Announcement of World Bank Lends Sixty-Two Million Dollars for Improvement of Rural Roads in the Philippines on June 2, 1980

' ' . 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. 80/110 June 2, 1980 WORLD BANK LENDS .$62 MILLI ON FOR IMPROVEMENT OF RURAL ROADS IN THE PHILIPPINES A World Bank loan of $62 million will help finance reconstruction, restoration and maintenance of rural roads in the Philippines, and strengthen the capabilities of provincial highway authorities. The 730 kilometers (km) of provincial and village roads to be improved under the $104.9 mi1 lion project will serve areas that are predominantly agri- cultural and whose inhabitants generally have a per capita income of less than $190 a year. The roads will provide the local population with opportunities to market their products. Prompt low-cost delivery of agricultural inputs will al~J contribute to better quality and higher output of farm products and better access will be provided for agricultural extension ~orkers~ IR Occidental • Mindoro, reconstruction and i~provement of about 90 km of national and 60 km of provincial roads will give year round access to fertile agricultural areas which, for part of the year, could only be reached by sea. The roads involved in the project are impassable for much of the year with extreme·: y rough and narrow surfaces. They .Ji 11 be res to red or upgraded to all-weather, all year standards,. and some of thE. more heavily traveled sections will have bituminous stabilized surfaces. It is intended that ihe project wi11 provide the foundation for the long-term development of a comprehensive, locally based program for rural roads In support of this aim, the project will provide technical assi .tance to the 1 Ministry of Local Government and Community Development and to the six provinces involved for training and to help improve engineering 1 quality control, construc- tion supervision and maintenance. A new central soils and materials laboratory for the Ministry of Public Highways will be established under the project. The project also includes technical assistance to the National Economic and Develop- ment Authority and the Ministry of Transportation and Communications for transport planning advisory services. The World Bank loan to the Republic of the Philippines is for 20 years, including a grace period of 5 years, with interest at 8.25% per annum . • NOTE: Money figures are expressed in U.S. dollar equivalents. FORM NO. 1121 (5-76) T E CHN I CAL D A T A PROJECT: COUNTRY: TOTAL COST: Rural Roads Improvement Republic of the Philippines $104.9 mill ion • BANK FINANCING: $62 million for 20 years, including 5 years of grace at an interest rate of 8.25% per annum OTHER FINANCING: Government of the Philippines IMPLEMENTING ORGANIZATIONS: Ministry of Local Government and Community Development (MLGCD), Ablaza Building, E. Rodriquez Avenue, Quezon City, Metro Manila Philippines; Ministry of Public Highways (MPH), Second Street, Port Area, Manila, Phi 1 ippines TELEX: 7420198 Mani la PROJECT DESCRIPTION: It includes a) construction and improvement of about 730 kilometers (km) of provincial and village roads in six provin~es; b) a rural road maintenance program; c) improvement of about 150 km of national and provincial roads in Occidental M~ndoro and provision of a new central soils and materials laboratory for the Ministry of Public Highways (MPH); d) Technical assis- tance to MLGCD, the six project provinces, the National Economic and Development • Authority (NEDA) and the Ministry of Transportation and Communications (MOTC). PROCUREMENT: Civit works contracts for the construction and improve- ment of the national and provincial roads in Occidental Mindoro, amounting to about $17 million, will be awarded to prequalifed contractors on the basis of international competitive bidding in accordance with World Bank quidel ines A preference of 15% of the c. i .f. price of imported goods, or the customs duty, whichever is lower, will be extended to local manufacturers in the evaluation of bids. Procurement of off-the-shelf items, each costing less than $10,000, and procurement of hand tools for road maintenance will be conducted on the basis of normal government procurement procedures which are acceptable to the Bank; the total amount of such purchases will not exceed $300,000. CONSULTANTS: The project includes 48 man-months of local and 556 man-months of expatriate techni'cal assistance advisory services. ECONOMIC RATE OF RETURN: 28% ESTIMATED COMPLETION DATE: 1985 - 0 - •