Announcement of Philippine Environment Program on Track on November 2, 1992

FOR IMMEDIATE RELEASE World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.* Telephone: (202) 477-1234 News Release No. 93/S29Asia Contact: Erin Burns (202)458-2210 External Affairs - EAPVP PHILIPPINE ENVIRONMENT PROGRAM ON TRACK Washington, D.C., November 2, 1992 --- The World Bank has approved the release of $83 million to assure continued implementation of an environmental protection and resource management program in the Philippines The amount represents the second and final tranche of a sector-wide adjustment program approved in June, 1991. The program aims to protect biological diversity in degraded areas and where feasible, restore it in areas that have been destroyed. It also supports the introduction of sustainable land-use practices. World Bank support for the program includes a loan of $158 million from the International Bank for Reconstruction and Development and a credit of approximately $66 million from the International Development Association, the Bank's concessional lending facility. The release of the second tranche follows the successful completion of a number of program benchmarks. These include the passing of legislation that will guide the establishment of a new protected areas system in the Philippines and the completion of management plans for ten high-priority protected areas. The original loan and credit agreements also called for public bidding for timber production agreements on logging of virgin forests. However, on January 1, 1992, the Government imposed a total ban on logging of virgin forests. Instead, the Government focussed on an Industrial Forest Management Agreement designed to create incentives for long-term management of residual forests. These are areas where logging is undertaken in conjunction with reforestation. The release of the second tranche of the loan and credit is also based on the Government's continued sound program of macroeconomic management and the new administration's commitment to the environment. The total cost of the program is approximately $370 million. In addition to the $224 million from the World Bank, financing is being provided by the Government of the Philippines, the Overseas Economic Cooperation Fund, the Global Environment Facility and the Japan-World Bank Technical Assistance Grant. NOTE: Money figures are expressed in U.S. dollar equivalent.