Announcement of World Bank Approves Twenty-Seven Million Dollars Loan to the Philippines for Rural Development on December 6, 1979

fOR IMM.EDI.ATE ,RELEASE . eWorldBank 1818 H Street, N.W., Washington, D.C. 20433 1 U.S.A.• Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 80/25 December 6, 1979 WORLD BANK APPROVES $27 MILLION LOAN TO THE PHILIPPINES FOR RURAL DEVELOPMENT - - The W0rld Bank has approved a loan of $27 mill ion to assist the accelerated development of the island of Samar, one of the poorest areas in the Philippines. Samar is one of the areas chosen by the government for inclusion in its Integrated Area Development program because of its poverty, back- wardness, high outmigration, low level of infrastructure, and considerable development potential. The projectr which has a total cost of $45 mill ion, is part of the overall development plan for the is1and and complements separate projects being assisted by the Governmeiits of Japan and Australia. Under • the Bank-supported project, some 230 kilometers of national roads in Eastern Samar will be upgraded to improve access for 213,000 people with an average annual per capita income of $55. The principal port of Western Samar at Catbalogan will be rehabilitated to facil ·)ate interregional travel, the import of food, construction materials, and oil products, and the export of agricultural products. Another component of the project provides for construction of communal irrigation systems on 2,000 hectares in Northern and Western Samar. At full development, an incremental paddy production of about 3,800 tons a year is expected, benefitting approximately l ,000 farm families and 500 landless laborers' families. About 650,000 people in small rural communities throughout the island will be provided with a safe and reliable source of water as a result of construction and improve- ment of about 2,300 wells and 300 springs. A serious prob~em th~ prcjcct will address is the high incidence of schistomosiasis, a debilitating tropical parasitic infection carried by snails. Three field laboratories, equipped for examination of about 80,000 people, will be built, and chemotherapy will be administered to about 41,000 people in municipalities where the disease is prevalent. NOTE: • Money figures are expressed in U.S. dollar equivalents . I ...  - 2 - The project also provides for the preparation of a detailed feasibility study of the Catubig valley in Northern Samar, in which irrigation drainage, flood control, rainfed agriculture, health ser~ices, • and transportation development will be considered in a comprehensive plan. The World Bank loan to the Philippines is for 20 years, including a grace period of 5 years, with an interest rate of 7.95% per annum. • • FORM NO. 1121 (5-76) T ECHN I CAL D A T A • PROJECT: COUNTRY: TOTAL COST: Samar Island Rural Development Philippines $45 million BANK Fl NANCI NG: $27 mill ion for 20 years, including 5 years of grace, with an interest rate of 7.95%. OTHER FINANCING: Government of the Philippines, $18 mill ion IMPLEMENTING ORGANIZATION: Samar Integrated Rural Development Project 7th Floor, Triumph Condominium Building 1610 Quezon Avenue, Dil iman, Q.C. Philippines Telex No.: 27871 SiRDP PH PROJECT DESCRIPTION: It consists of: improvement of about 230 km of national roads in Eastern Samar; rehabilitation of the port of Catbalogan in Western Samar; constructio:, of about 2,000 ha of communal irrigation • systems in Northern and Western Samar; construction and improvement of about 2,300 wells and 300 springs in small rural communities throughout the island; construction of three schistosomiasis control field laboratories, and a mass chemotherapy campaign in the municipalities with highe~t disease prevalence; provision of consulting services to assist in carrying out a feasibility st~dy of development of the Catubig valley in Northern Samar; and procurement of vehicles, equipment, and materials for project implementation, operation, and maintenance. PROCUREMENT: Equipment, vehicles, spare parts and supplies for roads, irrigation systems, and water supply wells, costing about $6.8 mill ion, will be procured after international competitive bidding in accordance with Bank guidelines. Local manufacturers will receive a 15% preference over the c. i.f, price of imported goods, or the customs duty, whichever is lower. Off-the-shelf items costing less than $10,000 each will be procured through existing government procedures. The total cost of such items for all components of the project will not exceed $200,000. Construction of the national roads, totaling about $17.5 mill ion, will be done by con- tract under international competitive bidding in accordance with Bank guidelines. The irrigation c0mr0nent of ~bout $2.5 ~:llion and the water supply component of about $2.4 mill ion are not suitable for international competitive bidding since the works are small and widely scattered. They will therefore be carried out by contract under competitive bidding locally advertised in accordance with local procedures. There is potentially adequate competition and foreign firms will be eligible to participate. CONSULTANTS: Approximately 84 man-months of consulting services will be required for the road component and 145 man-months for the feasibility study of the Catubig valley . • ECONOMIC RATE OF RETURN: 15% ESTIMATED COMPLETION DATE: 1985 - 0 -