Announcement of Six Million Dollars Loan for Education in the Philippines on October 14, 1964

0 ... JNTERNATJONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT 1818 H STREET, N.W., WASHINGTON D. C. 20433 TELEPHONE: EXECUTIVE 3-6360 Bank Press Release Ito. £:A/ 38 Subject: $6 million loan for education October 14, 1964 in the Philippines The World Bank has approvec a loan ot $6 million equivalent to the Republic of the Philippines. This will be the Bank's first loan in the field of education. The funds provided by the loan Will be used tor a project in higher agricultural educa- tion. Tbe beneficiary will be the College of Agriculture of the University of the Philippines at Los Banos. The College is currently engaged in a Five-Year Develop- ment Program iesigned to improve the quality of agricultural education and research. Thia Program is a vital part of a comprehensive effort that is being undertaken by • the Philippine Government to raise the level of agricultural p~uction. singled out for support by the Worlt Bank because it promises to help give agri- cultural exte~sion and research services in the Philippines the strength that is It was needed to exploit fully the existing potential for a higher level and accelerated growth of output. The proceeds ot the loan "'111 cover about one-halt the coat of constructing and equipping 16 buildings required to carry out the College's Development Program, and of renovating three others. The Government ot the Philippines will provide all additional funds needed. The total cost of the project is estimated at $12 million equivalent. The College of Agriculture, founded in 1909, is the second oldest of 37 schools and colleges making up the University of the Philippines. It bas a well- established reputation, not only in the Philippines but also in sevarsl •  - 2 - neighboring countries which have sent to it many of their agricultural students. The Ford and Rockefeller Foundations have selected the College as an institution • of .special importance and prom1.se in Southeast Asia and together have pledged substantial grants to finance imi9ortant educational and trai~iiig eleme~ts of the Development Program.. They have already helped to establish at Los Banos ( on College property) the International Rice Research Institute which will be an important center of rice research in Asia. Recently, the United Nations Special Fund establ;ished a Dairy Training and Research Institute at the College to serve the Philippines and other countries of Southeast Asia. The Bank loan is for a period of 30 years and bears interest at the rate ot 5~. Because the economic benefits of educational projects of this kind are realized only slowly and because the development of the Philippine economy requires a. large continuous inflow of capital from abroad, amortization of this • loan will begin only after 10 years, the first repayment falling due in 1975 • •