Philippines - Second National Irrigation Systems Improvement Project

Document of FIL E G G p ^uThe World Bank FOR OFFICIAL USE ONLY Report No. P-2225-PH REPORT AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN TO THE REPUBLIC OF THE PHILIPPINES FOR A SECOND NATIONAL IRRIGATION SYSTEMS IMPROVEMENT PROJECT February 14, 1978 This document has a restricted distibution nd m-y be used by recipients only In the performance of their offical duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS US$1 = P 7.40 P 1 = US$0.135 FISCAL YEAR January 1 - December 31 ABBREVIATIONS ABD - Asian Development Bank DAR - Department of Agriculture DOH - Department of Health NIA - National Irrigation Administration NISIP: II - National Irrigation Systems Improvement Project: II NISIS - National Irrigation Systems Improvement Study SCC - Schistosomiasis Control Council SPO - Spectial Projects Organization  FOR OFFICIAL USE ONLY Page 1 of 3 pages PHILIPPINES NATIONAL IRRIGATION SYSTEMS IMPROVEMENT PROJECT II Loan and Prolect Summary Borrower: Republic of the Philippines Beneficiary: National Irrigation Administration (NIA) Amount: $65.0 million equivalent Terms: The loan would be for a term of 20 years, including a grace period of 5 years, at an interest rate of 7.45% per annum. Relendina Terms: The Government will relend the proceeds of the loan to NIA on the same terms as those of the Bank loan. Prolect Description: The proposed project would support the Government's objec- tives of achieving self-sufficiency in rice, increasing incomes of poor farmers, and providing for better regional balance in the Philippines' development effort at a capital cost of $3,000 per benefited farm family. The project would increase yields and farm incomes on about 80,900 ha in Southern Luzon, the Western Visayas and in Mindanao by providing better water control and improved drainage. Rice production would increase from about 234,000 tons of paddy at present to an estimated 516,000 tons at full development in 1988. Approximately 45,000 farm families and 11,500 landless laborers' families, a total of about 316,000 people, most of whom are below the poverty line, would benefit directly from increased production and subsequent employment. In Mindanao, it would provide for a control program in four schistosomiasis affected irrigation systems. The main risk concerns the availability at the right levels and at right time of the entire package of agricultural supporting services. The project provides measures to minimize this risk. An additional possible risk would be failure to properly maintain the irrigation facilities. The project also provides measures to minimize this risk. Thuis document has a triobed distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  Page 2 of 3 pages Estimated Cost: Foreign Local Foreign Total Exchange -- US$ Million --------- () Irrigation works 36.4 35.4 71.8 45 Strengthening of O&M capability 0.6 2.7 3.3 78 Input-output monitoring 1.0 0.5 1.5 27 Schistosomiasis control program 2.3 2.2 4.5 47 Feasibility studies 2.0 2.8 4.8 60 Engineering, administra- tion and supervision 8.0 - 8.0 - Base cost estimate 50.3 43.6 93.9 46 Physical contingencies 6.7 5.4 12.1 45 Expected price increases 18.0 16.0 34.0 46 Total project cost 75.0 65.0 140.0 46 Financing Plan: Government Bank Total -------------- US$ Million ------------- Irrigation systems 36.4 35.4 71.8 Strengthening of regional O&M capability 0.6 2.7 3.4 Input-output monitoring 1.0 0.5 1.6 Schistosomiasis control program 2.3 2.7 5.7 Feasibility studies 2.0 3.1 5.3 Engineering administration and supervision 8.0 - 8.0 Physical contingencies 6.7 5.4 12.1 Price increases 18.0 16.0 34.0 Total 75.0 65.0 140.0  Page 3 of 3 pages Estimated Disbursements: Annual Cumulative Bank's Fiscal year disbursements disbursements