Announcement of Fifty-Eight Million Dollars for Power Plant in the Philippines on June 16, 1977

•World Bank 1318 H Streiet, N.W., Washim;ton, O.C. 20433, U.S.A. • Telephone: (202) 393-6360 SANK MEWS RELEASE NO. 77/134 JUNE 16, 1977 $58 MILLION FOR POWER PLANT IN THE PHILIPPINES The World 6ank today announced a loan of $58 million to the National Power Coro0ration (NPC} of the Philippines to help finance the seventh power project. The electrification of the Philippines has been progressing steadily. Over 30% c~ ~hs ~opulat~on currently has electricity compared with 23% In 1970. Although the isla~d of Luzon has achieved the highe~electrtftcatlon rate of 46%, most of the people who have electricity live in central Luzon. Only 15% of ":he :-icmes h<3ve electricity i'"' the northern and sovthern part of the Island. The Power Project will substantially contribute to the country's total electrJfication • and in~fostrialization program by providing reliable power throughout the majority The project wi l 1 expand the electrica' transmission system with lines and s1..J'.:,,stai:i01\s; bui 1<1 corim•Jnic~t..:,ons and control faci 1 ities for better operation of 1:'.1e power system; pr·ov~de support for NPC's training program; as well as provide c0nsu1tan.ts. for manageme.nt improvement and a tariff study. The 1oan is for 20 years incl .... ~~ng a gr-ace period of 4-1/2 yean,, with inte)rest at 8.2% per annum. NOTE: Money figures are expressed in U.S. dollar equivalents . • FORM NO. 1121 (5-76) T ECHN I CA L D A T A PROJECT: COUNTRY: TOTAL COST: Seventh Power Philippines $92 • BANK FINANCING: $58 million for 2U years, including 4-1/2 years of grace, with interest at 8.2% per annum. OTHER FINANCING: National Power Corporation (NPC) IMPLEMENTING ORGANIZATION: NPC, 161 Bonifacio Drive Port Area _ Manila, Philippines PROJECT DESCRIPTiON: The Power Project will expand electrification throughout Luzon by expanding the electrical transmission system with lines and substations; building a communications network and a control center; providing support for NPC's. training program; and providing consultants' services for management impr9vement and a tariff study. ~ PROCU.REMENT: Equipment and materials will be procured by international competitive bidding in accordance with Bank guidelines. Qualified local manufacturers will receive a margin of preference of 15% over the c.i.f. price of imported gouds or the local customs duties, whichever is 1ower. Civil works contracts will be awarded by competitive bidding advertised locally in accordance with. local procurement procedures acceptable to the Bank. · CONSULTANTS: Engi~eering (144 man-months) and management consulting services ( 108 man-months) wi 11 be provided to assist NPC . ECONOMIC RATE OF RETURN: 10% for NPC 1 s investment program in Luzon, including the Project ESTIMATED COMPLETION DATE: 1981 - 0 - •