Announcement of World Bank Approves Sixty-Three Million Dollars Loan for Manila Sewerage and Sanitation Project in Philippines on March 24, 1980

FOR 'lMMEDIATE RELEASE eJ\/orld Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 80/62 March 24, 1980 WORLD BANK APPROVES $63 MILLION LOAN FOR MANILA SEWERAGE AND SANITATION PROJECT IN PHILIPPINES The World Bank has approved a loan of $63 million to the Philippines for carrying out a sewerage and sanitation project in Manila. The $177.4 million project provides for the rehabilitation of the sewer system in the central area of Manila, construction of a sewerage collec- tion system in about 2,050 hectares of low-income and blighted areas, staff training, and technical assistance as well as monitoring of water quality in Manila Bay. The project should make immediate improvements in the living conditions of about 900,000 urban poor, of a total estimated 3 million popu- • lation to be served by the project . The implementing organization of the project is the Metropolitan Waterworks and Sewerage System. The project is the first major such under- taking by the orgainzation. The Bank loan to the Philippines is for a term os 20 years, including a 5-year grace period, with interest at 8.25% a year. NOTE: Money figures are expressed in U.S. dollar equivalents . • FOAM NO. 1121 (5-76) T ECHN I CAL DAT A PROJECT: COUNTRY: TOTAL COST: Manila Sewerage and Sanitation Philippines $ 177 . 4 mi 11 i on • MN I<. FI NANC I NG : $63 million for a term of 20 years, including 5 years of grace, with interest at 8.25% a year. OTHER FINANCING: Asian Development Bank, $42 million; and Metropolitan Waterworks and Sewerage System and Government of the Phi 1 i pp i nes, $72. 4 mi 11 ion IMPLEMENTING ORGANIZATION: Metropolitan Waterworks and Sewerage System (MWSS) Arroceros Street, Manila, Philippines Telex No. 2671 CDM PH, National Pollution Control Commission (NPCC), PAEC Building, Plaza Mivanda, Metro Manfla, Philippines (no telex available). PROJECT DESCRIPTION: It provides for (a) rehabilitation of the sewer system in the central area of Manila; (b) construction of a sewerage collection system in about 2,050 ha of low-income and blighted areas; (c) staff • training and technical assistance; and (d) water quality monitoring. PROCUREMENT: The Dagupan and Pandacan collection systems, estimated at $8.4 million and $5 mill ion, respectively, are suit- able for international competitive bidding (ICB), following Bank procedures. A total of some 40 to 60 small contracts are expected for combined sewers and will be awarded after competitive bidding advertised locally in accordance with MWSS' local competitive bidding procedures which are satisfactory to the Bank. Foreign firms will be eligible to parti- cipate. All equipment required for the monitoring programs and MWSS' new laboratory will be grouped together and procured through ICB. Vehicles, tools, ar1 equipment (less than 1% of total project cost) will also be procured through ICB. A preference limited to 15% of the c. i.f. price of imported goods or the prevailing customs duty, whichever is lower, will be extended to local manufacturers for procurement through ICB. Off-the-shelf items costing less than $20,000 each, urgently required for project completion, will be pro- cured through local shopping procedures satisfactory to the Bank, provided the total cost of such items does not exceed $500,000. CONSULTANTS: The services of internationally recruited consultants for 800 man-months and of local consultants for 2,680 man-months will be required. ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: Minimum of 11% 1984 - 0 - •