Announcement of Philippines to Improve Highways with One Hundred Two Million Dollars World Bank Loan on May 21, 1984

FOR IMMEDIATE RELEASE WorId Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. WORLD BANK NEWS RELEASE NO. 84/74 Contact: P. Sison May 21, 1984 (202) 477-3573 PHILIPPINES TO IMPROVE HIGHWAYS WITH $102 MILLION WORLD BANK LOAN The World Bank has approved a loan of $102 million to help the Philippines improve and restore highways and reconstruct bridges, and to strengthen management of the highway network. The project includes the reconstruction of about 435 bridges and culverts on national highways. These works compose the first phase (1985-88) of an eight-year bridge reconstruction program of the Ministry of Public Works and Highways (MPWH). An 83-kilometer section of the national highway in Central Luzon will be improved to accomodate projected traffic in the next 20 years. Another 1,223 kilometers of national highways will be restored. Consultants have been hired to provide detailed engineering of bridges and culverts, and to supervise construction. They will also help prepare future projects, and carry out studies on highway management and traffic safety. Technical assistance will be provided to strengthen the capability of 4 the MPWH to maintain highways. A review of the road transport industry-to improve its operations and to develop a scheme for the deregulation of road transport--will be carried out for the Ministry of Transport and Communications. The technical assistance team will help prepare a plan for deregulating interisland shipping. The experts will also help the Construction Industry Authority to develop further the domestic construction industry. Under an earlier project, The World Bank supported training for MPWH staff in highway maintenance, and construction and contract management. This assistance will be continued under the new project. The World Bank has committed $271 million in loans for four earlier highway projects in the Philippines. Two projects have been completed, the third is expected to be finished by August 1984, and the fourth by June 1985. The Bank's support for the transport sector in the country includes lending for one rural road, one shipping, and three port projects. The new highway project will be carried out in four years at an estimated cost of $189.5 million, with the government providing $87.5 million. The World Bank loan is for 20 years including five years' grace, with a variable interest rate linked to the cost of the Bank's borrowings. It also carries an annual commitment charge of 0.75 percent on undisbursed balances and a front-end fee of 0.25 percent on the amount of the loan. NOTE: Money figures are expressed in U.S. dollar equivalents.