Philippines - Women's Health and Safe Motherhood Project

Document of The World Bank FOR OFFCIAL USE ONLY Report No.P-6435-PH MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN IN THE AMOUNT EQUIVALENT TO US$18.0 MILLION TO THE PHILIPPINES FOR A WOMEN'S HEALTH AND SAFF MOTHERHOOD PROJECT JANUARY 27, 1995 This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS Currency Unit - Philippine Peso (P) US$1.00 = P28.0 (as of June 1994) ABBREVIATIONS ADB - Asian Development Bank AIDAB - Australian International Development Assistance Bureau CAS - Country Assistance Strategy DOH - Department of Health EC - European Commission FP - Family Planning ICB - International Competitive Bidding TEC - Information, Education and Communication KfW - Kreditanstalt far Wiederaufbau of Germany LCB - Local Competitive Bidding LGU - Local Government Unit LIB - Limited International Bidding MCH - Maternal and Child Health NCO - Non-governmental Organization PCR - Project Completion Report PHC - Primary Health Care PIA - Project Implementation Agreement PIP - Public Investment Plan PMO - Project Management Office PPAR - Project Performance Audit Report RTI - Reproductive Tract Infection STD - Sexually Transmitted Disease GOVERNMENT FISCAL YEAR January 1 - December 31  FOR OFFICIAL USE ONLY PHILIPPINES WOMEN'S HEALTH AND SAFE MOTHERHOOD PROJECT LOAN AND PROJECT SUMMARY Borrower: Republic of the Philippines Guarantor: Not applicable Implementing Agency: Department of Health Beneficiary: Not applicable Poverty: Program of Targeted Interventions Amount: US$18.0 million equivalent Terms: Repayable over 20 years, including five years of grace, at the standard variable interest rate Commitment Fee: 0.75% on undisbursed loan balances, beginning 60 days after signing, less any waiver Onlending Terms: Not applicable Financing Plan: See Schedule A Net Present Value: Not applicable Map: IBRD No. 26586 This document has a restricted distribution and may be used by recipients only in the performance of their |official duties. Its contents may not otherwise be disclosed without World Bank authorization.l   MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE IBRD TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN TO THE PHILIPPINES FOR A WOMEN'S HEALTH AND SAFE MOTHERHOOD PROJECT 1. I submit for your approval the following memorandum and recommendation on a proposed loan to the Philippines for the equivalent of US$18.0 million to help finance a Women's Health and Safe Motherhood Project. The loan would be at the Bank's standard variable interest rate, with a maturity of 20 years, including 5 years of grace. Cofinancing totalling US$91.8 million equivalent would be provided by the Asian Development Bank (ADB), the Australian International Development Assistance Bureau (AIDAB), the European Commission (EC) and Kreditanstalt fur Wiederaufbau (KfW) of Germany. 2. Country/Sector Background. Health indicators in the Philippines are considerably worse than in countries of comparable socio-economic status. The incidence of communicable diseases, the status of women's health, and levels of maternal and child mortality and malnutrition are areas of particular concern. In addition, the country's Primary Health Care (PHC) program now functions under a system of devolution mandated by the 1991 Local Government Code. About 1600 provincial, city and municipal local government units (LGUs) have assumed responsibility for planning, financing and implementing health programs in their jurisdictions. The Department of Health (DOH) continues to provide policy and technical support, and will use funds remaining within its control to influence local government spending toward the achievement of national public health goals. Six national priority programs are identified by the DOH in its Ten-Year Public Investment Plan (PIP): women's health and safe motherhood; early childhood development; control of prevalent diseases; health service capacity improvement; environmental health; and health financing. The proposed project would support the first program. 3. In the Philippines, the poor health and nutritional status of women is revealed by low birth weight in about 18% of babies and iron-deficiency anemia in the majority of infants (50% of women are themselves anemic). Maternal mortality is 208 maternal deaths per 100,000 live births, according to the first Demographic and Health Survey conducted in 1993, and even the lower, official figure of 74 is twice that of Thailand. One-third of married women of reproductive age (15-45 years) report an unmet need for contraceptive services, and the total fertility rate remains high at 4.3, compared to 3.4 in Indonesia and 3.0 in Thailand. To date, women's health concerns have been addressed mainly through the DOH Maternal and Child Health (MCH) and Family Planning (FP) Programs. However, the MCH Program has focussed on interventions for the child, and the FP Program has been hampered by technical deficiencies, powerful and vocal opposition to the program, and vacillating political support of previous administrations. In contrast, the current Government has committed to providing a basic package of women's health services, including family planning. This commitment is a concrete manifestation of the Government's endorsement of the Cairo Program of Action of the September 1994 International Conference on Population and Development in Cairo, which called for a special emphasis on investments to reduce high rates of maternal mortality, to educate and empower women, and to increase access to safe and effective family planning and reproductive health information and services.  - 2 - 4. Lessons Learned from Previous Bank Involvement. The Bank Group has supported four projects in the population, health and nutrition sector in the Philippines. Project Performance Audit Reports (PPARs) for the first two projects, Population I (Ln. 1035-PH, approved 1974, closed 1982) and Population II (Cr. 0923-PH, approved 1979, closed 1988), concluded that while the projects failed to fully achieve their population objectives, they should be credited with establishing a nationwide PHC structure, including the para-professional, community-based midwife cadre. The proposed project would continue to strengthen the PHC system and further enhance the efficiency and effectiveness of midwives through better service integration and training. As recommended by the PPAR for Population II, the proposed project would also integrate FP services with the DOH's PHC and MCH programs, and thereby improve the FP program's likelihood of success. 5. Two other Bank-supported health projects are currently under implementation. The Philippine Health Development Project (Ln. 3099-PH, approved 1989) is performing reasonably well, but has been hampered by uneven cash flows due to the Government's inefficient practices relating to budget releases and utilization of project Special Accounts. The proposed project has been included in the Government's Core Public Investment Program, which ensures full funding for high-priority public investment projects; and improved arrangements for the operation of Special Accounts in the Philippines (which, among others, would allow implementing agencies direct access to the Account.;) have been agreed upon with the Bank. Project costs are also being linked to project implementation plans in order to develop realistic forecasts of cash flow requirements. The Urban Health and Nutrition Project (Cr. 2506-PH, approved 1993) is the first post-devolution project in the sector, and the experience in preparing and launching this project has been utilized to work out devolution-related issues for the proposed project. 6. Rationale for Bank Involvement. The Bank's country assistance strategy (CAS) for the Philippines presented to the Board in February 1994 aims to assist the Government to attain the following key development objectives: (a) maintain a sound macroeconomic framework; (b) improve the business climate for private enterprise; (c) remove infrastructure bottlenecks; (d) protect the environment; and (e) alleviate poverty through economic growth and the provision of basic social services. The proposed project is consistent with and would be an important component of the CAS. It would provide a basic package of health services for women, which would both contribute to poverty alleviation and improve the human resource base required for sustained economic growth. 7. The Bank has an established relationship with the Government in the health sector and has assisted the DOH in identifying national health priorities and resource requirements. The Bank's sector report on family planning (Report No. 9579-PH, 1991) was instrumental in the Government's adoption of a health rationale for family planning, and in the DOH's decision to give priority to developing an integrated women's health and safe motherhood project. The Bank has assisted the Government in mobilizing a substantial amount of concessional and grant financing for the project, and would cover the remaining financing gap. The Bank is also helping the DOH in pioneering the development of health risk assessment and targeting mechanisms to more effectively direct limited resources to the poor. Finally, the Bank is playing a critical role in assisting the DOH to address the consequences of devolution, building on its  - 3 - sector report on the impact of devolution on health service delivery (Report No. 12343-PH, 1993), and by helping to prepare and implement projects under a devolved system. 8. Project Objectives. The project's overall objectives are to improve the health status of women, with particular focus on women of reproductive age, and thereby support the Government's long-term goals of reducing fertility, female morbidity and maternal mortality. Its specific objectives would be to: (a) improve the quality and range of women's health services; (b) strengthen the capacity of LGUs to manage the provision of these services, and of the DOH to provide technical, logistical and financial support; (c) enhance the effectiveness and sustainability of health interventions through the participation of local communities and NGOs in the project; and (d) expand the country's knowledge base upon which to draw policy and technical guidance for women's health programs. 9. Project Description. The major project components would be: (a) service delivery (63% of total project cost) in the areas of (i) maternal care (covering pre- and post-natal care, safe delivery and micronutrient supplementation), (ii) family planning, (iii) diagnosis and treatment of reproductive tract infections and sexually-transmitted diseases (RTIs/STDs); and (iv) detection and treatment of cervical cancer; (b) institutional development (27%), including (i) training for public sector health care providers of women's health services, (ii) information, education and communication (IEC) programs, (iii) development of a public health logistics system to ensure efficient commodity procurement and delivery to end users, and (iv) project management; (c) community health partnerships (9%), which would provide grants for communities and NGOs working with local governments and the DOH in planning and implementing community-based women's health services; and (d) policy and operations research (1%) to conduct studies on alternative approaches to service delivery, and on other women's health problems, including breast cancer and violence against women. To implement these components, the project would finance civil works, furniture, equipment, vehicles, training, technical assistance, grants to NGOs, micronutrients, drugs, reagents and other medical supplies, contract staff salaries and other incremental operating costs. 10. Proiect Implementation. The project would be implemented over a five- year period (1995-99) by the DOH and local health offices at the provincial/ city, municipal and barangay (i.e., village) levels. Project activities would be integrated as regular public health program functions. LGUs would play the principal implementation role, while the DOH would provide technical, financial and logistical support. The National Government would allocate and on-grant project funds to LGUs on the basis of need and under variable cost-sharing arrangements. Day-to-day coordination would be the responsibility of a Project Management Office (PMO) in the DOH, reporting to the Undersecretary/Chief of Staff. A Project Steering Committee, chaired by the Project Director and comprising Undersecretaries of the DOH and other concerned Government agencies, would provide policy guidance on the implementation of the project and approve annual implementation plans and budgets. 11. The total cost of the project is estimated at US$136.4 million equivalent, with a foreign exchange component of US$72.6 million, and taxes and duties estimated at US$1.24 million equivalent. The proposed loan of US$18.0  - 4 - million would finance about 13% of total project costs, including 15% of foreign exchange and 11% of local costs. In addition, the project would be financed by: (a) a local contribution of US$26.7 equivalent, mainly through cost-sharing arrangements designed to result in an LGU contribution of at least 15% of the total project cost; and (b) cofinancing contributions totalling US$91.8 million. Specifically: (i) an ADB concessional loan of US$54.0 million equivalent would finance maternal care, IEC and project management; (ii) an AIDAB grant of US$10.6 million equivalent would finance the training sub-component; (iii) an EC grant of US$13.0 million equivalent would finance the community partnerships component; (iv) a KfW grant of $14.2 million equivalent would finance medical equipment, drugs and reagents for maternal care, family planning and RTIs/STDs; and (v) the IBRD loan would cover the remaining financing gap for other women's health services, training, logistics and research. 12. A breakdown of project costs and the financing plan are shown in Schedule A. Amounts and methods of procurement and disbursements, and the disbursement schedule are shown in Schedule B. A timetable of key project processing events and the status of Bank Group operations in the Philippines are presented in Schedules C and D, respectively. A map is also attached. The Staff Appraisal Report, No. 13566-PH, dated January 27, 1995, is being distributed separately. 13. Project Sustainability. To help ensure the financial sustainability of the project, the DOH has developed the PIP as the framework for measuring project investments in light of total resources available to the sector, the impact project investments would have on health expenditures, and the priority the Government attaches to the project. Under the project, funds would be made available through cost-sharing arrangements in which participating LGUs would absorb an increasing share of recurrent costs. Increased community awareness of and involvement in project activities would help generate popular demand for sustained budgetary commitments to women's health care. The project would also support training, technical assistance and administrative systems to help strengthen the technical and managerial skills of DOH and LGU staff, and thereby develop the institutional capacities required to sustain the delivery of women's health services and their expected benefits beyond the project. 14. Agreed Actions. During negotiations, keyunderstandingsandagreements were reached with the Government on the Project Implementation Agreements (PIAs) governing LGU participation in the project, and the principles and criteria for resource allocation to and cost sharing with LGUs. The PIAs to be entered into between the DOH and individual LGUs would stipulate the project activities that the LGU is committing to undertake and/or support, the financing share of the National Government to be allocated and made available to the LGU on a grant basis, the financing share of the LGU, and the delineation of tasks and responsibilities of the DOH and the LGU in project implementation. A decision support model incorporating health status, health expenditure, demographic and poverty indicators would be used as the basis for allocating project resources and determining the appropriate cost-share levels to be borne by LGUs. 15. Agreement was reached during negotiations that the Government would establish and maintain until project completion the PMO, headed by a qualified Project Manager and staffed by qualified personnel in adequate numbers. Agreement was further reached that, not later than July 1, 1995, the Government  - 5 - would: (a) establish the Project Steering Committee; (b) designate the DOH Undersecretary/Chief of Staff and Assistant Secretary for Special Concerns as the Project Director and Project Coordinator, respectively; (c) employ and assign to the PMO a Desk Officer, acceptable to the Bank, who shall be responsible for overseeing the implementation of activities financed out of the proceeds of the loan; and (d) assign to the DOH Regional Field Offices responsibility in their respective regions for coordination of project implementation, monitoring of progress in project performance, assisting in the collection of documentation to support statements of expenditures, and preparation of financial statements and accounts. 16. Agreement was also reached during negotiations that the DOH shall: (a) not later than December 31 of each year, beginning in 1995, update its project implementation plan in consultation with the Bank; (b) not later than June 30 and December 31 of each year, beginning in 1995, furnish to the Bank semi-annual reports on progress in project performance; and (c) by June 30, 1998, carry out a comprehensive mid-term review of project implementation on the basis of terms of reference developed in consultation with the Bank. 17. The establishment of the PMO and appointment of the Project Manager would be conditions of loan effectiveness. The following would be conditions of loan disbursement: (a) effectiveness of the cofinancing agreement with KfW, in respect of expenditures for drugs and reagents for the RTIs/STDs sub- component of the project; and (b) effectiveness of the cofinancing agreement with AIDAB, in respect of expenditures for consultant services, studies and training for the training sub-component of the project. (The conditions pertaining to the PMO adequately cover the Bank's concerns with the ADB cofinancing agreement; and no condition is required for the EC grant since there is less cross-dependency between the community partnerships component, which will be fully financed by the EC, and other project components.) 18. Poverty Category. Providing basic health services is a key element of poverty alleviation, and treating the major causes of disability and premature death for women ranks among the most cost-effective health interventions and yields some of the highest social and economic benefits. Poor women would benefit most from the project because they are disproportionately affected by the disease burden, tend to have larger family sizes, and are the main users of public health facilities and services. The project would also apply specific health risk assessment and targeting mechanisms for directing resources to the poor and vulnerable, including area-based and life cycle approaches to service delivery, and the use of resource allocation and cost-sharing indices which incorporate poverty indicators. 19. Environmental Aspects. The project would not have a negative impact on the environment and has been ranked "C" for environmental assessment purposes. In the long-term, an effective women's health program would lower fertility rates and reduce the environmental pressures associated with rapid population growth. 20. Program Objective Categories. By investing in women's health, the project supports the mutually reinforcing strategies of reducing poverty and harnessing the contribution of women to development. As the primary targets of the project, project benefits would accrue directly to women. In addition, the  - 6 - project would provide further training for the mainly female midwife cadre which would deliver most of the services under the project, thus increasing their skill level and status. Women's groups are likely to represent a substantial proportion of the beneficiaries of the community partnerships component, and the policy and operations research component would help to establish the scope of other women's health problems and to define appropriate public health responses. 21. Participatory Approach. In 1992, the DOH organized a National Women's Health Task Force, comprising representatives from professional health associations, the academic community, women's groups and other non-governmental organizations. The Task Force worked closely with the DOH in identifying and preparing the project, with the women's groups playing a particularly active role. The Task Force is expected to continue its involvement with the project, particularly in monitoring project implementation. The project would also directly support NGO and beneficiary participation through the community partnerships component; and the project's IEC strategy would utilize women's groups and communities as channels of communication to reach service providers and the public with messages designed to improve women's health practices and provide information about the availability of women's health services. 22. Proiect Benefits. The main project benefit would be better health for women as a result of improved access to women's health services. Project beneficiaries are estimated to include: about 4 million pregnant women; about 500,000 of these pregnant women who will suffer from obstetric complications; about 1.7 million women of reproductive age who have declared an unmet need for family planning services and a preference for voluntary surgical contraception; an estimated 300,000 women who would not otherwise be diagnosed or treated for RTIs/STDs; and an estimated 1.1 million women who would be screened for cervical cancer. Better health for women would eventually be reflected in reduced levels of fertility, female morbidity and maternal mortality. These improvements would have substantial spillover benefits on the productivity of women and that of their households and communities, and on the survival, health and education outcomes of their children. Progress in realizing these benefits would be assessed on the basis of monitoring indicators agreed upon with the Government. 23. The project's institutional benefits would include: building the capacity of LGUs in managing health programs, and of the DOH in providing support to local governments; and involving NGOs and project beneficiaries in developing and implementing solutions to women's health problems in their communities. Finally, research on priority women's health issues will help design future interventions that can further enhance the quality of women's lives. 24. Risks. Two main risks relate to implementing a project of national scope in a devolved system. First, LGUs can decide to opt out of the project; populations in such jurisdictions could not therefore benefit from the project and national program objectives would be threatened. To address this risk, the following measures have been undertaken: (a) cost-sharing arrangements would provide financial incentives for LGU participation; (b) the project has been designed for phased implementation by province, giving the DOH time to negotiate acceptable arrangements with other LGUs; (c) the DOH has engaged the LGUs in an ongoing dialogue to build commitment to national health priorities, including the proposed project; and (d) women's NGOs and community groups were actively  - 7 - involved in project preparation and are likely to press local officials to participate in the project. The second devolution-related risk is that LGUs would not have the capacity to implement the project; institution-building activities are thus included in the project wherever appropriate. Phased implementation of the project will also ensure that adequate training will have been provided before service activities are undertaken in a particular jurisdiction. 25. A third project risk is that implementation would be delayed by the lack of adequate cash flows which have plagued other projects in the sector. This risk has been reduced by actions taken on the country portfolio level to ensure that a limited number of priority projects, including the proposed project, would be fully funded; the new Special Account arrangements are also expected to improve the situation. Finally, there is the risk of insufficient coordination of activities financed by the various donors. This risk would be minimized by assigning overall responsibility for the project to the PMO in the DOH, agreeing upon an integrated implementation plan, and conducting joint annual reviews during implementation. 26. Recommendation. I am satisfied that the proposed loan would comply with the Articles of Agreement of the Bank and recommend that the Executive Directors approve it. Lewis T. Preston President Attachments Washington, D.C. January 27, 1995  Schedule A PHILIPPINES WOMEN'S HEALTH AND SAFE MOTHERHOOD PROJECT ESTIMATED COSTS AND FINANCING PLAN Estimated Costs Project Component Local Foreign Total ------US$ million----- Service Delivery Maternal Care 18.15 39.76 57.91 Other Women's Health Services Family Planning 2.81 3.13 5.94 RTIs/STDs 0.66 8.16 8.82 Cervical Cancer 0.61 1.68 2.29 Total, Other Women's Health Services 4.08 12.97 17.05 Total. Service Delivery 22.23 52.73 74.96 Institutional Development Training 12.20 3.16 15.36 Information, Education, Communication 5.28 1.07 6.35 Logistics 6.10 3.62 9.72 Project Management 1.14 0.11 1.25 Total, Institutional DeveloRment 24.73 7.96 32.68 Community Partnerships 8.04 3.76 11.80 Policy and Operations Research 0.77 0.19 0.96 Total Baseline Cost 55.76 64.64 120.40 Physical Contingencies 2.31 2.67 4.98 Price Contingencies 5.80 5.26 11.07 Total Project Cost 63.87 72.57 136.44 Financing Plan Local Foreign Total -----US$ million----- Government (National and Local) 26.7 0.0 26.7 Asian Development Bank 13.6 40.4 54.0 Australian International Development Assistance Bureau 7.7 2.9 10.6 European Commission 8.9 4.1 13.0 Kreditanstalt far Wiederaufbau of Germany 0.2 14.0 14.2 IBRD 6.8 11.2 18.0 Total 63.9 72.6 136.4 Note: The totals in the above and subsequent tables may not add up exactly due to rounding.  Schedule B Page 1 of 2 PHILIPPINES WOMEN'S HEALTH AND SAFE MOTHERHOOD PROJECT PROCUREMENT METHODS AND DISBURSEMENTS Summary of Proposed Procurement Arrangements (US$ million equivalent) Procurement Method Total Cost Expenditure Category ----------------------------- (including ICB LCB Other N.B.F. contingencies) 1. Works 4.3 13.5 d/ 17.9 (2.5) (2.5) 2. Goods 2.1 Furniture - - .15 a/ - .15 (.10) (.10) 2.2 Equipment and vehicles 2.1 0.9 0.5 b/ 9.8 e/ 13.2 (2.1) (0.8) (0.3) (3.2) 2.3 Drugs, reagents, medical 2.7 3.3 3.3 b/ 44.0 f/ 53.2 supplies and materials (2.7) (2.0) (2.0) (6.7) 2.4 Media 5.0 d/ 5.0 3. Services 3.1 Consultant services 2.0 c/ 11.5 r/ 13.5 (1.9) (1.9) 3.2 Training 2.7 c/ 9.7 h/ 12.4 (2.6) (2.6) 3.3 Studies 1.2 c/ 1.2 (1.0) (1.0) 4. Miscellaneous 4.1 Grants 10.8 i/ 10.8 (-) 4.2 Salaries 2.6 d/ 2.6 (-) 4.3 Other operating costs _ _ _ 6.5 d/ 6.5 (-) Total 4.8 8.5 9.9 113.3 136.4 (4.8) (5.3) (7.9) (18.0) Note: N.B.F. = Not Bank-Financed. Figures in parentheses are the amounts to be financed by the IBRD loan. a/ Local shopping. b/ Shopping, Limited International Bidding or direct procurement. c/ In accordance with Bank policies and procedures for specialist services, overseas training and studies, and with regular Government procedures for local training. d/ To be financed by the ADB and the Government. e/ To be financed by the ADB, AIDAB, KfW and the Government. f/ To be financed by the ADB, KfW and the Government. q/ To be financed by the ADB, AIDAB, the EC, KfW and the Government. h/ To be financed by the ADB, AIDAB and the Government. i/ To be financed by the EC.  Schedule B Page 2 of 2 Disbursement Categories Amount in Financing Expenditure Category US$ million Percentage (1) Civil works 2.4 90% of total expenditures (2) Goods, including drugs 6.2 I and reagents (except for I 100% of foreign expenditures; the RTIs/STDs sub-component), I 100% of local expenditures medical supplies, equipment, > (ex-factory cost); vehicles and furniture I 85% of local expenditures I for other items procured (3) Drugs and reagents for the 3.3 I locally RTIs/STDs sub-component (4) Consultant services, 2.7 studies and training (except for the training l sub-component) > 100% of total expenditures (5) Consultant services, 2.5 studies and training for the training sub-component (6) Unallocated 0.9 Total 18.0 Estimated IBRD Disbursements IBRD fiscal year 1995 1996 1997 1998 1999 2000 2001 ----------------------- US$ million ----------------------- Annual 0.0 1.2 2.2 3.5 4.3 4.8 2.0 Cumulative 0.0 1.2 3.4 6.9 11.2 16.0 18.0  Schedule C PHILIPPINES WOMEN'S HEALTH AND SAFE MOTHERHOOD PROJECT TIMETABLE OF KEY PROJECT PROCESSING EVENTS (a) Time taken to prepare the project: Two and one-half years (b) Prepared by: Government, with assistance from the World Bank (including consultant services financed by a grant for project preparation from the Japanese Policy and Human Resources Development Fund), and the project's cofinanciers (c) First Bank mission: November 1991 (Identification) (d) Appraisal mission departure: June 1994 (e) Negotiations: November 1994 (f) Planned Date of Effectiveness: June 1995 (g) List of PCRs/PPARs consulted: Loan/Credit No. Project PCR Date PPAR No. Ln. 1035-PH Population Project 02/84 5544 Cr. 0923-PH Second Population Project 05/29/90 9380 This report is based on the findings of an appraisal mission to the Philippines conducted jointly in June 1994 with the project's four cofinanciers (the Asian Development Bank, the Australian International Development Assistance Bureau, the European Commission and Kreditanstalt fur Wiederaufbau of Germany). The World Bank mission comprised S. Scheyer (ASTHR), M. Dalupan, P. Prangkham (EAlDR), R. Lakshminarayanan, J. Martins, V. Vijayaverl (EAlHR), C. Verzosa (PHN), R. Ng, C. Hsu (ASTTP) and M. El-Erian (LEGEA). C. Fogle (SA2PH) and R. Heaver (EAlHR) contributed to the preparation of the project. The contributions of the following consultants funded under a Japanese Grant for Project Preparation are also acknowledged: M. Clark, R. Gutteridge, H. Khajepour, B. Alano, R. Libatique, M. Taguiwalo, M. Enache and R. Capul. Peer reviewers for the project were A. Tinker (PHN), B. Duza (SA2PH) and M. Mac Donald (ASTHR). The report was cleared by Messrs. J. Shivakumar (Chief, EA1HR) and C. E. Madavo (Director, EAI).  Schedule D Page 1 of 3 STATUS OF BANK GROUP OPERATIONS IN PHILIPPINES A. STATEMENT OF BANK LOANS AND IDA CREDITS /a (As of September 30, 1994) Amount (US $ million) Loan or (less cancellations) Credit Fiscal Undis- Number Year Borrower Purpose IBRD IDA/b bursed One hundred and fifty-two loans and seven credits have been fully disbursed 5,106.77 171.18 Of which SALs, SECALs and Program Loans 1903 1981 Republic of the Philippines SAL 199.96 2266 1983 Republic of the Philippines SAL 11 302.25 2277 1991 Republic of the Philippines Environment & Natural Res. Mgt. 66.00 66.00 2469 1985 Republic of the Philippines Agriculture Sector Inputs 150.00 2787 1987 Republic of the Philippines Economic Recovery Program 300.00 2956 1988 Republic of the Philippines Program for Govt. Reform 200.00 3049 1989 Republic of the Phil ppines Financial Sector 300.00 1,452.21 66.00 2716 1986 Republic of the Philippines Rural Roads improvement 11 82.00 13 90 2969-1 1988 Republic of the Philippines Bacon-Manito Geothermal Power 59.00 9 76 3084 1989 Dev. Bank of the Philippines Manila Power Distribution 65.50 21.04 3099 1989 Republic of the Philippines Health Development 70.10 17.86 3124 1990 Metro. Waterworks & Sew. Angat Water Supply 40.00 2.30 3146 1990 Republic of the Philippines Municipal Development II 40.00 14.23 3163 1990 Philippines National Power Corp. Energy Sector Loan 200.00 7.45 3164 1990 Philippines National Oil Co. Energy Sector Loan 150.00 49.37 3165 1990 Republic of the Philippines Energy Sector Loan 40.00 13 81 3204 1990 Republic of the Philippines Coconut Farms Development 1 21.80 92.41 3242 1990 Republic of the Philippines WS,Sewer, Sanitation I 58.00 37 16 3244 1991 Republic of the Philippines Second Elementary Education 200.00 102.89 3261 1991 Republic of the Philippines Communal Irrigation II 46.20 37.81 3263 1991 Republic of the Philippines Earthquake Reconstruction 125.00 33 56 3287 1991 Republic of the Philippines Industr al Restructuring 175.00 0 33 3360 1991 Republic of the Philippines Env. & Natural Res. Mgt. 158.00 47.42 3430 1992 Republic of the Philippines Highnway Management 150.00 148.63 3435 1992 Republic of the Phi ippines Engineering & Science Educ. 61.00 55.20 3439 1992 National Electrif. Adm. Rural Electrification 91.30 85.89 3455 1992 Republic of the Phiiippines Municipal Development III 68.00 66.88 2392 1992 Republic of the Philippines Second Vocational Training 36.00 36.70 2506 1993 Republic of the Philippines Urban Health & Nutrition 70.00 74.09 3523 1993 Oev. Bank of the Philippines Telephone System Expansion 134.00 134.00 3539- 1993 Republic of the Philippines Economic Integration 200.00 80.00 3603 1993 Republic of the Philippines Tax Computerization 63.00 57.21 3607 1993 Republic of the Philippines Irrigation Operation Support II 51.30 49.28 3626 1993 Philippines National Power Corp. Power Transmission & Rehab. 110.00 88.90 3700 1994 National Power Corporation Leyte Cebu Geothermal 147.00 146.80 3702 1994 Philippines National Oil Co. Levte Cebu Geothermal 64.00 62.00 3745 1994 Subic Bay Metropolitan Authority Subic Bay Freeport 40.00 40.00 3746 1994 National Power Corporation Leyte Luzon Geothermal 113.00 113.00 3747 1994 Philippine National Oil Co. Leyte Luzon Geothermal 1 14.00 114.00 Total 8,143.97 277.18 1,854 42 of which has been repaid 2.428.77 8.80 Total now held by Bank and IDA 5 715.20 268.37 Amount sold 31.35 Of which repaid 31.35 Total Undisbursed ',743,63 1 10.79 1,854 42 "a The status of the projects listed n Part A is described in a separate report on all BRD/IDA-financed projects in execution, which is updated twice yearly and circulated to the Execut ve Directors on April 30 and Ocrober 31 . Amounts are presented net of cancellations. b Principai amounts in US$ equivalent at date of negotiations, and unJIsbursed amounts in equivalent are valued at exchange rate applicable on the date of this statement. Indicates SALiSECAL Loan and Credits  Schedule 0 Page 2 of 3 B. STATEMENT OF IFC INVESTMENTS (As of September 30, 1 994) Undisbursed Original Gross Commitments Including IFC IFC Part- Held partici- Fiscal Loan Equity cipant Total by pants' Year Otligor Type of Business -------U---------- U million-- ...................... IFC portion 1963173 Priv3te Dev Cror of the Philippines a/ Development Financing 6.5 4.4 8.5 19.4 - 1967/89 Manla Electric Company Industrial Services 30.6 3.6 3.0 37.2 26.5 1970 Paper Industries Corporation a/ Timber, Pulp & Paper .8 1.4 2.2 1 970/72 Mariwasa Manulacturing Company a! Cement & Construction Mat. 0.4 0.3 0.6 1.2 1970/87/ Phi,pp ne Long Distance Telelephone Co. industrial Services 88.5 0 3 40.0 128.5 63.5 16.7 88190 1 971/77 Phil ppne Petroleum a/ Energy 6.2 2.1 8.3 - 1972 Marinduque Mining & Ind. Corporation a/ Iron & Steel .15.0 15.0 1973 V,c:orias Chemical Corporation a! Chemical & Petrochemicals 1.9 0.3 - 2.2 1974 F pinas Syntnet.c Fiber Corporation a/ Textiles 1.5 1.5 1974 RFM Corporation ad Food & Agribus,ness 1.2 - 1.2 1 974179 Ma,ra Cristina Chemical Industry Iron & Steel 1.6 0.6 - 2.2 0.4 1975 Ph, lopines Polyamide Ind. Corporation a2 Textiles 7.0 - 7 0 1976 Pirlagro Edible Ols. Inc. a/ Food & Agribusiness 2.7 0.2 - 2.9 1977 Sarm en-o Industries a Timber, Pulp & Paper 3 5 - . 3.5 1977/85 Acoce Miining Co Inc. a/ MinIng 2.5 1.2 3.7 1978 Cebu Shnpyard & Engineering Works a/ Industrial Equipment 2.1 - - 2.1 - 1979/90 General M hing Corporation Food & Agribusiness 4 0 1 - 5.7 1.7 19B0 Ccnsolocated Ind Gas. Inc. a' Energy 4.5 - - 4 5 - 1980 PI, po,nes Associated Smelting Nonlerrous Metals - 5 0 5.0 .5 and Refinng Corporation IPASARI al 1980 Ventures n Industry & Business Capital Markets - 0 2 - 0.2 Enterprise. Inc. IVIBES) A/ 1960 83/ A l As,a Capltal Trust Capital Markets 5.2 1.1 6.0 12.2 1.3 89/90i95 1981 Loans *o Small & Medium Scale Capital Markets 18.5 0.6 19.1 Enterpr,ses tSMSE) al 1981192 Oavao Union Cement Corporation Cement & Construction Mat. 16.0 0.9 - 16.9 0.9 1982 NOC-Gutir e Plantations, Inc. a/ Food & Agribusiness 11.0 - 1 1.0 1986,91/92 Pure Foods Corporat on a/ Food & Agribusiness - 4 5 - 4.5 - 1987 SPI Agr bank Development Financing - 1.0 - 1.0 1.0 1988 First PhIcpone CapDtal a' Financial Services - 4.2 4.2 1989 Hambrectrt & Ou.st Capital Markets - 2 3 - 2.3 2.3 1990 F,ist Ph doone Fund a' Financial Services - 29.7 29.7 1990 The Manila Fund fCaymanl al Financial Services - 7.0 - 7.0 1991 Automated Microelectronics a/ Industrial Equipment 9.0 2.3 - 11.8 1991 A,antex Mill Corporation Textiles 11.3 2.3 - 13.6 11.2 1991 Best Chem'cals Chemicals & Petrochemicals 6.5 2.3 - . 8.8 7.0 1991 Hocewell Energy Industrial Services 10.0 1.1 - 11.1 1.0 1991 Makao ShangriLa Hotel Tourism 29.5 - 29.5 59.0 25.4 1993 Bacnotan Cement Corp. Cement & Construction Mat. 18.0 9.0 * 27.0 26.8 3.3 1993 Hope-ell Power Industrial Services 60.0 10.0 40.0 110.0 70.0 55.4 1993 Mactan Shangi, La Hotel Tourism 12.0 - 12.0 24.0 11.5 1993 Northern Mindanao Power Industrial Services 12.5 4.5 21.0 38.0 17.0 0.2 1993 Pli,pinas Shell Petroleum Energy 50.0 - 85.0 135.0 50.0 81.0 1994 Harbrecht & Cuist Capital Markets * 2 5 - 2.5 2.5 1.9 Total Gross Commitments b/ 449.0 106.3 246.9 802.2 Less Cancellations, Terminations. Repayments & Sales 168.5 68.0 58.5 295.0 Total Commitments Now Held g/ 280.5 38 3 188.4 507.2 318.7 158.5  Schedule 0 Page 3 of 3 B. STATEMENT OF IFC INVESTMENTS (As of September 30. 1994) Undisbursed Oroinal Gross Commitments Including IFC IFC Parti- Held partici Fiscal Loan Equity cipant Total by pants Year Obligor Type of Business ------------ USS million ----------- IFC portion Pending Commitments All Asia Capitall Trust Capital Markets 250 -0 25.0 Walden Management Capital Markets .1 .1 Walden Ventures Capital Markets - 3 8 3.8 Total Pending Commitments 25.0 3 8 28.8 Total Commitments Held & Pending Commitments 305.5 42.1 188.4 536.0 Total Undisbursed Commatments 92.6 5.4 60 5 158 5 a/ Investments which have been fully cancelled. terminated, vrirten off, sold redeemed or repa d. bf Gross commitments consist of approved and signed projects. cf Held commitments consist of disbursed and undisbursed investments. Less than USS0.5 million.  IBRD 26586 PHILIPPINES -LAL,