Announcement of 300,000 Poor People to Benefit from Irrigation Project in Philippines on March 2, 1978

.FOR IMMEDIATE· . RELEAS~ .. • World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 BANK NEWS RELEASE NO. 78/51 March 2, 1978 300,000 POOR PEOPLE TO BENEFIT FROM IRRIGATION PROJECT IN PHILIPPINES More than 300,000 people, most of them living below the poverty line, will benefit from an irrigation project in the Philippines being assisted by a $65 mi 11 ion loan from the World Bank. The primary aim of the Second National Irrigation Systems Improvement Project is to support the Philippine Covern~ent's efforts to maintain self-suffic~ency in rice production, increase incomes of poor farmers, and provide for better reg!on2l balance in the country's economic ~evelopment. Under the project, 26 existing irrigation systems in 7 regions of the Philippines will be rehabilitated and expanded. By providing better • water control and improved drainage, the project is expected to increase yields and farm incomes on about 80,700 her,tares in Southern Luzoh, the Western Visayas and Mindanao. Road factlities to ~erve the irrigation systems will also be built. The National Irrigation Administration, the agency responsible for developing, operating and maintaining all national irrigation systems in the country, will be strengthened through the pro- vision of new equipment, vehicles, buildings and staff training. Another important part of the project is a schistosomiasis control program in Mindanao, one of the three main islands in th~ Philippines. Schistosomiasis is a parasitic disease carried by snails breeding in water- logged terrains--natural swamps or irrigated farmland. The program to control the disease on about 22,000 hectares in Mindanao consists of improved drainage, a diagnostic screening program and chemotherapy treatment of about 35,000 cases, and health education for inhabitants of the area. The \,Jorld Bank has already flnanced eight irrigation projects designed to increase rice production in the Philippines--three in Central Luzon, two in the Cagayan Valley of Northern Luzon, one in the Visayas, one in Mondoro Island and one for smaller systems throughout Northern· Luzon and the Eastern Visayas. These projects, together with the one now announced, wi 11 bring about substantial increa~es in rice production on about 370,000 hectares and benefit nearly 190,000 farm families, most of whom are poor smallholders. The total cost of the new project is estimated at $140 million. • The World Bank loan will be for a term of 20 years, including a 5-year grace period, at an interest rate of 7.45% per annum. NOTE: Money figures are expressed in U.S. dollar equivalents. FORM NO. 1121 (5-76) T E CHN I CA L 0 A T A PROJECT: COUNTRY: TOTAL COST: Second National Irrigation Systems Improvement Philippine~ $Jl~O mi 11 ion • BANK FINANCING: $65 million for a term of 20 years, including a 5-year grace period, at an interest rate of 7.45% per annum. OTHER FINANCING: · The Government of the Philippines, $75 million IMPLEMENTING ORGANl?.,ATION: The National ;rrigation Administration (NIA) ~uezon City Philippines PROJECT DESCRIPTION: The project includes the rehabilitation of 26 existing NIA irrigation systems in 7 regions in Southern Luzon, the Western Visayas and Mindanao serving a total area of 53,700 hectares (ha) and construction of new irrigation, drainage and road facilities on about 27,200 ha of currently rainfed land adjoining these systems; a schistosomiasis control program o.n about 22,000 ha in Mindan~ the strengthening of the 7 NIA Regional Offices through provision of equipment and vehi~ for operation and maintenance, buildings and staff training; and feasibility studies for new irrigation projects, which are needed to continue to expand the national irrigation program. PROCUREMENT: Contracts for the supply of equipment and materials, costing about $18.6 million, will be awarded on the basis of interna- tional competitive bidding in accordance with World Bank Guidelines. For purposes of bid comparison, local manufacturers will receive a preference of 15% or the level of customs duties, whichever is lower. Off-the-shelf items costing less than $10,000 each will be procured through local shopping. Civil works ($76 million), which will be scattered over 26 separate locations in 7 different regions, include rehabilitation of 53,700 ha, exten- sion of facilities for 27,200 ha; main and secondary drains for the schistosomiasis contr~l program and buildings. These works will have to be planned and executed on short notice to avoid the growing season and bad weather and will have to be phased with irrigation releases .. These contracts will, therefore, not be suitable for international competitive bidding. NIA will be allowed to undertake by force account civil works constituting up to 65% of the total cost of civiJ works under the project. The balance of civil works will be carried out on the basis of competitive bidding in accordance with local procedures which are acceptable to the Bank. Foreign firms will be eligible to participate. ECONOMIC RATE OF RETURN: EST IMATED COMP LET I ON DATE: 24% 198 3 - 0 - •