Announcement of World Bank Announces Eighty-Eight Million Dollars Loan to Philippines for Manila Water Supply on July 27, 1978

. '• FOR IMMEDIATE RELEASE • World Bank 1818 H Street, N.W. 1 Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 BANK NEWS RELEASE NO. 79/6 JULY 27, 1978 WORLD BANK ANNOUNCES $88 MILLION LOAN TO PHILIPPINES FOR MANILA WATER SUPPLY The World Bank has announced an $88 mill ion loan to the Philippines to help expand and improve the water supply system serving the Metropolitan Manila area. The Manila-based Asian Development Bank is providing partial financing toward the project's total cost of $397.l million. The project, which is expected to double the water supply in Manilai is in 1 ine with the Philippine Government's plans for an ambitious water supply investment program throughout the country. The Philippines is endowed with abundant water resources, but the infrastructure for water supply, sewerage, and drainage has not kept up with the growth in demand. In Metropolitan Manila alone, almost half of the area's 5.8 mill ion popula- tion still rely on unsafe water supply sources . • The project will help expand the present major source of water supply from the Angat River and will include the construction of a dam, an aqueduct, a trtatment plant, reservoirs, pumping stations, deep wells, and a distribution network. Through substantial technical assistance and construction of a training school, the project will also help strengthen the Metropolitan Waterworks and Sewerage System (MWSS), the agency respon- sible for w~ter supply and sewerage in the Metropolitan Manila area. The World Bank estimates that in 1987, when the project facili- ties will be fully utilized, an additional 4 mill ion people in Metropolitan Manila will have access to safe water and some 3 mill ion who are not adequately served at present will have improved service. Thus, about 80% of the 9.2 mil- l ion projected 1987 MWSS service area population will have access to potable water. The project wi 11 ·include construction of public standpipes in blighted areas and·a tertiary grid of small pipes in order to extend the benefits of the improved water supply to the urban poor who are scattered throughout the city. About 3.3 mill ion of the projected 4.6 million urban poor in the MWSS service area in 1987 will benefit from the project. The Bank loan will also finance feasibility studies and detailed designs for water supply projects in several provincial cities and rural areas. • The $88 mill ion World Bank loan is for a period of 20 years, in- cluding 5 years of grace, with interest at 7.9% per annum. NOTE: Money figures are expressed in U.S. dollar equivalents. FORM NO. 1121 {5-76) T EC HN I CAL DA T A PROJECT: COUNTRY: Second Manila Water Supply Repub l i C of the Phi n pp i nes $397.1 million • TOTAL COST: BANK FINANCING: $88 million, for a term of 20 years, including 5 years of grace, with interest at 7.9% per annum. OTHER FINANCING: $100.3 mill ion from the Asian Development Bank (ADB); $208.8 mill ion fro~ the Metropolitan Waterworks and Sewerage System (MWSS) and the Government of the Phi 1 i pp i nes IMPLEMENTING ORGANIZATION: Metropolitan Waterworks and Sewerage System (MWSS) 176 Arrecevos Street Mani la, Phi 1 i pp i nes Cable Address: MWSS, Manila Philippines PROJECT DESCRIPTION: The project will provide safe water for an additional 4 mill ion people in Metropolitan Manila and improve the service to some 3 mill ion who are inadequately served at present. The project has the following components: (a) source development to almost double the water production capa- ~ city-of the present major source of supply from the Angat River; construction of a dam, aqueduct, treatment plant, reservoirs, pumping stations, and pipelines; and technical assistance for project implementation and institutional development; (b) constructlon of a distribution network and deep wells; acquisition and installation of water meters, equipment, tools, and vehicles; construction of a training school; and technical assis- tance for project implementation and staff devleopment ; (c) preparation of feasibility studies and detailed designs for water.supply projects in provincial cities and rural areas. PROCUREMENT: Equipment and supplies for part (b) of the project (about $106 millio~) will be procured on the basis of international competitive bidding in accordance with Bank guidelines. A preference limited to 15% of the c.i.f. price of imported goods, or the customs duty, which- ever is lower, will be extended to qualified local manufacturers in the evaluation of bids. Major civil 1NOrks contracts costing about $73 mill ion will be awarded on the basis of international competitive bidding in accordance with Bank guidelines. Con- tracts for the installation of meters and construction of public standpipes costing about $5 million; for the construction of branch offices, training school and purchase of related equipment costing about $1 mill ion and for well drilling costing about $2 mill ion will be awarded on the basis of bids advertised locally in accordanc~ with local procedures acceptable to the Bank. There is potentially adequate local com- petition for these contracts and foreign firms would be eligible to participate. CONSULTANTS: Besides local consultants, other consultants will be needed. as follows: 180 man-months for construction supervision; 36 man-months for ground water studies and staff training, 190 man-months for feasibility studies and detailed designs for provincial cities and rural water supply projects. ECONOMIC RATE OF RETURN: l 2% ESTIMATED COMPLETION DATE: 1983