Announcement of World Bank Supports Rainfed Agricultural Development Project in the Philippines on March 24, 1980

FOR .IMMEDIATE RELEASE e/Vorld Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 80/63 March 24, 1980 WORLD BANK SUPPORTS RAINFED AGRICULTURAL DEVELOPMENT PROJECT IN THE PHILIPPINES A pioneer effort in the Philippines to raise agricultural productivity in lowland areas not suitable for major irrigation works will be supported with a loan of $l2 million, the World Bank announced today. The World Bank-supported Rainfed Agricultural Development (lloilo) Project wi 11 be carried out in lloilo province in the Western Visayas, which has a total land area of about 532,400 hectares and a population of 1 .4 million. Rice accounts for over 50% of the cultivated area, followed by sugarcane, coco- nuts, and corn. Through a combination of activities such as the promotion of livestock production along with crop programs, the construction of scattered, small-scale • multipurpose water impounding schemes, and the provision of support for agricul- tural research and extension, the project seeks to increase the intensity of land use and raise farm incomes. Under the project, farmers in the province's lowlands, excluding irri- gated areas and Gimaras Island, wi 11 receive assistance in improving agricultural production and marketing. These farmers along with others in selected areas throughout the province, will also benefit from the project's nutrition and village development components. Better Seeds, More Extension Workers To improve yields on existing farms, the project will provide better access to high-quality seeds. The lloilo Seed Growers Association will be en- couraged to construct seed processing and storage facilities, and funds will be provided for extension of the Regional Seed Testing Laboratory at Jaro and for hiring of 10 additional seed inspectors. By building on existing staff and on resources to be provided through the National Extension Project now being carried out with Bank assistance, the present project will equip the extension system in the province to cope with the specific requirements of introducing a new crop production technology on a large scale and, at the same time, promote noncropping activities on project farms . • NOTE: Money figures are expressed in U.S. dollar equivalents.  -2- About 56 additional extension and other workers will be provided under the proje~t. Several small extension centers will be constructed and equipped. Field Trials The project will support field trails for adapting the new seeds and technology, including cropping patterns, to the project areas. At Janiuay and • Sara in lloi1o Province, the project will support the Bureau of Plant Industry in conducting adaptive trials, to fit cropping systems to local conditions and developing forage crops for these systems. In other provinces, primarily on Mindanao Island, the project will test the fe~sibility of the new technology and lay the groundwork for future projects in these areas. Multipurpose Water Impounding Schemes Small earthen dams will be constructed on some 40 locations to facili- tate the use of run-off water for various purposes, including irrigation of about 1,800 hectares in scattered locations that could not be served by major irrigation schemes, fish production, water supply for household and animal use, and generation of electricity. The dams will also reduce flood damage down- stream. Minor soil conservation measures will be applied on a pilot basis in the catchment area. Farmers are expected to contribute their arm labor to the construction of irrigation and other works. Other. Features To meet the requirements of a rapidly growing trade in grains, the project provides for the construciton of a grain storage and shipment facility • in the lloilo port area. The facility is expected to handle about 10,000 tons of grain. Cleaning, grading, standardization, and bagging equipment will also be provided. Major emphasis under the project will be given to the training of farmers, agricultural extension, and other staff. A residential training facility will be set up in lloilo City to assist in this training. A pilot scheme for a comprehensive village development program is also included. Anemia and diarrhea are common problems in 11oilo province and the project will provide staff, equipment, materials, and tra!,,ing to alleviate these problems and thus improve nutrition for the province's rural population. Project Benefits The project, which is expected to cost $21.35 million, is designed to increase yields and cropping intensity on about 60,000 hectares and provide supplementary irrigation on about 1,800 hectares. Livestock production will be promoted on some 6,000 farms. A total of 40,000 farm families and 5,000 landless laborers' families (or about 270,000 people) are expected to benefit directly from the increased production and employment. I . .. ~ •  -3- • The lloilo project represents an important step in effort to support multiple-cropping technologies which offers prospects for solving some of the problems of rainfed agriculture in the Philippines and other parts of the world. The World Bank loan to the Philippines is for a term of 20 years, including a 5-year grace period, with interest at 8.25% a year . • • FOAM NO. i i:21 (5-76) T E C HN ! CAl DA TA ====:. ~--=·======= PROJECT: COUNTRY: TOTAL COST: Rainfed Agricultural Development (lloilo) Philippines $21.35 mi 11 ion • BANK FINANCING: $12 million for a term of 20 years, including a 5-year grace period, with interest at 8.25% per annum OTHER FINANCING: Government of the Philip~ines, $8.97 million; and beneficiaries, $0.38 million IMPLEMENTING ORGANIZATION: Provincial Government of lloilo, and Ministry of Agriculture Elliptical Road, Quezon City, Philippines, (Cable: MINAGRI) Te 1ex No. 27726 PROJECT DESCRIPTION: The project provides for increasing agricultural production, improving marketing and extension, training support staff and community members, and strengthening existing institutions responsible for project implementation in lloilo province. The project also provides for the construction of a grains storage and shipment facility and water impounding facilities, programs for • improving nutrition through the control of anemia and diarrhea, and consultant service for the preparation of future similar projects in Mindanao. PROCU.REMENT: Equipment, vehicles, and supplies wi 11 be procured through international competitive bidding (lCB) in accordance with Bank guidelines. A preference, limited to 15% of the c.i.f. price of imported goods, or the customs duty, whichever is lower, will be extended to local manufacturers in the evaluation of bids. Local procurement practices, which are satisfactory to the Bank, will be appropriate for off-the-shelf items costing less than $20,000 each. The total cost of such items will not exceed $500,000. Most civil works in the pro- ject area ($4.7 million, excluding contingencies) will be done by contract but some of them (e.g., buildings and some dams, costing about $1.6 million), will be carried out by force account. Competitive bidding, in accord~nce with normal government procedures which are acceptable to the Bank, is appropriate for the work to be executed under contract. Foreign firms will be eligible to participate. CONSULTANTS: Provision is made for consulting services: (i) to assist in the engineering for the water impounding dams (60 man- months); (ii} to assist in strengthening the planning and project preparation capability of the Bureau of the Soils of the Ministry of Agriculture (36 man-months); (iii) to provide technical assistance for implementation of the pilot comprehensive village development program (42 man-months); (iv) to assist the Ministry of Health with evalua- tion of nutrition programs and (v) to assist the Project Manager as required, particla. with managing post~harvest operations and initiatlng monitoring and evaluation work (72 rra n-months ) . I ...  -2- • ECONOMIC RATE OF RETURN: 37% ESTIMATED COMPLETION DATE: 1985 • •