Philippines - Irrigation Operations Support Project

Document of The World Bank FOR OFFICIAL USE ONLY -*A/ 24_iF- Pb4 Report No. 7102-PH STAFF APPRAISAL REPORT THE PHILIPPINES IRRIGATION OPERATIONS SUPPORT PROJECT April 27, 1988 Country Department II Asia Regiona'. Office This document has a resticted disribution and mav be used bv recpients onlv the pl' r|  CURRENCY EQUIVALENTS (November 1987) Currency Unit - Philippine Peso (P) P 1.00 = US$0.048 US$1.00 = P 20.7 GOVERNMENT OF THE PHILIPPINES FISCAL YEAR January 1 - December 31 WEIGHTS AND MEASURES 1 hectare (ha) = 2.47 acres 1 kilometer (km) 5 0.62 miles 1 square kilometer (km2) = 0.3886 square miles 1 meter (mi3)= 10.76 square feet I cubic meter (m3) - 35.31 cubic feet 1 million cubic meters (mcm) 810.7 acre-feet 1 millimeter (mm) - 0.039 inches 1 kilogram (kg) - 2.2 pounds 1 cavan - 50 kilogram 20 cavans - 1 metric ton  FM OFCAL VW ONLY ABBREVIATIONS AND ACRONYMS AAO - Assistant Administrator for Operations CIS - Comuonal Irrigation System DA - Department of Agriculture DPWH - Department of Public Works and Highways DT - Ditchtender FIG - Farmer Irrigator Croups FIO - Farmer Irrigators' Organizers FSDC - Farm Systems Development Corporation HYV - High Yielding Variety IA - Irrigators' Association ICB - International Competitive Bidding IDD - Institutional Development Division IDS - Institutional Development Worker IMIS - Irrigation Management Information System IOdP - Input-Output Monitoring Program IOSP - Irrigation Operations Support Project IRRI - International Rice Research Institute iS - Irrigation Superintendent ISF - Irrigation Service Fee ISO - Irrigation System Officers LCB - Local Competitive Bidding "&E - Monitoring and Evaluation NEDA - National Economic and Develbpment Authority NFA - National Food Authority NIA - itional Irrigation Administration NIS - National Irrigation System OD - Operating Division 0M4 - Operations and Maintenance PCARRD - Philippine Council for Agriculture Resources Research and Development PCR - Project Completion Report PIE - Provincial Irrigation Engineer PIO - Provincial Irrigation Offices PIS - Pump Irrigation System RIARS - Regional Integrated Agricultural Research System RID - Regional Irrigation Director RIO - Regional Irrigation Offices SCF - Standard Conversion Factor SEC - Securities and Exchange Commission SMD - Systems Management Department SOE - Statement of Expenditure VIG - Viability Incentive Grant Wm - Watermaster This document ha a restriced distbution and may be ue by gcIents only In te pefa,me of theiir oaficid dutem Its contents may not otherwise be diclosed without Wotd Bank autdhcuen.  PHILIPPINES IRRIGATION OPERATIONS SUPPORT PROJECT STAFF APPRAISAL REPORT Loan and Project Summary Borrower: Republic of the Philippines Beneficiary: National Irrigation Administration (NIA) Loan Amount: US$45.0 million Terms: Repayable in 20 years, including 5 years of grace, at the standard variable interest rate. Project Ob,ectives: The objectives of the project are: (a) to strengthen substantially the institutional capability of ilIA and cooperating private irrigators' associations (MAs) to improve and maintain the efficiency of existing national irrigation system (NIS) infrastructure; and (b) to improve the operating performance of the 127 existing NISs through minor rehabilitation works and through increases in the annual funding for and levels of operations and maintenance (O&M) services. Description: The project would be the first phase of NIA's proposed nine-year Irrigation O&M Improvement Program, commencing in July 1988. It would cover the entire NIS service area of about 600,000 ha, benefitting some 430,000 rural families. The project, of 3 years' duration, would initiate higher levels of O&M expendi- ture and work, and would provide related support for all NISs. During the project, average annual expendi- tures on O&M would be increased to an average of about US$24.80/ha (end-1987 prico.), a level about 90Z that estimated to be necessary to maintain the NISs at maximum productivity. The project would also provide for minor rehabilitation of existing infrastructure; assist in the further development of IAs and expanded beneficiary participation in O&M of all NISs; substantially increase O&M cost recovery through improved irrigation service fee (ISF) billing and collection efficiency; and support institutional and operational policy reforms necessary to ensure the long-term capability of NIA to keep the NISs operating efficiently.  I~~~~~~~~~~~~ ii - Risks: The main risks would be possible adverse farmer reaction to increased ISF collection efforts, and the fact that in some areas targets may not be reached because of prevailing peace and order problems. These potential difficulties would be eased by improved irrigation services and increased farmer participation through lAs, and are not considered serious risks. Estimated Cost: Local Foreign Total