Announcement of World Bank Lends Fifty Million Dollars for Irrigation Improvement in Philippines on May 5, 1977

.World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 BANK NEWS RELEASE NO. 77/96 MAY 5, 1977 WORLD_BANK LENDS $50 MILLION FORJRRIGATION IMPROVEMENT IN PHILIPPINES Irrigation facilities in three of the poorest regions in the Philippines will be improved and expanded with the help of a $50 million \.Jorld Bank loan announced today. The Bank-assisted $107.2 million National Irrigation Systems Improvement Project includes irrigation development, a schistosomiasis control program, a pilot land consolidation project, and a study of on- farm water distribution facilities for small farm holdings. The project area includes 22 rice producing irrigation systems operated by the National Irrigation Administration in llocos and Cagayan • in Northern Luzon and in Leyte in the Eastern Visayas . A schistosomiasis control program to be carried out in Leyte will reduce the risk of the disease for about 475,000 people. Crop yields on abqut 49,400 hectares will be increased through provision of better water control, and improved drainage and agricultural supporting services. Annual paddy production is expected to increase by 1987 to about 325,000 tons compared with 121,000 tons at present. Seasonal labor equivalent to about 10,500 full-time jobs a year will be created. Annual per capita incomes in the project area, which now vary between $45 and $100, wi 11 increase to between $135 and $380. About 240,000 people including families of landless laborers will benefit directly from increased production. The Bank loan is for 20 years, including 4-1/2 years of grace and carries interest at 8.2% per annum . • NOTE: Money figures are expressed in U.S. dollar equivalents. FORM NO. 1121 (5-76) T E C HN I CA L DA T A PROJECT: COUNTRY: TOTAL COST: National Irrigation Systems Improvement Philippines $107. 2 m'i 11 ion • BANK FINANCING: $50 million, for 20 years, including a grace period of 4-1/2 years at an interest rate of 8.2% per annum OTHER FINANCING: Government of the Philippines IMPLEMENTING ORGANIZATIONS: National Irrigation Administration (NIA}, E. de los Santos Avenue (P.O. Box 465) Diliman, Quezon City, Philippines (telex no.: 7227420); Department of Health, San Lazaro Compound, Rizal Avenue, Manila, Phi 1 i pp i , '":. PROJECT DESCRIPTION: It includes; A- Irrigation Development: 1- rehabilitation of 22 existing NIA irrigation syst~ms serving a total area of about 27,600 hectares (ha.); 2- construction of new irrigation drainage and road facil- ities for about 21,800 ha. of rainfed land; 3- construction of a subregional headquarters building; 2 new field offices; and the extension of office, storage, and staff quarters facilities for 8 existing field offices; and 4- procurement of vehicles and equipment; B- a Schistosomiasis Control Program: 1- improvement and construction of drainage facilities covering a total area of about 20,000 ha.; 2- construction of footbridges on irrigation and drainage channels; 3- provision of a health education program in all schools and health centers in 21 disease-affected municipalities; 4- establishment of a diagnostic screening campaign in all elementary schools, and chemotherapy treatment for 45,000 cases; 5- provis. of about 20,000 water-seal toilets; 6- improvement of about 5,000 wells; 7- provision of molluscicides; and 8- procurement of vehicles and equipment; C- a Pilot Land Consolidation Project in llocos; and D- an On-Farm Irrigation Facilities Study. PROCUREMENT: Equipment, vehicles and supplies for force account construc- tion, operation and maintenance for the project areas, strengthening of regional operation and maintenance capability, and the schistosomiasis con- trol program ($13.9 million) will be procured after international competitive bidding (ICB) in accordance with Bank guidelines. A preference limited to 15% of the c.i.f. price of im- ported goods, or the customs duty, whichever is lower, will be extended to local manufactur- ers in the evaluation of bids. Off-the-shelf items costing less than $10,000 each and not more than $300,000 in aggregate will be procured through existing Government procedures which are acceptable to the Bank. Contracts for the construction of the diversion weir and main canal of the Abulog right bank extension in the Cagayan subproject area ($5 million) and main drains and operation roads of the schistosomiasis control program in Leyte ($6.5 million) will be tendered on the basis of ICB in accordance with Bank guidelines. Most of the remain- ing civil works ($37.8 million) wi 11 not be suitable for ICB and will have to be undertaken by local contractors and by force account; the aggregate amount of civil works done by force account, however, will not exceed 40% of the total cost of the work. The balance of the civil works will be carried out on the basis of competitive bidding advertised locally. CONSULTANTS: Provision will be made for consultant services to: 1- assist in implementing the land consolidation pilot project (12 man-months) and 2- assist in carrying out the on-farm irrigation facilities study (36 man- • months). ECONOMIC RATE OF RETURN: 20% ESTIMATED COMPLETION DATE: 1987 - 0 -