Announcement of Sixty-Eight Million US Dollars Loan to the Philippines for a Second Highway Project on December 6, 1973

,, • 1818 H STREET, N.W., WASHINGTON D. C. 20433 TELEPHONE: EXECUTIVE 3.e3eo Bank Press Release Noe 73/79 Subject: $68 million loan to the December 6, 1973 Philippines for a second highway project The World B.ank has approved a $68 million loan t:o help finance the construction, improvement and rehabilitation of about 870 miles of roads on the island of Luzon in the Philippinea. ) Besides furthering economic growth in the areas to be served by the roads and reducing irtland transport costs, the project will also provide year-round and flood-free access from agricultural areas to the Greater Manila area, the largest and most important market in the Philippines • • It will also relieve traffic congestion in the urban areas surrounding Manila. The $128.2 million project is one of several transport projects identified in th~ 1970 Philippine Transport Survey financed by the United Nations Development Ptogra.mme (UNDP), of which the World Bank was executing agency. It was prepared with the help of consultants financed by the tTND.'. In 19 71, the Bank made a loan of $8 million to help 'finance the construction and improve•nt of the Cotab.ato-Dig(,s road in the island of Mindanao, wh;lch was also reccamended by the 1970 Surveye The present project includes conat:ruction of a 31.6-mile e~tenaion to the exiat:'t to~ expressway and 3. 7 miles of access roads north of Manila, the reconstruction and improvement of nine naticm.al roads in central Luzon, totaling about 395 miles in langth,and the rehabilitation of about 435 lllilea of flood- • d•apd minor roada, leading to the national roads.. Weighbridge& will be ·Note: Money fiaures are expressed in US dollar equivalents. /more  • B$1k P.R. No. 73/79 -- Philippines -- highways - 2 - installed, to ensure that maximum axle load control laws will be adhered to on the national roads. Consulting services will be provided under the project for con- struction sup~rvision of the project roads, for feasibility and detailed engineering studies of about 85 miles of the national roads included in the project, for detailed engineering of roads which may be included in future highway pro~ectJ, and for continuing technical assistance to the Bureau of Public Highways and training of its staff. The project also :;.,.,eludes UNDP-financed reconnaissance and feasibility studies for preparation of future highway projects. • The project will be executed by the Bureau of Public Highways in the Department of Public Works, Transportation Qmd C~IDlllunications. The con- struction and improvement work• are expected to be caupleted in mid-1977. The Bank loan of $68 million is being made to the Republic of the Philippines for a term of 24 year•, including four y~rs of grace, with interest at 7~% per &nn\lD. Five financial institutions from France, Switzerland and the United States are participating in the Bank loan. These institutions are Central National Bank o.f elev.eland; Union Bank of Switzerland, Zurich; Marine Midland Bank, New York; Banque de l'Indochi:ne, Paris; and The Detroit Bank and Trust Company, Detroit. - 0 - • • December 6, 1973 TECHNICAL~ PROJECT: Second highway COUNTRY: Philippines TOTAL COST: $128. 2 million BANK FINANCING: $68 million loan, 24 years including 4-year grace period, with interest at 7~% per annum. OTHER FINANCING: Government of the Philippines, $59.3 million; United Nations Development Programme, $900,000. IMPLEMENTING ORGANIZATION: Bureau of Public Highways, in the Depart anent • of Public Works, Transporta~ion and CoDDunications • PROJEcr DESCRIPTION: Construction, improvement and rehabilitation of 870 miles of roads on island of Luzon. This includes construction of a 31. 6-mile expressway extension and 3. 7-mile access road from Burol to Angeles, north of Manila; reconstruction and improvement of nine national roads in central Luzon, totaling about 395 miles; rehabilitation of about 435 miles of flood-damaged minor roads leading to the nine national roads; and pr~y.Lsion and installation of weigh- bridges to enable the Government to enforce its axle load control laws more effectively. Also includes consultant services. PROCUREMENT : Civil works for the expressway and nine national roads anC: capital equipment contracts fol! weighbridges will be awarded on the basis of intemational competitive bidding. Civil works contracts for the minor roads will be,negotiated with contractors carrying out major project road works nearby. CONSULTANTS: DCCD/Norconsult, Campos Rueda Building, 101 Tindalo Street, Makati, Rizal, Philippines, were appointed for the feasibility studies and detailed engineering of about· 85 miles of the national roads included in the project. Consultants have been selected and will be appointe.,d shortly for construction supervision of all roads included in the project; for detailed engineering of roads to be in- cluded in proposed future highway projects; for technical assistance to the Bureau of Public Highways; and for as sea sing this. Bureau's training requirements. ESTIMATED COMPLETION DATE: The construction and improvement works, are expected to be completed in mid-1977. Note: Money figures are axpressed in US dollar equivalents. - 0 -