Announcement of Eight Million US Dollars Loan for a Highway Project in the Philippines on April 8, 1971

7/ / / y r INTERNATIONAL BANK FOR .RECONSTRUCTION AND DEVELOPMENT 1818 H STREET, N.W., WASHINGTON 0. C. 20433 TELEPHONE: EXECUT.WVE 3-8360 Bank Press Release No. 71/18 Sub.ject: $8.0 million loan for a April 8, 19 71 highway project in the Philippines The World Bank has approved a loan of $8.0 million to the Republic- of the Philippines to help £inane~ a highway project. The project c.onsists of construction and improvement of the Cotabato- Digos road of about 100 miles in Mindanao, consulting services for con- struction supervision of this road and detailed engineer:l,ng of this and other roads. It also includes feasibility studies of an additional 600 • miles of roads, and technical assistance to the Bureau c;f Public Highways (BPH). The Bank will work closely with the United Nations Development Programme (UNDP) on the project, which resulted from a transport survey of the Philippines, carried out in 1968/69 with UNDP financial assistance, for which the Bank acted as executing agency. The Survey's primary objective was to prepare a long-term investment pro~.ranr~(?r the transport sector. It also included feasibility studies of priority roads, on the basis of which the project was prepared. The total cost of the project is estimated at $15.8 million equivalent. The Bank loan will finance the foreign exchange costs of road construction I/ and consulting services. · '11le Admitd~trator of UNDP has reconmended to its • Governing Comcil that UNDP make a grant of $1. 9 million to finance the foreign exchang~ costs of the highway feasibility studies and technical /roore  • Bank P.R. No. 71/18 - Philippi.nes - highways. - 2 - assistance to improve the operations of BPH (Port Area~ Manila, the Philippines), the government agency responsible for the execution of the project. The Bank will be the executing agency for these elements of the project. In line with the recommendation of the Trans.port Survey for a long- term investment program for the transport sector, the Government is giving priority to improving highways. The Q>tabato•Digos road is the only east- west link overland in central Mindanao, which is one of the richest rice and corn (maize) producing regions in the Philippines. Some sections of this road are nearly impassable during the rainy season. The project will • provide an all-weather road in the region and will substantially reduce vehicle operating costs. The feasibility studies and detailed engineering of other priority roads will facilitate further investment in highways. The project is expected to be completed by mid-1974. The loan will be for 24 years, including a grace period o.f four years. It will. bear an interest rate of 71£% per annum. -o- •