Announcement of Philippines Expands Irrigation Network to Benefit Poor Farmers on October 9, 1990

FOR IMMEDIATE RELEASE World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. * Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 91/ 16 Contact: P. Sison (202) 458-0344 Leandro V. Coronel (202) 458-1354 PHILIPPINES EXPANDS IRRIGATION NETWORK TO BENEFIT POOR FARMERS WASHINGTON, October 9, 1990 -- The Philippines' efforts to become self- sufficient in food and to raise the incomes of poor farmers will receive a boost through a project to expand communal irrigation systems across the country. The World Bank has approved a loan of $46.2 million to support the project, which will benefit at least 20,000 poor farm families by increasing crop production through reliable irrigation and improved agricultural support services. The project will cover about 3,000 communities. The project will rehabilitate existing irrigation systems and extend irrigation services to areas where nine out of 10 farmers earn incomes that are below what is considered the Philippines' poverty line. The project also will strengthen the National Irrigation Authority (NIA) and associations of irrigation users throughout the country. The five-year, $65.4 million project includes the construction of communal irrigation systems covering 10,000 hectares of land and rehabilitation of existing facilities on another 15,000 hectares. The irrigation systems will include access roads, crop-storage facilities and erosion-control measures. Training focused on management, financial and operation-and-maintenance aspects will be provided to NIA staff and users of the irrigation systems. The project also includes institutional-strengthening measures for NIA and preparation of agricultural development plans for each communal area covered by the project. The World Bank loan is for 20 years including five years' grace, with a variable interest rate, currently 7.72 percent, linked to the cost of the Bank's borrowings. It also carries an annual commitment charge of 0.25 percent on the undisbursed balance. NOTE: Money figures are expressed in U.S. dollar equivalents.