Philippines - National Fisheries Development Project

Document of The World Bank FOR OFFICIAL USE ONLY X Report No. 3 3 8 7 -PH STAFF APPRAISAL REPORT PHILIPPINES NATIONAL FISHERIES DEVELOPMENT PROJECT April 19, 1982 Projects Department East Asia and Pacific Regional Office 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 Peso (P) 1.00 = US$0.123 P 8.10 = US$1.00 WEIGHTS AND MEASURES 1 meter (m) = 3.28 feet 1 kilometer (km) = 0.62 miles 1 sq km = 0.386 square miles 1 kilogram (kg) = 2.205 lb 1 ton = 1,000 kg = 2,205 lb 1 hectare (ha) = 10,000 sq m = 2.47 acres 4? ABBREVIATIONS ADB - Asian Development Bank MNR - Ministry of Natural Resources BFAR - Bureau of Fisheries and Aquatic Resources PFDA - Philippine Fisheries Development Authority FIDC - Fishery Industry Development Council FAO/CP - Food and Agriculture Organization/Cooperative Program DBP - Development Bank of the Philippines PU - Project Unit GOVER1,1MENT OF THE PHILIPPINES FISCAL YEAR January 1 - December 31  FOR OFFICIAL USE ONLY PHILIPPINES NATIONAL FISHERIES DEVELOPMENT PROJECT Table of Contents Page No. 1. PROJECT BACKGROUND . . . . . . . . . . . . . . . . . . . . . . 1 A. Introduction . . . . . . . . . . . . . . . . . . . . . . 1 B. Fisheries Sector . . . . . . . . . . . . . . . . . . . . . I C. Past Bank Lending for Fisheries Development. 8 2. FISHERIES AGENCIES OF THE MINISTRY OF NATURAL RESOURCES . . . . 10 A. General . . . . . . . . . . . . . . . . 10 B. Bureau of Fisheries and Aquatic Resources . . . . . . . 11 C. Philippine Fish Marketing Authority. . . . . . . . . . . . 15 D. Fishery Industry Development Council ..21 E. Proposed Reorganization ..23 3. THE PROJECT . . . . . . . . . . . . . . . . . . . . . . . . . 24 A. Objectives . . . . . . . . . . . . . . . . . . . . . . . . 24 B. Description . . . . . . . . . . . . . . . . . . . . . 24 C. Detailed Features. . . . . . . . . . . . . . . . . . . . . 25 D. Cost Estimates . . . . . . . . . . . . . . . . . . . . . 29 E. Financing . . . . . . . . . . . . . . . . . . . . . . . 31 F. Implementation Schedule. . . . . . . . . . . . . . . . . . 31 G. Procurement . . . . . . . . . . . . . . . . . . . . . . 33 H. Disbursements. . . . . . . . . . . . . . . . . . . . . . . 34 4. PROJECT IMPLEMENTATION AND EXECUTING AGENCIES . . . . . . . . . 35 A. Area Development Subproject . . . . . . . . . . . . . . 35 B. Institutional Strengthening . . . . . . . . . . . . . . . 38 C. Lending Terms and Conditions . . . . . . . . . . . . . . . 38 D. Accounts, Audit, Monitoring and Evaluation . . . . . . . . 38 5. PRODUCTION, MARKETING AND PRICES . . . . . . . . . . . . . . . . 39 6. BENEFITS AND JUSTIFICATION . . . . . . . . . . 42 7. RECOMMENDATIONS AND LOAN CONDITIONS . . . . . . . . . . . . . . 45 This project was appraised in October 1980 by Messrs. Khoo, MacGregor, Kada (Bank), Gunawardena (FAO) and Mornement (Consultant). Messrs. MacGregor and Hindle updated the Appraisal Report. 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.  - ii - ANNEXES 1. Present Organization - Bureau of Fisheries and Aquatic Resources 2. Proposed Organization - Bureau of Fisheries and Aquatic Resources 3. Present Organization - Philippine Fisheries Development Authority 4. Proposed Organization - Philippine Fisheries Development Authority 5. Main Features of the Area Development Subproject 6. Tables 1. Area Development Subproject - Total Estimated Costs 2. Institutional Strengthening - Cost Estimates for FIDC 3. Institutional Strengthening - Cost Estimates for PFDA 4. Institutional Strengthening - Cost Estimates for BFAR 7. Area Development Subproject - Implementation Schedule 8. Area Development Subproject - Proposed Organization for the Corporation 9. Area Development Subproject - New Pump Boat Financial Analysis (Table 1) - New Pump Boat Cash Flow Summary (Table 2) 10. Area Development Subproject - Corporation Cash Flow and Financial Analysis 11. Estimated Disbursement Schedule 12. Additional Documents and Data in the Project File Charts Layout of Proposed Facilities at Cataingan - IBRD 15436 Layout of Proposed Facilities at Catbalogan - IBRD 15437 ayout of Proposed Facilities at Miaga - IBRD 15438 G.neral Layout of Proposed Site at Placer - IBRD 15439 Layout of Proposed Facilities at Placer - IBRD 15440 Layout of Proposed Facilities at San Jacinto - IBRD 15441 Layout of Proposed Facilities at Santo Nino - IBRD 15442 General Layout of Proposed Site at Bulan - IBRD 15443 Layout of Proposed Facilities at Bulan - IBRD 15444 Design of Pump Boat - IBRD 22247 IBRD 15435  PHILIPPINES NATIONAL FISHERIES DEVELOPMENT PROJECT 1. PROJECT BACKGROUND A. Introduction 1.01 The Government of the Philippines has requested the Bank-s assis- tance in financing a National Fisheries Development Project. The project forms part of a Government program to expand fish production and improve marketing efficiency mainly for the benefit of municipal fishermen, who belong to the lowest income group in the country. The project would also strengthen the operations of the Government-s fisheries agencies. Prepared by the FAO/CP, the project was appraised in October 1980 by Messrs. S.J. Khoo, J. Macgregor, F. Kada (Bank), H. Gunawardena (FAO), and P. Mornement (consultant). This report, based on the findings of the appraisal mission, has been updated by Messrs. Macgregor and Hindle. B. Fisheries Sector Resource Base 1.02 A nation of 7,107 islands, the Philippines with its long coastline of about 18,400 km and extensive marine and inland waters, is well-endowed for fisheries production. The extent and distribution of marine waters under its jurisdiction and inland waters suitable for fisheries production through fish ponds and fish pens are given in Table 1.1 below. Table 1.1: TYPE AND SIZE OF WATER BODIES Body of water Area (sq km) x Marine oceanic /a 1,216,570 81.48 Marine coastal 7H 266,000 17.81 Freshwater swamps 1,275 0.25) Brackishwater swamps 2,475 ) Freshwater fishponds 60 0.12) Brackishwater fishponds 1,760 ) Lakes, reservoirs and rivers 5,000 0.33 Total 1,493,140 100.00 /c /a Areas beyond the coastal waters which are generally 200 m deep. 7i Generally up to 200 m deep. 7Y Percentages do not add to 100 due to rounding. Source: Ministry of Natural Resources.  -2- 1.03 Despite marine waters totaling about 1,482,600 sq km, fishing operations have been concentrated in coastal waters (266,000 sq km) because these are easily accessible and are the traditional fishing grounds of municipal fishermen (para. 1.07). However, the concentration of fishing in coastal waters has resulted in overexploitation of available resource6 in some of the areas. On the other hand, the larger areas beyond the coastal waters have been to some extent left untapped, signifying that the greater proportion of any significant expansion of marine fisheries production in the future would need to come from this area. The extent of the potential expansion is indicated by rough estimates of maximum sustainable yields ranging from 1.7-2.5 million tons a year. Comprehensive data on assessment of fish stocks and their sustainable levels of production are not available although some work on this is underway. It is essential that the Government push ahead with the collection of such data, beginning in areas which have reportedly been overfished. Systematic resource surveys are vital for proper management and conservation of the fisheries resource in the country and also for the fisheries industry. 1.04 Production from marine waters can also be expanded through mari- culture which is already being practiced on a limited scale. Its potential in production of mussels and other mollusces, crustaceans (shrimps) and seaweed is significant but largely unexploited. 1.05 Inland fisheries have considerable potential for expanding production. Of the approximately 10,600 sq km of areas suitable for fishponds and fish pens, only about 1,820 sq km have been developed for fishpond production (see Table 1.1 above). In addition to the large area available for development, significant increases in yields from the existing fishponds can be achieved through improved technology and other inputs. The extent of the increases that can be obtained is indicated by current yields ranging from the national average of less than 1 ton per ha/year to 6-10 tons for the technologically advanced ponds. Contribution to the Economy 1.06 Fisheries production in 1979 valued at some P 10.5 billion (US$1.3 billion) accounted for 4.8% of the GNP. Most of the fish is consumed locally as it is a staple and major source of animal protein in the Filipino diet. Per capita consumption of fish amounted to an estimated 34 kg in 1978 which accounted for about 60% of all the meat consumed. Tuna, shrimp, squid and other higher value species worth US$92 million and accounting for about 5% of total fisheries production were exported in 1979. Although exports comprising essentially high value species have been increasing significantly in recent years, they have been partly offset in value terms by imports of cheaper fish consisting mainly of canned sardine and mackeral. In terms of quantity, imports have been well in excess of exports during the 1970s, reflecting the rising domestic demand for fish.  -3- 1.07 Some 500,000 artisanal or municipal fishermen, 42,000 commercial fishermen, and 194,000 people in aquaculture are engaged in fisheries production. An additional 55,000 persons are employed in fish processing. Municipal fishermen are officially defined as subsistence and other small scale producers who fish from boats of 3 gross tons or less or without boats in inland and coastal waters. Commercial fishermen are larger-scale producers using boats of more than 3 gross tons who are legally required to fish only in waters deeper than 13 m (7 fathoms) and beyond 3 km from the coast. Production 1.08 Increasing at an average annual rate of about 5% during the 1970s, fisheries production amounted to an estimated 1.6 million tons in 1979. Marine fisheries accounted for about 80%, inland fisheries 12%, and aquacul- ture the remaining 8% of total production during 1977-79. Table 1.2: FISHERIES PRODUCTION 1970 AND 1976-79 Marine Inland Aquaculture Total '000 tons % '000 tons % 000 tons % -000 tons % 1970 989 100 1976 1,127 81 153 11 113 8 1,393 100 1977 1,231 82 163 11 116 7 1,509 100 1978 1,282 81 180 11 118 8 1,580 100 1979 1,239 78 209 13 133 8 1,581 100 Source: Bureau of Fisheries and Aquatic Resources (BFAR). Note: Breakdown of total production for years prior to 1976 is not available. 1.09 The bulk of the fish caught in marine waters is tuna, scad, sardines, mackerel, slipmouth, anchovies, bream, snapper and perch species. They accounted for about three-fourths of the catch in 1979. Milkfish, shrimp and tilapia are the main types of fish derived from inland waters and aquaculture. The majority of the catch from inland waters comes from Laguna de Bay, a 90,000 ha lake situated south of Manila. Brackishwater ponds account for most of the aquaculture production. 1.10 The contribution of municipal fishermen to total production has been estimated at some 55-60% with commercial fishermen accounting for the remaining 40-45%. As of 1979, there were 2,133 licensed commercial vessels of over 3 gross tons (GT) involved in fishing operations. Only one vessel (purse seiner) was larger than 1,500 GT. Vessels ranging in size from 3-20  -4- GT and from 21 to 100 GT accounted for 55% and 35% respectively of the total. Trawl, bagnet and purse seine are the principal gear being used for fishing. 1.11 The number of fishing vessels operated by municipal fishermen has been estimated at some 250,000 or an average of about 2 fishermen per vessel. These vessels, referred to as bancas, have wooden hulls usually fitted with outriggers to provide stability. About 45% of the bancas are motorized. Motorized bancas are widely referred to as pumpboats. The most commonly used fishing gear are handlines, gillnets, small liftnets, and casting nets which are low cost and easy to operate. 1.12 Fisheries production by municipal fishermen and other small-scale producers has been hampered by inadequate landing and marketing facilities, low productivity, poor handling of fish, and unfavorable prices received for fish sold. The low catch per vessel, estimated at 1-2 tons a year, is due to traditional fishing methods. Most fishermen use only one type of fishing gear (para. 1.11), fish in areas which are being overfished, and are unable or reluctant to fish in deeper waters. Lack of ice, improper methods of fish handling, and poor insulation of the vessels result in significant losses. To avoid any significant deterioration of quality and with inadequate nearby marketing centers, fishermen have no recourse but to sell to individual buyers either at sea or their usual landing places at unfavorable prices. To pay off their debts, many fishermen also sell to buyers who supply inputs on credit which in turn restricts their marketing outlets. Limited access to high priced urban markets as well as the lack of ice and cold storage facilities also require that the catch in excess of local fresh fish demand be sold for sundrying, salting, smoking and fermenting, for which fishermen receive lower prices. These problems and the general absence of alternative employment opportunities have relegated municipal fishermen to the lowest income group in the country. Recent socio-economic surveys indicate that the average household income of municipal fishermen was less than half the poverty threshold income for all households in 1978. Declining availability of sustainable fish resources in some of the coastal waters owing to overfishing, and growing competition from commercial fishermen operating in these waters aggravates the problem. Marketing 1.13 Although there are more than 100 landing sites spread throughout the provinces, infrastructure and facilities in support of marketing are inadequate. The Navotas Fishing Port and Fish Market in Manila is the only commercial fishing port in the country (para. 2.23). 1.14 Ice produced by existing ice plants for fisheries is likewise inadequate. The significant shortage is indicated by the fact that most of the privately-owned ice plants (about 100) with capacities ranging from one to 160 tons a day are geared for nonfish uses, and that only 3 of the 16 ice plants for fisheries with capacities of 5-40 tons a day and owned by the  - 5 - Bureau of Fisheries and Aquatic Resources (BFAR) are operational. Moreover, many of the plants, including those operated by BFAR, are located some distance from the fish landing sites. 1.15 About 60-70% of total fisheries production is sold fresh, while 30-40% is sun dried, salted, smoked, canned, processed into fish meal, sauce and paste, and frozen for export. In general, fish of lower quality are consumed in local areas and those of higher value marketed in the cities. 1.16 Fish supplied by municipal fishermen are seldom more than a day old. Part of the supply is sold directly to consumers, often by members of the fishermen's families. Fish distribution at this level is usually limited to the immediate hinterland. The remaining supply, especially where the catch volumes are larger and concentrated, is collected by middlemen/buyers for transport to the larger markets. These buyers usually purchase the higher quality fish owing to its demand in the major cities. Varieties such as sardines, anchovies and slipmouth, which have a limited market in wet form, are absorbed by the local fish processors. 1.17 Although commercial fishermen land their catch at more than 100 sites, the bulk of the landings are concentrated at a few major urban markets accounting for about 80% of the total commercial catch. At present, commer- cial fisheries operate without proper fishing port facilities with the exception of the Navotas Fishing Port in Manila. Consequently, a large number of commercial fishing vessels land their catch at various types of landing sites of which only a few (those at or near the larger coastal cities and towns) have marketing sheds. Most of the sites are just landing places where the fish are sold in the open. 1.18 The focal point of the marketing chain is the fish broker. Virtually all the commercial fisheries catch goes through a broker at either the provincial or major market level. When the fish is landed, it is sold either to a middleman called a buyer/seller at an agreed price, or consigned to a broker. Consignment is the prevalent practice with the broker often supplying operating funds to the vessel operators. The buyer/seller sells to wholesalers who in turn sell to retailers at the various urban markets. 1.19 Under these conditions and with limited storage capacity, leftover fish are sold at a significant discount for drying and other processing. Brokers charge 5-7% commission. The buyer/seller adds 15-20%, wholesalers 20-25% and retailers 10-20% margins to their respective costs. Fishermen are thus likely to receive only about 40% of the price paid by consumers. 1.20 Most of the marine fisheries catch to be sold fresh is brought to the main urban markets by sea, whereas fishpond production is usually brought in by trucks or jeepneys. Road transport is generally undertaken by the brokers, sellers/buyers and wholesalers. Some large operators use their own insulated vehicles to transport high quality fish to urban markets for local consumption or export. Fish landed at the Navotas Fishing Port and  - 6 - provincial markets are usually delivered in galvanized buckets or tubs, each holding between 30 and 40 kg. Use of these containers combined with poor icing, lack of refrigeration in most of the commercial vessels, and the general absence of properly insulated fish holds in the traditional fishing boats have resulted in significant bruising and loss of quality. Institutional Support 1.21 The Ministry of Natural Resources (MNR) is responsible for fisheries development through its three fisheries agencies, the Bureau of Fisheries and Aquatic Resources (BFAR), Philippine Fisheries Development Authority (PFDA), and Fishery Industry Development Council (FIDC). The performance and operations of these agencies are described in some detail in Chapter 2 below. 1.22 Other important institutions supporting fisheries development include (a) the Development Bank of the Philippines, the Land Bank and rural banks which provide credit to fishermen and fisheries companies; and (b) research and training centers comprising the Southeast Asia Fisheries Development Center, a regional organization engaged in aquaculture research; University of Philippines Brackishwater Aquaculture Center; Central Luzon State University with expertise in freshwater aquaculture research; UNDP-s Brackishwater Demonstration and Training Centers; Philippine Council for Agriculture and Resources Research which coordinates all research work on fisheries; and the International Center for Living Aquatic Resources Management, an international organization established in Manila in 1977 to conduct, stimulate and accelerate research on the development and management of aquatic resources in the less developed countries. In addition, FAO-s South China Sea Project and the University of Philippines undertake surveys on marine fisheries resource assessment. 1.23 Efforts by the Government to assist fisheries have included technical assistance and credit programs for the construction and equipping of fishing vessels, establishment of ice plants, and development of brackishwater ponds; aquaculture research; fisheries training; and the establishment of the Navotas Fishing Port in Manila (para. 1.13) and small fish landing sites in the provinces. These programs, including the Bank- financed projects (paras. 1.28-1.35), have been oriented towards commercial fishermen and larger-scale fishpond operators. Measures to improve the incomes of municipal and other small fishermen, which have hitherto not been supported by the Bank, have been limited to credit schemes for the purchase of boats and engines. These schemes, of which the earlier Selda loans and on-going Biyayang Dagat Credit Program are by far the most important, have had little success mainly because many beneficiaries considered the loans provided as Government grants which need not be repaid. Input supplies and technical extension support to increase fish catch were lacking, and some of the beneficiaries reportedly were unable to sell their catch due to inadequate local market outlets. Small fishermen and fishpond operators could best be assisted by projects integrating the provision of improved  landing and marketing facilities with input supplies, including credit for their purchase, and technical extension support. This approach, which the Government now wishes to adopt as part of its efforts to assist small fishermen, would be incorporated in the proposed project (para. 4.01). Development Plans and Priorities 1.24 The Government accords high priority to the development of the fisheries sector. Its development objectives for the sector in the 1980s are to expand fisheries production to meet domestic consumption needs and export demand, improve the efficiency of production and its distribution and utilization, achieve proper management and conservation of the fisheries resource, and promote and coordinate the interests of the private and public sectors to ensure the sound development of the fisheries sector. Production is targeted to increase annually by 5.5% to about 2 million tons a year by 1983 with municipal fisheries contributing 50%, commercial fisheries 37%, and aquaculture and inland fisheries the remaining 13% of the projected increase. To increase production, municipal and other small fisheries would be assisted through credit programs for investment in fishing boats, gear and other fishing supplies, and aquaculture would stress yield increases with less emphasis on expanding the fishpond area. Yield increases would be achieved by expanding farms for the production of fingerlings and upgrading the quality of technical extension support. 1.25 Major projects to be implemented over the next few years include the establishment of a fisheries complex in North Palawan financed by ADB, the Fisheries Training Project and Third Livestock and Fisheries Credit Project (paras. 1.32-1.33) being financed by the Bank, credit schemes under the Biyayang Dagat Credit Program, and the construction of five regional fishing ports financed by Japan. The Government also plans to expand and improve the facilities of the Navotas Fishing Port, and establish an additional five regional fishing ports, about 100 small fish landing sites and a fisheries complex in Zamboanga during the 1980s. 1.26 Additional major efforts by the Government to assist fisheries development in the 1980s should accordingly include measures to: (a) improve and expand the collection of fisheries statistics; (b) intensify efforts to assess the fisheries resource and its proper management and conservation; (c) prevent overfishing in coastal waters and reverse the growing competition between commercial and municipal fishermen to ensure that production increases do not exceed the maximum sustainable yields;  -8- (d) increase facilities for the efficient movement and marketing of fish and reduce the current high fish losses and increase the supply of better quality fish to consumers; (e) encourage fishing in deeper waters, especially following the recent 200-mile extension of its marine waters; (f) increase the participation of small operators in fishpond development; and (g) develop and promote devices and techniques to economize on the use of fuel for fishing. 1.27 BFAR, PFDA and FIDC need to be strengthened considerably, by upgrading the skills of the technical and other professional staff through training and provision of supporting equipment and facilities. High priority should be given to augmenting BFAR-s capability to assess and manage the marine fisheries resources and to providing its field officers with increased mobility to carry out statistics collection, enforcement of fishing regulations and other activities pertaining to fisheries conservation and extension support. C. Past Bank Lending for Fisheries Development 1.28 The Bank's lending for the fisheries sector, channelled through nine projects (para. 1.29), has been aimed at assisting the Government achieve its objectives of increasing production, mainly for domestic consumption, and improving the efficiency of fishing operations and the quality of the catch. Three projects were wholly for fisheries development. The remaining six projects included funds for other purposes in the agriculture sector. Funding for fisheries comprised mainly the provision of credit for commercial fishermen and fish pond operators through the Development Bank of the Philippines (DBP), rural banks and the Land Bank; and the establishment of a national system of fisheries training. Fisheries Projects 1.29 Fisheries Project I (Loan 891-PH). Signed in May 1973, the project with a Bank loan of US$11.6 million provided funds through DBP to fisheries operators for (a) procurement of 60 fishing boats, 10 fish carrier boats, three ice plants, two slipways, and fishing equipment for existing boats; and (b) rehabilitation and improvement of 11,900 ha of existing fish ponds and development of 100 ha of new fish ponds. Funds were also provided for technical assistance. Project funds were fully disbursed in August 1979.  - 9 - 1.30 According to the Project Completion Report (PCR) dated July 22, 1980, actual lending for pond fisheries covered about 12,700 ha which exceeded the appraisal estimate, but subloans for the marine sector financed only 35 fishing boats, an ice plant and slipway, due mainly to rapidly escalating costs and lack of demand. It is clear that the fish ponds financed by the project have generally shown significantly higher yields than estimated during appraisal. On the other hand, the marine sector appears to have achieved little better than half of the incremental fish production estimated at the time of appraisal. For the average 25 ha fish pond, the financial rates of return range between 29% and 59% and the economic rates between 26% and 53%. In the marine sector, the financial rate of return on a 75 gross ton trawler is about 22% and the economic rate about 28%. These rates are in line with or higher than those estimated at appraisal. The nonquantifiable benefits of the project have been significant. The project has provided incremental employment opportunities, dispersed improved technologies, and developed a successful training program for extension officers in pond fisheries. The major lessons learned include the need to (a) provide some flexibility in the financing of specified investments so as to enable project lending by DBP to respond to changes in the needs of the industry as they arise, and (b) undertake project reporting and sample surveys in the early phase of project implementation in order to provide for proper evaluation of the project following its completion. 1.31 Fisheries Project II (Loan 1270-PH). A continuation of the first project, this second project financed by a Bank loan of US$12.0 million was signed in July 1976. The project provided funds to (a) construct and equip 17 fishing boats, convert 4 secondhand boats into fish carriers, and establish three ice plants and a slipway; and (b) develop about 9,100 ha of new and existing fish ponds. The loan was fully disbursed in February 1981. Subloans approved for marine fisheries financed three ice plants and 46 fishing boats, significantly more than projected. No demand exists for the projected fish carrier boats and slipway. Actual lending for fish ponds is in line with the appraisal estimates. The project has generally met its objectives of increasing the volume and improving the quality of the fish catch. However, the profitability of the project fishing boats has, so far been significantly lower than anticipated owing to the escalating-cost of fuel and many boat owners have been unable to repay their subloans on time. A PCR is under preparation. 1.32 Fishery Training Project (Loan 1786-PH). Financed by a Bank loan of US$38 million, the project, which became effective in May 1980, is to support the Government's Integrated Fisheries Development Plan by establishing a national system of training aimed at strengthening the development of tech- nology and human resources for the sector. The system would (a) strengthen the capability of the University of Philippines College of Fisheries in the Visayas and seven Regional Institutes of Fisheries Technology in research and training, and (b) establish seven regional centres for the training of fishermen to improve their knowledge and skills. The above institutions are expected to provide some of the training envisaged under the proposed project.  - 10 - Other Projects with Components for Fisheries 1.33 Third Livestock and Fisheries Credit Project (Loan 1894-PH). This project signed in August 1980 provides funds to (a) DBP for on-lending to subborrowers for investments in livestock and fisheries development, and (b) DBP and other concerned agencies to finance programs and technical assistance in support of the project. Funds for the fisheries component would finance fishing boats ranging in size from the small boats (bancas) of municipal fishermen to vessels of up to 150 GT, fishing gear, development of new fish ponds and improvements to existing fish ponds, and technical assistance in support of the component. Implementation of the project is progressing satisfactorily. 1.34 First, Second, Third and Fourth Rural Credit Projects (Loans 432-PH, 607-PH, 1010-PH and 1399-PlH respectively). These loans included credit for fishermen and fish pond operators to procure fishing boats and equipment and for development of fish ponds. The credit funds were channelled to subborrowers through the rural banks. 1.35 Small Farmer Development Project (Loan 1646-PH). Although no speci- fic lending for fisheries is indicated in the project which is being imple- mented by the Land Bank, subloans for fish pond development are eligible for reimbursement. A number of such subloans have been financed by the project. 2. FISHERIES AGENCIES OF THE MINISTRY OF NATURAL RESOURCES A. General 2.01 The fisheries agencies of the Ministry of Natural Resources which are central to fisheries development are the Bureau of Fisheries and Aquatic Resources, Philippine Fisheries Development Authority and Fishery Industry Development Council. The legal definition of their roles is contained in Presidential Decree (PD) 704 of 1975, PD 977 of 1976 as amended and Letter of Instruction (LOI) 459 of 1976. A memorandum of understanding drawn up by the three agencies in 1978 further defines their functions. However, these documents have not delineated sufficiently the respective functions of the agencies, as a result of which there has been duplication and overlapping of some of their important programs and activities and consequently, wasteful use of scarce resources. Other major factors which have hampered the performance and operations of the agencies are lack of skilled staff, inadequate funding by the Government, and organizational problems. B. Bureau of Fisheries and Aquatic Resources (BFAR) Funct ions 2.02 BFAR has five main functions: (a) regulation of the capture and culture of fish and fisheries products through the issuance of licenses for fishing vessels and  - 11 - enforcement of regulations for proper management and conservation of the fisheries resources; (b) extension and training for greater and more efficient production and utilization of fisheries products; (c) research and demonstration activities through operation of fish hatcheries, nurseries, demonstration farms, experiment stations, and research vessels; (d) preparation and implementation of production programs and their extension support as inputs to the Integrated Fisheries Development Plan; and (e) compilation of fisheries statistics. Organization and Management 2.03 BFAR is headed by a Director, with two Assistant Directors for research and conservation respectively. It has six administrative and nine technical divisions. Also attached to the Director's office are the Manage- ment Information Unit, the Fishermen's Training Center (located in Cavite), and the Committee on Fishpond Conflicts. There are thirteen regional offices which are responsible for implementing the field activities, such as exten- sion, licensing, statistics collection and conservation. Each regional office reports to the Director and oversees several of the 72 district fisheries offices at the provincial level which are the smallest units of field opera- tions. Under the existing system, the Assistant Directors have no line management responsibilities, and the Director directly supervises all the division chiefs and directors of the regional offices. Furthermore, there are no clear lines of contact between regional offices and head office divi- sions (which generally set guidelines for field operations) except through the Director. A chart on BFAR's present organizational set-up is given in Annex 1. Staffing 2.04 BFAR has staff of about 3,300 employees, some 260 below its authorized strength. About 28% work at the head office, 70% at the regional offices, and 2% at the Fishermen's Training Center. Of the total staff, 38% are classified as permanent technical officers. Over 40% of the 1,005 regional technical officers are assigned to fisheries development and extension and a further 20% to conservation and law enforcement. About 30% of the staff have tertiary qualifications, and another 30% have undergone formal in-service training. Although over 30% of the staff are assigned to such technical functions as extension, research, and fish farm management,  - 12 - the lack of support facilities for field work and the large amount of clerical work (mainly reporting to the head office) mean that far fewer staff are actually carrying out technical functions. Regional Directors can and do reassign staff to other than their formal functions. Moreover, most technical staff are inadequately trained to service the needs of fishermen, fishpond operators and fish processors. Operations 2.05 The functions of the technical divisions can be grouped into three broad areas of research, extension and training, and fisheries resource management and conservation. Since more than one division works on each of the three areas and the division chiefs report directly to the Director, some overlapping of their functions occurs. 2.06 The Research Division conducts marine fish stock assessment and other oceanographic studies using the 490 gross ton (GT) MV Researcher (acquired in 1966), monitors water quality in Laguna de Bay, assesses commercial fishing gear technology, and catalogues fish species of potential use in aquaculture. The Utilization Division develops new fisheries products and improvements in quality control. The Technological Services Division does applied research on fishing gear, boats and sails. The Propagation Division does some verification of technology in the fish culture centers operated by the regional offices. The centers consist of 25 freshwater, 20 brackish-water and 14 marine farms. For research on aquaculture, including yield improvements, heavy reliance is placed on the work of the Southeast Asia Fisheries Development Center (para. 1.22). 2.07 Research efforts are hampered by a lack of trained staff and shortage of funds (para. 2.12) for supporting equipment and operating costs, including maintenance, which is particularly evident in the case of the MV Researcher and seven other vessels. Several of the seven vessels have lain inoperable for long periods, and although most have recently returned to operations, operating funds are still inadequate for all vessels. BFAR will consider selling or scrapping vessels for which operating funds are chronically short, since vessels incur crew costs even when idle. 2.08 The Extension Division provides training and extension mainly for fishpond operators and fish processors, prepares manuals and information packages, recommends to the Propagation Division field tests for promising new technology, and assists fishermen in procurement of supplies and applications for credit. The Fishermen's Training Center, which is operating well, conducts courses for skippers, master fishermen and engineers for commercial fishing vessels. The Propagation Division as part of its demonstration efforts, produces for distribution to fish farmers carp, tilapia, milkfish and prawn fry and fingerlings, and mussel and oyster spat at the fish culture centers indicated in para. 2.06. The Engineering  - 13 - Division is in charge of 16 ice and cold storage plants to demonstrate the advantages of icing fish. 2.09 Major problems relating to the training and extension efforts include the following. (a) Lack of training facilities for fishermen which, however, is expected to be remedied by the establishment of seven regional fishermen's training centers under the Bank-financed Fishery Training Project (para. 1.32). (b) Shortage of trained extension officers, especially for municipal fisheries. This is reflected by the present high ratio of one extension officer for about 4,900 municipal fishermen and fish pond operators. The extension officers have generally been poorly trained, although the deficiency with regard to pond fisheries will be alleviated by the training being provided by the FAO/UNDP Brackish Water Demonstration and Training Centers which can train 125 extension officers a year. The first batch of trainees was graduated in June 1981. The efforts of the extension officers are also inhibited by the lack of vehicles and shortage of supporting equipment and well-formulated extension packages. (c) Many of the fish culture centers are either not operating well or are inoperative. BFAR is undertaking a study to determine which centers should be closed and which ones rehabilitated or expanded. (d) The 16 ice plants have been poorly managed and maintained. Most of the plants are in a state of disrepair with only 3 of them operating. Moreover, many of the plants are improperly sited, being away from the fish landing sites. Since the idle plants have imposed a needless burden, BFAR has transferred them to PFDA which will operate them on a commercial basis. 2.10 Fisheries resource management and conservation efforts are carried out by the Research, Economics and Information, Licenses, and Conservation and Enforcement Divisions. Their respective responsibilities are stock assessment, monitoring of the fish catch, licensing of commercial fishing vessels (over 3 gross tons) and approving leases of Government-owned land for use as fishponds, and enforcing regulations aimed at proper fisheries resource management. 2.11 BFAR's budget for conservation has been inadequate in the face of growing evidence of resource over-exploitation in some areas. The licensing function is used as a source of revenue rather than as a tool of resource management, but is not notably effective even in this role. Instances have  - 14 - been cited of commercial fishing boats successfully avoiding licensing by being classed as municipal boats, a misclassification which not only results in revenue losses, but also enables such vessels to operate in the traditional fishing grounds of the municipal fishermen (para. 1.07). As in the case of the extension officers, the 342 enforcement officers of the Conservation and Enforcement Division have insufficient support to do their job effectively. The Division has its own vessels for enforcement in only one province. In other provinces, it has to charter vessels or rely on the Coast Guard and Philippine Constabulary to catch violators. Since the two agencies accord low priority to this task, violations such as the use of explosives, poisons, electricity, small-mesh nets, and commercial boats fishing in municipal waters are fairly widespread. Funding 2.12 Many of BFAR-s deficiencies which have been cited are the result of its inadequate funding by the Government. BFAR-s expenditures in 1978 and its budgets for 1979 and 1980 are shown in Table 2.1 below. The budgetary allocations reflect the major and increasing emphasis accorded to the development of aquaculture and other inland fisheries. Table 2.1: BFAR BUDGETS (1978-80) 1978 1979 1980 Amount Amount Amount (P million) % (P million) % (P million) % Aquaculture and other inland fisheries development 16.4 20 29.5 28 50.4 40 Commercial fisheries development 9.0 11 8.1 8 10.5 8 Municipal fisheries development 10.8 13 11.2 11 14.3 11 Utilization 15.8 19 18.7 18 16.1 13 Law enforcement and conservation 8.7 10 11.2 11 8.1 7 General administration 22.1 27 25.8 25 25.1 20 Total 82.8 100 104.5 100 124.5 100 Note: Percentages do not add up to 100 due to rounding.  - 15 - 2.13 Although BFAR had proposed a budget of P 124.5 million for 1980 the approved sum amounted to P 119.2 million owing to the overall budget- ing constraints faced by the Government. The 1981 appropriation was even less at P 107.8 million. BFAR's budgetary constraints would be eased somewhat if the gross revenues from its income earning facilities (such as fish culture centers) could be used for their proper operation and mainte- nance. As it is BFAR is required to remit the revenues to the Treasury. Priority Needs In The 1980s 2.14 In marine fisheries, the rapid expansion in the number of motorized municipal fishing boats and improvements in fishing gear have increased the catch significantly. The increase has, however, been unevenly distributed in that some fishing grounds are overfished while others have barely been tapped. Production in the overfished areas will decline in the future. Thus, the total catch cannot be held at a maximum sustainable level unless (a) the fisheries resources and their growth rates are assessed and monitored, and (b) regulations to manage the exploitation of these resources are well formulated and strictly enforced. 2.15 In aquaculture (including mariculture), the potential for expanding production is substantial (para. 1.05). To help achieve this, BFAR would need to (a) undertake surveys to identify suitable aquaculture sites, and (b) provide an effective technical and extension support to pond operators to increase their fish yields. 2.16 In the training of fishermen, fishpond operators and BFAR's exten- sion and other technical staff, the needed expansion in local training would be met by the various training centers cited earlier (paras. 2.08-2.09). Overseas training is also required for some of BFAR's technical staff to enable them to operate proficiently. 2.17 In fish handling and processing significant improvements would need to be made in reducing losses and improving the quality of processing. Especially at the village and town market level, BFAR can play an effective role in developing and demonstrating appropriate fish handling and process- ing techniques. Its Utilization Division has been quite successful at this in the past, but needs more support in the 1980s. C. Philippine Fisheries Development Authority (PFDA) 2.18 Inadequate and inefficient landing, marketing and communication facilities characterize the movement and marketing of the fish catch and are reflected in (a) its high losses, erratic price fluctuations, generally poor quality, and lower prices to fishermen and higher prices to consumers than necessary; and (b) the fact that some areas have surplus fish while certain others are in short supply. PFDA has been established to assist in dealing with these issues.  - 16 - Functions 2.19 PFDA-s major functions are to: (a) establish and operate fishing ports and fish markets and other marketing facilities, such as ice plants and cold storage; (b) improve the handling, preservation, marketing and distribution of fish; (c) provide market information, advisory and promotional services to the fishing industry; and (d) establish subsidiary operating corporations for area fisheries development. PFDA seeks the maximum participation of the private sector in all these tasks, and undertakes business ventures on its own only when the private sector shows no interest in them. organization and Management 2.20 PFDA is a corporate body with a Board of Directors chaired by the Minister of Natural Resources. The other Board members are the Administrator of the National Food Authority, the Minister of Public Works and Highways Minister of Trade, Minister of Agriculture, and two representatives from the private sector. A General Manager executes Board policies and controls the day-to-day operations of the agency. He is assisted by an Assistant General Manager. PFDA is divided into three main departments (operations, financial management, and planning and development) and four supporting service divisions (general administration, legal affairs, public relations and management system development). Directly under the General Manager are the Auditor's Office and the Navotas Fishing Port and Fish Market (para. 2.23). Staffing 2.21 PFDA has a total staff of 305, of whom 28% are permanent, 8% tempo- rary and 64% casual employees. In the professional grades, about 50% are graduates, 45% undergraduates, and 5% vocationally trained. Of the graduates, about 75% hold business administration, liberal arts or education degrees, while the rest have degrees in fisheries sciences or engineering. 2.22 None of the staff has academic training or adequate experience in fish port planning, port operations, fish handling or marketing, although this is partly counterbalanced by energetic and resourceful management by an enthusiastic young staff. Because salaries for professional staff are legally limited to Government levels which are substantially below corresponding private sector salaries, PFDA is unable to hire mature and well-qualified staff and accordingly has had to rely on its training program to develop young graduates into competent professionals. However, due to budgetary constraints the program has so far included only local training for short  - 17 - periods on management, human resources development, and fish identification and foreign training of short duration for three staff members in fish processing and marketing, fisheries manpower training and public enterprise policy. Operations 2.23 PFDA's major operation is the Navotas Fishing Port and Fish Market, a 67 ha complex on the northern seafront of Metro Manila. Navotas, the construction of which began in 1971 with an Asian Development Bank (ADB) loan, commenced operations under PFDA's management in January 1977. Navotas regulates the entry of fishing boats, including fish carrier vessels into the port, their docking, unloading, and berthing. It also checks the volume of fish unloaded to determine the fees to be charged for this activity, provides auction halls and brokers offices, maintains security, monitors prices and total landings, and operates the port and market facilities. 2.24 About 80% of the fish consumed in Metro Manila passes through Navotas. The port handles about 16-18 boats a day excluding bancas. Daily fish landings range from 200 tons in lean months (December to February) up to 800 tons in peak months (March to June). Total landings in 1979 amounted to 155,000 tons or 89% of the port's designed capacity. Port revenues exceeded the repayments on the ADB loan for the first time in 1979. The revenues net of debt amortization are expected to be significantly higher following the completion of an ice plant, cold storage and fuel depot in the near future. 2.25 In addition to the shortage of qualified staff (para. 2.22), other major problems facing Navotas include the following: (a) 1,500 GT trawlers now call at Navotas although it is designed to handle ships of only up to 500 GT. Increasing traffic of the larger vessels would require dredging the port; (b) with the continuing increase in the number of vessels more berthing space would be needed to avoid queues; (c) the physical infrastructure, especially the breakwater, parking area, jetties and dockfenders have not been properly maintained and funds for this purpose have been inadequate; and (d) utilities, including the electrical, drainage and water supply systems and road network are overloaded, so that brownouts, flooding and traffic congestion are fairly frequent. 2.26 PFDATs other operations consist of the following: (a) a fish market news service and fish price monitoring system which gathers, and disseminates to the public, statistics on fish landings by species and quantity, and wholesale and retail prices in Navotas and five other major fish landing and marketing centers.  - 18 - (b) an economic and market research service aimed primarily at determining improvements in the fish marketing system. Funding 2.27 PFDA has the potential to operate at a surplus because of the earn- ing capacity of Navotas. However, this is not likely to take place because PFDA is required to remit all its earnings to the Government. Although it can apply to the Ministry of the Budget for release of the earnings (e.g. for improvements or maintenance of Navotas), this process is slow and has not always been successful. Similarly, by law PFDA can borrow money and issue bonds, but only on approval of the Minister of Finance and the President of the Republic. The income statements of PFDA for 1978, 1979 and the first half of 1980 are shown in Table 2.2 below.  - 19 - Table 2.2: PFDA INCOME STATEMENTS (P '000) 1980 1978 1979 (Ist half) Income Operating and service income 3,690 4,901 3,211 Contribution from the Government 8,920 8,800 -/a Subtotal 12,610 13,701 3,211 Expenses Personnel 2,111 3,221 1,560 Other services /b 2,469 2,365 1,130 Supplies and materials 2,930 1,440 731 Other /c 195 750 925 Subtotal 7,705 7,776 4,346 Net income 4,905 5,925 n.a./a Less: Government contribution 8,920 8,800 n.a.7a Net income (loss) excluding Government contribution (4,015) (2,875) (1,135) /a In 1980, PFDA switched its accounting system based on the Government-s accounting rules to that used by commercial enterprises, and did not list the Government's contribution as an income source. /b Includes travel, communication, transportation and other services. /c Includes water and power, motor vehicle maintenance, rent and grants- subsidies-contributions for 1979. Additional items such as deprecia- tion, extraordinary expenses, representation and books were included in the amount for 1980. 2.28 The "other expense" category for 1980 (first half) is affected by changes in accounting procedures and therefore is not comparable to those for the preceding two years. However, even including large new items such as depreciation in the 1980 expenses and based on the assumption that the expenditures and operating income for the second half of 1980 are the same as for the first half, expenses for 1980 would increase by 12% over 1979 and 13% over 1978, while the corresponding operating incomes would increase by 31% and 74% respectively.  - 20 - Development Programs in the 1980s 2.29 The major growth of PFDA's activities in the 1980s is expected to come from infrastructure development and marketing assistance. Infrastruc- ture development would include: (a) expansion of Navotas from the present landing piers and market halls into an integrated fisheries industrial and commercial complex, with ice and cold storage plant, petroleum bunkering, dry-docking and repair facilities, fish processing plants, banks, restaurants, and expanded utilities. Some of these facilities would be leased to private operators; (b) construction and management of five regional commercial fishing ports funded by a US$46.3 million loan from the Overseas Economic Cooperation Fund of Japan to be completed in 1983. These ports will be in Sual, Camaligan, Lucena, Iloilo and Zamboanga; (c) construction and management of an additional five regional fishing ports in Bacolod, Cebu, Tacloban, Cagayan de Oro and Davao. Pre-feasibility studies are now underway with the assistance of the Ministry of Public Works and construction is expected to be completed by 1988; (d) construction or improvement of 54 municipal fishing ports by 1983, and a further 50 thereafter. The ports would handle less than 6 tons of fish landed per day, and would be located in areas (many designated as depressed areas) where fish spoilage and marketing losses are reported to be high; and (e) the US$24 million Northern Palawan Fisheries Development Project financed by an ADB loan of US$18 million. The project which is expected to begin operations in 1983 will provide landing and marketing facilities, ice and cold storage plants, fishing and fish carrier vessels, and credit assistance to fishermen. 2.30 Marketing assistance would be provided through the expansion of several activities comprising: (a) operation and expansion of the chain of ice plants recently obtained from BFAR; (b) additional communication links and the systematic use of marine and inland transport facilities, which would link all fish collection and distribution points and allow fish to be transported quickly from surplus to deficit areas;  - 21 - (c) expansion of the fish market news service and price monitoring system (para. 2.26(a)) to cover all the regional fishing ports and other major fishing areas; and (d) technical assistance for the formation of fishermen-s and fish retailers cooperatives. D. Fishery Industry Development Council (FIDC) Functions 2.31 Created in 1975 FIDC's major functions are: (a) formulation and coordination of fisheries policies, including review of policy-related proposals from implementing agencies, such as BFAR and PFDA; (b) interagency planning for fisheries development at the national and project level, including setting development priorities, prepara- tion and updating of the Integrated Fisheries Development Plan, and monitoring and evaluation of projects and programs; (c) promotion of investments in the fisheries industry; and (d) coordination of private sector and Government efforts for fisheries development which includes obtaining feedback from the fisheries industry on policy issues and explaining to the industry the reasons for Government actions. Organization and Management 2.32 FIDC is composed of a Council served by a Technical Board and a Secretariat. The 12-member Council comprises the Ministers of Natural Resources, Agriculture, National Defense, Trade, and Public Works, Governor of the Central Bank, Chairmen of DBP and the Board of Investment, President of the Philippine National Bank, Director of BFAR, and representatives from the Inland Fisheries Association (1) and the Marine Fisheries Association (1). 2.33 The Technical Board, composed of representatives of the Council members and other agencies and chaired by the Assistant Minister of MNR in charge of fisheries, reviews the studies and recommendations prepared by FIDC staff and serves as a forum for discussion of policy issues, programs and projects. Its members group themselves into working committees on various subjects such as investment, credit, joint ventures and resource assessment. Only representatives of MNR and BFAR serve on all the committees which report to the Council their findings and recommendations on specific issues.  - 22 - 2.34 The Secretariat is managed by an Executive Director and Deputy Director. It has three technical sections for program development and review, investment promotions, and planning and policy, and an administrative staff for support functions such as finance, data monitoring, publication, and equipment operation and maintenance. Staffing 2.35 FIDC has a total staff of 70 of whom 30 are in technical positions. Most of the technical staff are young with little or no working experience prior to joining FIDC. All the technical staff have bachelor's or master's degrees of which 17 are in natural sciences, mostly fisheries-related, and six in economics. Although pay scales are higher in FIDC than in BFAR and PFDA because of its status as a special council rather than a line agency, they are not high enough to enable FIDC to compete with private sector salaries. Operations in the 1980s 2.36 FIDC's planning function has been and is likely to remain of para- mount importance. Its coordination function, while of lesser importance, will continue as in the past. The major changes will come in the evaluation of projects and programs and in policy research. 2.37 The late 1970s brought several new projects under implementation, and the early 1980s will add still more. FIDC will accordingly need to monitor and evaluate the projects to ensure that they are well managed, and that the distribution of their benefits would accrue to the various groups of particpants as envisaged. In view of the fact that the fisheries resources are increasingly exploited to their sustainable limits and that some of the traditional fishing grounds are being overfished, a major focus of FIDC's policy research function should include studies to (a) determine appropriate measures for proper resource conservation and management, and (b) develop a strategy for optimal resource exploitation, including policy measures aimed at encouraging fishing in deeper waters, preventing overfishing, and ensuring that resources are equitably shared by both municipal fishermen and commercial operators. Major Constraints 2.38 FIDC's operations are hampered by inadequate funding and shortage of expertise. Like the other two fisheries agencies, FIDC cannot attract experienced professionals from the private sector because of its lower salaries. It would therefore need to upgrade the expertise of its staff to enable it to carry out its designated functions fully and effectively. The upgrading required is in resource management, fish processing technology, marine fisheries, aquaculture, economics, and other technical disciplines  - 23 - necessary for planning, policy research and formulation and project evaluation. In addition, FIDC needs funds to bring in consultants when required to help deal with specific issues and problems, and for equipment to support the performance of the staff which has been lacking. E. Proposed Reorganization 2.39 The Ministry of Natural Resources is currently evaluating organi- zational changes within BFAR, PFDA and FIDC in order to improve the perfor- mance of the agencies and to integrate more effectively their operations. The recommendations would, as part of the proposed project, be submitted to the Government's reorganization panel by December 31, 1982. BFAR 2.40 The nine technical divisions would be reduced and reorganized along clear functional lines. They would be grouped into three categories for research, extension and training, and resource management and conservation. Each would be supervised by an Assistant Director and more responsibility would be delegated to the field. Coordination of activities between the divisions and the regional field offices would also be improved. An organi- zation chart indicating proposed changes is given in Annex 2. PFDA 2.41 The organizational changes proposed for PFDA in response to the anticipated expansion of its future operations are designed to facilitate its major functions in fishing port management, coordination of municipal and regional ports in fish marketing, management of ice plants, market information monitoring, transport of fish, research, and personnel development. The major organizational change is the proposed establishment of five operating units comprising a transportation department in charge of fish transport vehicles, a Metro Manila Fish Terminal handling operations at Navotas, and three regional departments to supervise the operations of the regional and municipal ports in Luzon, Visayas and Mindanao. Subsidiary corporations would be established to operate area development projects and other similar projects with private sector participation. PFDA's present and proposed organizations are given in Annexes 3 and 4.  - 24 - FIDC 2.42 Because FIDC-s staff is small its form of organization is not of major importance. Certain changes would streamline its functioning. First, many of the Council's members are heads of ministries and other agencies with only a peripheral interest in the industry, so that it is difficult to convene the Council frequently. The Council would therefore be reconstituted to include only representatives of of agencies and interests having primary concern with the industry. Second, this change would allow the Technical Board to be abolished. The ad hoc committees and working groups would continue to function as in the past. Third, the Secretariat would be organized into four main divisions to address FIDC's major responsibilities (para. 2.31). 3. THE PROJECT A. Objectives 3.01 The project would (a) assist municipal (small-scale) fishermen in a specific geographic area in increasing their incomes through the establish- ment of facilities for the efficient collection, transport and marketing of fish, and provision of input supplies; and (b) strengthen the operations of BFAR, PFDA, and FIDC. The project is designed to provide the Government with an effective approach in increasing the incomes of small-scale fishermen, and the institutional strengthening of its three fisheries agencies is expected to assist the Government to cope effectively with the major challenges facing fisheries development in the 1980s. Other objectives of the project include reducing the current fish marketing losses and providing consumers with increased supplies and better quality fish. B. Description 3.02 The project would consist of the following components: (a) an area development subproject comprising the construction of landing places, ice plants, ice and chill storage, carrier boats, marketing and other supporting on-shore facilities in seven sites serving the adjacent Masbate/Ticao and Western Samar regions, and provision of input supplies to fishermen. The regions are depressed areas and their development is accorded high priority by the Government. The seven sites are Bulan, San Jacinto, Miaga, Cataingan and Placer in the Masbate/Ticao area with some 25,000 fishermen, and Catbalogan and Santo Nino in Western Samar with 10,000-12,000 fishermen (see attached Map IBRD 15435); and  - 25 - (b) institutional strengthening of BFAR, PFDA, and FIDC involving upgrading the skills and capability of the technical and other professional staff through the provision of training, equipment and technical assistance. (c) funds in the area development subproject for incremental working capital and in the institutional strengthening component for operating and maintenance costs of the equipment and facilities during the project period, and studies to assist fisheries development. 3.03 A corporation to implement the area development component has been formed and a Project Unit will be established to implement and operate the area development subproject and assume responsibility for the implementation of the institutional strengthening component (paras. 4.02 and 4.14). C. Detailed Features Area Development Subproject 3.04 A brief description of the features of the subproject area is given in Annex 5. Investments at the seven subproject sites would include: (a) a reclaimed area to accommodate the on-shore facilities; (b) a landing place of which the prevalent form in the Philippines is concrete stairs so situated that shallow draft fishing boats can approach them at all times; (c) a landing place for the carrier boats with a water depth of two meters below low water, except in Cataingan, Catbalogan, and San Jacinto where existing facilities can be used. In the other sites jetties must be provided. These will be typically a jetty head supported on concrete or steel piles connected to the reclaimed area by an access partly on piles and partly constructed as a causeway. Owing to excessive wave attack, a breakwater will be provided at Placer to enable the safe berthing of the carrier boats; (d) an ice plant, ice store, and chill room, except at Catbalogan where BFAR has built an ice plant and cold storage complex which would be adequate for the subproject in that area. The complex is suitably located and would be transferred to the project. San Jacinto will not require an ice plant because of the short distance from Bulan and the relatively small volume of fish to be handled. Its ice requirements would be supplied by the carrier boats from Bulan;  - 26 - (e) an office, sheds for receiving and icing fish, toilets, stores, staff housing units and ancillary buildings; (f) utilities - water, electricity, including generators with standby capacity, radio communications and drainage (septic tanks would be provided for sewerage, and oily water separators for the areas around the fuel handling and storage facilities); (g) fuel storage areas. Generally gasoline and diesel in bulk would be stored in underground tanks and supplied in bulk by the Philippine National Oil Company. In the island sites of San Jacinto and Santo Nino fuel storage compounds only would be provided and a limited supply of fuel in drums or cans will be stored there. Fuel for San Jacinto and Santo Nino, to be stored in bulk at Bulan and Catbalogan respectively, would be taken over to the island sites on the carrier boats when needed. Fuel supplies would be piped to motor generators supplying electricity for the ice plant and other facilities and to the carrier boats at Bulan. Supplies to the municipal fishermen and other users would be disbursed into cans; and (h) insulated boxes and manual trolleys for fish handling, office furniture and miscellaneous tools and equipment. At full development the project would include: twelve carrier boats to transport fuel, ice, and other input supplies for fishermen from Bulan to the other sites and to ferry fish from these sites to Bulan and Catbalogan; seven 1/2-ton pick up trucks for use of staff at each site; and five insulated trucks to transport fish to market. 3.05 Other facilities required are auction halls, offices for fish dealers/buyers, and related items for Bulan anld Catbalogan where the fish would be auctioned. As the main center of operations, Bulan would also be provided with a slipway and workshop for the repair and maintenance of the carrier boats. The specific facilities and their dimensions and layout plans for each of the seven sites based on the availability of fish to be handled are given in Annex 6 and Maps IBRD 15436 through 15444. 3.06 In addition, the subproject would include: (a) funds to meet administrative costs incurred during construction of the facilities;  - 27 - (b) incremental working capital covering three months of operating costs and one month's purchase of fish; and (c) input supplies for fishermen, comprising mainly motorized bancas or traditional fishing boats with engines (para. 1.11), replace- ment engines and hulls, spare parts, fishing gear, sails and rigging, fuel, ice and lamps. Institutional Strengthening 3.07 Through the provision of training, supporting equipment and facilities, and consultant services, this component would enable (a) BFAR to undertake proper stock assessment and management of fisheries resources, provide extension support to fish pond operators, and improve the handling and processing of fish; (b) PFDA to operate and manage its fishing ports and fish market facilities; and (c) FIDC to improve its performance relating to national policy formulation, project preparation and monitoring and evaluation of project proposals. Specific items to be financed under the component, details of which are given in Annex 6, are indicated in the paragraphs below. 3.08 The items for BFAR would comprise: (a) replacement of BFAR's existing research vessel with one of about 200 GT; (b) contracting for surveys and assessment of pelagic fish stocks; (c) a 10 GT research vessel equipped for reef fishing to undertake continuous monitoring of reef fisheries' resources; (d) twelve 7 m patrol boats with 25 HP motors and 72 bancas with 16-20 HP engines (para. 1.11) to assist in preventing widespread violations of fishing regulations; 400 motorcycles (100 cc), 12 four-wheel drive vehicles, and 125 sets of field extension equipment for analysis of soil and water samples to strengthen the extension support for pond fisheries; 7 SSB transmitter/receiver sets to improve communication between the regional offices and main office in Manila; 4 sets of survey equipment for surveying potential areas for fish pond development; 2 cars and a duplicating machine for the main office; and desk calculators to facilitate the computation of fisheries statistics. The patrol boats, fourwheel drive vehicles, SSB transmitters/receivers, survey equipment and desk calculators would be provided to the regional offices, and the motorcycles, motorized bancas, and field extension equipment to the provincial offices. BFAR would provide  - 28 - the motorcycles to its field officers on hire-purchase arrange- ments with the amortization payments to be withdrawn from their monthly salaries and travel allowances; (e) equipment for the existing fish processing laboratory for research to improve fish handling and processing; and (f) overseas training of staff on fisheries resources assessment and management, fish processing technology, including quality control and product development, fishing boat and gear technology, ocean- ography, and related fields. A total of 168 months of training would be provided at an estimated cost of US$204,400 or an average cost of US$14,600 per year, which includes travel, tuition/fees, subsistence, and minor items. The training would range from 6-24 months with the latter leading to a masters degree or equivalent level. 3.09 The items for PFDA would consist of: (a) consultant services of an internationally recruited port engineer/planner (36 months) and a fishing port operations specialist (24 months) costing about US$627,000 or US$10,500 per month which includes the individuals fees, international travel, and local allowances. The specialists would be given operational responsibilities and would train PFDA staff for their eventual take-over of the responsibilities. The terms of reference of the specialists to be drawn up by PFDA would be subject to the Bank's approval; (b) foreign and local training of staff. Foreign training costing about US$355,000 would comprise 22 fellowships of one-year duration, 11 in port engineering and maintenance and the other 11 in port and market operations, and five three-month study fellowships for senior management and operations staff to broaden and deepen their profes- sional competence. Local training consisting of short-term academic and practical courses for middle level technical and other professional staff would be provided mainly through the Asian Institute of Management, the Development Academy of the Philippines and the University of Philippines College of Fisheries. A sum of US$200,000 would be provided for this purpose; and (c) boats, vehicles and equipment, comprising (i) a 7 m boat with 25 HP engine, 1-1/2 ton mobile crane, 1/2 ton pickup truck, tractor with scoop loader, canpressor for power tools, cash registers, walkie talkies, desk calculators, and miscellaneous tools; (ii) ten 7 m boats with 25 HP engines, 10 jeeps, 20 walkies-talkies and 7 SSB radio/transmitter sets for the 10 regional fishing ports to be established; and (iii) two cars, three trucks and office equipment for PFDA-s main office.  29 - 3.10 The items for FIDC would comprise: (a) foreign and local training of staff to acquire expertise which FIDC lacks. The training would comprise three foreign training fellowships in fisheries management (12 months), resource economics (12 months), and fisheries industries development (24 months), and 10 fellowships totalling 240 months for local training; (b) consultant services consisting of a marine fisheries management specialist (24 months), a marine biologist (12 months), a resource economist (12 months), a fisheries industries specia- list (12 months), a sociologist (12 months), and a financial analyst (24 months). Funds would be provided to cover (a) 60 months of internationally recruited consultant time at about U$10,500 a month which includes the individuals- fees, inter- national travel and local allowances, and (b) 36 months of local consultancy costing about P 20,300 a month; and (c) vehicles and equipment comprising three cars, two 4-wheel drive pick ups, and office supplies. 3.11 In addition, the project would, over the period of its implementa- tion, provide fuel and repair costs for the vehicles, boats, and equipment under the institutional strengthening component (about 36% of the component) to ensure their proper use and maintenance. Inadequate funding for this purpose by the Government has been a major problem for BFAR, PFDA and FIDC. An assurance was obtained during negotiations that the Government would provide adequate funds for the proper use and maintenance of the facilities. A sum of US$500,000 would also be provided by the project (a) to develop designs of more efficient small fishing boats and determine the technical and financial feasibility of mussel farming; (b) to assess the export market prospects for dried fish; and (c) other studies within the jurisdiction of MNR. D. Cost Estimates 3.12 The total cost of the project is estimated at US$36.6 million of which $16.5 million or 45% would be the foreign exchange costs. Included in project costs are certain withholding taxes on civil works contracts and refrigeration equipment amounting to about $350,000 (net of tax cost is $36.2 million). A summary of the cost estimates, detailed in Annex 6, Tables 1-4, is shown in Table 3.1 below.  - 30 - Table 3.1: SUMMARY PROJECT COST ESTIMATES Local Foreign Total Local Foreign Total Foreign --- (P million) --- -- (US$ million) -- (%) A. Area Development Site preparation 21.7 8.4 30.1 2.7 1.0 3.7 27 Buildings 15.5 7.1 22.6 1.9 0.9 2.8 32 Machinery & equipment 6.0 8.9 14.9 0.7 1.1 1.8 61 Carrier vessels/ fish boxes 3.9 5.5 9.4 0.5 0.7 1.2 58 Engineering design & supervision 6.2 0.2 6.4 0.8 * 0.8 4 Administration 4.3 0.7 5.0 0.5 0.1 0.6 14 Working capital 6.2 1.0 7.2 0.8 0.1 0.9 11 Supplies to fishermen 3.9 5.6 9.5 0.5 0.7 1.2 58 Base cost estimate 67.7 37.4 105.1 8.4 4.6 13.0 35 B. Institutional Strengthening BFAR 13.0 30.6 43.6 1.6 3.8 5.4 70 PFDA 4.1 11.7 15.8 0.5 1.4 1.9 74 FIDC 2.2 5.9 8.1 0.3 0.7 1.0 73 Studies by MNR 4.0 - 4.0 0.5 - 0.5 - Base cost estimate 23.3 48.2 71.5 2.9 5.9 8.8 67 C. Total Project Base cost estimate 91.0 85.6 176.6 11.3 10.5 21.8 48 Physical contingency 6.1 4.5 10.6 0.8 0.6 1.4 Expected price increases 64.8 43.9 108.7 8.0 5.4 13.4 Total Project Costs 161.9 134.0 295.9 20.1 16.5 36.6 45 D. Front-End Fee - 3.2 3.2 - 0.4 0.4 100 Total Financing 161.9 137.2 299.1 20.1 16.9 37.0 46 * Less than $0.1 million Subtotals rounded.  - 31 - The cost estimates are based on prices updated to December 1981 to which is added a physical contingency of 12% for civil works, materials and equipment. The total project cost also includes a price contingency of 57% of total base cost plus physical contingencies based on the expected price increases shown in Table 3.2 below. Table 3.2: EXPECTED % ANNUAL PRICE INCREASES 1982 1983 1984 1985 1986 1987 Local costs 10.0 8.0 8.0 8.0 8.0 8.0 Foreign costs 8.0 8.0 7.5 7.0 6.0 6.0 E. Financing 3.13 Of the total project cost of US$36.6 million, the Bank would finance $22.0 million (about 60%), Government $14.3 million, the private sector participants in the equity of the corporation to implement the area develop- ment component $0.2 million, and subborrowers for fishing supplies $0.1 mil- lion. The Bank's funding would be equivalent to the foreign exchange costs plus $5.5 million of local costs. Financing of the two components of the project is summarized in Table 3.3 below. F. Implementation Schedule 3.14 The project would be implemented over an eight-year period commencing in 1982. An implementation schedule for the establishment of facilities in the seven sites under the area development component is shown in Annex 7, Chart 22275. The schedule indicates that the sites at Bulan and Placer are planned to be operational about 3-1/2 years after project effectiveness, Miaga, Cataingan and Catbalogan five years, and San Jacinto and Santo Nino seven years.  - 32 - Table 3.3: PROPOSED PROJECT FINANCING PLAN BY COMPONENT (US$ million) Source of finance Government Private Sub- Component Bank PFDA firm borrowers Total A. Area development Civil works 3.25 3.25 - - 6.50 Machinery & equipment 1.10 0.70 - - 1.80 Carrier vessels 1.20 - - - 1.20 Engineering design 0.80 - - - 0.80 Administration - 0.40 0.20 - 0.60 Working capital - 0.90 - - 0.90 Supplies to fishermen 0.70 0.40 - 0.10 1.20 Subtotal 7.05 5.65 0.20 0.10 13.00 B. Institutional Strengthening BFAR 3.60 1.80 - - 5.40 PFMA 1.50 0.40 - - 1.90 FIDC 0.70 0.30 - - 1.00 MNR 0.50 - - - 0.50 Subtotal 6.30 2.50 - - 8.80 Contingencies 8.65 6.15 - - 14.80 Front-End Fee 0.40 - - - 0.40 Total 22.40 14.30 0.20 0.10 37.00  - 33 - G. Procurement Area Development 3.15 Establishment of landing facilities, ice plants, ice storage, chill rooms, slipway and repair shop, buildings, other structures and development of the sites would be carried out under a single contract with a prequalified contractor and in accordance with the Bank's guidelines for International Competitive Bidding (ICB). Sub-contracting of the civil works at the various sites to enable the participation of small local contractors would be allowed. The single contract arrangement is most appropriate because it would be essential that one contractor take overall responsibility to synchronize installation of the equipment and civil works. For locally manufactured goods, a preference margin limited to 15% of the import price (c.i.f.) of such goods, or their prevailing custom duty, whichever is lower, may be applied in the evaluation of bids. The engineering firm to prepare detailed designs, specifications, and tender documents for all the facilities and assist in evaluating bids would be selected from prequalified firms acceptable to the Bank. The contracts for the on-shore facilities and engineering firm would require the Bank's prior approval. 3.16 The wooden-hull carrier boats (12) costing about $1.2 million would be procured from prequalified local shipyards through local competitive bidding (LCB) procedures. There are many local shipyards which are competent to build the carrier boats and foreign suppliers are unlikely to bid. Local firms have been building boats of similar design and construction for use in transporting interisland freight. Owing to the small size of bid packages LCB would likewise be applied to the procurement of the 5 insulated trucks ($0.28 million), fishing boat hulls ($0.4 million) and engines ($0.5 million), and 7 pickup trucks ($0.07 million). Procurement of the sails ($0.15 mil- lion), communications equipment ($0.08 million), spare parts for fishing boat engines, fishing gear, lamps, and other minor equipment items, comprising mainly small tools and office furniture, would be through local shopping using the three bid method. Institutional Strengthening 3.17 The Project Unit established within MNR to implement this component (para. 4.14) would procure all the items financed under the component. Replacement of the marine research vessel ($0.9 million, excluding scientific equipment) will likely involve purchase and appropriate conversion of a used fishing or research ship under ICB. Such ships are currently in surplus globally and buying one currently laid up is cost effective. Prior to pur- chase, the vessel would be inspected by a qualified marine surveyor who would prepare a list of works to be done to prepare the vessel for its assigned research program. All the scientific equipment required for research and extension would be grouped under a single lot ($0.8 million) and procured through ICB. ICB would also be applied to the 25 4-wheel drive vehicles, seven cars, 400 motorcycles, three insulated trucks, mobile crane, and tractor  - 34 - with scoop loader which would be procured as a group. A preference margin limited to 15% of the c.i.f. price of imported goods, or prevailing custom duty, whichever is lower, may be applied to locally manufactured goods. 3.18 Hulls and engines for the bancas (72) and other vessels (19) would be procured separately. Construction of hulls ($0.2 million) would be awarded to prequalified local shipyards based on LCB. To ensure timely procurement it is anticipated that the construction of the hulls would be awarded to three or more builders. The engines (US$0.2 million) would likewise be procured through LCB. Prudent shopping would be used to procure the communications equipment ($0.08 million) and other minor equipment items consisting mainly of miscellaneous tools, spare parts and office equipment. 3.19 Suitable candidates for training would be solicited through announcements issued at appropriate times within BFAR, PFDA and FIDC. The candidates to be trained would be selected by the Project Unit (PU) which would coordinate and approve the training needs of the three fisheries agencies. The training programs and candidates for training from the agencies would be submitted to the Bank for approval. In consultation with the agencies concerned, the PU would recruit the consultants whose terms of reference, qualifications, and terms and conditions of employment, would be subject to the Bank's approval. The terms of reference would, inter alia, require that the consultants assist in the training of the staff of the fisheries agencies and to identify their training needs. 3.20 Land for fish landing facilities and ancillary structures has been leased by PFDA under a 50-year renewable contract. Feasibility grade designs, layouts and drawings have been prepared for all seven sites. Construction quantities have been estimated for all structures, and all hydrographic work done. H. Disbursements 3.21 Disbursements of the proposed Bank loan of US$22.4 million (Annex 11) are expected to conform to the profile for fisheries and to extend over 1982-89 as follows: CY US$ million 1982 0.6 1983 1.3 1984 3.7 1985 4.9 1986 4.5 1987 3.5 1988 3.1 1989 0.8 Total 22.4  - 35 - Disbursements would be made on the basis of full documentation. Disbursements for the area development component would be 50% of expenditures for civil works except for the ice plant at Catbalogan, which would be financed by Government; 100% of foreign expenditures for directly imported equipment, vehicles and materials, 100% of local expenditures, ex-factory, for locally manufactured items, and 65% of local expenditures for locally procured items; and 100% of expenditures for consultants for engineering design and supervision. For the institutional strengthening component, the disbursement rates are 100% of foreign expenditures for directly imported vehicles and equipment, 100% of local expenditures, ex-factory, for locally manufactured items, and 65% of local expenditures for locally procured items; 100% of expenditures for studies and consultant services; 100% of foreign expenditures for foreign training; and 60% of expenditures for local training. 4. PROJECT IMPLEMENTATION AND EXECUTING AGENCIES A. Area Development Subproject 4.01 Integrating the provision of adequate input supplies to increase the efficiency and volume of fish production with facilities for the efficient marketing of the fish catch, including wider access to distant urban markets, would be an effective approach to raise significantly the incomes of municipal fishermen in the subproject area. The subproject is designed to accomplish this. Proposed Organization 4.02 PFDA has established a subsidiary corporation to operate the subproject. The powers and functions vested in PFDA enable it to create such a corporation. The managing agent of the subsidiary corporation has purchased an equity share in it amounting to P 312,500, with an option to purchase up to 40%. 4.03 The corporation has a board of directors composed of representatives nominated by Government and the private managing agent. Policies established by the board would ensure that the economic and social objectives of the subproject are met, while ensuring the financial viability of the corporation. The firm's general manager attended negotiations. Upon their appointment, two deputy managers would assume responsibility for the day-to-day management of the corporation and its implementation of the subproject. The continuity of management, through the various phases of implementation and operation of the facilities, is important for the success of the subproject. It would ensure that the views of those operating the subproject would be fully reflected in the design, construction and procurement of the facilities and  - 36 - equipment for their sound commercial operation. As an initial task, the deputy manager in charge of finance would prepare efficient systems of internal control, accounting, management information and internal audit. 4.04 The corporation would establish a temporary office at PFDA's head- quarters for the implementation of the subproject during its initial phase, the major tasks of which would include recruiting staff as required and selecting the engineering firm to prepare detailed designs, specifications and tender documents for the facilities and equipment to be procured (para. 3.15). The firm would also assist in evaluating bids submitted in connection with the above. 4.05 Prior to the commencement of construction, the corporation's office would be shifted to Bulan which would be its main operational center. During the pre-operational phase, the corporation would publicize its proposed activities to be undertaken in the subproject area, recruit staff for the various positions as required, and with the cooperation of the local fisheries offices select municipal fishermen for participation in the subproject. A proposed organization chart for the corporation is given in Annex 8. Financing Plan 4.06 The private firm participating in the subproject has taken up a minority share of the corporation's equity. The corporation would maintain a debt to equity ratio not to exceed 2.5:1. 4.07 The profits made by the corporation would be retained for reinvest- ment and/or distributed as dividends to its shareholders. Some of the profits could also be distributed to the fishermen participating in the subproject based on the value of fish supplied by them during the preceding year. Operations 4.08 Control of the subproject facilities and their operations at the seven sites will be centered in Bulan (para. 3.02). The subproject-s princi- pal operations can be grouped generally into three broad categories: (a) the day-to-day function of buying fish at the sites, transporting the fish to Bulan and Catbalogan for auction, conducting the auction sales, and operating a fleet of insulated trucks to transport fish from Bulan and Catbalogan for sale at the larger urban markets. Most of the fish from Bulan is expected to go to Manila and from Catbalogan to Tacloban and other markets in the south; (b) operation and maintenance of landing places, ice plants, chill storage and other on-shore facilities; and (c) provision of input supplies to municipal fishermen.  - 37 - 4.09 Procurement of fish would entail purchasing directly from fishermen at all the subproject sites. After weighing, grading and cleaning, the fish would be packed in boxes with ice and stored in chill rooms (00 C). Fish destined for Bulan and Catbalogan would be shipped there by the carrier boats. Prices paid to fishermen for any given day would likely be linked to the previous day's auction prices at Bulan and Catbalogan as well as the most recent prices received by the corporation for fish it sold directly in the main urban markets (para. 4.08a). Accordingly, Catbalogan would determine the purchasing prices for Santo Nino, and Bulan for all the other sites. 4.10 Fish dealers participating in the auctions would be prequalified. Each dealer would establish a line of credit with the corporation and make full settlement of his accounts for fish purchases and services before the purchased product is removed from the auction premises (except for well- established and proven creditworthy dealers who may avail of up to weekly settlements). Space would be available for dealers to ice and pack their fish in a packing hall situated near the auction floor, and chill rooms would be available for rent. 4.11 The ice produced would be used mainly by the corporation for the fish procured and sold to fish dealers and fishermen participating in the subproject. Only ice surplus to the requirements of the subproject would be sold to buyers for other purposes. 4.12 Input supplies would be provided to fishermen under contractual arrangements requiring that they market their fish catch through the corpora- tion which would deduct the cost ot the supplies from the proceeds of the fish marketed based on an agreed repayment schedule (para. 4.14). Supplies would also be made available to fishermen for a cash payment. Prices charged for the supplies would be their costs to the corporation plus overheads. B. Institutional Strengthening 4.13 A fisheries committee would be established to coordinate the efforts and activities of the fisheries agencies. The committee, comprising an MNR Assistant Minister as the chairman, the directors (chief executives) of the agencies, and a representative from MNR's Planning Department would be the Project Unit (PU) responsible for the implementation of the institutional strengthening component. Decisions and other actions of the PU would be carried out by a secretariat to be established within MNR. Establishment of the PU and its secretariat along the lines indicated above would be a condition ot loan ettectiveness.  - 38 - C. Lending Terms and Conditions 4.14 The Bank's loan of $22.4 million would be provided to the Government at the prevailing interest rate and standard repayment period of 20 years, including 5 years ot grace. A subsidiary loan of $12.0 million equivalent would be loaned to the subsidiary corporation on the same terms and conditions. Commitment fees and a foreign exchange risk premium would be paid by the subsidiary corporation. Input supplies to fishermen would carry an interest rate of 14% per annum, which is expected to be positive in real terms. Repayment periods for fishing boats with engines and replacement engines and hulls would not exceed 6 years, including 1 year of grace. For other input supplies they would be determined by the corporation on a case by case basis. The investment items themselves where appropriate may be used as collateral. A minimum ot 5% downpayment would be required from subborrowers. Assurances on the above would be obtained during negotiations. D. Accounts, Audit, Monitoring and Evaluation 4.15 The accounts for the project would be maintained in accordance with sound accounting practices. The Project Unit (PU) would ensure that separate accounts for the institutional strengthening component be maintained by BFAR, PFDA and FIDC. These accounts and those of the corporation would be audited annually by independent auditors acceptable to the Bank. The audited accounts (including balance sheets and income statements of the corporation) and auditors' reports would be submitted to the Bank within four months after the close of each financial year. The audit reports would include formal opinions on: (a) the financial statements; (b) manner of compliance with the legal obligations, particularly financial covenants; (c) the corporation's systems of internal control, accounting, management information and internal audit; and (d) whether the project funds have been used for the purposes for which they were provided. 4.16 In addition, the PU would monitor and evaluate the project during its implementation. The methods and procedures ot monitoring and evaluation would be undertaken in consultation with the Bank. In this connection, annual progress reports on the institutional strengthening and area development subprojects would be prepared by the PU which would submit the reports to the Bank within three months following the end of each year. The Bank would undertake a mid-term review in June, 1984, of the project with the view of making any adjustments in light of the experience gained. The PU would also prepare a project completion report (PCR) on the project not later than six months following the completion of loan disbursements. The PCR which would be submitted to the Bank should include an assessment ot the operating results and impact of the subproject, performance of the implementing agencies, and the major reasons for their achievements and deficiencies with the view to  - 39 - drawing lessons which may usefully be applied to the preparation and implementation of future projects. An assurance on the above was obtained during negotiations. 5. PRODUCTION, MARKETING AND PRICES Production 5.01 The fishing boats and engines, hull and engine replacements, and fishing gear and other inputs provided under the area development subproject to municipal fishermen would increase their fish catch by a minimal 700 tons a year. The minor importance accorded to increasing production is because the fishing grounds in the subproject area are currently heavily fished and, according to resource surveys, have limited potential for any significant expansion of present catch levels. In the event of a shortage of fish, the project includes provision for improved resource studies and conservation reports to ensure a rapid rebound for fish stocks in the project area. Marketing 5.02 The main emphasis of the area development subproject is the marketing ot tish, most of which would come from municipal and other small- scale fishermen. The provision of improved marketing facilities and practices would enable (a) the fishermen to sell a larger proportion of their catch, and (b) the corporation to offer fishermen higher prices than they would get from the middlemen buyers (para. 5.05). The corporation could do this because it would be able to: (a) through economies of scale in its operations, reduce the marketing costs to an estimated P 4.17 per kg of fish compared with P 4.80 for the existing marketers; (b) sell a significant proportion of its fish directly to the high-priced urban markets; (c) store fish with minimal loss of quality, especially in periods when supplies are plentiful and prices low in order to sell later when fish is in short supply; (d) market fish of generally higher quality resulting from the increasing use by municipal fishermen of its ice and insulated fish boxes; and (e) purchase fish for consumption in fresh form which otherwise would be sold by fishermen for drying and salting at lower prices. 5.03 The corporation could expect to handle about 8,000 tons a year at full development or about one-fifth of the present catch in the subproject  - 40 - area. Estimates of the value of fish by grades and the markets where the fish would be sold are given in Table 5.1 below: Table 5.1: THE CORPORATION'S FISH SALES ESTIMATES BY GRADES AND URBAN MARKETS (% of total value) Markets Catbalogan/ Grade Manila Bulan Tacloban Total Premium & 1st class /a 14 - - 14 2nd class 20 25 - /b 45 3rd class 3 30 9 41 'lotal 36 55 9 100 /a Including shrimp. /b Less than 0.5%. Note: Percentages do not add up due to rounding. 5.04 The fish sold at Bulan and Catbalogan to wholesalers and other buyers would be distributed by them to consuming markets as at present. Some of the second class fish sold at Bulan would end up in urban markets mainly to the north, including Manila. Most of the fish sold in Manila would be of higher quality grades, and would be transported by the corporation's insulated trucks which would be able to haul to that city some 260 tons of fish a month. If the corporation finds that it can profitably operate more than the 5 trucks provided to handle sales to urban markets, it could purchase more of these vehicles later and reduce the volume of fish sold in Bulan. Prices 5.05 Since the small incremental output from the subproject represents only some 2% of the total catch from the fishing grounds in the subproject area and less than 0.5% of the landings at Navotas, it would accordingly have no effect on future fish prices. The projected earnings of the corporation indicate that its operations would remain profitable even if the prices it pays fishermen average 10% higher than the prices they are getting at present. The fish price used in determining the projected earnings is based on a weighted average price in the markets concerned for the year prior to the time of appraisal. Prices as of appraisal were used in the cash flow estimates and rates of return calculations (Annexes 9 and 10), although it should be noted that the price of fish may be on the conservative side since it has in recent years risen faster than the wholesale price index.  - 41 - 6. BENEFITS AND JUSTIFICATION Institutional Strengthening 6.01 Although the impact of the institutional strengthening component cannot be easily quantified, its major benefits on the production and utilization of fish would include: (a) increased volume and efficiency of fish production from the development of improved technology and provision of increased and more effective extension support for fishermen and fishpond operators; (b) limiting the exploitation of the fisheries resources by preventing overfishing and fishing by illegal methods, and facilitating proper assessment and management of the resources; (c) improving product quality and reduction in spoilage by improving fish handling and processing techniques and their dissemination to fishermen and fish processors; and (d) lower marketing costs and improved distribution of fish between surplus and deficit areas through the collection and dissemination of market data. A,rea Development 6.02 Major benefits of the area development subproject would include: (a) an increase in the fish catch of about 700 tons annually valued at some P 8.9 million; (b) employment for about 200 permanent workers and 80 man-years annually of casual labor to be provided by the corporation which would market fish initially from about 2,500 municipal and other small-scale fishermen, but with the possibility that more would participate later on; (c) increases in the income of participating fishermen; and (d) increased efficiency in fishing operations, lower marketing costs, better quality fish, and reduced spoilage of fish from the (e) provision of improved inputs for fishing and marketing facilities.  - 42 - 6.03 If the corporation distributes its efficiency gains to partici- pating fishermen through higher fish prices, then a 10% increase in such prices over current market prices would amount to about P 2.5 million per year. These fishermen would gain still more to the extent that profits are distributed to them. Non-participating fishermen would also benefit to the extent that the fish prices offered by the middlemen-buyers would increase as a result of the higher prices paid by the corporation. Other benefi- ciaries would include the local workers engaged to construct the various sutbproject facilities requiring about 43,000 man-days of labor and the local fishing industry which would generally benefit from the ice, cold storage, transport and boat repair facilities provided by the corporation. Balanced against all these benefits would be a smaller number of losers comprising the fish buyers, brokers and transport operators whose profits may be reduced by the competition introduced by the corporation. 6.04 Assuming that the corporation's fish buying prices are 10% higher than that currently paid by the middlemen-buyers, the financial rate of return (FRR) on its investment is estimated at about 19%. The FRR on the investment for the motorized fishing boats (bancas) with fishing gear and other supplies which account for the major part of the input supplies to fishermen is estimated at about 32%. Estimates of the annual benefits and costs during the useful life of the motorized fishing boats (6 years) and investments of the corporation (20 years) are shown in Annexes 9 and 10. 6.05 The economic rates of return (ERR) of the corporation's investment (Annex 10) and the motorized fishing boats are estimated at 24% and 36% respectively. In the determination of the estimates, the investments, operating costs and fish prices have been adjusted for taxes, duties and subsidies wherever identifiable, and the following conversion factors applied: 0.84 for consumption goods (fish and ice), 0.83 for construction, 0.78 for transport services, 0.87 for other capital goods (machinery and equipment), 0.82 for skilled labor, 0.65 for semiskilled labor, 0.48 for unskilled labor, 0.83 for operation of the facilities, 0.89 for carrier boats and 0.82 for all other items. Sensitivity Analysis and Project Risks 6.06 At appraisal tests were performed to determine the sensitivity of the rates of return to changes in the costs and benefits of the motorized fishing boat and corporation. The switching values at which the rate of return would fall below 14% (the opportunity cost of capital), are summarized in Table 6.1 below:  - 43 - Table 6.1: SWITCHING VALUES (x) Financial Economic Motorized Fishing Boat Revenues -3 3 Investment costs +18 +24 Operating costs +3 +4 Corporation Revenues -10 -19 Investment costs +39 +81 Operating costs +14 +34 As indicated in the table, the rates of return are most sensitive to changes in the revenues and operating costs. Revenues for fishing boats depend on catch volume and price; volumes have been set conservatively and would actually rise as fishery regulation enforcement improves, and fish prices have been rising faster than the general price index, so the revenue risks are acceptable. However, since the margin of safety in revenues and operating costs is small, the corporation would accordingly need to achieve the fullest possible use of its facilities, especially regarding the volume of fish marketed and the commercial use of vessels, trucks and ancillary facilities wherever feasible, sell its fish in markets which fetch the highest returns, and carry out its operations efficiently. The fishing boats would need to reduce operating costs, mainly through the supplementary use of sails at every available opportunity. 6.07 This is a high risk project. The operating results of the area development subproject, being the first of its kind in the Philippines, would be subject to many uncertainties, MNR's fisheries agencies have no experience in implementing Bank-assisted projects, and the management within BFAR is at present weak. The major uncertainties which would confront the area development subproject include the following. (a) The extent to which the corporation is able to perform efficiently and successfully, including breaking into the existing marketing system in a manner which would prove beneficial to fishermen without seriously disrupting the present trading pattern, will depend on its ability to engage competent and experienced senior staff, especially managers, who are well-acquainted with the fisheries operations in the subproject area. Breaking into the existing marketing system, bound as it is by an intricate web of social and economic relations between fishermen and the middlemen fish buyers, will be a major challenge.  - 44 - (b) Any delays or errors in the design or construction of the subproject facilities which would postpone the start of marketing operations or restrict their expansion would in turn adversely affect the corporation's operating results. (c) Estimates of the fisheries resources and their sustainable levels in the subproject areas are not fully reliable so that if there is over-fishing, smaller catches may occur in the future. However, this problem is expected to be addressed under the institutional strengthening component (para. 3.08). These risks are acceptable especially because the target group of project beneficiaries lives in a depressed area and has so far received very little assistance. If the project objectives are successfully achieved it is anticipated that similar investments could be undertaken in the future. 6.08 The environmental impact of the project would be negligible. The only pollutant sources would be domestic sewage and oil spillage from the area development subproject. These matters would be addressed by the subproject which provides for the installation of septic tanks and oily water separators. 7. RECOMMENDATIONS AND LOAN CONDITIONS 7.01 During negotiations, assurances were obtained on the following: (a) Government would provide adequate funds for the proper use and maintenance of the project facilities following their completion (para. 3.11); (b) the debt to equity ratio of the corporation would not exceed 2.5:1 (para. 4.06); (c) the corporation's general manager and two deputy managers would be appointed in consultation with the Bank (para. 4.03); (d) Input supplies to fishermen would carry an interest rate of 14% per annum. Repayment periods for fishing boats with engines and replacement engines and hulls would not exceed 6 years, including 1 year of grace. For other input supplies they would be deter- mined by the corporation on a case by case basis (para. 4.15); (e) the borrower would carry out a mid-term review with the Bank in June 1984 (para. 4.17); and (f) by December 31, 1982 the organizational changes proposed for BFAR, PFDA and FIDC will have been submitted (paras. 2.39-2.42).  - 45 - 7.02 Condition of loan effectiveness: that the Project Unit and its secretariat have been established (para. 4.14) and that the subsidiary Loan Agreement has been executed (para. 4.15). 7.03 Subject to the above, the project would be suitable for a Bank loan of $22.4 million equivalent, with a term of 20 years, including 5 years of grace.  PHILIPPINES NATIONAL FISHERIES DEVELOPMENT PROJECT Present Organization - Bureau of Fisheries and Aquatic Resources Divii es RecoriePlaoi l DMnnreFor tyhts l roeetio Staff Marertolssfianyct Army ottOq G-'. SvI - F L.ry Rgl-ql SatA,Fir it ln rer Sclotl S rato,t I-ti- _d Adj. -- inResearch anti Rerttrrnt sstc f tattoo Sectio Seert en Sect,orr h|,6 rnd Enforcement Fishe its Litenses r s e es l l Dv lFish Poca- attnille F r es Finar--r Ee qt-eerinq Fsl-ets E--is Tec,hnnlog,l -d 11 I F 0lw L ii- I, h"_i ......l Dim~~~~i- Divi~~~~~~w D ~~~~~i~i-m onDittii o,to Di,t i-t Setnee Diotiai- 0 t X 1 [~~~~~~~~~~~~~~~~~~~~~~~~~~~ reoms 0Fsrrwerin,eerttt l -Anlanltae D X ee~tio esea X h X 0 caltoqlaphy i Bn X 0 SttT,t l 0 trnekish A rrcltore a Rte F tO t PF ith,et 4 LK ci l | S-ctclr. l | Se-1 n S-e-or S-t- ttt norat Sectini Se-in 0 (IvjCts PermlT l A I)evolormen? j 0 Inl rntt on [ 0 Stkar nt FtOr.1selrtrrq}l F slee F oh Proceesrg rCoestol Lahoenrory ~ ~ ~ ~ ~ ~~~~- Cartasreoh Preonerto Wae I- Ehre Tet:trttlttn . -larr r intentio Fihote F|~hi,,y Pecto.X | S | Snction i e.tt... St.gnit 1 2" F V.I, Bthto k 22553 F~~~Ie r_a Ftt.rt Cr_tt Ltt torcyrtl tttrtFtrttn 't],trrtlttteitrrr 22 553er  - 47 - PHILIPPINES NATIONAL FISHERIES DEVELOPMENT PROJECT ANNEX 2 Proposed Organization - Bureau of Fisheries and Aquatic Resources Administrative Fin nce | Planningand Management _2 Personnel and | _| Accounting | _ Planning and Staff Development scnguntengPoet DTraoin Systems _ Records j _ Bu~~~~~dget D evelopment| Prodt F g | t e Cashiering En o Ealuation LObrary Property Unit i Assistant Director Assistant Directort Fisheries Management Extension and Assistant Director and Conservation Trai oisng R ese Frc Aquraculture Demonstration _Fleet |Regulation and Law | | Maie l echnology | Enforcement Licensing e X nsion Training a lhre l Vrfcto P roducts t Planning Training 1 1 FseyEooy| | Fsee L F Flshery Law l l Fishpond L7] L ecnolog | | Fishermen's L esourc~e Fish L Enforcement Leases Packaging Training Centers Surveys Utilization Fishery ishing g~ ~~~~~~~~~~v llhr .l a| tvaluatn Te'chnology Permits and Operations a World Ban k 22 554  _ 48 - PHI LIPPINES ANNEX 3 NATIONAL FISHERIES DEVELOPMENT PROJECT Present Organziation - Philippine Fish Marketing Authority Board of Directors General Manager Assistant General Nlanager l | | Reitions | Resourcs | Developmet Planning and Operations Navotas Administrative Financial Development Department Fishing Department Department Fishing Ports Socialized Regional Harbo rPernnlugt Packageii Fish Trading Units Operations Personnel Budget National Fishll ll _ Marketing _ Market Operations Records Maintenance _ General _ Corporate _ Division Services Planning ADB/FAO _: Administrative X Project | l Land Area l j General Billing + Development | H Unit I office B I2I World Bank -- 22555  - 49 - PHILIPPINES ANNEX 4 NATIONAL FISHERIES DEVELOPMENT PROJECT Proposed Organization - Philippine Fish Marketing Authority Board of Directors General Manager Assistant General Manager Task Force ~~~~~~~~~~Planning and Development Department l Corporate l [ Project Plan and l Planning l | Development Economic and MIS Management Research Legaland Public and Financial Administrative ~~~~~~~~~Institutional | Administrative l|Affairs Management Human Resources General Legal Office Development Services Bde conig Mngmn Mediaand -V 1 Institutional Relation L and Business Promotions n an a Field Operation,FieldOperationsWrld Bans rtation | Tmninal (Lzn (Mnano Department | Ice Cold | HabrCei Eniern_ Trfc l S torage l Oprto Maaeet Mngmt World Bank - 22556  - 50- ANNEX 5 Page 1 PHILIPPINES NATIONAL FISHERIES DEVELOPMENT PROJECT Main Features of the Area Development Subproject 1. The area covered by the subproject comprises: (a) Ticao Pass. This is between Bulan on the southwest side of the Bicol Peninsula and Ticao Island. The sites in this area are Bulan and San Jacinto on Ticao Island. (b) The southern part of the east coast of Masbate Island bordering the Samar Sea. The sites in this area are at Miaga and Cataingan. (c) The west coast of the southern part of Masbate Island bordering the east Visayan Sea. The site in this area is at Placer. (d) The Islands in the center of the Samar Sea. The site in this area is on Santo Nino Island. (e) The area around Catbalogan on the west coast of the province of East Samar bordering the Samar Sea. The area extends to Tarangnan to the north and includes Maqueda Bay to the south. The site in this area is at Catbalogan. 2. The subproject sites and fishing grounds are subject to differing climatic conditions which in turn influences the fishing season at each site. Sites on west facing coasts are affected more by the southwest monsoon and on east facing coasts by the northeast monsoon. The tidal range in the subproject area is around 1 1/2 - 2 m. W4ater depths in various parts also vary widely. 3. In Ticao Pass the sea bed slopes steeply. Near Bulan the 20 m contour is 1 km from the shore, while on the Ticao Island side the 20 m contour is even closer and the sea bed 5 km from the shore reaches a depth of nearly 200 m. On the east side of the southern part of Masbate the 20 m depth contour is close inshore and at the southern end the 200 m contour is also very close being only 3 km offshore in the region of Cataingan. The Visayan Sea to the south and west of Masbate Island is much shallower, the 20 m contour being 5 km offshore in the region of Placer and 15 km offshore in the region of Naro Island, just west of Cawayan. The sea bed around the islands in the center of the Samar Sea slopes very rapidly and is at a depth of around 90-100 m within a distance of 2 or 3 km from the shore. The area around Catbalogan is fairly shallow, the 20 n contour is around 4 km fron the shore while the whole of Maqueda Bay has water depths of less than 10 m.  - 51 - ANNEX 5 Page 2 4. Typhoons occur in the whole area. According to data in the Philippine Islands Pilot, the subproject area lies in the usual paths of typhoons for most months of the year with around 30 typhoons in bands approximately 300 km wide having been recorded in the last 50 years. Although only a small proportion of the typhoons will affect any particular site, their frequency is such that waves generated will be the predominant factor in the design of the marine facilites at most of the sites. It is therefore most important that the subproject is designed around as shallow drafted fish carrier boats as possible. This is because the maximum height a wave can reach is governed by the depth of water and to construct break waters capable of resisting waves of greater height than 2 to 3 m becomes extremely costly and uneconomical for small fishing harbours. For this reason the maximum water draft of the carrier boats has been limited so a berth of only 2 m is required which would permit a maximum wave height of between 2 and 2-1/2 m at high water. 5. Apart from Bulan and Catbalogan the sites are in areas with no major existing or planned electricity supply. Bulan is connected to the main grid in the province of Sorsogon and the reported capacity of the line and substation at Bulan is 5 MVA compared with a current maximum demand of 2.2 MVA. 6. Catbalogan is at present supplied from a power station at Wright (approximately 20 km to the east) where there is an installed capacity of 5,000 KW and a present peak load of 1,380 km (September 1980). There are plans to link western Samar to a geothermal power station to be constructed near Ornoc in Leyte which is planned ;) produce 37.5 MW by August 1982, 75 MW by November 1982, 112.5 MW by February 1983, and 450 MW in 1985. The transmission line to Wright is planned for 1983. 7. Despite this, the reliability of the power supply may be insufficient where highly perishable goods are involved and the subproject has been drawn up to be selfsufficient in power. At Catbalogan where an ice plant and chill room are to be provided under a BFAR project currently under construction it is understood that the project includes its own generating equipment. 8. It has similarly been assumed that the subproject will have its own water supply. The cost estimates would accordingly include wells and pipelines to all the sites. 9. The only paved road of any significance in the subproject area is the Manila Highway. This is generally a two lane concrete paved road and extends from Manila to Matnog on the north side of the San Bernardino Strait between the Island of Luzon and Samar and then from Allen down Samar to Catbalogan, across the San Juanico Bridge to Tacloban in Leyte and further  - 52 - ANNEX 5 Page 3 south. The San Bernardino Strait crossing is made by ferry. At present one ferry is in operation and another is planned shortly. The present service is one journey a day in each direction and the vessel is large enough to take trucks in excess of 20 tons. Bulan is connected to the Manila Highway by a concrete paved road. On Masbate Island there is a gravel road in not too bad condition which extends south from Masbate to Cataingan and a gravel road in rather worse condition from Cataingan to Placer. Miaga is on a local loop road which is at present largely a dirt road and is scheduled for upgrading shortly. All the gravel roads on Masbate Island appeared to be of basically sound condition but are deteriorating rather rapidly due to lack of maintenance. 10. Commercial facilities for vessel repairs are not available in the subproject area but slipways are available at Ilo Ilo and Cebu, both about 10-12 hours steaming time from the south of Masbate Island. Facilities for minor engine repairs are available at Catbalogan. Facilities would be provided at the Bulan site for slipping for hull repairs, cleaning and painting, and a workshop for engine repairs.  - 53 - ANNEX 6 Table i PHILIPPINES NATIONAL FISHERIES DEVELOPMENT PROJECT Area Development Subproject - Total Estimated Costs (P'OO0) Foreign Local exchange cost Total Bulan Site preparation 2,831 6,630 9,461 Buildings 1,660 4,282 5,942 Machinery and equipment 3,021 1,959 4,980 San Jacinto Site preparation 235 744 979 Buildings 148 412 560 Machinery and equipment 148 101 249 Miaga Site preparation 775 1,809 2,584 Buildings 445 1,219 1,664 Machinery and equipment 841 629 1,470 Cataingan Site preparation 317 921 1,238 Buildings 329 853 1,182 Machinery and equipment 841 627 1,468 Placer Site preparation 2,947 8,083 11,030 Buildings 1,680 3,683 5,363 Machinery and equipment 2,231 1,526 3,757 Catbalogan Site preparation 532 1,574 2,106 Buildings 418 1,329 1,747 Machinery and equipment 292 212 504 Sto Nih'o Site preparation 837 1,966 2,803 Buildings 543 1,484 2,027 Machinery and equipment 801 598 1,399 21,872 40,641 62,513 Spare parts for machinery 728 415 1,143 Engineering design & supervision 224 6,162 6,386 Carrier vessels and fish boxes 5,488 3,911 9,399 Supplies to fishermen 5,600 3,911 9,511 Allowance for purchase of BFAR ice plant complex at Catbalogan 1,896 2,230 4,126 Working capital /a 1,008 6,162 7,170 Administrative costs /b. 672 4,266 4,938 Subtotal 37,488 67,698 105,186 Less taxes (411) (2,449) (2,860) Total 37,077 65,249 102,326 /a Operating costs for three months and one month purchase of fish following coimplqtion of project facilities. /b Salaries and transport costs of staff during construction of project facilities. Note: Breakdown of costs for the remaining items are given in supporting tables. Appraisal prices updated through 12/81 by 18.5% (local cost) and 12.0% (foreign). Tables 2-5 of project file should be adjusted accordingly ($1 = P 8.1).  - 54 - ANNEX 6 Table 2 PHILIPPINES NATIONAL FISHERIES DEVELOPMENT PROJECT Institutional Strengthening - Cost Estimates for the Fishery Industry Development Council Foreign ex- Foreign Local Total Foreign Local Total change as % ______- (US$'000) ------ ------- (Pesos 000) ------- of total Transport 2 4-wheel drive jeeps 14.5 6.6 21.1 117.6 53.3 170.9 2 4-door cars 11.6 5.3 16.9 94.0 42.7 136.7 1 station wagon 10.9 4.9 15.8 88.3 40.0 128.3 Subtotal 37.0 16.8 53.8 299.9 136.0 435.9 Equipment 1 multilith offset printer 17.1 3.4 20.5 128.3 25.5 153.8 1 WBIX copying machine 8.0 1.6 9.6 60.0 12.0 72.0 1 audio visual equipment (overhead projector, slide projector (2) and tape deck) 4.3 0.9 5.2 32.3 6.8 39.1 Subtotal 29.4 5.9 35.3 220.6 44.3 264.9 Library Improvement Furniture, etc. 2.1 4.7 6.8 15.8 35.3 51.1 Books, journals, manuals 27.0 - 27.0 202.5 - 202.5 Other publications 6.5 - 6.5 4R.8 - 48.8 Subtotal 35.6 4.7 40.3 267.1 35.3 302.4 Consultancy Fund Marine fisheries management specialist (24 MM) 211.6 39.5 251.1 1,714.0 320.0 2,034.0 Sociologist (12 MM) - 35.1 35.1 - 285.0 285.0 Marine biologist (12 MM) 106.0 19.8 125.8 857.0 160.0 1,017.0 Fisheries industries specialist (12 MM) 106.0 19.8 125.8 857.0 160.0 1,017.0 Resource economist (12 MM) 106.0 19.8 125.8 857.0 160.0 1,017.0 Financial analyst (24 MM) - 70.4 70.4 - 570.0 570.0 Subtotal 529.6 204.4 734.0 4,285.0 1,655.0 5,940.0 Training (Foreign) 1 fisheries industries development (24 MM) 26.5 0.1 26.6 198.8 0.8 199.6 1 resource economics (12 MM) 14.5 0.1 14.6 108.8 0.8 109.6 1 marine fisheries management (12 MM) 14.5 0.1 14.6 108.8 0.8 109.6 Subtotal 55.5 0.3 55.8 416.4 2.4 418.8 Training (Local) 2 marine fisheries (48 MM) - 2.7 2.7 - 20.3 20.3 2 aquaculture (48 MM) - 2.7 2.7 - 20.3 20.3 1 sociology (24 MM) - 1.1 1.1 - 8.3 8.3 1 statistics (24 MM) - 1.2 1.2 - 9.0 9.0 2 business administration and finance (48 MM) - 1.7 1.7 - 12.8 12.8 2 economics (48 MM) - 2.0 2.0 - 15.0 15.0 Subtotal - 11.4 11.4 - 85.7 85.7 Operating Costs (4 years) (vehicles) 53.5 25.1 78.6 433.0 203.6 636.6 Total 740.6 268.6 1,009.2 5,922.0 2,162.3 8,084.3 73 Updated 12/81 ($1 = P 8.1)  - 55 - ANNEX 6 Table 3 PHILIPPINES NATIONAL FISHERIES DEVELOPMENT PROJECT Institutional Strengthening - Cost Estimates for the Philippine Fish Marketing Authority Foreign ex- Foreign Local Total Foreign Local Total change as % ------- (US$000) ------- ------- (Pesos 000) ------- of total Technical Assistance Fish port engineer/planner (36 MM) 317.3 59.2 376.6 2,570.4 479.9 3,050.3 Fish port and market operation specialist (24 MM) 211.6 39.5 251.1 1,713.6 320.0 2,033.6 Subtotal 528.9 98.7 627.7 4,284.0 799.9 5,083.9 Overseas Training 11 fellowships 1 year duration - port and market operations and management, including fish handling and hygiene practices 159.5 0.1 159.6 1,196.3 0.8 1,197.1 11 port engineering designs and maintenance, each 1 year duration 159.5 0.1 159.6 1,196.3 0.8 1,197.1 5 fellowships (3 months each) study and observa- tion tours of fish ports and markets 35.0 0.5 35.5 262.5 3.8 266.3 Subtotal 354.0 0.7 354.7 2,655.1 5.4 2,660.5 Local Training - 200.0 200.0 - 1,500.0 1,500.0 Office Equipment 2 copying machines 15.9 3.1 19.0 119.3 23.3 142.6 1 duplicating machine 4.6 0.9 5.5 34.5 6.8 41.3 1 hook binder 3.4 0.6 4.0 25.5 4.5 30.0 7 cash registers 16.7 3.3 20.0 125.3 24.8 150.1 8 desk calculators 0.8 0.1 0.9 6.0 0.8 6.8 Subtotal 41.4 8.0 49.4 310.6 60.2 370.8 Communication Equipment 7 SSB radio/transmitter system, frequency range 136-174 mhz with power supply 12n/220/240 VAC and dipole antennas 36.9 11.6 48.5 299.0 94.2 393.2 22 walkie talkies - 10 mile range 6.2 1.9 8.1 50.4 15.2 65.6 Subtotal 43.1 13.5 56.6 349.4 109.4 458.8 Transport 2 4-door cars 12.8 4.1 16.8 103.4 32.9 136.3 10 4-wheel drive jeeps 79.9 25.2 105.1 646.8 204.4 851.2 3 insulated trucks 43.0 13.7 56.8 348.7 111.2 459.9 Subtotal 135.7 43.0 178.7 1,098.9 348.5 1,447.4 Fish Port Operation and Maintenance Equipment 11 23-ft security and inspection launches with 25 hp kerosene engine (gasoline start-up) 41.1 13.1 54.1 332.6 105.8 438.4 1 tractor with scoop loader 33.6 3.5 37.1 272.2 28.4 300.6 1 compressor for power tools 21.1 2.2 23.3 170.6 17.8 188.4 1 mobile crane (1 to 1-1/2 tons) 56.0 6.0 62.0 453.6 48.0 501.6 1 pickup truck (1-1/2 tons) 8.5 0.9 9.4 68.9 7.1 76.0 Miscellaneous tools 17.3 1.0 18.3 140.3 8.1 148.4 Subtotal 177.6 26.7 204.2 1,438.2 215.2 1,653.4 Operating Cost (4 years) (Vehicles and boats) 190.n 135.5 325.5 1,538.9 1,097.7 2,636.6 Total 1,470.7 526.1 1,996.0 11,675.1 4,136.3 15,811.4 74 Updated 12/18 ($1 - P 8.1).  - 56 - ANNEX 6 Table 4 PHILIPPINES NATIONAL FISHERIES DEVELOPMENT PROJECT Institutional Strengthening - Cost Estimates for the Bureau of Fisheries and Aquatic Resources Foreign ex- Foreign Local Total Foreign Local Total change as % - --- (US$OOO) ------ ------- (Pesos -000) ------- of total Resource Assessment Research vessel (200 GT), including refitting 880.0 - 880.0 7,128.0 - 7,128.0 Fishing, sampling and research equipment 104.4 11.0 115.4 845.9 88.9 934.8 Oceanographic equipment 27.5 3.0 30.5 222.7 24.1 246.8 Reef fishing survey & research vessel (10 GT) for continuous monitoring of reef fishing in project area including gear 13.4 5.6 19.0 108.4 45.4 153.8 Resource survey fund (300 operational days) - 131.7 131.7 - 1,066.5 1,066.5 Subtotal 1,025.3 151.3 1,176.6 8,304.9 1,225.5 9,530.4 Resource Management, Law Enforcement, Extension and Statistics 72 pump boats 59.7 42.1 101.8 483.8 341.3 825.1 12 23-ft patrol boats with 25 hp diesel engine 44.8 14.3 59.1 362.9 115.5 478.4 400 motorcycles, 100 cc 431.2 136.9 568.1 3,492.7 1,109.2 4,601.9 Fishery extension equipment (125 sets) and sup- port equipment for inland fisheries extension 114.1 12.1 126.7 924.0 97.8 1,021.8 Surveying equipment (4 sets) 18.9 2.0 20.9 152.9 16.0 168.9 14 desk calculators 1.5 0.3 1.8 11.8 2.7 14.5 Subtotal 670.2 207.7 877.9 5,428.1 1,682.5 7,110.6 Fish Utilization Equipment' Research, microbiological and chemical 54.3 5.8 60.1 440.2 47.2 487.4 Product development 152.3 16.1 168.4 1,234.0 130.7 1,364.7 Demonstration (extension) 4.4 0.4 4.8 35.3 3.6 38.9 Subtotal 211.0 22.3 233.3 1,709.5 181.5 1,891.0 Transport, Communication, Documentation 12 4-wheel drive vehicles 95.7 30.4 126.1 775.4 246.2 1,021.6 2 4-door cars 12.8 4.1 16.9 103.4 33.0 136.4 7 SS8 sets 36.9 11.6 48.5 299.0 94.2 393.2 1 duplicating equipment 4.4 1.4 5.8 35.3 11.6 46.9 Subtotal 149.8 47.5 197.3 1,213.1 385.0 1,598.1 Overseas Training, Masters Degree Fisheries biology (population dynamics) for stock assessment (24 MM) 26.5 0.1 26.6 198.8 0.8 199.6 Fishery management (24 MM) 26.5 0.1 26.6 198.8 0.8 199.6 Fish processing technology (24 MM) 26.5 0.1 26.6 198.8 0.8 199.6 Resource economics (24 MM) 26.5 0.1 26.6 198.8 0.8 199.6 Subtotal 106.0 0.4 106.4 795.2 3.2 798.4 Post Graduate Training I physical oceanography (6 MM) 8.5 0.1 8.6 63.8 0.8 64.6 1 biological oceanography (6 MM) 8.5 0.1 8.6 63.8 0.8 64.6 1 fish population dynamics (6 KM) 8.5 0.1 8.6 63.8 0.8 64.6 1 fishing methods, techniques and gear (6 MM) 8.5 0.1 8.6 63.8 0.8 64.6 1 boat designs and construction (6 MM) 8.5 0.1 8.6 63.8 0.8 64.6 2 microbiology (12 MM) 17.0 0.2 17.2 127.5 1.5 129.0 1 product development (6 MM) 8.5 0.1 8.6 63.8 0.8 64.6 2 quality control and inspection (24 MM) 29.0 0.2 29.0 217.5 1.5 219.0 Subtotal 97.0 1.0 98.0 727.8 7.8 735.6 Vehicle and Vessel Operating Cost (4 years) M/v researcher 286.9 576.2 863.1 2,323.9 4,667.4 6,991.3 Pump boats 674.3 203.6 877.9 5,461.6 1,649.5 7,111.1 Patrol boats 105.1 74.2 179.3 851.5 600.7 1,452.2 Motorcycles 318.6 224.7 543.3 2,580.5 1,820.2 4,400.7 Cars 21.3 15.4 36.7 172.5 125.0 297.5 4-wheel drive jeeps 129.0 82.6 211.6 1,045.0 669.1 1,714.1 Subtotal 1,535.2 1,176.7 2,711.9 12,435.0 9,531.9 21,966.9 Total 3,794.5 1,606.9 5,401.4 30,613.6 13,017.4 43,631.0 70 Updated 12/81 ($1 = P 8.1). Revised to include vessel purchase 4/82  PHI LIPPINES NATIONAL FISHERIES DEVELOPMENT PROJECT IMPLEMENTATION SCHEDULE YEAR 1 2 3 4 5 6 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 3 4 1 2 3 4 1 2 3 APPOINT CONSULTANTS< z PREPARE FINAL DESIGN 0 PREPARE TENDER DOCUMENTS _ O PREQUALIFY CONTRACTORS TENDER PERIOD APPOINTMENT OF CONTRACTOR _ CONTRACTOR MOBILIZATION BULAN AND PLACER < SITE PREPARATION - RECLAMATION _ - JETTY AND BREAKWATER < BUILDINGS K EQUIPMENT - PROCURE -INSTALL Z0 -COMMISSION MIAGA, CATAINGAN, CATBALOGAN < SITE PREPARATION - RECLAMATION --JETTIES< BUILDINGS _ EQUIPMENT PROCURE _ Z -INSTALL COMMISSION STO NINO, SAN JACINTO < SITE PREPARAT-ION RECLAMATION - JETTIES BUILDINGS EQUIPMENT - PROCURE - INSTALL --COMMISSION World Bank-22275 '-4  - 58 - PHI LIPPINES NATIONAL FISHERIES DEVELOPMENT PROJECT ANNEX 8 AREA DEVELOPMENT SUB-PROJECT Proposed Organization for the Corporation Board of Directors Chairman | General Manage l~~~~~~~~~~~ | peatoM.anilaG L - 2 Finance and Administration Operations Manager Liaison 4 - - - - - - -- Manager Accounting, Engineering Budget and Maintenance 1 Procurement Bulan _ and Repairs and Stores Headquarters Market Fishermen's | Operations Credit Transport J Personnel Operations Pesne Field General Offices Administration acr Catbalogan Caana 0g at Ni~ an Jacint Market Transport Operations Operations World Bank - 22557  PHILIPPINES NATIONAL FISHERIES DEVELOPMENT PROJECT Area Development Subproject New Motorized Banca - Financial Analysis (Pesos) Project semester: 1 2 3 4 5 6 7 8 9 10 11 12 (6-month period) Benefits Fish sales /a 9,889 9,890 8,406 8,406 8,826 8,826 7,503 7,502 7,878 7,877 6,696 6,696 Costs Investment /b Hull 2,600 - - - - - - - - - - - Engine 3,000 - - - - - - - - Gear 2,000 - - - 2,000 - - - 2,000 - - (1,000) Subtotal 7,600 - - - 2,000 - - - 2,000 - - (1,000) @ Operating Costs /c Fuel 5,235 5,235 5,235 5,235 5,235 5,235 5,235 5,235 5,235 5,235 5,235 5,235 Wages 1,350 1,350 1,350 1,350 1,350 1,350 1,350 1,350 1,350 1,350 1,350 1,350 Maintenance & repair 570 570 570 570 570 570 570 570 570 570 570 570 Subtotal 7,155 7,155 7,155 7,155 7,155 7,155 7,155 7,155 7,155 7,155 7,155 7,155 Net Benefits (Costs) (4,866) 2,735 1,251 1,251 (329) 1,671 348 347 (1,227) 722 (459) 541 Financial Rate of Return /d: 32% /a Because investments occurring in different seasons yield different results, an average across all seasons is used here, such that sales and operating costs for the first and second semesters of each year are equal, and variation in sales occurs only between years. Catch averages 41 kg/day for 180 days of fishing per year. Sale is through existing channels at average price of P 2.68/kg. As hull, engine and gear age and as gear is replaced, catch in years 2-6 changes by -15%, +5%, -15%, +5%, -15%. /b Fishermen starts with all new hull, engine and fishing net; hull life 6 years, engine life 8 years with residual value of P 1,000 at end of year 6, and gear life 2 years. /c Fuel: 11.75 liters/day x 180 days x P 4.95/liter. Wages for crew: P 15/day x 180 days. Maintenance and repair: 15% of cost of new equipment each year. /d Annual rate. Semiannual rate is 15%. a x  PHILIPPINES NATIONAL FISHERIES DEVELOPMENT PROJECT Area Development Subproject New Motorized Banca - Cash Flow Summary (Pesos) Project semester (6-month period) 1 2 3 4 5 6 7 8 9 10 11 12 Inflow Fish sales /a 9,889 9,890 8,406 8,406 8,826 8,826 7,503 7,502 7,878 7,877 6,696 6,696 Project loan /b 5,320 - - - - - - - - - - - Other sources/c - - - - 1,017 - 233 186 1,764 456 861 - Subtotal 15,209 9,890 8,406 8,406 9,843 8,826 7,736 7,688 9,642 8,333 7,557 6,696 Outflow Investment /a 7,600 - - - 2,000 - - - 2,000 - - (1,000) Operating costs /a 7,155 7,155 7,155 7,155 7,155 7,155 7,155 7,155 7,155 7,155 7,155 7,155 C Debt service /d 0 Interest /e 360 339 326 283 242 203 168 135 104 75 48 23 Principal 7f - - 482 464 446 463 413 398 383 1,103 354 341 Subtotal 15,115 7,515 8,047 8,011 9,843 7,821 7,736 7,688 9,642 8,333 7,557 6,519 Net Cash Flow /g 94 2,375 359 394 - 1,005 - - - _ - 177 /a From Annex 9, Table 1. /b 95% of cost of hull and engine. /c Own resources up to P 1,000/period: traditional sources (borrowing at zero interest from relatives, friends or suppliers, 1-year term) cover any cash deficits over P 1,000/period. Regular nonfishing income sources are excluded except when needed to cover investment costs or periodic fishing enterprise deficits. About 70% of fishing households have nonfishing income. /d Payments beginning with period 2 are deflated at the rate of 8.5% p.a. in the first year and 8.0% p.a. thereafter, to adjust them to constant period 1 pesos. /e 14% p.a., paid semiannually at 6.77% of unpaid beginning-of-semester balance. /f Six year to repay, including one year of grace. Repayments for periods 6, 10 and 12 include payments to traditional creditors of P 149, P 953 and P 63, respectively. /g The fishing enterprise cash deficits found in later periods illustrate one reason for widespread defaults a in past municipal fisherman credit programs. Requiring that fishermen using project credit sell their catch through the corporation would result in large cash surpluses for all 12 periods.  PHILIPPINES
.ATIONAL FISHERfES DEVELOPMENT PROJECf A- Dl-l.p .. I S.bP-J-1 C..h Fl.. ..d Fi.-t.l A-ly
i
000) 1 2 3 4 5 6 7 9 9 10 II 13 14 is 16 17 is 19 20 C-h I.fl- Ft.h ..1.. I. 2,874 19,021 34,790 51,826 58,957 60,088 60,088 60,088 60,088 60,088 60,088 60,088 60,08$ 60,088 60,088 60,088 60,088 I- -1- fb 56 373 693 1,017 1,157 1,179 1,179 1,179 1,179 1,179 1,179 1,179 1,179 1,179 1,09 1,179 1,179 C.Id t ...
g. t..t.1 I. 43 115 120 120 120 120 120 120 120 120 120 120 120 120 120 120 120 F..I ..1- /d 480 3,186 4,557 5,482 5,893 5,971 5,971 5,971 5,971 5,971 5,971 5,971 5,971 5,971 5,971 5,971 5,971 Fi 120 489 916 1,365 1,630 1,670 1,670 1,670 1,670 1,670 1,670 1,670 1,670 1,670 1,670 1,670 1,670 F hi
g lq.ipl.t ..I.. C-h(3ol) 722 619 661 718 454 494 494 494 494 494 494 494 494 494 494 494 494 L.- (70%) P
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199 66,342 71,948 12,355 72,204 72,029 7_2,061 72,061 72,061 72,061 72,061 72,061 72,061 72_ 061 77,186 C..h O.Ifl.. --L 4,394 12:461 6:116 2 97 Si'l " 1:111 Boildi.gl - 9 246 4 982 562 66 11 _hj_ -I q, "I'll 1,526 5,315 4,189 994 43 C.",_ ,lll. .. II I.... - 902 1,631 1,742 1,913 1,450 560 p-h... f BFARII, P_I_Pl_ .t Ctb.1.9.. 3,575 - - - - I... ... 1, 1- - hl- y B96 104 - W.
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t.- p- h- . /t 1,4 466 872 300 1, 552 1,590 1, 59" 1, 5go 1,5 90 1,5go 1,5gf 1,590 1,590 1, 590 1,5go 1,590 1,590 0th_ i
po t P- h- - I. - - 962 1,317 1,646 1,646 1,646 1,646 1,646 1,646 1,646 1,646 1, 646 1, 646 1,646 1,646 T.- /I 42 275 502 748 850 866 866 866 866 866 866 866 866 866 866 866 866 S.bt.,.l 3,930 18,916 2_9,557 41,078 46,157 47,168 47,168 47,168 47,168 47,169 47,168 47,168 47,168 47,168 47,168 47,168 47,168 Dlbt S-i- I.t.- t p. id N - - 7:9841 7:1741 1:111 5:3319 4:,114 3:2711 32:1 '19 '7' '2' 99 Pti-ip-i P-id-7- 83 4 4 6 4 144 8 7 3 3 3 90 046 8 0 2:"4 1:'O' ':I 0 3 920 7 7 46 4 3 3:131 2 2 612 2 418 2 19 2, 7 1, 1, 7 ,6 6' S.bt.L.1 p.id 12
815 11,625 _10,412 9,176 8,067 _7,071 6,179 5,380 4,665 54,027 3,458 2,951 2,500 2_100 1_745 L't'i
C-h Dolfill 3,172 9,081 30,025 31,454 30,716 473732 555584 5 7 , 3 2 5 56,344
15,235 54,239 53,347 52,548 1,195 50,626 50,119 49,668 49,268 42_ 813 Net Cash Flow 666 6 184 1,467 10,758 14,623 6,011 lh,969 17,790 118,714 19,513 20,228 20,866 21,435 21,942 22,393 22,793 34_ 373 Net Benefit (3,172) (9,081) (30,025) (26,858) (5,616) 8,922 19,502 24,279
5,187 25,036 24,861 24,893 74,893 24,893 i4,893 24,893 24= 893 24,893 24,893 36_ 118 Fi.-W -t
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i-ip.l I. -P.id i. 20 y..,. i1h 5 y.- of gt....  - 62 - ANNEX 1 0 Table 2 PHILIPPINES NATIONAL FISHERIES DEVELOPMENT PROJECT Area Development Subproject Corporation - Economic Analysis (P'000) Accounting Proj ect year ratio 1 2 3 4 5 6 7 8 9-19 20 Without Project Benefits Fish sales /a 0.840 - - - 1,241 8,212 15,018 22,372 25,450 25,938 25,938 Ice sales lb 0.840 - - - 22 149 273 407 463 471 471 Cold storage rental 0.820 - - - 5 14 14 14 14 14 14 Subtotal _ _ - 1,267 8,375 15,305 22,793 25,927 26,423 26,423 Operating Costs Fish purchases /c 0.840 - - - 1,105 6,810 12,190 17,989 20,463 20,856 20,856 Miscellaneous /d 0.753 - - - 145 1,409 2,803 4,324 4,917 5,010 5,010 Subtotal - 1,250 8,219 14,993 22,313 25,380 25,866 25,866 Net Benefits - - - 17 156 312 480 545 557 57 _ With Project /e Benefits Fish sales 0.C40 - - - 2,414 15,980 29,224 43,534 49,524 50,474 50,474 Ice sales 0.840 - - - 47 313 574 854 972 990 990 Cold storage rental 0.820 - - - 35 94 98 98 98 98 98 Transport services 0.777 - - - 37 240 437 654 744 758 758 Housing rental 0.820 - - - 30 71 75 75 75 75 75 Residual value 0.820 - - - - - - - - - 2,583 Subtotal - _ - 2,563 16,698 30,410 45,215 51,413 52,395 54,978 Investment Costs Site preparation 0.827 - 3,634 10,305 5,711 1,690 80 - - - - Buildings 0.827 - - 7,647 4,120 1,292 55 - - - - Machinery and equipment 0.865 - 1,320 4,597 3,623 860 37 - - - - Carrier vessels, fish boxes 0.890 - - 803 1,453 1,550 1,703 1,290 498 - - Spare parts 0.870 - - - 780 93 - - - - - Administrative costs 0.760-0.780/f 789 991 1,007 476 - - - - - - Engineering design, supervision 0.820 1,771 1,550 664 - 443 Subtotal 2,560 7,495 25,023 16,163 5,928 1,875 1,290 498 Operating Costs Fish purchases 0.840 - - - 1,139 7,018 12,564 18,541 21,091 21,496 21,496 Staff salaries, charges 0.700-0.760 - - - 1,557 2,802 2,848 3,385 3,744 3,744 3,744 Transport costs 0.777 - - - 61 364 654 972 1,106 1,127 1,127 Facility operations 0.830 - - - 848 2,203 2,444 2,230 2,219 2,219 2,219 Subtotal - - - 3,605 12,387 18,510 25,128 28,160 28,586 28,586 Net Benefits (2,560) (7,495) (25,023) (17,205) (1,617) 10,025 18,797 22,753 23,809 26,392 Increaentals Benefits - - - 1,296 8,323 15,105 22,422 25,486 25,972 28,555 Investment costs 2,560 7,495 25,023 16,163 5,928 1,875 1,290 498 - - Operating costs - - - 2,355 4,168 3,517 2,815 2,780 2,720 2,720 Net Benefits (2,560) (7,495) (25,023) (17,222) (1,773) 9,713 18,317 22,208 23,252 25,835 Economic Rate of Return: 24% /a Incremental benefits are computed assuming project fishermen increase their catch by about 240 MT/yr, reduce spoilage losses and benefit from corporation marketing. Hence, the model compares the costs and benefits of a nearly equal catch volume in each year, which is zero in the first three years. See project file for details. /b Ice sales and cold storage rental would come from the Catbalogan complex currently under construction. /c Based on weighted average fishermen's price of about P 3.158/kg. /d Primarily labor costs and transport costs. /e Based on Annex 10, Table 1, with fuel and equipment sales removed from benefits, the BFAR Catbalogan complex, working capital and equipment purchase removed from investment costs, and fuel and equipment purchases and taxes removed from operating costs. /f As the proportion of semiskilled and unskilled staff rises, the accounting ratio falls. In the first 4 years, it is 0.78, 0.78, 0.76, 0.71; from year 5 on, it is 0.70. The ratios for skilled, semiskilled and unskilled staff are 0.82, 0.65 and 0.48, respectively.  - 63 - ANNEX 11 PHILIPPINES NATIONAL FISHERIES DEVELOPMENT PROJECT Estimated Disbursement Schedule (US$ million) Quarter ending Disbursements Cumulative 1982 Sept. 30, 1982 0.5 0.5 Dec. 31, 1982 0.1 0.6 1983 March 31, 1983 0.1 0.7 June 30, 1983 0.4 1.1 Sept. 30, 1983 0.3 1.4 Dec. 31, 1983 0.5 1.9 1984 March 31, 1984 0.8 2.7 June 30, 1984 0.8 3.5 Sept. 30, 1984 1.1 4.6 Dec. 31, 1984 1.0 5.6 1985 March 31, 1985 1.1 6.7 June 30, 1985 1.1 7.8 Sept. 30, 1985 1.3 9.1 Dec. 31, 1985 1.4 10.5 1986 March 31, 1986 1.3 11.8 June 30, 1986 1.2 13.0 Sept. 30, 1986 1.1 14.1 Dec. 31, 1986 0.9 15.0 1987 March 31, 1987 0.9 15.9 June 30, 1987 1.0 16.9 Sept 30, 1987 0.7 17.6 Dec 31, 1987 0.9 18.5 1988 March 31, 1988 1.2 19.7 June 30, 1988 0.9 20.6 Sept 30, 1988 0.6 21.2 Dec 31, 1988 0.4 21.6 1989 March 31, 1989 0.4 22.0 June 30, 1989 0.3 22.3 Sept 30, 1989 0.1 22.4  - 64 - ANNEX 12 Page 1 PHILIPPINES NATIONAL FISHERIES DEVELOPMENT PROJECT Additional Documents and Data in the Project File 1. FAO/CP, Philippines National Fisheries Development Project - Preparation Progress Report, Vols. I and II, April 29, 1980. 2. Ministry of Natural Resources, National Fisheries Development Project - Institutional Development Project. 3. Ministry of Natural Resources, National Fisheries Development Project - Area Development Project. 4. University of Philippines, Institutional Development Requirements of Major Fishery Agencies (Final Report), October 1980. 5. Presidential Decrees 704 of 1975 and 977 of 1976, and Letter of Instruction 459 of 1976 (for the establishment of BFAR, PFMA and FIDC and delineation of their respective roles). 6. BFAR, Updated Index to Presidential Decrees on Fisheries. January 1979.  - 65 -. ANNEX 12 Page 2 7. BFAR, Relevant Laws on Municipal Fisheries 8. PFMA, Annual Report 1979 9. FIDC, Ten-Year Fisheries Development Plan, 1978-87 Working Papers 10. Area Production and Rarketing - background 11. Project Fish Sales by Market, Month and Fish Class 12. Project Fish by Source, Destination, Month and Fish Class 13. Project Fish Purchasing Costs by Source, Season and Fish Class 14. Development of Fish Supply to the Corporation 15. Fishing Equipment Sales of the Corporation 16. Assumptions on Transport Services Revenue 17. Phasing of Plant Investments 18. Phasing of Carrier Vessel and Fish box Investments 19. Phasing of Corporation Personnel Costs 20. Corporation Transport Operations Costs 21. Shore Facility Operations Costs 22. Corporation - Economic Analysis 23. New Pumpboat - Economic Analysis 24. Sail-Assisted Pumpboat - Cash Flow and Financial Analysis 25. New Pumpboat Cash Flows (non-incremental) 26. New Pumpboat Financial Analysis (no investment subsidy)  PHI LIPPINES NATIONAL FISHERIES DEVELOPMENT PROJECT ENIN B l\ > 0 U T R I E i j iTRNREADTH 0' / / XA~TYS SIDE VIEW / MS HULL FRAMING /X\ ENGINE COVERSTEIGPT 5 9 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ATFIN |-K - OVFRALL I-lNGOTI I PROPEIILR Pump Boat (Traditional Fishing Banca with Engine) Large Pump Boat (Traditional Carrier with Engine) Specification Specification Material: Local Wood Material: Local Wood O-rall Length: About 9.14 tnnterr- Oerall Length. About 19.51 meters Breadth: About 0.81 meters Bteadth: About 1.83 meters Depth: About 0.81 meters Depth: About 2.13 mteters Engine: About 16 hp, garoli-re Engine: About 120 hp, diesel hand starting, air-co-ling Mac, Speed: About 12 bnets Cargo Capacity: About 10 rues Communicatin-s: SSB Radio Telephone Note: Traditional fishing banca and traditonal cargo carrier are basically Note: Traditional fishing banca and traditional cargo carrier are basically of similar design and type. In the Philipines, there are an-ua similar design. There are, however, various modifications of shape, modifications of shape, design, construction of bancas in the desigtn, and construction of bancas operating in diflerent waters. different waters. Fish carrier trust race wooden plank deck with at least one opening to be coveted with hatch, in order to load altd unload fish and ice. Inside of fish bold ,r51 la insulatedr with ryothetic material World Bank- 22247  IBRD 15436 DECEMBER 1980 1 RECEIVING 2 ICE PLANT 3 ICE STORE 4 CHILL ROOM 5 MACHINERY 6 ICE/CHILL ROOM EXPANSION 7 OFFICE 8 FUEL STORAGE 9 RESTROOM FACILITIES 10 STORE ':t ~~~~~~XISTING PIER '",2 .... .-.-- : .:(DECK TO BE REPAIRED BY PHILIPPINE PORT AUTHORITY) This map has been prepared by the World Bank's staff exclusively for the convenience of the readers of the report to which it is attached. The denominations used and the boundaries shown on this map do not imply, on the part of the World Baok and its affiliates, any judgment on Ihe legal status of any terntory or any endorsement or acceptance of such boundaries. 1 218 PHILIPPINES NATIONAL FISHERIES DEVELOPMENT PROJECT -, z ,4 CATA INGAN PROPOSED gCATMWA11 PROJECT AREA STRUCTURES STONE RIP-RAP FATHOM LINES EXISTING 0 10 20 CAUSEWAY 120" 124