Announcement of the Philippines to Improve Communal Irrigation Works with Seventy-One Million One Hundred Thousand Dollars Loan on June 10, 1982

t/T,'•' ., . f OR IMMEDIA n· RELEASE . ti 9" ' • • • II (.? C, 0 CJ•) WorkJBank // - _ 1818 H Street, N.W., Washington, D.~. 20433,.:-U.S(,A • Telephone: (202) 477-1234 0 BANK NEWS .REt:EASE NO. 82/117 Contact: Sundaram Sankaran June l O, 1982 - (20.2) 477-39'62 , 0 THE PH IL I PP INES TO f MP ROVE., COMMUNAL I RR I GATI ON WORKS WI TH $71. 1 MI t:L tON LOAN The World Bank has approved a $71.1 million Joan to the Philippines to suppo.rt the deve1Qpmen£ of communal irrigation facf 1 ities for smal 1-scale farmers throughout the country. Co-flr1c_mcing.,;of ··$·1f ml,! 1 l·on wi 11 ·be prov}ded' by the International .Fund for AgrieuJtu'ral Development'. ,. , I rrlgation works to "b~afinanc~d under the $121.8 mt 11 ion p"roject wi 11 be implemented through a participa'tory approach,, unique~'in the country for a project· f?1,j size. Qf t 1 The Nationa1 Irrigation Administration, illlplementing agency for the ~,';;'! \,ct, has tested the system on 40 pi lot schemes over the last five years. \_J,"----.r' . .. ,, Farmers will be involved in a11 ph.ases of project planning, design, and · construction to he1p prepare ·them to carry out the operation and management of their own sy~tems after construction. · · Communal irrigation systems on about 34,500 hectares will be constructed or rehabilitated under the project. l~provements will inc1~de the building of diversions, intake works, main ~anals'~ laterals, drains, and related structures. About 24,000 farm families will benefit from the project through an increase in food production. At full development in l.990, the irrigation works are expected to result in the annual incremental production of 106,000 tons of rice, produting an increase in net income of about $588 per year for each farm family involved in th~ project. Training wi11 be provided for agricultura1 extension agents, farmer leaders, and the staff of the Natio~al ltrigation Administration. The projec~ will also i·nvolve the strengthening of 67 provincial irrigation offices through the improvement of office . buildlngs and the provision of equipment and vehicles. The World Bank loan is for 20 years, including five years of grace, with interest at 11.6% a year; the loan also carries an annual commitment charge of 0.75% on undispursed balances, and includes a front-end fee of 1.5% on the amount of the loan. NOTE: Money figures are expressed in U.S. dollar equivalents.