Philippines - Third Rural Credit Project

Report No. 428a-PH Philippines: Appraisal V a LI of the Third Rural Credit Project May 28, 1974 Agricultural Credit & Agro-Industries Division Asia Projects Department Not for Public Use Document of the International Bank for Reconstruction and Development International Development Association This report was prepared for otficial use only by the Bank Group. It may not be published, quoted or cted without Bank Group authorization. The Bank Gro;up does nor accept responsibility tor the accuracy or compteteners oi the report.  CURRENCY EQUIVALENTS US$1.00 = Pesos () 6.78 P 1.00 = US$0.1475 WEIGHTS AND MEASURES - METRIC SYSTEM 1 hectare (ha) = 2.47 acres 1 kilometer (km) = 0.62 miles 1 kilogram (kg) = 2.2 pounds 1 cavan (paddy) = 44 kg 1 cavan (corn) = 57 kg 1 picul (sugar) = 63.5 kg ABBREVIATIONS ACA - Agricultural Credit Administration AGF - Agricultural Guarantee Fund AGLF - Agricultural Guarantee and Loan Fund ARF - Agrarian Reform Fund BAI - Bureau of Animal Industry BPI - Bureau of Plant Industry CB - Central Bank of the Philippines DANR - Department of Agriculture and Natural Resources DBP - Development Bank of the Philippines DLGCD - Department of Local Government and Community Development DRBSLA - Department of Rural Banks and Savings and Loan Associations, CB IRRI - International Rice Research Institute NEDA - National Economic Development Authority NFAC - National Food and Agriculture Council NGA - National Grains Authority NIA - National Irrigation Administration PNB - Philippine National Bank RB - Rural Banks SFSCF - Small Fishermen's Special Credit Fund SSLA - Stock Savings and Loan Associations FISCAL YEAR Government: July 1 to June 30 CB: January 1 to December 31 Rural Banks: January 1 to December 31 SSLAs: January 1 to December 31  PHIILIPPINES APPRAISAL OF TIIE THIRD RURAL CREDIT PROJECT TABLE OF CONTENTS Page No. SWIMARY AND CONCLUSIONS . ........................... i-i I. INTRODUCTIONT ........................................ II. BACKGROUND .......................................... General ........................................1 The Agricultural Sector ........................ 2 Agri-cultural Credit ............................ I ITI. THE FIRST END SECOND RURAL CREDIT PROJECTS .......... 4 IV. RURAL BANKING INSTITUTIONS .......................... 7 General ........................................ 7 Rural Banks .................................... 8 Stock Savings and Loan Associations .... ........ 9 V. IHE PROJECT ......................................... 10 Detailed Features .......... 10 Project Area ........ ........................... 12 Cost Estimates ................................. 13 Proposed Financing ............................. 13 Disbursements .................................. 14 Procurement ......... ........................... 14 (rgani-zation and Management .................... 14 Auditing ...... 16 Lending Policies, Terms and Criteria .... ....... 16 VI. M4ARKETS AND PRICES .................................. 18 Rice .... 18 Corn ........................................... Sugar .......................................... 19 Livestock ...................................... 19 Fish and Fish Products ......................... 19 Other Outputs .................................. 19 VII. BENEFITS AND JUSTIFICATION .......................... 20 VIII. AGREEMENTS REACHED kND RECOMMENDATIONS .... .......... 22 This report is based on the fin-din6s of a mission composed of Messrs. 0). Lee, C. Downing, C. von Wallenberg, Miss J. Mitra (Bank) and R. Ferraris (Consultant) that visited the Philippines in November/ Deceniber, 1