Philippines - National Extension Project

Document of FILE COPY The World Bank FOR OFFICIAL USE ONLY Report No. ?P-2399-PH REPORT AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN TO THE REPUBLIC OF THE PHILPPINES FOR A NATIONAL EXTENSION PROJECT October 25, 1978 This document has a restricted distribution and my be used by recipients only In the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS Currency Unit = Peso (P) P 1.00 = US$0.135 US$1.00 = P 7.40 WEIGHTS AND MEASURES = METRIC SYSTEM 1 hectare (ha) = 2.47 acres 1 kilometer (km = 0.62 miles 1 square kilometer (sq km) = 0.3881 square miles 1 meter (m) = 39.37 inches 1 cubic meter (cu m) = 35.31 cubic feet 1 millimeter (mm) = 0.039 inches 1 kilogram (kg) = 2.2 pounds ABBREVIATIONS BAECON - Bureau of Agricultural Economics BAI - Bureau of Animal Industry BAEx - Bureau of Agricultural Extension BPI - Bureau of Plant Industry BS - Bureau of Soils FMT - Farm Management Technician HMT - Home Management Technician MOA - Ministry of Agriculture NFAC - National Food and Agriculture Council NNC - National Nutrition Council PTC-RD - Philippine Training Centers for Rural Development NTC-RD - National Training Centers for Rural Development RYDO - Rural Youth Development Officer GOVERNMENT OF THE PHILIPPINES FISCAL YEAR January 1 - December 31  FOR OFFICIAL USE ONLY PHILIPPINES NATIONAL EXTENSION PROJECT LOAN AND PROJECT SUMMARY Borrower - Republic of the Philippines Amount - $35 million equivalent Terms - The loan would be for a term of 20 years, including 5 years of grace, at an interest rate of 7.35% per annum. Project description - The proposed project aims to increase agricultural pro- duction, improve the quality of rural life through better nutrition and home management, and reduce rural unemployment among out-of-school youth by strengthening the National Extension Service of the Ministry of Agriculture (MOA). Under the project the extension service would be strengthened through provision of buildings and equipment, introduction of sound extension methodology, changes in organization, and implementation of a staffing and training program. Also, the project would provide for studies to develop effective monitoring and evaluation procedures and an equitable compen- sation system. Five million rural families would be reached by the project at a total project cost of $10 per family and an annual incremental operating cost at full development of $2.20 per family. The project would make an important con- tribution to the benefits expected from many of the ongoing agricultural projects supported by the Bank, particularly the irrigation projects. These rely heavily on the existence of an effective extension service. The project will expand the coverage of the extension service and the smaller, lower- income farmers and their families who receive relatively little assistance at present are expected to benefit the most. Lack of acceptance by farm family clientele of extension recommendations is a risk of the project. However, Filipino farmers have, in the past, been responsive to extension advice. This risk would be further reduced as the effectiveness of extension workers improves because of the training and equipment provided under the project. Risks associated with the organizational aspects of the project have been minimized by the provision of consultants for the development of effective monitoring and evaluation procedures and an equitable compensation system. This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  Estimated cost: /* Local Foreign Total ------ ($ million) -------- Vehicles 7.3 7.3 14.5 Equipment 3.5 4.2 7.7 Civil works 2.7 1.5 4.2 Training and consultants 1.1 2.1 3.2 Incremental operating cost 20.4 5.9 26.3 Total base cost 35.0 21.0 56.0 Physical contingencies 1.9 2.1 4.0 Expected price increases 7.2 3.0 10.2 Total project cost 44.1 26.0 70.1 Financing plan: /* Government IBRD Total -------- ($ million) --