Philippines - Third Ports Project

Document of The World Bank FILE COp , FOR OFFICIAL USE ONLY Report No. P-2803-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 THIRD PORTS PROJECT May 5, 1980 This document hus a restricted 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.  {CURRENCY EQUIVALENTS Currency = Peso P1 = US$0.137 P1 million = US$137,000 US$1 = P7.30 WEIGHTS AND MEASURES 1 meter (m) = 3.28 feet (ft) 1 kilometer (km) = 0.62 mile (mi) 1 kilogram (kg) = 2.2 pounds (lb) 1 metric ton = 0.98 long ton (ton) ABBREVIATIONS ADB - Asian Development Bank IATCTP - Inter-Agency Technical Committee on Transport Planning MOTC - Ministry of Transportation and Communications MPH - Ministry of Public Highways MPW - Ministry of Public Works NEDA - National Economic Development Authority PEA - Philippine Estates Authority PNR - Philippine National Railways PPA - Philippine Ports Authority PPDO - Planning and Project Development Office GOVERNMENT OF THE REPUBLIC OF THE PHILIPPINES FISCAL YEAR January 1 to December 31  FOR OFFICIAL USE ONLY PHILIPPINES THIRD PORTS PROJECT Loan and Project Summary Borrower: Republic of the Philippines Beneficiary: Philippine Ports Authority (PPA) Amount: $67 million equivalent Terms: 20 years including 5 years grace at 8,25% interest p.a, Relending Terms: The proceeds of the loan would be relent to PPA on the same terms and conditions as those for the Bank loan. PPA would bear the foreign exchange risk. Pro_ject Description: The objectives of the project are: (a) to strengthen the capacity of PPA to operate and maintain national ports; (b) to increase the operating efficiency and throughput capacity at the project ports through the introduction of improved port management and maintenance and the provision of additional berths and ancillary services; and (c) to stimulate growth of these important secondary ports to support the Government's strategy of dispersing industrial development away from Metropolitan Manila. By improving port operations and increasing port productivity through reduced congestion, cargo losses and handling costs, the project would provide more economical means of transporting major agricultural commodities produced in the hinterland of the project ports for domestic and foreign markets, and consumer goods shipped from Manila for distribution in the influence areas of the project ports. The resulting increase in commerce between the major domestic markets near Metropolitan Manila and the project ports is expected to stimulate the economy of port areas which are potential centers for future growth. The principal risks would arise from port traffic being lower than expected, and the possibility of project cost overruns. However, even assuming 25% lower traffic projections and 25% higher cost overruns, the project's economic viability remains sound. Risks associated with relocation of people occupying one of the project sites are being minimized by agreement with Government on appropriate relocation arrangements. Implementation problems are not expected to be serious as appropriate administrative arrangements have been made under the project to provide for adequate leadership in Ministry of Public Works and PPA for the execution of the project. | This document has a restricted 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.  - ii - Project Costs: Local Foreign Total