Announcement of Water Supply Expansion in the Philippines on May 5, 1977

eWorldBank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 BANK NEWS RELEASE NO. 77/97 MAY 5, 1977 WATER SUPPLY EXPANSION IN THE PHILIPPINES Health standards and living conditions in several Philippine provincial cities are expected to improve as a result of a water supply project which is being supported by the World Bank with a loan of $23 mill ion. The $38.3 millJon project is designed to help prevent the spread of gastroenteritis and other water-related diseases that otherwise would affect the health of the working population and thus retard economic growth. The project calls for expansion of water supply programs in six water districts on the main island of Luzon. These are the cities of Baguio, Cabanatuan, Lipa, • Lucena-Pagbilao-Tayabas, San Fernando (La Union) and Tarlac. Feasibility studies will 'be undertaken to improve the water supply system in 10 additional water districts, and a sewerage study for the Manila metropolitan area will be initiated. In addition, the project provides for training of staff of several government agencies engaged in designing and constructing water supply projects in small communities. The World Bank loan is being made to the Republic of the Philippines for a term of 20 years, including a grace period of 4t years, at 8.2% interest rate per yearo Of the loan proceeds, $18.8 mill ion will be relent by the Philippine Government to the Local Water Utilities Authority, on the same terms as the Bank loan, to help finance the water supply program in provincial cities. Another $4 mill lon will be relent by the Government to the Metropolitan Waterworks and Sewerage System, on the same terms as the Bank loan, to help finance the study of • the Manila sewerage system. The balance of $200,000 will be used by the Government to finance staff training programs. Note: Money figures are express in U.S. dollar equivalents. FOAM NO. 1121 {5-76) T ECHN I CA L D A T A PROJECT: COUNTRY: TOTAL COST: Provincial Cities Water Supply Project Philippines $38. 3 mi 11 ion • BANK FINANCING: $23 mi 11 ion OTHER FINANCING: Local Water Utilities Administration (LWUA); the Water Districts; and the Metropolitan Waterworks and Sewerage System (MWSS). IMPLEMENTING ORGANIZATION: Construction of water supply facilities will be·carried out by LWUA, NIA Building, National Government Center, EDSA, Quezon.City 3004, Philippines. Feasibility studies for water supply and sewerage will be undertaken by LWUA and MWSS, Arroceros Street, Manila, Philippines. The training of government staff engag~:id in water supply for small communities will be the responsibility of the Department of Public Works, Transportation, and Corrrnunication (DPWTC), Port Area, Mani 1a. PROJECT DESCRIPTION: The project will help to finance: (1) expansion of water supply program in six water districts in the cities of Baguio, Cabanatuan, Lipa, Lucena-Pagbilao-Tayabas, San Fernando (La Union), and Tarlac, • all on the main island of Luzon, (2) feasibility studies for water supply improvements in 10 other water ~istricts, (3) a sewerage study for the Manila metropolitan area, and (4) training of staff engaged in designing and constructing water supply projects in small communities. PROCUREMENT: All major contracts for equipment, materials and civil works will be awarded on the basis of international competitive bidding. In the bid evaluation for equipment and materials, a preference limit~d to 15% of the c.i.f. price of importer goods or the prevailing customs duty, whichever is lower, will be provided to local manufacturers. Contracts for pipe cleaning and lining, con- struction of operational buildings and related equipment (estimated total cost of $1 .2 mill ion) will be aw~rded on the basis of competitive bidding advertised locally, with foreign firms eligible to participate. These contracts are small ($50,000-$150,000) and widely dispersed geographically. Urgently required off-the-she1f items for rehabi1 itation works, each estimated to cost 1ess than $10,000 and not exceeding $200,000 in the aggre- gate, wi11 be procured in accordance with LWUA's normal procurement practices. CONSULTANTS: Consultants will be employed for the various components of the project. Because of the complex nature of the studies required for the sewerage and sanitation program, a technical advisor to the MWSS Project Manager will be employed. ECONOMIC RATE OF RETURN: 8% • ESTIMATED COMPLETION DATE: December 1981 . - 0 - \