Announcement of World Bank Lends Sixty-Seven Million Dollars for Third Ports Project in the Philippines on May 29, 1980

FOR I MEDIATE RELEASE World Bank 1818 H Street, N.W. 1 Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 BANK NEWS RELEASE NO. 80/105 May 29, 1980 WORLD BANK LENDS $67 MIL~ION FOR THIRD PORTS PROJECT IN THE PHILIPPINES A Wor1d Bank loan of $67 million will help finance the expansion and improved operation of four ports in the Philippines. Improvement of the Ports of Cagayan de Oro, Cebu, lloilo, and Zamboanga under the $165 million project is expected to increase their productivity through reduced congestion, cargo losses and handling costs. The project is expected to provide more economical means of transporting major agricultural commodities produced in the hinterlands of the ports which are located in Mindanao, Panay and Cebu. The ports will also be able to handle greater volume of consumer goods shipped from Manila for distribution in the areas they serve. • The project is expected to assist the Philippines Ports Authority in developing a national port po1icy through increasing capacity at major ports and consolidating ports in outlying areas. Manila,. the largest port in the Philippines, 0 currently accounts for about A6% of the 23 mill ion tons of cargo handled each year by public ports, and growth of the project ports will support the government's strategy of dispersing industrial. development away from Metropolitan Manila. The four ports are expected to handle 9 million tons annually by 1990. The projectwill provideadditional cargo working areas and deep water berths to handle the growth in break-bulk cargos carried in larger vessels: The ports will a1so be able to he1p meet the growth in container traffic which also requires deep water and larger adjacent land areas for handling containers. A total of 1,585 meters (m) of quay will be constructed at Cagayan de Oro (415m), Cebu (550m), iloilo (400m) and Zamboanga (220m) and existing margi·nal quay aprons at Cebu will be rehabilitated. The project provides for dredging at Cebu, lloilo and Zamboanga, and port access roads will be constructed at Cagayan de Oro, lloilo and Zamboanga. Storage space, roadst administrative buildings and ancillary services will be constructed at all the ports. The project also provides for technical assistance and staff training for port engineers employed by the Ministry of Public Works and the Philippine Ports Authority. 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. 112.1 (5-76) T ECHN I CAL DAT A PROJECT: COUNTRY: TOTAL COST: Third Ports Republic of the Philippines $165 mi 11 ion • BANK FINANCING: $67 million f~r 20 years, including 5 years of grace at an interest rate of 8.25% per annum OTHER FINANCING: Philippine Ports Authority $78.3 mi11ion, Government of the Philippines $2.7 million, Philippine Estate Authority $5.6 million. Other foreign sources $1 l . 4 mi 11 ion . IMPLEMENTING ORGANIZATION: Ministry of Public Works N. I . A. Bu i 1ding East De Los Santos Avenue Quezon City Manila, Philippines TELEX: NIAPHIL MANILA PROJECT DESCRIPTION: It includes a) construction of 1,585 meters of q~ay at the Ports of Cagayan de Oro, Cebu, lloilo and Za~boanga b) rehabilitation of existing marginal quay aprons at Cebu; c) dredging at Cebu, lloilo. and Zamboanga; d) ancillary facilities; e) port access roads at Cagayan de Oro, lloilo and Zamboanga; f) engineering services; g) technical assistance and staff train!ng for the Ministry of Public Works and the Philippine Ports Authorjty. PROCU.REMENT: Ci vi 1 works wi 11 be executed under c iv i 1 engineering contracts to be awaided on the basis of international competitive bidding in accordance with Bank guidelines. CONSULTANTS: Technical assistance will involve 166 man-months of expatriate and 112 man-months of local expertise . . ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATt: 30% 1985 - 0 - •