WATCHING GOVERNMENT THE WORLD BANK'S NEW FOCUS

For many years the World Bank has played a pivotal role in financing energy projects in developing countries.

The bank's current 5 year plan proposes lending about $9 billion to 60 energy projects by mid-1998.

Hossein Razavi, chief of the bank's oil and gas division, also wants to expand his group's activities into two new areas: helping nations privatize their national oil and gas industries and facilitating large, multinational gas projects.

ROLE SHOT

Razavi said, "The bank will be shifting away from its role as strictly a lender in the next 2 years. We want to be more than just a lending agent. We want to be like an agent of assistance."

The bank wants to play a key role in multinational gas trade projects, mostly long-line export pipelines but possibly some LNG projects.

Razavi said gas export projects are typically very large, very expensive, span several countries, and involve more than the normal number of industry partners.

Many more project ideas are "floated" than are built. In the past, the borrower usually has put together the project. But companies that usually performed that role, the multinational oil firms, increasingly are segmenting their operations.

Because their emphasis now is on smaller profit centers and a faster return on investments, "the money that major oil companies formerly put in these long lead time projects is not coming as it has in the past. "

Razavi said the World Bank could fill that gap. It could investigate proposals and if it found them viable, they would automatically become credible.

"We not only could help distinguish potential projects from long shot dreams, but we also are in a good position to play a role in bringing these partners together."

He explained that international gas projects require much support from governments, and "we are in a unique position to bring our cross-country experience into the picture.

He stressed, "The major players will still be the same private companies."

GAS TRADE

Razavi said the bank already is working on ideas for gas lines involving Bolivia, Brazil, Pakistan, India, and Thailand.

"We are spreading our nets to see what is happening in gas trade worldwide so we will know the areas where we will be substantively involved."

Razavi also said the oil and gas sector will become more involved in helping countries privatize their oil and gas industries.

In the past, the bank has loaned Argentina technical assistance funds for privatization, and its personnel have helped Bolivia plot a privatization strategy.

"In terms of the impact it will have on the countries and the international oil industry, this is a big development for the bank," Razavi said,

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