Announcement of Philippines to Receive Thirty-Five Million Dollars Loan for National Extension Project on November 9, 1978

. ... ~' FOR IMMEDIATE RELEASE .. •World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 79/18 November 9, 1978 PHILIPPINES TO RECEIVE $35 MltLlON LOAN FOR NATIONAL EXTENSLON PROJECT The World Bank has approved $35 million for a national extension project in the Philippines to help increase agricultural production, improve nutrition, and reduce rural unemployment. Agriculture is the predominant sector in the Philippine economy. it accounts for about one third of net domestic product, over one half of total employment, and nearly three quarters of export earnings. The $70. l million project will help strengthen the National Extension Service of the Ministry of Agriculture. Buildings and equipment wi 11 be • provided for the establishment of 500 rural extension centers and existing facilities will be renovated . The project also includes the introduction of sound extension method- ology and changes aimed at improving the organization of the extension service, and implementation of a staffing and training program. It will provide also for studies to develop effective monitoring and evaluation procedures, and an equitable compensation system for extension workers. To promote health and increase incomes and employment in rural areas, a home management program with emphasis on nutrition and a program to help farm youth to become more productive are included in the project. Beneficiaries of the project will number nearly 5 million rural families. Among them are farmers engaged in cultivating 3.6 million hectares of rice and 3.4 mill ion hectares of corn, as well as other crops, and in livestock produc- tion. The World Bank loan to the Philippines is for a term of 20 years, in- cluding 5 years of grace, at an interest rate of 7.35% per annum . • NOTE: Money figures are expressed in U.S. dollar equivalents. FORM NO. 1121 (5-76) T ECHNI CAL DA T A PROJECT: COUNTRY: TOTAL COST: Philippines National Extension Republic of the Philippines $70. 1 million • BANK FINANCING: $35 million, for 20 years, including 5 years of grace, with interest at 7.35% per annum. OTHER FINANCING: Republic uf the Philippines IMPLEMENTING ORGANIZATION: Bureau of Agricultural Extension Ministry of Agriculture E11 i pt i ca 1 Road Diliman, Queron City Metro Manila, Philippines PROJECT DESCRIPTION: The extension service will be strengthened through the provision of buildings and equipment including the construction of 500 rural extension centers and renovation of existing faclllties for extension services. Communications equipment, vehicles, and training equipment and materials will be provided. • PROCU.REMENT: Except as noted below, vehicles and equipment will be tendered on the basis of international competitive bidding in accordance with Bank guidelines. Local manufacturers will be allowed a preference margin of 15% of the c. i.f. price of imported goods or the prevailing customs duty, whichever is lower. Some items purchased in small quantities with costs not exceeding $50,000 each and $2 million in aggregate, will be procured on the basis of competitive bidding advertised locally in accordance with government procedures satisfactory to the Bank. In addition, off-the-shelf items costing less than $10,000 each but not exceeding $500,000 in total will be purchased on the basis of prudent shopping, involving at least three quotations. Contracts for civil works, amounting to $4.2 million, will be either done by force account or awarded on the basis of competitive bidding advertised locally. Such contracts will not be suitable for international competitive bidding because of the small size, dispersed location, and extended period of construction. CONSULTANTS: A total of 66 man-months of consultant services will be required. ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: 15% 1982 - 0 - •