Announcement of Philippine Farmers to Benefit from Irrigation Project on June 6, 1988

FOR IMMEDIATE RELEASE \NorldBank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 88/78 CONTACT: Richard Kollodge (202) 477-4507 PHILIPPINE FARMERS TO BENEFIT FROM IRRIGATION PROJECT WASHINGTON, June 6, 1988 -- Agricultural production in the Philippines will expand, farmers' incomes will increase and the country will progress toward food self-sufficiency because of a nationwide irrigation project the government is launching. The project is being supported by a $45 million loan from the World Bank. The $60.2 million project will improve operations and maintenance of the country's national irrigation system (NIS) network and is expected to directly benefit about 430,000 farm families, or about 2.6 million people. The project will finance improvements for operating gates and spillway controls, monitoring and supervising the performance of irrigation systems and recording canal and river discharges. It will also support maintenance measures such as canal desilting, weed control and drainage clearing; and will finance the upkeep of service roads, buildings, equipment and vehicles. Approximately 40 percent of the Philippines' irrigated land is served by 127 NISs, built, operated and maintained by the National Irrigation Administration (NIA), which charges irrigation service fees to beneficiairies who are mostly smallholder farmers and irrigation associations. NIA will be strengthened institutionally by improving staff training and making the system for collecting irrigation fees more efficient. In addition, about 390 new irrigation associations will be set up. The World Bank loan is for 20 years including five years of grace, with a variable interest rate, currently 7.72 percent, linked to the costs of the Bank's borrowings. It also carries an annual commitment charge of 0.75 percent on the undisbursed balances. Note: Money figures are in U.S. dollar equivalents.