Announcement of World Bank Lends Sixty-Seven Million Dollars for Urban Development in the Philippines on April 4, 1983

i\.. ' · FOR IMMEDIATE RELEASE . 0 - eWorldBank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 83/ 61 Contact: Sundaram Sankaran April 4, 1983 (202) 477-3653 WORLD BANK LENDS $67 MILLION FOR URBAN DEVELOPMENT IN THE PHILIPPINES The World Bank today announced the approval of a loan of $67 million to help finance a multi-sectoral project designed to increase economic growth and employment opportunities in four of the largest cities in the Philippines--Bacolod, Cagayan de Oro, Davao,and Iloilo. The $114.6 million project includes the construction and rehabilitation of urban roads; drainage improvement; provision of six new markets; construction of new slaughterhouses and new bus terminals; provision of sites and services for some 9,600 residential plots; slum upgrading; establishment of a small industrial estate; and technical assistance . • The $67 milllon Bank loan is the fo:.irth Bank operation in support of urban development in the Philippines. The three previous Bank loans for urban development were: A $32 million loan,approved in 1976, concentrated on upgrading the environment of 160,000 persons living in Tondo, the country's largest slum area, located in Manila. The project is nearing completion. A $32 million loan approved in 1979., which is financing a large sites and services project at Dagat-Dagatan, Manila, and a modest sites and services and slum upgrading program in three regional cities--Davao, Cebu, and Cagayan de Oro. A loan of $72 million approved in March 1980, which is financing the provision of basic needs and productivity growth of low-income families in Metro Manila. In addition,the Bank is financing five urban water supply and sanitation projects in the Philippines. Future Bank lending in the urban sector in the Philippines will build on the basic approach developed under the first three projects that seek to provide improved urban services and chelter at affordable costs. However, greater emphasis will be placed on improving urban management, institution building, increased resource mobilization, and supporting cost recovery measures. The World Bank loan is for 20 years, including five years of grace, • at the standard variable interest rate linked to the cost of Bank borrowing. The loan also carries an annual commitment charge of 0.75% on undisbursed balances and a front-end fee on the amount of the loan. NOTE: Money figures ara expressed in U.S. dollar equivalents.