Announcement of Fifteen Million Dollars Loan for Irrigation in Western Visayas, Philippines on February 3, 1977

•World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 BANK NEWS RELEASE NO. 77/57 FEBRUARY 3, 1977 -~__!11 LL I ON LOA~ FOR I ~ T ~N I N ~JEST ERN V I SAYAS ~ PH I LI PP I NE S The World Bank has approved a $15 million loan for an irrigation project on Panay island, Philippines. This first Bank-financed irrigation project on the Visayan islands is designed to help achieve a more regionally balanced distribution of development in the country. The project will improve and expand four irrigation and drainage systems serving about 22,000 hectares of rice land, and construct new irrigation and drainage works for another 2,700 hectares. Total paddy production in the project area is expected to increase from 80,000 tons at present to 147,000 tons a year at full development of the project. • Besides contributing to the Government's objective of attaining sustained self-sufficiency in rice, the project aims to benefit directly 12,000 farm families and 2,000 landless fami 1 ies, for a total of about 80,000 people. The equivalent of 3,500 full-time Jobs will be provided. Per capita farm income in the project area is estimated to increase in real terms from $45-$135 at present to $110-$390 at full development of the project in 19ti5. In that year, the national average per capita gross national product is projected at $550. At ful 1 development, the project is expected annually to generate rice import savings of $10 mill ion and net foreign exchange savings of $9 mil 1 ion. The Bank loan of $15 mill ion to the Republic of the Philippines is for a 20-year term, including 4-1/2 years of grace. The interest is b-l/2Z a year. • Note·: Money figures are expressed in U.S. dollar equivalents. FORM NO. 1121 (5-76) T ECHNI CAL D A T A PROJECT: COUNTRY: TOTAL COST: Jalaur Irrigation Philippines $34 million • BANK FINANCING: $15 million for a term of 20 years, including 4! years of grace, with interest at 8}% per annum. OTHER FINANCING: Government of the Philippines IMPLEMENTING ORGANIZATION: National Irrigation Administration (NIA) Quezon City, Philippines PROJECT DESCRIPTION: Rehabilitation of 4 existing NIA irrigation and drainage systems serving an area of about 22,000 hectares; construction of new irrigation and drainage facilities for about 2,700 hectares of rainfed rice lands; construction of a project headquarters building and facilities for Operation and Management; technical assistance to NIA for further studies on the ~ expansion of the project; procurement of vehicles and equipment; and water manage- ment training program. PROCUREMENT: Civil works in the project service area tota~ $13.7 million. About 60% wi 11 be carried out by contracts award,ed on the basis of competitive bidding advertised locally. Foreign contractors will be eligible to participate. NIA will carry out the balance of the work. Equipment and vehicles for force account construction, operation and maintenance and the water management train- ing program, costing about $4.5 million, will be procured through international compe- titive bidding. Qualified local contractors will be extended a preference of 15% of the c. i.f. price of imported goods, or the customs duty, whichever is the lower. Off-the- shelf items costing not more than $10,000 each, with an aggregate cost not exceeding $200,000, wil"l be procured through existing Government procedures acceptable to the Bank. CONSULTANTS: Consultants will be appointed to study the possibility of the expansion of the project. ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: 20% 1981 - 0 - •