Announcement of World Bank Approves Seventy-One Million Dollars Loan for Irrigation in the Philippines on March 17, 1980

F.OR IMMEDIATE RELEASE 6\!Vorld Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 80/58 March 17, 1980 WORLD BANK APPROVES $71 MILLION LOAN FOR 1RRIGATION IN THE PHILIPPINES The World Bank has approved a $71 mill ion loan to help finance part of a medium-scale irrigation project in the Philippines. This is the 12th project in the irrigation sector financed by the Bank in the country since 1969. The project, with an estimated total cost of $118.5 mill ion, is designed to increase yield and cropping intensities of about 37,800 hectares on the islands of Mindoro and Palawan, southwest of the main Philippines island of Luzon, which are currently rainfed or have only limited irrigation. To achieve this, the project calls for the construc- tion of 6 diversion dams; of irrigation and drainage facilities and ser- vice roads; the setting up of 3 division offices and extension of 2 • exi.sting ones and of 3 field offices and extension of 2 existing ones; the provision of consulting services to assist the National Irrigation Administration (NIA) in design engineering and training; and the pro- curement of vehicles and equipment for project implementation, operation and maintenance. Approximately 74,000 people (11,600 farm families and 900 land- less laborers• families) are expected to benefit directly from the in- creased production (an incremental annual production of 175,000 tons of paddy is expected) and consequent employment (a demand for an additional 3 million man-days of farm labor per year, equivalent to somn 12,500 full- time jobs, is expected). The project is also designed to strengthen the malaria cont,ol unit of the Ministry of Health in Palawan, benefitting about 12,000 people. Malaria is the leading disease in Palawan, and a major factor for reducing farm labor productivity. The $71 mill ion Bank loan to the Philippines will have a term of 20 years including 5 years of grace, with interest at 8.25% per annum. NOTE: Money figures are expected in U.S. dollar equivalents . • FORM NO. 1121 (5-76) T ECHN I CA L D A T A PROJECT: COUNTRY: TOTAL COST: Medium-scale Irrigation Phi 1 ippines $ 118. 5 mi 11 ion • BANK FINANCING: $71 mi"llion, amortization in 20 years, including a 5-year grace period, with interest at 8.25% per annum Government of the Philippines, $47.5 mill ion OTHER FINANCING: National Irrigation Administration (NIA), NIA Building, de Los Santos Ave, Quezon City, Metro Manila (Cable: NIAPHIL); and Ministry of Health, San Lazaro Compound, Rizal Avenue, Metro Manila. IMPLEMENTING ORGANIZATION: It consists of (i) construction of 6 diversion dams; (ii) construction of irrigation and drainage facilities and service roads on total area of about 38,000 hectares (ha); (iii) setting up of 3 division offices and extension of 2 existing ones and of 3 field offices and extension of 2 existing ones; (iv) provision of consulting services to assist NIA in the design of the diversion dams and main structures and in the training of personnel for detailed topographic maps based on up-to-date aerial photography; (v) strengthening of the malaria control unit of the Ministry of Health in Palawan. PROCUREMENT: (i) Equipment, vehicles, spare parts and supplies f o r . force account construction, operation and maintenance for the project area, strengthening of the malaria unit in Palawan, input-output moni- toring and the operation and maintenance study, costing about $10 million, will be pro- cured through international compet1tive bidding (ICB) in accordance with Bank guidelines. A preference limited to 15% of the c. i.f. price of imported goods or the customs duty, whiever is lower, will be extended to local manufacturers in the evaluation of bids. Off-the-shelf items costing less than $20,000 each will be procured through normal gov- ernment procedures which are acceptable to.the Bank; the total cost for such items will not exceed $400,000; (ii) construction of the diversion dams, intake works and main · canals for the two irrigation systems in Mindoro Oriental ($15 million) will be let on contracts and awarded through international competitive bidding in accordance with Bank guidelines. The remaining civil \..orks in the project service area ($45 millio:-1) will be scattered over several separate locations in three different provinces and two islands. These works will be split into a number of contracts and would not be suitable for in- ternational competitive bidding. CONSULTANTS: Provision is made for consulting services (i) to assist in the preparation of topographic maps and to train NIA survey personnel in new and advanced survey procedures and photogrammetry (25 man-months). (ii) to assist NIA in the design of all diversion dams and other major structures (45 man- months); (iii) for the operation and maintenance study (45 man-months). The project will also provide for 30 man-months of local consultants to assist NIA in setting up the input- output monitoring system. ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: 18% 1985 - 0 - •