Announcement of Twenty-Five Million US Dollars Loan for Rural Development in the Philippines on April 10, 1975

• 1818 H STREET. N.W., WASHINGTON Bank News Release No. 75/22 D. C. 20433 TELEPHONE: EXECUTIVE 3-6360 April 10, 1975 $25 MILLION LOAN FOR RURAL DEVELOPMENT IN THE PHILIPPINES The World Bank today announced the approval of a loan of $25 million to help finance a. rural development project designed to increase agricultural production and farm incomes and to improve transportation on Mindoro Island, the Philippines. The Philippines has given priority for the development of relatively backward regions with good agricultural potential. The objectives are to help correct regional economic and social imbalances, to assist the national program for foodgrain self-sufficiency and to build up Government services for planning and implementing projects in the rural areas. The project will help to meet these objectives. • It consists of the construction and improvement of national and communal irrigat:i.on systems, and of the national and provincial roads as well as improvements to Calapan port. It also includes a rat control program to protect 90,000 hectares of paddy land, provision of improved seeds, control of schistosomiasis (an endemic disease) and technical assistance to minority tribes. The project will directly benefit some 30,000 poor farmers and their families involving a total of 200,000 persons or 40% of the Island's population. Per capita incomes, on typical farms, w:1.11 increase from $90- a year at present to $140 in 1985. At full devel- opment, the project will help to increase the Island's annual paddy production by 100,000 tons. The increased production will provide enough rice to feed some 500,000 people a year. The Food and Agriculture Organization of the United Nations (FAQ) joined the Bank in identifying and preparing the project under the Bank/FAO Cooperative Programme. The Bank loan is for 2~ years, including a grace period of 7 years, with interest at 8-1/2% per • annum. The project is scheduled to be completed in 1981 at a total estimated cost of $50 million. Note: Money figures are exp+essed in US dollar equivalents.  PROJECT: T E CHNI CAL DAT A Rural Development • COUNTRY: The Philippines TOTAL COST: $50 million BAfUC FINANCING: $25 million for a term of 25 years, including 7 years of grace, with interest at 8-1/2% per annum. OTHER FINANCING: The Government of the Philippines IMPLE11ENTING ORGANIZATIOR: A number of national departments will be respon- sible for implementing the project. To coordinate the work, the Government will appoint a Project Director who will report directly to the Cabinet Coordinating Committee for Rural Development, Man~la, the Philippines. PROJECT DESCRIPTION: The project fncludes: a) improvement and extension • of national and communal irrigation systems to serve 15,000 hectares; b) hydro-meteorological studies; c) a watershed protection program; d) construction and improvement of 430 kilometers of nattonal and provin- cial reads; e) 1mprovement of Calapan port; £) a program to produce certified rice seed and to control rate g) a program to control schistos·omiasis; h) assistance to minority Mangyan tribes. PROCUREMENT: Equipment and vehicles costing $3.1 :million will be procured on the basis of international compet·- itive bidding in accordance with Bank guidelines. A preference limited to 15% of the c.i.£. price or the custom duty, whichever is lower, will be extended to local manufacturers in the evaluation of bids. About 60% of the civil works for the nation- al irrigation system will be awarded on the basis of bid.ding advertised locally and the balance by force account by the National Irrigation Administration or by farmers. Contracts for civil works on the national highway ($8.6 million) together with provincial roads will be awarded on the basis of international competitive bidding in accordance with Bank guidelines. CONSULTANTS: The Department of Public Highways will engage consult- ants to carry out feasibility studies, and, if warranted detailed engineering for a nacional highway in occidental Mindoro and possible road links with Oriental Mindoro. ES~I~...ATED COMPLETION DATE: December 1980 •