 12298

3. Operating Supus(if -2e) 4115 4675 51 4425 34 1530 -12006 1630 28490

4. Interest 277 55 3529 344 59 15102 18S2? 22143 17324

5. Op Surp loss nterestbefore tax (3-4) 13 2140 222 979 -425 3040 -30535 23773 11166

6. Direct taxes w 2? 9 9n 16 0 0 0 0 0

7. Gp Surp le interestafter tax (3-4-6) 1071 1471 1 2 -83 -4 -30 -30535 -23773 11166

8. Non-op incum & expa. Non-op inru 39 5n sm 7023 "3 11288 23731 9326 6368b. Non-op up. 2 104 1 416 2312 5164 22181 2022 2812. Net non-op incm

(8a-8b) 30 52 6 6607 731 6124 1550 7304 3556

9. Net Profit After tax.(748c) 4311 6736 660 S7 1916 -2481 9 -16469 14722

10. Vatue-added (If-2m) 106U 139 10 15756 15100 3512 7979 21135 53774

........................................................................................................................

Source: lNow Coke.

ANNEX 8-2-27 - .........

Table 5: NASR COKE - MASURES OF FINANCIAL PERFORMANCZ('000 LE)

........................................................................................................................

1976 1977 1978 1979 1980/81 1981182 1982/83 1983/84 1984/85........................................................................................................................

1. a. Operatng surplus net of dep. 4115 4675 5781 4425 34 -15303 -12008 -1630 28490b. plus: depreciation 3188 3219 3357 4830 5621 5758 6146 6471 6395c. Operating surplus before dep. 7303 7894 9138 9255 5655 -9545 -5862 4841 34885

2. a. Net non-operatIng incoe 3240 5267 5586 6607 7341 6124 1550 7304 3556b. Current expenses

of ,Aich: interest 2777 2535 3529 3446 5459 15102 18527 22143 17324: taxes 267 669 978 1862 0 0 0 0 0

c. 6ovt. transfers S00 1939 1777 3810 49414 46480 46882 47101 51914d. Current surptus 6999 8018 8440 674 -41877 -65003 -69721 57099 -30797

Clc.232b-2c)

3. Return on Cepitala. Actual lnterest 529 1624 2656 3189 489 11788 15028 19205 1612Sb. Actual rent 12 12 13 272 271 273 274 276 278c. Gross return (2d&3e3b) 7540 9654 11109 10205 -36715 -52942 54419 -37618 -14394

4. TotaL CapItaL Expendturea. FIxed Imestment 5989 8704 20698 8747 10789 11760 8m 18348b. Chae In limentory 5457 10633 3930 10635 13259 -7585 13869 -14938c. Eiqsls total new inestmnt 11446 19337 24628 19382 24048 4175 22659 3410

5. Saying - Investment Gap (2d-4c) -3428 -10897 -17884 -61259 -89051 -?3896 -79758 -34207

.......................................................................................................................

Source: issr Coke sad IUED calcuLations.

- 28- ANNEX 8.2

Table 6: NASR COn - BUDGETARY IIIPACT('000 LE)

...............................................................................................................

197 1 198 199 1980/81 1981/82 1962/83 1963/84 1984/85........................... ....................................................................................

1. TREASURY OUTFLOW

a. SLds1dies 1939 1777 3810 49414 46480 46882 47101 51914b. Not investment Funds 101 16346 8108 13488 5070 52704 7479 8842

Total Outflow 2040 18123 11918 62902 51550 99583 S4580 60756

2. TRERY INFLOW

a. Masr Bank Transftr 80 95 52 0 0 0 0 0b. Ngt Proft Shwre 110 140 0 0 0 0 0 0c. Gowt Profit Share 1989 2221 248 0 0 0 0 0d. Rewe for Govt Bonds 162 184 34 0 0 0 0 0e. Total Inflow 2341 2640 334 0 0 0 0 0

NET BUDGETARY SW.PLUS/(BURDEU) 301 *15483 -11584 62902 *51550 *9986 *54580 *60756

..............................................................................................................

Source: Nasr Coke.

-29-

Amewx B-3............

HADISOL8...................

Table no. Page No.

1. Production and Conswption of Steel in Egypt. 30

2. Consolidated Profit and Low Statamnt. 30

3. Consolidted Batance Sheet. 31

4. Surces and Uses of Funds. 32

S. Measres of Financial Performae. 33

6. Budgetary lqact. 34


8. EmploymientUages and Labor Productivity. 35

9. Sates and Exports. 35

10. Per Unit Cost and Selling Price. 36

11. Cost ad Price Analysis. 37

- 30 - mmX 83

Table 1: PRODUCTION AND CONSUMPTION OF STEL IN EGYPT('000 tons)

................................................................................................................................................................................................... ...

1975 1976 1977 1978 1979 1960 1981 1982 1983

Production 540 525 557 605 681 842 795 795 n.a.of which: bars & rods 207 211 248 247 280 272 258 275 300

Imports 432 452 395 408 689 867 962 n.a. n.s.of which: bars & rods 269 276 257 360 440 743 7tS 850 r .a.

Apparent Consuwption 972 977 952 l 013 1,370 1729 1,757 n.a. n.a.of which: bars & rods 476 487 510 607 n2 1.015 785 990 1,150

Source: EGITALEC; foreign Trade Statistics; GPFI and Ban* estimates.

n.s. Not available.

Table 2: RADISOLB - CONSOLIDATED PROFIT AID LOSS STATEMENT('000 LE)

........................................................................................................................

1976 1977 1978 1979 190/81 1981/82 1962/83 1983/8 1984/85......................................... ................................. .............................................

1. Value of Productiona. Turnover 68595 73421 5146 124238 216902 21641 206673 215183 270474*-. Less: Indcect Taxes 966 541 507 44 767 m 1609 4694 3756C. Plus: Subsidies 0 3492 1776 0 0 0 0 0 0d. * Operating Incme 67629 76372 97083 123794 216153 215708 205064 210489 2667180. Plus: change in frv of

fin & unf in goods 6603 12783 4751 9614 *1930 61 18187 7020 9952f. - Value of Production 74232 89155 101834 133408 214223 215769 223551 203469 2766702. Operiting Expenditure

a. Use of goods andservices 67000 69274 7236 92721 13039 135263 15S742 14294 180506b. Wages 14540 17015 18817 22501 388 45280 49094 5432 64582c. Depreciation 15333 17043 1730 2391 2754 30850 31631 3S088 33870d. Other prov (rent) 5353 5431 5647 6255 684 7336 7083 7143 7590a. Subtotal 102226 108763 113317 141868 19969 218729 243550 245157 286548

3. Operating Surptus(Mf'2e) 27994 *19608 *11683 -8460 14574 *2960 *19999 '41688 -9878

4. Interest 7002 7956 8154 8819 11560 5644 60834 75217 679425. Op Surp less interest

before tax (3-4) '34996 '27564 *19837 *17279 '3986 59404 *80 116905 *77a206. Direct taxes 2 0 3 8 3 6 0 0 0

7. Op Surp less interestafter tax (3-4-6) -34998 -27564 '19840 *17287 -3989 59410 80833 '116905 '77820

8. Hon-op incme & expa. Ibn-ep income 12623 14921 13245 16761 39934 79528 95sa5 89618 94424b. Ion-op exp. 2239 3030 3013 3086 22766 11989 6976 11227 8169C. Net ron-op income

(8a-8b) 10384 11891 10232 13715 16768 67539 88309 78391 662559. Uet Profit After tax.

(748c) *24614 '15673 *96 3572 17 8129 7476 -38514 843510. Value-added (lf-2a) 7232 19881 29471 4067 M 8006 67809 55175 96164

Source:........................................................ .................... ...................................

Source.' Hadfsotb s Incoom Statenet.

AMEX 8 3

- 31 -

Table 3S I80 - caoLIDATD ALCzE sET('C000 L)

.................................... ..................................................................................

1976 1977 197 1979 19B0/81 1961/82 1982/83 1983/84 1984/85....................................................................................................................

1. LIABILITIESa. Not Vortb 213289 223221 29690 277119 373319 319149 319075 439291 44494'

b. Borroeuqs & other Lfbtlftietf) Leov term 43537 38195 33056 28056 33420 62151 86396 43397 55515iI) Short ter 82657 9410 122513 149641 161973 198816 203912 162471 190973

iii) Siubtotel 126194 13286 1S5559 177897 195393 260967 290308 205868 246488

2. ASSETSa. Gross fixed ssets 291A6 296913 30509 3727n1 463760 489290 500575 567429 592662

b. tess: Accusutat6d 63410 60196 9S667 11654 1SS427 183554 213392 248506 276250depciatfan

C. net fixed assets 227946 21817T 208972 256537 308333 305736 287183 318923 316412

d. other lo tenm 61 140 201 203 210 2829 10940 10946 11711assets

e. Current asset 111476 137260 166266 196276 260169 271551 311260 315290 363309

TOTAL IET ASSETS 3398 356117 359 455016 568712 580116 609383 645159 691432TOTAL LASIL)TIES 5 35611T 375459 455016 568712 580116 609383 645159 691432

.W Calutns................... .........................................

Scurce: NADISMO an IM ClXteutto.

ANEX B-3- 32 -.........

Table 4: HADISOLB - SOURCES AYND USES OF FUNDS('000 LE)

.......................... ........................................................... ................................................................................

1977 1978 1979 1980/81 1981/82 1982/83 1983/84 1984/85...........................................................................................................

SOURCES

1. Self Financirga. Reserves and Surplus 299 458 831 12076 *8894 1420 1436 1818b. Less:Deficit -14283 -9688 -6004 1252 11920 4136 *42951 6328c. Plus:Provisons, 15395 16428 21983 45490 302 24208 3476 25251Sub-Total Self Financing 1411 7198 16810 58818 33808 29764 -6729 33397

2. External Financinga. Own Capital&Govt.Part. 25307 5942 60006 76555 *59851 0 162059 0b. Long term borroming -5342 .5139 -5000 5364 28731 24245 -42999 12118Sub-total External Financing 19965 803 55006 81919 -31120 24245 119060 12118

3. Current Liabilitiesa. Credits 15705 6312 4858 3516 -9074 -10670 -1833 13059b. Misc.Credits 5013 13513 23398 6938 40488 -8691 *50698 272c. Bank Credits -8674 7987 -928 1678 5429 24457 11090 1571Stb-total Current Liab. 12044 27812 27328 12132 36843 5096 -41441 28502

TOTAL SOJRCES 33420 35813 99144 152869 39531 59105 708 74017

USES

4. Long Terma. Fixed Investments 7557 6726 67152 90969 25530 11285 66854 25233b. Other Lao term 79 61 2 7 2619 8111 6 765Sub-total Long Term 7636 6787 67154 90976 28149 19396 66860 25998

5. Current Assetsa. Inventories 21992 14799 31576 45680 27513 42923 -1259 26134b. Debtors 4532 8996 -2689 16052 -11182 -2948 236 10920c. Misc.Debts 2187 5318 3206 -883 *4156 -518 3105 10568d. Cash -2927 -87 -103 1044 -793 252 1948 397Sub-total Current Assets 25784 29026 31990 61893 11382 39709 4030 48019

TOTAL USES 33420 35813 99144 152869 39531 59105 70890 74017

Source: Derived from HADtSOL Salance Sheets.

ANNEX B-3-33 -.........

Table 5: HADISOLB - MEASURES OF FINANCIAL PElRPOMANCS('000 LE)

........................................................................................................................

1976 1977 1978 1979 1960/81 1961/82 1962/83 1983/84 1984/85

1. a. Operating surplus net of dep. 27994 -19608 -11683 -8460 14574 -2960 *19999 -41688 -9878b. plus: depreciation 15333 17043 17130 20391 27554 30850 31631 35088 33870c. Operatinr surplus before dep -12661 -2565 5447 11931 42128 27890 11632 -6600 23992

2. a. Net non-operating income 10384 11891 10232 13715 16768 67539 88309 78391 86255b. Current expenses

of which: interest 7002 7956 8154 8819 18560 56444 60834 75217 67942: taxes 2 0 3 8 3 6 0 0 0

c. Govt. transfers 0 3492 1776 0 0 0 0 0 0d. Current swrplus -9281 -2122 5746 16819 40333 38979 39107 -3426 42305

C1c+2a-2b-2e)

3. Return on Capitala. Actual interest 2459 2438 2682 3185 3966 4877 7505 8402 8422b. Actual rent 37 35 35 38 31 38 41 52 55c. Gross return C2d'3as3b) .678S 35 8S63 20042 44330 43894 46653 5s28 50782

4. Total Capital Expenditurea. Fixed investment 7557 6726 67152 90969 25530 11285 66854 25233b. Change in inventory 21992 1479 31576 45680 27513 42923 -1259 26134c. Equals total new investment 29549 21525 98728 136649 53043 54208 65595 51367

5. Swing - Investment Gap (2d-4c) -31671 -15779 -81909 -96316 -14064 -15101 .69021 *9062

............................................... ….

Source: Hadisolb and IBRD Calculations.

ANNEX B-3

- 34 --

Table 6s RADIOLI - IUDGETAY IIWACT('000 IS)

......................................................................................................

19?7 1978 19 198 191/82 189MU 198/84........ ......................... .....................................................................................

1. TREASURY CUTFLOIa. Subsfdies 3492 1776 0 0 0 0 0

b. Net nvnstment Funds 19165 803 55006 81919 *31120 e 24245 11906O

TotaL Outftow 2347 2579 5006 81919 *31120 245 119060

2. TREASURY INFLOW. Nasr Ba Tranfar 0 0 0 0 0 0 0

b. Mgt Profft Share 0 0 0 0 0 0 0

C. Govt Profit Share 0 0 0 0 0 0 0

d. Rservo for Govt BLa 0 0 0 0 0 0 0

. Total Inflow 0 0 0 0 0 0 0

3. NET BwETARY SURPLUS/(UDgMEN) -2457 -279 -5500 8119 31120 2U45 .119060

......................................................................................................

Source: HADISOS.

a Amortizatfn paymnts woed ft mnt fuh* rastWd.

Table 7: ADIs ANK- 1 ZFFCT

('000 LB)

............ ......................................... ........................

1976 197? 1978 19 19081 1961/82 192/ 1 /84 1984/5

ank deposfts 0 0 0 0 0 0 0 0 0

Bwk ovwdrefts 24030 15356 2 3 22145 29 2W 59 069 780

Surplus (deffeft) -24030 -15356 .23343 *Z45 *M -2VW23 53979 6S069 M798

....................................................................................................................

Souc: Hadisolb.

ANNEX 0-3-35 - .........

Table8: gAISOLI - EgLOYMENT, WAGES AND LABOR PRODUCTIVITY('000 LE)

1976 1977 197R 1979 1980/81 1981/82 1982/83 1983/84 1984/85~~~~~~~~............ ....................... *....... ............. .. ... .. .. ............. ..... ........ ............. ...

1. Output in 1976 Prices 61707 62614 68507 85682 107505 108057 112940 100839 104513a. No. of workers 23559 23522 23252 22564 25936 25518 24429 23945 240t7b. Labor prod(OOOLE/worker) 2.6 2.7 2.9 3.8 4.1 4.2 4.6 4.2 4.3

2. Total wages (current) 14540 17015 18417 22501 34834 45280 49094 54632 64582

3. Total wages (1976 Prices) 14540 15426 15438 16072 21331 26356 26409 24152 24830

4. Av. w/worker (cur LE) 617 723 792 998 1343 1774 2010 2282 2682a. Av. w/worker (1976 pr.) 617 656 664 713 822 1033 1081 1009 1031

.......................... .....................................................................................

Source: "ADISOS Uod 18RD calculations.

Table 9: IADISOLB - SALES AND EXPORTS(000 LX)

1976 1977 1978 1979 1980/81 1981/82 1982/83 1983/84 1984/85...............................................................................................................

1. Sales and Exports(in current prices)

a. Oomestic sates 52661 59392 75712 63029 171751 177643 165622 165372 212524b. Exports 5370 2202 8306 n.a. 5095 6385 4038 10962 7885

Total S801 61594 84018 63029 176846 184028 169660 176334 220409

2. Sats and Exports(in 1976 prices) 58031 59912 65982 47463 131307 135228 125573 127198 127867

3. Inv. of fin. output 12480 13746 13961 19009 23564 21935 36494 32935 36742

4. Ratfo Analysisa. Percent of exports

to total sates (Z) 9.3 3.6 9.9 n.e. 2.9 3.5 2.4 6.2 3.6b. Average inventory

of fin. prod. (me.) 2.62 2.72 2.02 3.67 1.62 1.45 2.62 2.27 2.03

...............................................................................................................

Source: HADISOL9.

n.a. Not available.

-36MEX B3-36 -.........

a-b lOs10: ADTWL3 - PER UNIT COST AND SELLING PRICE

(LE/too)

Proactioncost

Ada. & ExportRaw Direct sltle Var. Total Ex-fact. Price

PRacDT NtrLts Wges Exps. Cost Dep'n others Cost Price (f.o.b.).............................................. ....................................................................................... 0"

1. Factory Productsa. Heay sections

19B2t83 268.6 9.8 49.7 328.1 0.9 32.1 361.1 296.? 382.61983/04 346.? 11.5 75.0 432.2 1.0 40.6 473.8 301.7 385.61984/85 367.1 10.2 70.4 447.7 0.8 37.6 486.1 363.4 492.8

b. Light 4wetiou192/3 204.8 8.2 39.8 252.8 1.3 34.6 288.7 257.3 n.e.1983/84 2m7.9 8.7 59.9 346.5 1.5 30.7 378.7 268.3 301.01984/85 307.5 13.2 62.8 383.5 2.1 48.9 434.5 311.? n.a.

C. Plates1982/83 209.2 11.9 42.0 263.1 0.9 M4.8 298.8 280.9 n.a.1983/84 247.7 12.3 56.3 316.3 n.9 38.8 356.0 279.5 276.11984/85 286.9 13.4 58.5 358.8 0.8 44.8 404.4 384.3 n.e.

2. Ftat Productsa. Hot sheet

1982/83 203.7 1.6 34.7 240.0 0.5 11.4 251.9 259.7 n.s.1983/84 240.2 1.4 48.1 289.7 0.6 13.2 303.5 255.4 270.41984/85 259.1 1.4 46.6 307.1 0.5 14.8 322.4 323.0 192.1

b. Hot rolled sheet198V83 200.3 1.6 34.5 236.4 0.5 13.5 250.4 269.4 232.6193/84 236.9 1.4 49.0 287.3 0.6 13.1 301.0 275.4 274.71984/85 259.3 1.4 46.6 307.3 0.5 14.7 322.5 379.2 285.5

c. Cold rolled sheet1982/83 276.0 2.5 49.0 327.5 0.5 21.6 349.6 285.9 288.81983/84 326.6 3.3 66.8 396.7 0.6 25.2 422.5 304.6 302.11984/85 321.9 3.5 59.5 384.9 0.5 26.0 411.4 463.4 334.1

3. Products fromExpensfon Projecta. Cast fron bars

1982M8U 95.2 0.6 16.1 111.9 0.2 4.6 116.7 119.1 n.e.1983/84 118.5 0.7 23.8 143.0 0.3 6.9 150.2 117.3 86.91984/85 138.? 1.3 25.6 165.6 0.5 10.7 176.8 171.6 130.8

b. Continuu castfr1M2/83 130.4 2.1 28.0 180.5 1.9 20.7 V.3.1 157.9 n.a.1983/84 181.0 2.9 39.4 223.3 2.4 24.4 2SO.1 159.8 n.s.1984185 216.7 2.9 34.2 253.8 1.1 34.8 289.7 193.6 n.a.

c. Nedfim sections1982/83 173.5 4.8 38.5 216.8 0.2 62.5 27.5 250.7 n.a.1983/84 207.9 8.3 52.8 269.0 23.9 40.6 333.5 254.6 152.81984/85 265.5 7.9 58.0 331.4 0.3 69.6 401.3 302.3 210.4

Source: MADISOLS.

n.s. Not avatlable.

-37 _ ANNEX 0-3

Table 11: HADISOLB - COST AND PRICE ANALYSIS(Ratios)

......... ........................... ....................... I....................................

DomesticTo

WC TC ExportCoverage Coveragp Prfce

(a) (b) (e)......................................... .......................... ..........................................

1. Factory Productsa. Heavy seetlons

1982/83 0.904 0.822 o.m1983/84 0.698 0.637 0.7821984/85 0.812 0.748 0.737

b. Light sections1982/83 1.018 0.891 n.s.1983/84 0.774 0.708 0.8911984/85 0.813 0.717 n.s.

C. Plates1962/83 1.068 0.940 n.s.1983/84 0.884 0.785 1.0121984/85 1.071 0.950 n.s.

2. Flat Productsa. Hot sheet

1982/83 1.082 1.031 n.a.1963/84 0.882 0.842 0.9451984/85 1.052 1.002 1.681

b. Hot rolled sheet1982/83 1.140 1.076 1.1581983/84 0.959 0.915 1.0031984/85 1.234 1.176 1.328

c. Cold rolled sheet1982/83 0.873 0.818 0.9901983/84 0.768 0.721 1.0081984/85 1.204 1.126 1.387

3. Products fromExpansion Projecta. Cost iron bars

1982/83 1.064 1.021 n.a.1983/84 0.820 0.781 1.3501984/85 1.036 0.971 1.312

b. Continuous casting1982/63 0.875 o.m n.a.1983/84 0.716 0.639 n.a.1984/85 0.763 0.668 n.a.

c. adfiur sections1982183 1.156 0.897 n.a.193/84 0.946 0.763 1.6661984/85 0.912 0.753 1.437

...........................................................................

8Source: MADI180L8.

(a) Ex-factory price to variable costs.Cb) Ex-faectory price to total costs.(C) Ex-factory price to export price.

n.s. Not available.

-38-

Annex B-4,............

NASR AUTOMOBILE COMPANY (MASCO)..................................

Table No. Page No.

1. Production,Imports and Registration of AutomobfIes. 39

2. Consolidated Profit and Loss Statement. 40

3. Consolidated Balance Sheet. 41

4. Sources and Uses of Funds. 42

S. Measures of Financlal Performance. 43

6. Budgetary Impact. 43


8. Loans and Interest. 44

9a. 1982/83 Per Unit Cost and Ex-factory Selling Proo. 45

9b. 1983/84 Per Unit Cost and Ex-factory Selling Price. 45

9c. 1984/85 Per Unit Cost and Ex-factory Selling Price. 45

10. Sales and Inventories. 46

11. Nominal Tariffs on Imports of Automobiles. 46

12. Employment,Wages and Labor Productivity. 47

w~~~~0 w P1 P1 -WiRSE Wi -

9I , I _

~~~ . .,X

.. . .. .

ANNEX 8-4-°0 .........

Table 2: XASCO - CONSOLIDATED PROFIT AND LOSS STATEIET('000 LI)

1976 1977 1978 1979 1980/81 1981/82 1982/83 1983/84 19864/85..................... .................................................... .....................

1. Value of Productiona. Turnover 4582 85259 78628 111278 152161 173028 281086 256624 30962b. Less: Indirect Taxes 4296 8615 6025 13276 18442 21168 30591 26243 22768c. Plus: Subsidies 0 138 0 0 0 0 0 0 0d. a Operating Income 41536 76782 72603 96002 133719 151860 250495 230381 286594e. Plua: change in mv of

fin & unfin goods 1719 5088 6861 4838 3206 12700 -203 31212 -4555f. a Value of Production 43255 81870 79464 102840 136925 164560 250292 261593 28203


services 30404 51377 63103 75042 117346 145584 218582 211458 216097b. Wges 5378 6784 8070 9669 14133 22891 30730 36696 41297c. Depreciation 1666 5019 1873 2087 2158 2292 2455 2602 3044d. Other prov (rent) 323 146 233 210 234 204 205 210 571e. Subtotal 37771 63326 73279 87008 133871 170971 251972 250966 261009

3. Operating Surplus(lf-2e) 5484 18544 6185 15832 3054 -6411 -1680 10627 21030

4. Interest 1584 1865 2511 2413 8603 12668 16105 19306 19735

5. Op Surp less interestbefore tax (3-4) 3900 16679 3674 13419 -5549 -19079 -17785 -8679 1295

6. Direct taxes 1034 6260 11 3520 32 1 1 1 1

7. Op Surp less interestafter tax (3-4-6) 2866 10419 3663 9899 -5581 -19080 -17786 -8680 1294

8. Non-op income & expa. Non-op inco,e 2682 1858 3601 1538 6577 7453 7276 5088 7037b. Non-op exp. 371 1020 4994 2609 1122 1867 3503 4606 7386c. Net non-op income

(8a-8b) 2311 838 -1393 *1071 5455 5586 37m 482 -349

9. Net Profit After tax.(7+8c) 5177 11257 2270 8828 -126 -13494 -14013 -8198 945

10. Value-added (lf-2a) 12851 30493 16361 27798 19579 18976 31710 50135 65942

........................................................................................................................

Saurce: NASco's Income Statement.

- 41 - ANNEX B-4

Table 3: NASCO - CONSOLIDATED BAANCLE SEET('000 LE)

....................................................................................................................

1976 1977 1978 1979 1980/81 1981/82 1982/83 1983/84 1984/85

1. Lfabfltfies

a. Net Worth 28316 37762 39576 47205 S0802 36855 30995 25037 26137

b. Borrowings & other liabItities1) Long term 6036 6109 10698 6219 19020 49759 59592 78316 76093

ii) Short term 85749 109003 105070 86861 122006 250851 258547 205249 234045Mii) Sub-total 91785 115112 115768 93080 141026 300610 318139 283565 310138

2. Assetsa. Gross fixed assets 22403 24626 29644 32119 36480 39577 45270 48404 52741

b. less: Ascumulated 11301 15908 17401 18983 21450 22359 24085 25855 27986depreci at ion

c. net fixed assets 11102 8718 12243 13136 15030 17218 21185 22549 24755

d. other lon term 2889 782 881 991 1162 1707 1707 4054 4054ssets

e. Current assets 106110 143373 142220 126158 175637 318540 326242 281999 307466

TOTAL NET ASSETS 120101 152873 155344 140285 191829 337465 349134 308602 336275TOTAL LIABILITIES 120101 152874 155344 140285 191828 337465 349134 308602 336275

Source: NMSC and IBRD calculations.

- 42 - ANNEX B-4

Table 4: NA8CO - SOURCZS AND USES OF FU( 00 LIS)

...........................................................................................................

1977 1978 19 1980/81 1981/82 1982/83 1983/84 1984/85

SOURCES

1. Selt Financinga. Reserves and surplus 1076 780 769 936 668 707 829 1051b. Less:Defticit 0 0 0 0 '13519 16744 -14473 868c. Plus:Provisions 12114 573 8442 3378 221 4388 5982 698Sub-Total Self Financing 13190 13S3 9211 4314 -13072 -11649 7662 1221

2. External Financinga. Own Capital&Govt.Par 863 19S4 0 1750 34 7515 3474 2010b. Long term borrowing 73 4589 -4479 12801 30739 9833 18724 2223c. Sub-total External Financing 936 6S43 -4479 14551 307M 17348 22198 -213

3. Current Liabilitiesa. Credits 10538 -17142 S968 4168 8648 7023 4098 7826b. Nisc.Credits 4481 -6251 5940 13421 71871 -34886 -20861 -10183c. Bank Credits 8235 19460 -30117 17556 48326 35559 -36535 31153Sub-total Current Liab. 23254 -3933 -18209 35145 12884S 7696 -S3298 28796

TOTAL SOURCES 37380 3963 -13477 54010 146546 1339S *38762 29804

USES

4. Long Term

a. Fixed Investments 2223 5018 2475 4361 3097 5693 3134 4337b. Other long term -2107 99 110 171 545 0 2347 0Sub-total Long Term 116 5117 2585 4532 3642 5693 5481 4337

5. Current Assets

a. Inventories 19507 -833 -7593 41770 53625 -5551 9S80 14861b. Debtors 6026 5418 -6651 6897 -2199 26313 -8620 16049c. Hisc.Debts 6014 -7913 847 2794 18685 9060 3466 17716d. Cash 5716 2175 -2665 -1982 72792 -4000 -48669 -23159Sub-total Current Assets 37263 -1153 -16062 49479 142903 7702 -44243 25467

TOTAL USES 37379 3964 -13471 S4011 146545 13395 -38762 29804

...........................................................................................................

Source: Derfved from WASCO Bltnce Sheets.

43 - ANJNEX 8-4

Table 5: NASCO - MESSURES OF FINANCIAL PERPORMlNCE('00.0 LE)

........................................................................................................................

1976 1977 1978 1979 1980/81 1981/82 1982/83 1983/84 1984/85........................................................................................................................

1. a. Operating surplus net of dep. 5484 18544 6185 15832 3054 -*61 -1680 10627 21030b. plus: depreciation 1666 5019 1873 2087 2158 2292 2455 2602 3044c. operatIng surplus before dep 7150 23563 8058 17919 5212 -4119 m 13229 24074

2. a. Net non-opereting increo 2311 838 -1393 -1071 5455 5586 3773 482 -349b. Current expenses

of .Aich: interest 1584 1865 2511 2413 8603 12668 16105 19306 19735: taxes 1034 6260 11 3520 32 1 1 1 1

c. Govt. trensfers 0 138 0 0 0 0 0 0 0d. Current surplus 6843 16138 4143 10915 2032 *11202 -11558 5596 3989

3. Return on Capitala. Actual interest 2470 3149 4574 4504 6077 13801 18S88 22804 19441b. Actual rent 5 6 16 S 35 5 8 6 6c. Gross return (2d&3a+3b) 9318 19293 8733 15424 8144 2604 7138 17214 23436

4. Total Capital Expenditurea. Fixed investmnt 2223 5018 2475 4361 3097 5693 3134 3134b. Chane in itnentory 19507 *833 -7593 41770 53625 -5551 9580 950c. Eqals total now investment 21730 4185 -5118 46131 56722 142 12714 12714

S. Saving Inva tmnt Gap (2d-4c) -5S92 -42 16033 -44099 -67924 -11700 -18310 -8725

... .....................................................................................................................

Source: NASCO ad 131D calculations.

Table 6: NASCO - BUDGETARY IMPACT('000 LE)

......................................................................................................

1977 1978 1979 1980/81 1981/82 1982/83 1983184....................................................................................................

1. TREASURY OUTFLOWa. Subsidies 138 0 0 0 0 0 0b. Net Investment Funds 936 6543 -4479 a/ 14551 30773 17348 22198c. Total Outflow 1074 6543 -4479 14551 30773 17348 22198

2. TREASURY INFLOWa. easr Bank Transfer 165 66 127 0 0 0 0b. Mgt Profit Share 59 172 130 0 0 0 0

c. Govt Profit Share 1114 1917 1630 473 0 0 0d. Reserve for Govt Bonds 91 161 136 38 0 0 0a. Total Inflow 1429 2316 2023 511 0 0 0

3. MET BUDGETARY SURPLUS/(BURDEN) 355 -4227 2456 *14040 -30773 -17348 -22198

….....................................................................................................

Source: VASCO.

a/ Amortization payments exceed investment funds received.

- 44 -

ANNEX B-4

Table 7: NASCO - BANKING EMCT('000 LE)

1976 1977 1978 1979 1980/81 1981/82 1982/83 1983/84 1984/85

Bank deposits 0 840 525 5426 5359 44934 41510 25855 1600Bank overdrafts 29252 37487 56947 26830 44386 92712 128271 91736 122889

surptus (deficit) -29252 -36647 -56422 -21404 -39027 47778 -86761 -65881 -121289

........................................................................................................

Source: Masco and IBRO calculations.

Table 8: NASCO - LOANS AND INTERST('000 LE)

....................................................................................................................1976 1977 1978 1979 1980/81 1981/82 1982/83 1983/84 1984/85

....................................................................................................................

Actual interest (dom.) 1920 2744 4414 4407 5654 12262 14591 16066 12948Actual interest (for.) 550 405 160 97 423 1539 4097 6738 6493

LonV-Term ta (dam.) 0 0 0 0 1740 3061 5092 9642 9775Long-Tem lo (for.) 6036 6109 1069 6219 1280 46698 5450 68674 66318Overdrafts (dam.) 29252 37487 56947 26830 44386 92712 1282 91736 122889

Av. int. (da. L-T & overdrafts)X 6.6 7.3 7.8 16.4 12.3 12.8 10.9 15.8 9.8Av. int. (foreign) X 9.1 6.6 1.5 1.6 2.4 3.3 7.5 9.8 9.8Av. int. (dam. & for.) X 7.0 7.2 6.8 13.6 9.6 9.7 9.9 13.4 9.8

....................................................................................................................

Source: NASCO.

- 45- ANNEX B-4

Table 9a: NASCO - 1982/83 PR UNIT COST AIN EX-FACTORY SLLING PRICK(LB/Unit)

..................... ........................................... .. ............................ ............................................ ................................

Cost...........................

Raw Overheads Curr. Var. Total Ex fact.Local Foreign Wages Mark. Aduin. Others D1ff. Cost Depr. Interest Cost Price

.................. ...........................................................................................................

1. BuBes 8961 23873 2476 971 1058 2267 0 39605 631 3794 44029 483322. Trucks 5468 25974 318 859 942 3475 0 37035 93 3578 40705 451153. Trailers 84. 1662 99 81 87 208 0 2978 25 584 3587 40324. Tractors 929 3689 107 105 169 398 0 5396 29 718 6142 5294S. Automobfles 246 4627 242 108 165 286 0 5672 23 811 6506 n.a.6. Engines 634 1902 96 94 93 213 0 3032 23 574 3629 n.a.

.............................................................................................................................

Source: VASCO & IsBR calculations.n.s. Not available.

Table 9b: NASCO - 1983/84 PUR UNIT MOST AID U-FACTORY BLLING PRICK(Le/Unit)

.............................................................................................................................

cost...........................

Raw Overheads Curr. Var. Total Ex-fact.Locat Foreign Wages Mark. Admin. Others D1ff. Cost Dept. Interest Cost Price

.............................................................................................................................

1. Buas 9558 23007 3115 964 1197 2900 1187 41927 578 2735 45239 477022. Trucks 3971 28376 443 1091 1256 5024 5530 45669 80 3627 49405 554113. Traliers 2143 1662 109 85 14S 123 351 4618 23 43 5054 41884. Trctores 576 4768 126 108 212 429 729 6945 27 606 7578 5349S. AutomobIles 189 4569 257 106 180 2S5 558 6115 20 Si' 6646 59366. Enrnes 662 2135 112 104 116 128 568 3ae4 73 335 4232 5148

.............................................................................................................................

Source: MASCO & staff calculatiors.

Table 9c: NASCO - 1984/85 PU UNIT COST AND ME-FACTORY SRLLN PRICE(LE/Unit)

cost...........................

Raw overheadS Curr. Var. Total Ex-fact.Local Foreign Wages Nark. Aduin. 6thrs 01ffr . Cost Dept. Interest Cost Price

1. Duies 13402 19323 3367 892 1501 3611 1897 432U3 634 3087 47714 456442. Trucks 7237 13445 392 691 1047 2375 3464 2802 66 3066 31785 370203. Trailers n.p. n.p. n.p. n.p. n.p. n.p. n.p. n.p. n.p. n.p. n.p. n.p4. Tractors 828 4650 162 127 280 519 973 7538 27 441 8005 6530S. Automobtles 223 4641 255 127 244 271 76 6S25 19 370 6914 64906. Eriines 884 1702 111 77 133 186 463 3555 55 340 3950 4050

.............................................................................................................................

Source: MMCC & staff calculations.n.p. is not produced.

ANNEX 0-4- 46 - .......

Table 10: NASCO - SALES AND INVENTORIES('000 LE)

16476 1977 1978 1979 1980/81 1981/82 1982/83 1963/84 1984/85................ .................................................. ...........................................................................

1. Total Sales 50921 89333 81606 111948 153731 17343 266766 241068 278997of which:a. local 37549 57579 50883 76698 116789 148108 235518 215399 239671b. exports 13372 31754 30723 35250 36942 25375 33250 25669 39326

2. inventory 60463 79970 79137 71544 113314 166939 1613M 170968 185829of which:a. finished 1715 5052 7515 13070 10956 21393 15552 42606 37280b. others 58748 74918 71622 58474 102358 145546 145836 128362 148549

3. Ratiosa. exports to totalSales (2) 26.3 35.5 37.6 31.5 24.0 14.6 12.4 10.6 14.1

b. average inventoryperiod for fin, prod.(months) 0.4 0.7 1.1 1.4 0.9 1.5 0.7 2.2 1.6

............................................................................................................

Surce: NkASCO and UAD calculations.

Table 11: NOMINAL TARIFFS ON IM{PORTS OF AUTOMOBILES

(2)............ ........................... ... . . . . . . . . . . . . . . . . . .

1. Four cylinders or lessUp to tOOOcc 8S

* 1000cc to 1500cc 100* 1500cc to 2000cc 115* Over 2000cc 130

2. Five cylinders 1453. Six cylinders 1604. Eight cylinders 2005. Rotary engine 130

(1) The following tariffs and taxes are added to the nominal rates:

1X of c.i.f. value as statistical duty,10% of c.i.f. value as development duty,0.5X of c.i.f. value as marine duty and3X of import duty. development tax end statistical duty as

municipality duty.

ANt D-4

- 47 -

TabIle 12: MACO - ULOYWNT, WA= AND LAWR PRODUCTIVITY.'000 LE)

1976 1977 1976 1979 1980/81 1981/82 1962183 1983/84 1964/85................................................................................................................

1. 0Atu In 1976 prices 456 630 61385 68 782 85 96473 141748 141521 139265a. No. of workrs 1O03 11820 1248 11261 10637 11696 11866 12816 12853b. Labor prod.(OOOLE/worklr) 4.4 5.4 4.9 6.1 8.2 8.2 11.9 11.0 10.8

2. Total mage (curr. pr.) 36 6m 70 98 14075 221 30730 36696 41297of xiich:a. Basic ws 3215 3801 4288 4708 5900 9527 11604 13M 16039b. Incentives 2161 2982 3752 4ffO 8n75 13364 19126 22924 25258

3. Total wages (1976 prices) 5376 6150 669? 6906 8619 13324 16530 16223 15877of wich:a. Basic aWs 3215 3446 3552 3363 3613 5545 6242 6088 6166b. Incentivs 2161 2704 3145 3543 SC6 7779 10288 10134 9711

4. Av. w/worker (cur. LE) 51S 574 640 859 1299 1957 2590 2863 3213a. Av. w/worker (1976 pr.) S1S S20 S37 613 795 1139 1393 1266 1235D. Ine. to total we (0) 0.40 0.44 0.47 0.51 0.58 O.S8 0.62 0.62 0.61

.........................................................................................................

Source: MASCO and IBRD calculations.

a. Basic wages include soeial nsurance.Incentives include all remminir pynmnts In cash and kind.

-48-

Annex B-5

NENALLA EL-KUSRA COMPANY (NERALLA)..................................

Table No. Page No.

1. Voltume and Distribution of Cotton Yarms. 49

2. Market Share of the Textile Industry. 49

3. Consolidated Balance Sheet. 50

4. Consolidated Profit & Loss Statement. 51


6. Measures of Financial Performance. 53

7. Budgetary tqmpct. 54


9. Comparison Between Production Cost and Selling Price,1983/84. 55

10. An Estimate of Economic Costs of Selected Textile Items,1983/84. 56

ANNEX B-5

- 49 -

Table 1: VOLUME AND DISTRIBUTION OF COTTON YARNS(In metric tons)

..................................................................................

Domestic Use Export Total Production..................................................................................

1977 175,838 31,831 207,6891978 165n736 35,010 200,7461979 179,367 44,572 223,9391980 188,824 46,158 234,9821981 200,143 36,182 236,3251983 200,000 40,000 240,000

..................................................................................

Sov,rce: Chamber of Spinning and Weaving industries, Arab Republic of Egypt, 1983.

Table 2: MARKET SNARE OF TEE TEXTILE INDUSTRY

.........................................................................

X of Production...........................

Process Public Private..........................................................................

Spinning 100Weaving 65 35Knitting 40 60Dyeing and Finishing 75 25Apparel 20 80

.. .........................................................

Source: Chamber of Spinning & Weaving Industries, Arab Repubtic of Egypt

-50 - .........

Table 3: MtAlA - CONSOLIDATED DALANCE EiET('000 La)

....................................................................................................................

1976 1977 1978 1979 1960/81 1981/82 19M/3 1963/84 19M41M................................................................. ......................................................................................................

1. Liabilitiesa. Net Worth 6189 67m 8M9 99427 120395 132065 146737 164154 172866

b. Borrowings & other liabilitiesi) Lon term 6558 7411 7950 2724 54702 O66 59217 6486 81184

i1) Short term 19325 34239 35661 50507 67992 78023 8014 85157 93257iMi) Sub-total 2568 41650 43611 ?7751 12694 141983 145531 149643 174441

2. Assets

a. Gross fixed assets 61039 68323 747M 105505 15735 176583 190195 203485 224972

b. less: Accumuated 32915 34512 36512 39139 594S 52529 60381 m43 92672depreciation

c. net fixed assets 28064 33811 38211 663"6 111381 124054 129812 125742 132300

d. other long term 11324 11531 5214 5408 6505 6527 7012 7005 massets

e. Current assets 50S4 64008 87395 105404 125203 143467 155444 181050 207279

TOTAL NET ASSETS 9002 109370 130820 7M78 23089 274S 292268 313797 347307TOTAL LIABILITIES 90072 10930 130820 17M78 24306 274048 292268 313797 347307

..... ....... ................................. ......................................................................

Source: Mehatta ard IBRD catcutltions.

ANNEX R -5-51 - .........

Table 4s NICALLA - CONSOLIDATED PROFIT AND LOSS STATEpNT

('I000 LE)

........................................................................................................................

1976 1977 1978 1979 1980/81 1981/82 1982/83 1983/84 1984/85.................... ............................................ ,...........................................

1. Value of Productiona. Turnover 61418 80966 94977 107068 132857 156320 164184 196031 211127b. Less: Indfrect TXexe 3193 3673 3531 3863 5122 6932 8639 7166 8927c. Plus: Subsidies 582 435 8158 8915 17426 22957 19681 18795 10763d. a Operating Income 58807 7778 99604 112120 145161 172345 175226 207660 212963e. Plus: chang in 1nv of

fin & unfin goods 1442 3042 4448 942 7034 9608 2836 8607 13748f. = Value of Production 60249 8070 104052 113062 152195 181953 178062 216267 226711


services 29060 37017 52129 57129 77431 95408 99252 115273 130628b. Wages 18795 24211 25600 30029 41397 53132 53793 61652 71184c. Depreciation 2535 2663 2974 3403 5202 737T 8659 18210 18055d. Other prov (rent) 107 200 352 467 694 756 1016 1051 1171e. Subtotal 50497 64091 81055 91028 124724 156669 162720 196186 221038

3. Operating Surplus(if-2e) 9752 16679 22997 22034 27471 25284 15342 20081 5673

4. Interest 3204 3342 431 5513 18528 20449 23555 26734 31574

5. Op Swup less interestbefore tax (3-4) 6548 13337 18166 16521 8943 4835 -8213 -6653 -25901

6. Direct taxes 943 4892 4705 2494 4013 4504 5878 0 0

7. Op Surp less interestafter tax (3-4-6) 5605 8445 13461 14027 4930 331 -14091 -6653 -25901

8. Non-op income & expa. Non-op fncome 4103 5980 7471 5193 12220 16411 36152 36019 37785b. Non-op exp. 300 328 1044 566 1844 757 1212 8860 4051c. Net non-op income

(8a#-b) 3803 5652 6427 4627 10376 15654 34940 27159 33734

9. Net Profit After tax.(748c) 9408 14097 19688 18654 15306 15985 20849 20506 7833

10. Value-added (lf-2a) 31189 43753 51923 55933 74764 86545 78810 100994 96083

........................................................................................................................source: Nehalta

AMNEX 8-S- 52 - ........

Table 5: MEALIA - SOURCES AND USES OF FS('000 LE)

...........................................................................................................

1977 1978 1979 1980/81 1981/82 1982/83 1983/84 1984/85

SOURCES

1. Seltf Financinga. Reserves and surplus .1287 7264 6483 12354 1694 8943 7833 6043b. Less:Deficit 0 0 0 0 0 0 0 0c. Plu$:Provisiona 6355 8421 5640 13268 15130 13581 24283 14182S"-Total Self Financng 5068 155 12123 25622 16824 22524 32116 20225

2. External Ffnancinoa. Oin Capital&Govt.Par 0 5804 2722 2152 1430 0 2663 3416b. Long term borrowing 853 539 19294 27458 9258 -4743 5269 16698Sub-total External Financing 853 6343 22016 29610 10688 -4743 7932 20114

3. current Lisbilitiesa. Credits 3944 .1790 1583 2015 20275 3599 6058 6700b. Nisc.Credita 3049 -317 6235 8217 4019 4688 -14437 8773c. Dank Credits 7921 3529 7028 11283 -14263 4 7222 6027Stb-totat Current Liab. 14914 1422 14846 17485 10031 8291 -1157 8100

TOTAL SOURCES 2085 23450 48965 72717 37543 26072 38891 4843

USES

4. Long Terma. Fixed Investments 7284 6400 30782 51821 19257 13610 13292 21487b. Other long term 227 -6337 194 1097 22 485 .7 723Sub-total Lon Term 7511 63 30976 52918 19279 14095 13285 22210

5. Current Assetsa. Inventories 9100 15996 12426 25468 7068 4953 16977 1882b. Debtors 1545 -671 -865 2387 7770 8188 2344 -3372c. Nisc.Debts 786 3068 3342 408 794 372 8459 11382d. Cash 1893 4994 3106 -8464 2632 -1536 *2174 -603Sib-total Current Assets 13324 23387 18009 19799 18264 11977 25606 26229

TOTAL USES 20835 234SO 4885 717 37543 26072 38891 48439

Source: Calculated from Nhalla's balance sheets.

ANNEX B^5-53 .....

Table 6: MEALIA - MASURES OF FIInICIAL PICRPOMANCE('000 LE)

........................................................................................................................

1976 1977 1978 1979 1980/81 1981/82 1962183 193/84 1984/85........................................................................................................................

1. a. Operating surplus net of dep. 9752 16679 22997 22034 27471 25284 15342 20081 5673b. plus: depreciation 2535 2663 29.4 3403 5202 7373 8S59 18210 18055c. Operating surplus before dep 12287 19342 25971 25437 32673 32657 24001 38291 23728

2. a. Net non-operating inrome 3803 5652 6427 4627 10376 15654 34940 27159 33734b. Current expenses

of iAich: interest 3204 3342 4831 5513 1528 20449 23555 26734 31574: taxes 943 4892 4705 2494 4013 4504 5878 0 0

c. Govt. transfers 582 435 e158 8915 17426 22957 19681 18795 10763d. Current surplus 11361 16325 14704 13142 3082 401 9827 19921 15125

(1c+2a-2b-2c)

3. Return on Capitala. Actual interest 259 842 1558 2561 8956 8944 7961 7993 10837b. Actual rnt 3 3 3 3 10 11 14 19 26c. Gross return (2d*3a+3b) 11623 17170 16265 15?06 12048 9356 17802 27933 25988

4. Totat Capitat Expenditure

a. Fixed 1nvestment 7284 6400 30782 S1821 19257 13610 13292 21487b. Change in inventory 9100 15996 12426 25468 7068 4953 16977 18822c. EquaLs total new investment 16384 22396 43208 77289 26325 18563 30269 40309

S. Saving - Investment Gap (2d-4c) 59 -7692 -30066 -74207 -25924 -8736 -10348 -25184

........................................................................................................................

Source: Nehalla and IBRO calculatlon.

- 54 - AMEX 3-5

Table 7s MEIALLA - BUDGETR IMACT( 000 La)

...............................................................................................................

1977 1978 197 1960/SI 1961/U 1915"3 195384 198485...............................................................................................................

1. TREASU OUTFLOW

a. Subsidies 435 8158 8915 174 229 198 1879S 10763b. Not Investment Funds 853 6343 22016 29610 1046 4743 o/ 7932 20114c. Total Outf le 1288 14501 301 476 34 14938 2672 30877

2. TREAS.R INFLOW

a. Masr SW* Trnfer 260 322 302 364 22 409 423 0b. Mgt Profft Share 646 911 973 6? 45 . 1106 99 906C. Govt ProfIt Share 3008 6363 43 620 3610 374 3493 1U 4d. Reser for amt Bonds 391 532 631 460 3 I 654 402a. Total Inftlos 4305 8148 543 2121 4599 516 5539 2752

NET IWOETARY SLRPLUS/(URDEN) 3017 *6353 -24968 44915 -2904 9122 -21188 -28125

...............................................................................................................

Surces: Neltb Nd ID catcutation.of Amortization ps)ifa xceed investmen funds rwaevgd

Table 83 UERALUA - UAKIGZEFpCT('000 LE)

...........................................................................................................

1976 19??t 1978 1979 %OS 1981/2 192 198/8 1984/S.X.......................................... .........................................................

f depcsfts 0 0 0 0 2s 0 33 0 0Su* overdrafts 0 7921 11450 18478 291 158 1S2 2274 28751

Surptus (deffclt) 0 '921 -11450 -18478 -29479 -549 15 -22724 *287n1

..........................................................................................................

Source: Nllla d a I calcuLations.

ANN"EX -5

- 35 -

Table 9: MERALIA - COMPARISON BETWEEN PRODUCTION COST ANDSEULING PRIC8, 1983184

................ .......................................... ,...... ...............

Selling Prfce/Production Cost/Unit (LE) ...................

............... .................-... - -- --------- Unit (LE)Raw over- Narket ....................

Product/Unit MbteriaL Labor headb in Totat Domestic Export................................ ...........................................................................

Cotton Yarn/Kllogram. ...................

Coarse count 1.38 0.26 0.17 0.07 1.88 1.76 2.31Medium count 1.38 0.28 0.19 0.08 1.93 1.8 2.69Nedium count, combed 1.82 0.48 0.35 0.08 2.73 2.96 3.53Fine count 1.82 0.77 0.58 0.02 3.19 3.5 5.58

Rationed Cotton Fabric/Motor

Fabric No. 1 0.21 0.1 0.09 0.04 0."4 0.17Fabric No. 2 0.23 0.13 0.12 0.05 0.53 0.18Fabirc No. 3 0.23 0.16 0.14 0.06 0.59 0.18Fabric No. 4 0.24 0.14 0.18 0.05 0.61 0.18

Non-rationed Cotton FabricAMeter................................Fabric No. 1 0.23 0.1 0.08 0.02 0.43 0.36 0.42Fabric No. 2 0.25 0.1 0.09 0.02 0.46 0.38 0.48Fabirc No. 3 0.24 0.18 0.16 0.05 0.63 0.65Fabric No. 4 0.24 0.18 0.22 0.05 0.69 0.55 0.52Fabric No. 5 0.71 0.27 0.2? 0.06 1.26 1.5

Wololen Yam/Kilogram..................

Yarn No. 1 6.22 0.95 0.65 0.22 8.04 8.57Yarm No. 2 6.22 1.14 0.68 0.27 8.31 8.35Yanr NSo. 3 5.88 1.14 0.78 0.27 8.07 9.7Yarm No. 4 2.59 1.12 1.19 0.22 5.12 5.9

Woollen Fabric/Meter...................

Fabrfc No. 1 3.58 0.66 0.49 0.17 4.9 6.5Fabric No. 2 0.55 0.24 0.18 0.06 1.03 1.55

Ready-made Garment/Piece........................

Garment No. 1 17.33 1.38 0.45 0.27 19.43 24Garment No. 2 14.45 1.36 0.35 0.32 16.48 24.5Garment No. 3 38.81 3.54 2.46 0.9 45.71 S7Garment No. 4 25.13 2.4 2.96 0.95 31.44 60Garment No. 5 1.61 0.54 0.14 0.12 2.41 2 2.16Garment No. 6 1.46 0.59 0.16 0.13 2.34 2.05 1.87Garment No. 7 2.32 0.49 0.18 0.12 3.11 4.5Garment No. 8 1.45 0.53 0.19 0.12 2.29 2.3Garment No. 9 2.37 0.49 0.19 0.12 3.17 5.1

...........................................................................................................Source: ehallao.

- 56 - 4DB5

Table 10: MELALLA - AN ESTIMATE OF ECONOMIC COSTS OF SELECTElDTEXTILE ITEMS, 1983/84

Prakticn Cat (LE)*... . . . setti Price

Raw l Cost ...................................prodci............ Touta Fflm~iut ECMinfCKlLcogra Firom;at EoWUlc / Lebr O01w VAb tlrf Daestic fwrts b Export c ORC dC/.................................................................................................................................

Coase cat yam 1.3 1.97 0.26 0.17 0.17 2.47 2.30 L41 1.03NuI icwt )m 13B 1.97 0. 0.19 0.08 2.52 2.69 3.23 0.78

mdi wct, caxd yam 1 2o40 OA8 0.3 0.08 3.51 3.53 4.21 0.2Finewouit Vam 1.82 2a0 0.77 03.8 0.0 3.97 5.58 6.69 0.59Na-ratiad cotti fdbric

No.1 0.23 03 0.10 0.08 0.02 0. 0.42 0.50 1.10Noirat1rad cttm Weic

No.2 02 0.36 0.10 0.09 0.CQ 0.57 0.48 0.58 0.96Natratiwud oottn fic

No.4 O.2A 034 0.18 0.22 0.0t5 0.9 0.52 0.12 1.27

Samve: CaLcAated frau Tdae 9 ard IFD calcuatlas.

a/ The firnmial cost of cottao raw mnterial ws a.rcimteAy 7M of Its eoc cst.Th ecoaic cast is, theree, calculatad frau firial cost x 1009

bl Thes prices are calculated at the official adwe rate.c/ now souc prices for avprts a the fiscal prices, adJWted bV the cmmufal sedwe rate,

hidch reflects the qartuity ost of faoeig edw. to pMllc oaqudes.d/ CRC or thie tstic rusacest ratio a Eoawdc YWa of Priuwy IrpAts

Yalial-uk at Irtemutinal Prices

5?-

Annex 5*6............

EASTERN TOBACCO COMPANY (ETC)..................................

Tabl No. Page No.

1. Consolidated Profit & Loss Statement. 58

2. Consotidated Balance Sheet. 59


4. M"asures of financial Performance. 61

5. Budgetary lopact. 62


T. Ewployment,Wages and Labor Productivity. 63

8AN 8-6- 58 -.....

Tab,le 1: ETC - CONSOLIDATECD PROFIT AND LOSS STAT1NT12I000 LE)

1976 1977 1978 1979 1980/81 1981/82 1982/83 1983/4 1984/85...................................................................................................................

1. Value of Productiona. turnwer 167891 192780 213858 259738 35440 345107 403761 417124 730808b. Loss: Indirect Taxes 1187B4 137948 150474 164284 186424 197647 228732 240940 317283C. Plus: Subsidies 10 6S05 16868 6050 39 s8 150 237 698d. a operating Income 49117 61337 80252 101504 119055 147548 175179 176421 414223e. Plus: c nge in rv of

fin & unf in good 712 827 49 2239 4334 *846 3960 16785 16512f. a Value of Production 49829 62164 80S01 103743 123389 146702 179139 193206 430735


services 38645 49951 63750 76939 107532 124129 184658 241850 326475b. wages 4895 5664 6882 8477 12641 16201 19309 23131 42424C. Depreciatfon 1499 1342 1709 2465 3188 4030 5956 9772 14034d. other prov (rent) 197 271 412 465 431 434 441 550 980e. Subtotal 45196 57228 72753 88346 123792 144794 210364 275303 383913

3. Operating Surplus(if 2e) 4633 4936 7548 15397 *403 1908 -31225 -82097 46822

4. Interest 2144 2293 2581 3466 11433 12092 19636 31132 43073

5. Op Surp less interestbefore tax (3-4) 2489 2643 4967 11931 -11836 -10184 50661 -113229 3749

6. Direct taxes 1267 1161 1806 5122 1397 87 9 48 4

7. Op Surp less (nterestafter tax (3-4-6) 1222 1482 3161 6809 -13233 -10271 50870 -113277 3745

8. Non-op income & exp

a. Non-op income 3067 3653 3851 4701 23128 13217 8166 5533 18895b. on-op exp. 365 361 862 1044 1660 1938 1064 4877 8448c. Not non-op income

(Sa-8b) 2702 3292 2969 3657 21468 11279 7102 656 10447

9. Net Profit After tax.C7+8c) 3924 4774 6150 10466 8235 1008 -43768 -112621 14192

10. Vatue-added (if-2a) 11224 12213 16551 26804 15857 22573 -5519 -48644 104260

...................................................................................................................

Source: Eastern Tobacco Co. (ETC)

59- ANNEX 3-6

Tablo 2: ETC - C0NBOULIDATED DALNCE SREET('000 LE)

................................................................................................................

1976 1977 1978 1979 1980/81 1981/82 1982/83 1983/84 1984/85

1. Liabilitfesa. Net Worth S7660 61082 65874 76420 88068 89133 42164 *74410 -65359

b. Borrowings & other liabilitiesO) Lam term 899 898 1265 801 15836 12445 27693 71786 158665

i 0 Short tem 20929 49252 63273 56366 55086 74775 178535 334254 363663Mi) Sub-total 2782B 50150 64538 57167 70922 87220 206228 406040 522328

2. Assa. Gross fixed assets 15Z50 18027 23080 29301 54002 64998 90974 122385 194476

b. tess: Accumul.ted 6581 7651 9180 11379 15755 19620 25034 32890 56967d-prafatien

c. net fixed assets 869 10376 13900 17922 38247 45378 65940 89495 137509

d. other, loti ter 15436 12286 8859 6827 6516 3548 3356 3356 4324assets

e. Current asets 61783 88570 107653 108838 114227 127427 179096 238779 315136

TOTAL NET ASSETS 8688 111232 130412 133587 158990 176353 248392 331630 456969................

TOTAL LIABILITIES 856M8 111232 130412 133587 158990 176353 248392 331630 456969

...... .......... ,

Source: ETC and I11D calculation.

- 60 - ANNEX B*6

Table 3: ETC - SOURCES AND USES OF NS('000 LE)

...........................................................................................................

1977 1978 1979 1980/81 1981/82 19W83 1983/84 1984/85...........................................................................................................

SOCES

1. Self Financinga. Reserves awd Surplus 1282 344 6176 1029 1212 1803 606 23601b. Less:Def cit 0 0 0 0 0 45904 -116579 8120c. Plus:Provisions 3210 597 5543 14995 3718 -167 2263 1407Sib-Total Self Financing 6492 6321 11719 16024 4930 -44268 -113710 33128

2. External Financnga. Own Capital&Govt.Par 0 0 1026 0 0 2713 4992 0b. Long term borrowing -1 367 -464 15035 -3391 15248 44093 86879Sub-total External Financing -1 367 562 15035 -3391 17961 49085 86879

3. Current Liabilitiesa. Credits 7358 12425 -12743 22185 14088 *1',82 28691 38861b. Nisc.Credits 14965 1596 5836 -23465 -1193 1463 2193 1863c. Bank Credits 0 0 0 0 6794 115879 1245 66407Sb-total Current Liab. 22323 14021 -6907 -1280 19689 103760 155719 29409

TOTAL SORCES 26814 20709 5374 29779 21228 77453 91094 149416

USES

4. Long Terma. Fixed Investments 2777 5053 6221 24701 10996 25976 31411 72091b. Other long term 2750 -3427 -2032 *311 -2968 -192 0 968Sub-total Lon Term 27 1626 4189 24390 8028 25784 31411 73059

5. Current Assetsa. Inventories 31571 8941 -3821 21175 11616 27856 63239 442b. Debtors -672 936 2163 1237 2018 429 -2497 3827c. Nisc.Debts -899 4793 534 *7372 578 24805 -4089 28108d. Cash -3213 4413 2309 -9651 -1012 -1421 3830 -400Stb-total Current Assets 26787 19083 1185 5389 13200 51669 59683 76357

TOTAL USES 26814 20709 5374 29779 21228 77453 91094 149416

...........................................................................................................

Source: ETC and IBRD calcuLations.

- 61 - ANUEX 0-6

Table 4: ETC - MEASURES OF FINANCIAL PERPODWICE('000 LE)

.......................................................................................................................

1976 1977 1978 1979 1980/81 1981/82 1982/83 1983/84 1984/85

1. a. Operating surplus net of cep. 4633 4936 7548 15397 6403 1908 *31225 -82097 46822b. plus: depreciati on 1499 1342 1709 2465 3188 4030 5956 972 14034c. Operating surplus before dkp 6132 6278 9257 17862 2785 5938 -25269 -72325 60856

2. a. Net non-operating inco 2702 3292 2989 3657 21468 11279 7102 656 10447b. Current expenses

-f ihich: Interest 2144 2293 2581 3466 11433 12092 19636 31132 43073: taxes 1267 1161 1806 5122 1397 87 9 48 4

c. Govt. transfers 10 6505 16868 6050 39 88 10 237 698d. Current surplus 5413 -389 -9009 6881 11384 4950 -37962 *103086 27528

(lc+2a-2b-2c)

3. Return on Camitala. Actual interest 80 64 103 224 576 657 13783 30029 43073b. Actual rent 106 171 197 221 179 188 192 284 569c. ross return (2d43a+3b) 5599 -154 *8709 7326 12139 5795 -23987 -2773 71170

4. Total Capital Expenditurea. Fixed irnvestment 277 5053 6221 24701 10996 25976 31411 31411b. Change in inventory 31571 8941 -3821 21175 11616 27856 63239 63239c. Equals total new investment 34348 13994 2400 45876 22612 53832 94650 94650

5. Saving- Itnvestment Gap (2d-4c) *34737 -23003 4481 *34492 -17662 -91794 -197736 -67122

Ssurce: Calculated from data provided by ETC.

- 62 -

ANNEX 8.6

Table 5: ETC - BUDGETARY IMPACT('000 LE)

.......................................................................................................................

4 1977 1978 1979 1980/81 1981/82 1982/83 1983/84 1984/85

1. TREASURY OUTFLOWa. Subsidies 6505 16868 6050 59 88 150 237 698b. Net Investment Funds *1 W 367 562 15035 -3391 01 17961 49085 86U79c. Total Outftow 6504 17235 6612 15074 -3303 18111 49322 87577

2. TREASURY INFLOWa. Nasr Bank Transfer 69 59 228 39 3 0 0 n.s.b. Mgt Profit Share 175 79 0 28 0 0 0 n.a.c. Govt Profit Share 1335 638 104 359 96 0 0 n.a.d. Reserve for Govt Bonds 115 58 318 32 8 0 0 n.a.e. Total Inflow 1694 834 650 458 107 0 0 2128 b/

3. NET SWOETARY SURPLUS/(BURDEN) *4810 -16401 *5962 -14616 3410 -18111 -49322 8S5451 b/

Sowee: ETC and calcutetions.

n.a. is not available./ Mwortfzatfn paymnts exceed investment funds received.bl Estimt".

Table 6: ETC - BANKING EFFECT('000 LE)

............................................................................................................

1976 1977 1978 1979 1980/81 1981/82 1982/83 1963/84 1984/85............................................................................................................

Bank deposits 400 685 249 48 68 68 83 0 147

Bank overdrafts 0 0 0 0 0 6794 122673 24758 313915

Surptus (deficit) 400 685 249 48 68 -6726 -122590 -247508 -31368

...................................... ................................................................

Source: ETC.

- 63- ANEXB 66

Table 7: ETC - IT,AGES AND LABOR PRODUCTTVITY('000 LI)

..............................................................................................................1976 1977 19 19 1919 1960/a1 1981/82 192/8 1983/84 1984/8s

...............................................................................................................

1. Output In 1976 prices 226896 259809 286165 324472 403807 706 548701 5818 78S

a. No. of workers 7058 7997 8400 87 89OM4 8978 8907 9057 15013

b. Labor prod(OOLE/worker) 32 32 34 37 45 SO 62 59 51

2. Total wages (current) 466 5381 " 20 126 15119 19509 23131 42424

of which:8. Basic waes 3139 3553 453 5153 n.*. 8952 10083 10066 22020

b. Incentives and bonuses 1517 1828 2007 286? n.e. 6167 9226 13065 20404

3. Total wages (1976 pe.) 4666 4879 5487 5729 7741 8800 10381 10226 16311of Which:

a. 8asic waOes 3139 3221 38oS 3681 n.e. 5211 542 44S0 8466

b. Inc. & Bonuses 1517 166B 1682 2048 n.e. 3589 4963 5776 7845

4. Av. w/worker (cur LE) 640 673 779 914 1407 1684 2168 2347 2826

a. Av. w/worker (1976 pr.l 660 610 653 653 862 980 1166 1037 1086b. Inc. to total s (X) 33 34 31 36 n.s. 41 48 56 48

............... .......................................................... ...... ................................

Source: ETC and IBD cetculatimns.

a. Basic wages fnclude social fnsurancIncentives & bonuses include all reuafni q paiments 1n cash and kind.

b. n.a. is not avaltable.

*6S-

TOURAN CEMENT COMPANY (TCC)..................................

Table No. Page No.

1. Apparent Consuptlon of Cement In Egypt,1965 1983184. 65

2. Projected Effective Capacity of Cement Production,1985/86M14f/96. 66

Estiemtion of Demand for Cement. 67

Table No.

3. Projected Demand for Cement. 69

4. Role of TCC in the Egyptian Cement Industry,1982/83 69

S. Consolidate Profit and Loss Statement. 70

6. Consotidated Balance Sheet. 71


S. Measures of FSnancial Performance. 73

9. Budgetary lwpact. 7

ANNEX B-7- 5 - .........

Table 1: APPARENT CONSUMPTION OF CEDWET IN EGYPT, 1965 - 1983/84('000 tons)

...................................... .......................................................................................................

SeLf TCC PerProduction Suff . Market Pop. Capita

Year Total TCC Exports Conrump. a/ Ratfo Share In Nilt. kg/per.on.................. ........................................ s............................. ................. ....................

1965 2577 897 335 2587 1.00 34.7 29.4 88

1966 2611 851 272 2490 1.05 34.2 30.1 83

1967 2904 846 S95 2315 1.25 36.5 30.9 751968 3448 1222 868 25S3 1.34 47.4 31.7 811969 3403 1236 620 2?83 1.22 44.4 32.5 86

1970/71 3811 1320 888 2923 1.30 45.2 33.3 881971172 3641 1313 1165 2476 1.47 53.0 34.1 73

1972/73 3729 1275 971 2758 1.35 46.2 34.8 79

1973 3609 1236 564 2975 1.21 41.5 35.6 84

1974 3260 1082 181 3123 1.04 34.6 36.3 86

1975 3579 1167 86 3614 0.99 32.3 37.1 97

1976 3374 1053 25 3962 0.85 26.6 38.0 104

1977 3257 1011 13 4462 0.73 22.7 39.0 114

1978 3036 9v6 6 6476 0.68 20.9 39.9 112

1979 2987 886 2 4528 0.66 19.6 41.0 110

1980/81 3499 1130 0 6783 0.52 16.7 42.3 160

1981/82 3627 1113 2 8169 0.44 13.6 43.5 1881982/83 3793 1235 1 10608 0.36 11.6 44.5 238

1983/84 4650 1406 0 11140 0.42 13.2 45.8 243

......................................................................................................

Source: CAPNAS and Egyptfan Cement Sates Office.

a/ Starting 1973, consuption Is defined more approprIately as:

Inventory at the begInnIng of the period * actual production+ ffports inventory at the end of the period -exports.

- 66 - AM....

Table 2: PROJEWTD EFTIVE CAPACIn OF CEMENT PROWCTION,1985S86 - 1995/96

('000 tons)............................ ......... I........ .- ...................................................................................... ......

IwIelt Cft'n ;de ProjectProject Capacity Stat Oun n 1951nlB 1M5W IW 19W8 "MM 1990 1991921992V W4b 1994/95

,............................................................................................................................................................

I torah Cunt Co..................

a. Otd Kilts 15S 1D0 1S O 1M 1530 153 150 1 150 10b.6est of Nile 1000 Ltd.OWL "NM 0 0 0 0 0 0 0 0 0 550 750c.Qwrry81 10 9q.'12 EIrLyas "WM 0 0 0 0 0 550 750 900 900 900 900d.:O.rryU 1000 FO.I81 S*87 19Al 0 0 0 0 0 0 0 550 750 900 900S9itotaltTCC 159 1530 1530 153D 15! 20 D 10 2950 310 3810 40B0

Itt Hloet Cowlt Co..................

a. Old Kilns 2M10 2100 21C0 2100 210D 2100 2100 2100 2100 210D 2100b. Line 42 1400 Ju*'79 Nr.'MS "KW 0 0 7X I I2t0 120 10 1260 1260 1610 1260c. Assiout #1 1500 Dec.'7 .5As 195/81 0 1 15 lo 1 1 350 130 1 1350 1350 130D 1350d. Assio* 22CO 11 19a 1991/ 0 0 0 0 0 0 0 1210 165D 198 19Oe. Nenia -1hite t 100 UdStUi 19 0 0 0 0 0 0 0 0 0 550 7509btotal-tI 210 395 4500 410 4710 4710 5W 6360 7ZS0 7440

tIJIAla*Ia Cnt Oo......................

a. Old kilts 10 700 100 70D 70 700 700 700 700 700 700b.etria #1 1000 b.'61 r.6 191 0 0 0 0 0 550 750 900 900 900 900c. Ari e 100.0 Cot.'8F Fd. 199/9 0 0 0 0 0 0 0 550 750 900 900S1AOtalC 100 M I 70 7i0 1450 2150 20 00 200

IV- maticurl IOa Co.................... M M 6

a. Old kitw 8° 81 81 81 8b. Lfne 1300 M.'81 prU. 19598a 0 0 0 0 915 1170 117 1170 1170 1170C. Line1 1 30 Jm8 a D"c. 1 / 0 0 0 0 0 0 0 12 915 1170 1170d.D mi.-flf 1000 1.A.t196 0 0 0 0 0 0 0 0 0 530 7509.aotal-lNl 8n.0 0 810 W1 301 M 3 3 390

V' an cout Co................ W As 4 g gm 9 g gm 9 0 ma. Sm #1 1000 1977 Eutyl 135 312 500 110 900 900 900 900 900 900 900 900. size 1000 uU Asd. 9low% 0 0 0 0 0 0 0 0 0 550 750

C. Qattmis 1400 1O O O "F m 1 0 0 0 0 0 77 10 1wo 10 10 1210d. amtWs 14001 kdJUt 19w/ 0 0 0 0 0 0 0 0 0 550 750Shtotal-Sa S12 500 110 100 90 tO160 1950 2160 21O 3210 3660

Vl O0ws

m 00 S IJUd.s sd1951 0 0 0 0 0 0 0 0 25 37S 450b.Slm 500 Ue.TLd.19"MO 0 0 0 0 0 0 0 0 275 375 450s9 tolodis 0 0 0 0 0 0 0 0 5s0 150 900

Total Old kilts 5 m 5 0 0 0 600 600 0O 6D 60Total PI.md 0 me 20 3 55 6so f 1115 116s 1613 IS717Projected SWy .. ... .810.95. 115 121S900 tl 5 2 1 0 2................................... ..............................................................................

se :m Nirdsy of PI.w* ad Nindsw of nftW ad bm ttm

AwMcau:* Ntnimi cpWbn tib for awtlutim af Mm Y

Prjacts uwd sW* am n id to stm omsutnt fn t WU* Pritcn sad"s 1t VW 5 of cmItY

t Wid r M ofd at:d Vw w9of lcdt

ANNEX B-7-67 -

ESTIMATION OF DEMAND FOR CEMENT

The following procedure is applied to obtain three alternative

scenarios for projected demand for cement in Egypt during the period

1986/87 - 1994/95:

1. Historical Trend

Based on historical data for cement consumption (in thousands of

tons per year) during the period 1965-1983/84, cement consumption grew

annually at 8.21. Assuming this trend to continue in the future, one

alternative demand estimate is obtained by applying 8.2% rate of growth in

cement consumption to observed figures for 1983/84 and projected through

1994/95. The resulting estimates, as given in Table 3, are unrealistically

high in view of the anticipated slowdown in the economic activity in Egypt

in the coming few years caused by the drop in oil prices, tourism revenues

and remittances. A more appropriate estimate is one which takes into

account a set of more likely growth rates in GNP and cement price reforms.

Two alternative estimates of demand for cement are developed below.

2. Policy-Based Alternative

Assuming that the government undertakes the necessary policy

measures, which will result in relatively higher growth rates in GNP, a

second alternative for cement demand estimates is developed as follows:

ANNEX B-7--68 - ____

a. Using regression analysis, the demand for cement is estimated

as a function of GNP (in constant prices), relative price of

cement to wholesale price index (RP) and gross fixed capital

formation (GFKF) in constant prices. The best fit is reported

below:

Ln C = 6.86 + 1.69 in GNP - 0.85 RP

t statistics (8.6) (-2.2)

N - 19 R2 adj. a 0.93 F = 102

b. Based on anticipated GNP growth rates, following a policy

reform, an increase in cement prices annually to cope with the

increase in wholesale price index, cement consumption is

projected using the estimated regression. The new estimates

appear under alternative 2 in Table 3.

3. Without Policy Reform

Like alternative 2, projected cement consumption without policy

reforms is based on the regression results. Nevertheless, the projections

of the third alternative, also reported in Table 3, assume slower growth

rates in GNP and cement price adjustments once every three years. Clearly,

cement consumption estimates under alternative 3 are larger than those

under alternative 2. Implied, therefore, that the higher growth rates of

GNP under alternative 2, and consequently higher cement consumption

estimates, are more than offset by the excessive consumption of cement

caused by lower cement prices under alternative 3.

- 69 -

ANNEX 0-7

Table 3: PROJECTED DEMAND FOR CEMENT(Millio;a tons)

....................................................................................

Alternative 1 Alternative 2 Aternative 3....................................................................................

1986/87 14.1 8.4 12.9

1987/88 15.3 8.7 13.5

1988189 16.5 9.1 14.8

1989/90 17.9 11.7 16.2

1.90/91 19.3 10.6 15.4

1991/92 20.9 11.7 16.3

1992/93 22.6 15.1 17.1

1993/94 24.5 14.2 17.9

1994/93 26.5 15.7 17.2

....................................................................................

iource. Staff estimates.

Table 4: ROLE OF TCC IN THE EGYPTIAN CEMENT INDUSTRY, 1982/83

..............................................................................................

X of TCC. in

Industry TCC industry..............................................................................................

1. Production at Narket 94,301 22,712 24.1Prices ('000 LE)

2. Cement Production (000 tons) 3,793 1,235 32.6

3. Employmnt (no.) 7,422 2,605 35.1

4. Fixed Assets at book 1,021,714 142,050 13.9

value ('000 LE)

........................... ...................................................................

Sourest Central Agency for Pubt1c Nob1ltiat1on and Statfsties and TCC.

- 70 - ANNEX 8-7

Table 5: TCC - CONSOLIDATED PROFIT AD LOSS STATEMENT('000 LE)

..............................................................................................

1977 1978 1982/83 1983/84 1984/85

1. Value of Productfons. Turnowr 10068 9888 40754 53226 57880b. Less: Indirect Taxes n.s. n.a. 18154 17538 n.a.c. Plus: SLhsidies 0 5 0 0 0d. a Operating Income 10038 9893 22600 35688 578800. Plus: change in inv of

fin A unfin goods 225 -227 268 347 *164f. a Value of Production 10263 9666 22868 36035 57716


sefrvces 6190 5676 10968 15475 25863b. wga"s 1638 1847 5211 6905 9233c. DeprocIation 821 1219 4426 9753 11270d. other prov (rent) 149 147 543 02 u65s. Subtotal 8798 8989 21148 32735 46931

3. Operating Surplus(if -2e) 1465 m 1720 3300 10785

4. Interest 1435 1695 7212 9240 12053

5. op Surp tess interestbefore tax (3-4) 30 918 -5492 5940 -1268

6. Direct taxes 250 89 0 21 2649

7. Op Surp Less lntetestafter tax (3-4-6) -220 -100 -5492 5961 -3917

S. onr-p fnome & oepa. Mm-op fncome 2196 2578 ms 8459 16163b. Umep ex. 405 442 1490 2156 6581c. Mot nmorp Income

(86-8b) 1791 2136 6265 6303 9582

9. Met Profit After tax(7.8c) 1571 1129 1m 342 566S

10. Valuesadded (If-2a) 4073 3990 11900 20560 31853

Source: CaLculated from data provided by TCC.(a) n.s. Is rat avaIlable.

- 71 - .........

Table 6: TCC - CONSOLIDATED IALANCE SET('000 LE)

......................................................................................................................

1976 197? 1978 1979 1960/81 1961/82 1982/83 1983/84 1984/85......................................................................................................................

1. Liabititiesa. Not Worth 17521 28855 33642 42666 51367 56065 59556 65343 71586

b. Borrowiqs & other ltabtlfties) LuW tur 3643 13893 35046 40015 40938 42394 61644 123919 202100

11) Short term 11m 12277 15094 15832 23606 23712 40139 24249 57350of sAech payblet 10014 8281 13983 13027 19552 20898 24077 23410 56880

iiM) Sabtotel 1S414 26170 S0140 5584 64544 66106 101783 148168 259450

2. Asetsa. ross w ass 27185 47534 75209 86036 101216 110438 142050 211539 308552

b. ess: AccmtLted 8158 8850 10013 12228 16178 18623 22017 31232 41508

c. nt ixied assets 1902? 38684 65196 73808 85038 91815 120033 180307 267044

d. other Lon tam 2618 2790 2867 6381 5864 5966 5946 6042 6058sets

e. Current a ets 11290 13551 15719 18324 25009 24390 35360 27162 57934of which inventory 9878 12266 11573 1444 16253 16220 19915 2683 26742

reevabLes 1191 1085 1183 1769 1341 3014 9321 2221 6104

TOTAL NET ASSETS 32935 55025 83782 98513 115911 122171 161339 213511 331036................

TOTAL LIASILITIES 32935 55025 832 98513 115911 122171 161339 213511 331036

......................................................................................................................

Sources: 1976-1911Z : Derived from TCC data quoted in UProjectCupletion Report," Loan 1085-EGT, The World

*, Jwt 1985.1982/8-1984/85 : TCC.

- 72 - A... .-.

Table 7: TC - SOURCES AND USES OF FUNS('000 LE)

............................................. ....................................................................................

1977 1978 1979 1980/81 1981/82 198/83 193/84 1964/8s...........................................................................................................

SOURCES

1. Calt Finncinga. beserveseW Surplus 1049 839 431 783 551 475 946 2296b. L.s:Deficit 0 0 0 0 0 0 0 0c. Ptus:Provisions 723 843 2132 4311 2210 3520 9213 13082Sub-Total Self Financing 1772 1682 2563 5094 2761 3995 10159 15378

2. External Financinga. Own CapitatLGoft.Par 10254 4268 8676 7557 4382 2890 4843 114b. Lono term borrowing 10250 21153 4969 923 1456 19250 62275 78181c. 5t-total External Financing 20504 25421 13645 8410 5838 22140 67118 79322

3. Current Liabilities 506 2817 738 M4 106 16427 -15890 33101

TOTAL SaRCES 22782 29920 16946 21348 8705 4262 61387 127801

USES

4. Long Teoma. Ffxed Investments 20349 27675 10827 15180 9222 31612 69489 97013b. Other long term 172 77 3514 -517 102 -20 96 16Sub-totat Long Teom 20521 27752 14341 14663 9324 31592 69585 9729

5. Current Assets 2261 2168 2605 6685 -619 10970 -8198 30772

TOTAL USES 2782 29920 16946 21348 8705 42562 61387 127801

...........................................................................................................

Source: Calculated from CoW' btalareo sheets.

ANNEX 8-7

- 73 -

Table 8: TCC - MEASURES OF FWCIhL PEIRFORMACE('000 LI)

1977 1978 1982/83 198384 1984/85.......... .................................................

1. a. operating surplus net of dep. 1465 777 1720 3300 10785b. plus: depreciation 821 1219 4426 9753 11270c. Operatirn surplus before dep 2286 1996 6146 13053 22055

2. a. Net non-operating income 1791 2136 6265 6303 9582b. Current expenses

of which: interest 1435 1695 7212 9240 12053: taxes 250 89 0 21 2649

c. Govt. transfors 0 5 0 0 0d. Current surplus 2392 2343 5199 10095 16935

(1c+2a-2b-2c)

3. Retum on Capitala. Actual interest 12 109 1074 2594 3744b. Actual rent I 1 2 2 4c. Gross return (2d43&3b) 2405 2453 6275 12691 20683d. Net return 1584 1234 1849 2938 9413

4. Total Capital Expenditurea. Fixed Investment 20349 22675 31612 65479 97013b. Chaoge in inventory 2388 -693 3695 6958 2869c. Equals total new investment 22737 21982 35307 72437 99882

5. Saving - Investment Gap t2d-4c) -20345 -19639 -30108 -62342 -82947

Source: TCC and 181tD calculations.

- 74 - ANEXI-?

Table 9: TCC - BUDGERY 'INACT('000 LE)

......................................................................................

197t 1978 19883 1983/84 184/85.. ....................................................................................

1. TREASURY OUTFLOWa. shSidies 0 S 0 0 0b. Not Investment Ftmds 20504 25421 22140 67118 792

c. Total Outflow 20504 2546 22140 67118 7952

2. TREASUR INFLOWa. Nesr Bank Transfer 36 24 n.a. 7 168

b. Not ProfIt Share 63 0 n.e. 0 135c. Govt Profit Share 816 610 n.e. 187 2950d. Reserve for amvt Sords 7? 54 n.e. 1? 273

e. Total Inflow 992 688 4S7 211 352

3. MET WOETARY SURP.USI(UtDEN) -19512 24738 -21683 -66907 -75799

......................................................................................

$m: TCC and ILRD catcutathers.

Armx B-8............

EGYPTIAN ELECTRICITY AUTHORITY (EEA), ...................................

Table No. Pag No.

1. Balance Shoot. 76

2. Sources end Uses of Funds. 77

3. Prof it snd Lo"s Statment. 78

AMNEX 9-8- 76 - .........

Table 1: REA - BALANCE SIET(Mill. LE)

..................................................................................................

1973 1979 1980/81 1981/82 19J2/83 1983/84..................................................................................................

1. Lfabilitiesa. Net Worth 96.7 271.8 285.5 290.4 833.0 849.8

b. Borrowings & other ifab.f) Long term 329.3 637.0 879.8 1002.0 79.8 1033.6ii) Short term 25.4 245.9 439.0 560.4 647.8 779.6iMi) Subtotal 354.7 882.9 1318.8 1562.4 1427.6 1813.2

2. Assetsa. Gross fixed assets 414.9 1081.2 1497.9 1721.5 2077.0 2420.3

b. Less: Accumutlateddepreciation .104.1 -191.4 -240.4 -278.9 -325.1 *385.2

.6quals: Net fixed assets 310.8 889.8 1257.5 1442.6 1751.9 2035.1

d. Other tong term assets 43.9 59.8 74.0 86.5 91.7 108.7

a. Current assets 96.7 205.0 272.8 323.7 416.9 519.2

TOTAL MET ASSETS 451.4 1154.6 1604.3 1852.8 2260.5 2663.0

TOTAL LIABILITIES 451.4 1154.7 1604.3 1852.8 2260.5 2663.0

..................................................................................................

Sources: EEA

- /Il -

ANNEX B-8

Table 2: EEA - SOURCES AND USES OF FUNDS(Mill. LE)

.......................................................................

1980/81 1981/82 1982183 1983/84

SOURCES

1. Self Financinga. Reserves and Surplus -20.8 -37.7 *545.2 25.4

b. Less:Deficit 0.0 0.0 0.0 0.0

c. Plus:Provisions 0.0 0.0 0.0 0.0

Sub*Total Self Financing -20.8 -37.7 -545.2 25.4

2. External Financing

a. own Capital&Govt.Par 0.4 0.7 531.0 0.0

b. Long term borrowing 239.3 231.6 354.1 313.4

c. Sub-total External Financing 239.7 232.3 885.1 313.4

3. Current Liabilities

a. Credits 132.9 86.9 105.3 128.5b. Bank Credits 4.5 5.6 8.6 '4.7c. sub-total Current Liabilities 137.4 92.5 113.9 123.8

TOTAL SOURCES 356.3 287.1 453.8 462.6

USES

4. Long Term

a. Fixed Investments 296.5 2k3.7 355.5 343.3

b. Other long term 14.1 12.5 5.2 16.9

Sub-total Long Term 310.6 236.2 360.7 360.2

5. Current Assets

a. Inventories 4.4 27.0 33.5 12.1

b. Debtors 11.5 37.7 26.4 79.1

b. Cash 29.7 -13.8 33.3 11.1

Sub-total Carrent Assets 45.6 50.9 93.2 102.3

TOTAL USES 356.2 287.1 453.8 462.5

Source: EEA

- 78 - . I......

Table 3: EEA - CONSOLIDATED PROFIT AND LOSS STATEMENT(Mill. LE)

. ........................ ....................................................... ............................. ...........................................

1973 1979 1980/81 1981/82 1982/83 1983/84 1984/85 a/............................................... .................................................................................. ...........................

1. Value of Productiona. Turnover 50.7 142.0 199.2 240.4 297.9 402.5 481.5b. Less: Indirect Taxes 0.0 0.0 0.0 0.0 0.0 0.0 0.0c. Plus: Subsidies 0.0 0.0 0.0 0.0 0.0 0.0 0.0d. = Operating Income 50.7 142.0 199.2 240.4 297.9 402.5 481.5e. Plus: change in inv of

fin & unfin goods 0.0 0.0 0.0 0.0 0.0 0.0 0.0f. = Value of Production 50.7 142.0 199.2 240.4 297.9 402.5 481.5


services 15.2 57.6 105.7 131.4 158.6 193.2 221.9b. Wages 12.2 30.1 44.3 62.0 72.6 89.8 104.4c. Depreciation 12.1 23.2 33.7 38.6 46.1 60.1 72.1d. Other prov (rent) 0.0 0.0 0.0 0.0 0.0 0.0 0.0e. Subtotal 39.5 110.9 ig3.7 232.0 277.3 343.1 398.4

3. Operating Surplus(1f-2e) 11.3 31.1 15.4 8.4 20.6 59.4 83.1

4. Net Non-Operating Income 1.7 -0.7 *0.3 4.0 5.0 22.8 0.0

5. Total Income(3+4) 9.6 30.5 15.1 12.4 25.6 36.6 83.1

6. Interest 9.6 23.6 18.2 8.3 14.1 19.8 28.5

7. Tot. Surp less interestbefore tax (3-4) 0.0 6.8 3.1 4.1 11.5 16.8 54.6

8. Direct taxes 0.0 0.0 0.0 0.0 0.0 0.0 0.0

9. Net Profit after tax 0.0 6.8 *3.1 4.1 11.5 16.8 54.6

10. Current Surplus(9 + 2c) 12.1 30.0 30.6 42.7 57.6 76.9 126.7

.....................................................................Source: EEA and IBRD estimates.

a/ Estimated

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