Announcement of Seven Million Five Hundred Thousand US Dollars for Livestock Development in the Philippines on May 11, 1972

INTERNATIONAL BANK FOR • RECONSTRUCTION AND DEVELOPMENT 1818 H STREET. N.W .. WASHINGTON D. C. 20433 TELEPHONE: EXECUTIVE 3-6360 Bank Press Release No. 72/27 Subject:. $7.5 million for livestock May 11, 1972 development in the Philippines The World Bank has approved a loan of $7.5 million to help finance a livestock development project in the Philippines, aimed at increasing the domestic production of livestock and poultry products by small and medium-size fanners. Under the project, medium and long-term loans will be provided to far:roors for development of about 1,450 small to medium-size pig, poultry and integrated coconut and beef cattle farms; 25 larger beef cattle breeding ranches; and three small slaughterhouses. Technical services will also be ma.de available. The project fits in with the Philippines' Four-Year (FY 1972-75) Plan, which places high priority on the development of agriculture, particularly on increasing pro- duction of ricEt, the staple food; feed grains; and livestock. During this period, meat production is projected to increase from about 640,000 to 820,000 tons. To attain these objectives, a substantial expansion in credit and extension services is needed. After :t\:ll development, the project is e:xpected to result in additional livestock production valued at about $17 million a year. Some additional earnings are expected from expanded exports of copra and coconut oil as a result of integrated coconut and beef cattle breeding and fattening activities. The grazing of cattle under coconut palms has assumed increasing importance in the Philippines in recent years, and coconut yields can also be increased substantially on coconut fanns as a result of using fertilizer for developing improved pasture under the palms. The foreign exchange savings from the substitution of domestic meat production for imports, together wi. th increased copra and coconut oil exports are estimated at about $56 million over the life of the project. The project will also help to improve the economy of the rural areas. In addition to the approximately 1,500 small to medium farmers who will rdceive loans under the project, about 1,700 new jobs will be created. The project is scheduled for completion in 1978 at an estimated cost of $15.5 million, of which $7 .5 million will be covered by the Bank loan. The remainder of the cost will be provided by the Developnent Bank of the Philippines (DBP), by private development banks, and by the participating fanners. The project was prepared under the World Bank-Food and Agriculture Organization Cooperative Program. The Bank loan is being made to the Republic of the Philippines for a term of 14 years, including 6t years of grace, at 7}% interest per annum. The Government will relend the proceeds of the loan in pesos to DBP, which will administer the project. In its turn, DBP will make sub-loans either directly to farmers and producers in the private sector or to private development banks for relending. A Livestock and Poultry Group, with a technical. services uni*, will be set up in the DBP to implement the project • • - 0 -  • May 11. 1972 TECHNICAL DATA PROJECT: Livestock development COUNTRY: Philippines TOTAL COST: $15.5 million BANK FINANCING: $7.5 million. 14 years. 6~ years of grace, 7~% interest per annum. • OTHER FINANCING: Development Bank of the Philippines (DBP), private development banks, and participating farners. IMPLEr'fENTING ORGANIZATION: Livestock and Poultry Group, to be set up within the Agriculture Departnenc, Development Bank of the Philippines, Ea.kati, Rizal, Philippines. PROJECT DESCRIPTION: To help carry out the Govemment's livestock development program by providing funds for supervised credit to participating farmers. PROCUREMENT: Tumkey contracts for three small slaughterhouses will be awarded on the basis of intemational competitive bidding. Goods for on-fc1rm investment will be acquired through commercial channels. CONSULTANTS: A technical specialist to assist the head of the Livestock and Poultry Group, a beef-coconut production specialist, a pig and poultry production specialist, and two short-term consultants are to be appointed. ESTIMATED COMPLETION DATE: 1978. - 0 - •