Philippines - Watershed Management and Erosion Control Project

Document of E The World Bank FOR OFFICIAL USE ONLY Report No. P- 2850-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 PHILIPPINES FOR A WATERSHED MANAGEMENT AND EROSION CONTROL PROJECT June 10, 1980 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.  CURRENCY EQUIVALENTS Currency Unit - Philippine Pesos (P) P 1 X US$0.135 US$1 - P 7.4 WEIGHTS AND MEASURES 1 ha m 2.47 acres 1 km - 0.62 miles 1 sq km - 0.386 sq mile 1 m - 3.28 ft I sq m - 10.76 sq ft 1 cu m - 35.31 cu ft 1 N cu m - 810.7 ac ft 1 mm = 0.039 in 1 kg - 2.2 lb 1 cavan - 50 kg 20 cavans - 1 m ton ABBREVIATIONS BFD - Bureau of Forest Development DBP - Development Bank of the Philippines FPID - Forest Protection and Infrastructure Division of BFD LOI - Letter of Instruction MNR - Ministry of Natural Resources NEDA - National Economic Development Authority NIA - National Irrigation Administration PICDD - Public Information and Community Development Division GOVERNM1ENT OF THE PHILIPPINES FISCAL YEAR January 1 - December 31  FOR OFFICIAL USE ONLY PHILIPPINES WATERSHED MANAGEMENT AND EROSION CONTROL PROJECT Loan and Project Summary Borrower: Republic of the Philippines Amount: $38 million equivalent Terms: 20 years, including 5 years of grace, with interest at 8.25% per annum Project Description: The project addresses the problems of the watersheds of the two largest multipurpose dams in the Philippines. It aims to establish an economically viable and technically sound system for preserving and enhancing the productive capacity of the catchments and provides a permanent and improved livelihood for the local population. Project components include: (a) reforestation in the two watersheds; (b) con- struction and maintenance of forest roads; (c) construction of charcoal ovens; (d) provision of equipment and vehicles for forest protection and fire prevention; (e) a feasibility study of the Magat watershed; (f) pilot programs in range management and smallholder agroforestry in the Magat water- shed; (g) initiation of forest protection pilot programs in two provinces in Northern and Central Luzon, and (h) provision of consulting services for (a), (e), (f) and (g) above. In the Pantabangan area, the project would provide full- time employment to 4,710 people by 1985, increasing to 6,780 people by 1995. Labor employment, together with revenue- sharing, would increase per capita incomes of these families from about $75 in 1979 to about $565 in 1990. In the Magat area, the project would provide full-time employment to about 1,200 people by 1985, increasing to 1,990 people in 1992. Employment provided by the project would increase the per capita income of these families from an average of $100 in 1979 to about $275 by 1985. The forest protection pilot component would improve the lives of about 300 forest occupant families. No major technical risks are anticipated as the project includes a wide range of tree crops and end products to minimize dependence on any single product. NIA has already demonstrated substantial capabilities in the development of nurseries, tree planting operations and protection of This document has a restricted distribution and may be used by recipients only in the performance of their omcial duties. Its contents may not otherwise be disclosed without World Bank authorization.  - ii - seedlings from fire in both project watersheds. Two factors that could affect the success of the project are: the ability of NIA's project management to adapt to a commercial viewpoint, and the full involvement of the local population in project implementation. These factors are being addressed in the project by the provision of technical assistance to strengthen the commercial and production aspects of the project and to strengthen NIA's already good public informa- tion services and by providing incentives for participation of the local population in the project. Estimated Local Foreign Total Cost: /1 --- ($ million)