Announcement of Philippines to Strengthen Local Infrastructure and Services on December 18, 1989

FOR IMMEDIATE RELEASE World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.* Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 90/35 Contact: P. Sison (202) 477-4347 Leandro V. Coronel (202) 477-3641 PHILIPPINES TO STRENGTHEN LOCAL INFRASTRUCTURE AND SERVICES WASHINGTON, December 18, 1989 -- The local governments in more than 30 growing municipal areas in metropolitan Manila and surrounding provinces will receive support in upgrading infrastructure and public facilities under a project to be partly financed by a loan of $40 million from the World Bank. The project will assist local governments in providing basic instrastructure and facilities--such as roads, drainage, communal water systems, markets and slaughterhouses--particularly in poor communities. The local governments will also receive assistance in improving their ability to plan, finance and implement municipal projects. Tax maps will be prepared and revenue collection enhanced under a property-tax administration program. Advisory services to the Department of Finance (DOF) will focus on strengthenening and expanding a municipal-development fund. The Department of Public Works and Highways (DPWH) will receive technical support in reinforcing its project-management office. Technical assistance for a solid-waste management study will also be provided. Fast-growing urban populations have hampered local governments' ability to provide basic infrastructure and services. At current rates, metropolitan Manila's population will grow by about 200,000 a year. Cofinancing for the $57 million project will come from local governments, DPWH and DOF. The World Bank loan is for 20 years including five years' grace, with a variable interest rate, currently 7.74 percent, linked to the cost of the Bank's borrowings. It also carries an annual commitment charge of 0.25 percent on the undisbursed balance. NOTE: Money figures are expressed in U.S. dollar equivalents.