Announcement of Twenty Million Five Hundred Thousand US Dollars to the Philippines for Second Livestock Project on March 18, 1976

•world Bank 1818 H Street, N.W. 1 Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 BANK NEWS RELEASE NO. 76/25 March 18, 1976 $20.5 MILLION TO THE PHILIPPINES FOR SECOND LIVESTQf_~jiOJEC!_ The World Bank today announced a $20.5 million loan to help finance a second livestock project in the Philippines. The project, with a total cost of $41.3 million, will support the Government's objectives of increasing livestock production by helping alleviate existing constraints through the provision of credit, better research and extension and a system for improving animal feeds. With this second livestock project, the Bank will continue to assist the Philippines to increase domestic livestock production by providing funds to the Development Bank of the Philippines (DBP) for re-lending to livestock • producers, particularly for smallholder pig and poultry operations and to municipalities to help them upgrade slaughterhouses which need to be rehabilitated to meet higher standards. The project will also help the Bureau of Animal Industries fn the Department of Agriculture improve the technical services provided to DBP's sub-borrowers , undertake applied research and trials on specific livestock production problems and establish a feed-quality control system. The project will contribute to the Government's objectives of increasing the production of meat, eg and milk, and help stabilize the price f.or these products. The instltutfon-bufldlng role begun under the first livestock project will be continued by strengthening the Livestock and Poultry Group of the DBP and by assisting the Bureau of Animal Industry in providing technical support to DBP's lending program. In designing the project, particular attention has been given to meeting the needs of ICM-Income farmers and Increasing their productivity and incomes. About 18,000 people will directly benefit from this project, and at full development in 1987, ft wf 11 generate some 5,800 full-time jobs and indirectly a large number of jobs In the production of feedstuff, transportation and marketing. The Bank loan to the Philippines will be for a term of 14-1/2 years, including a 5-1/2 year grace period, with Interest at 8-1/2 percent . _____________ • ._..._ NOTE: Money figures ar·e expressed In US dollars equivalent. Form No. 1121 (9-75) PROJECT: __ .__...._.~---- TECHHICAL .__._...... DATA -------------- Second Livestock Deve·iopment • COUNTRY: Republic of the Philippines TOTAL COST: $4 1 • 3 mi 11 ton BANK F rnANC P~G: $20.5 million, 14-1/2 years, tnclu-Jlng 5-1/2 years of grace; Interest at 8~1/2 percent per annum OTHER FINANCING: Beneficiaries; Development Bank of the PhllTppines and Government IMPLEMENTING ORGANIZATIONS: Development Bank of the Philippines (08?) Conrnerclal Center (P.O. Box 800) Makatl, Rlzal D-708 Philippines TELEX 7222197 Cable: PHILDEBANK For feed-quality control: • Department of Agriculture Quezon City, Philippines PROJECT DESCRIPTION: The project consists of a program of credit by OBP to assist In the development of pig, poultry, and cattle enterprises, and in the establishment, replacement or upgrading of about ten small municipal slaughterhouses; a program to offer formal tralnlng, including re-training and on-the-job instruction on livestock development to an adequate number of staff members of DBP. It wt 11 a 1so provt de, th,ll'ough the Government, for a program of investigation into pig and poultry nutrition, the use of by-products by ruminants, and backyard cattle raising. Finally, the project will provide for the establishment by the Government, of a feed quality control system, Including construction and equipping of a feed quality analysis laboratory. PROCUREMENT: (a) Procurement for farm development ($35.~ million) wlll be undertaken by farmers from local suppliers; (b) Slaughterhouses contracts ($1.9 million) will be awarded after local advertisement; (c) Equipment and material for the feed quallty co1,trol laboratory (S0.4 million) will be procured after advertising under international competitive bidding procedures In accordance with Bank guidelines; (d) Vehicles and equipment ($160,000) required for administering the project and for technical services wi 11 be procured locally by DBP; and (e) Technical services wt 11 be awarded in accordance wtth standard Bank procedures. CONSULTANTS: DBP will employ one consultant for cattle production (12 man-months) and one for farm development monitoring (12 man-months). The Governn,ent wtl 1 employ consultants (for a total of about 24 mart-months) on pig nutrition, poultry nutrttiol'I, the use of .by-produds by ruminants, • and a backyard cattle raising system. EtwwOHIC RATE OF RETURN: 25% ESTPMJTED COMPLETION DATE: 1982