Announcement of the Philippines Receives Twelve Million US Dollars World Bank Loan for Fisheries Project on May 27, 1976

.world Bank 1818 H Street, r...J.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 BANK NEWS RELEASE NO. 76/65 May 27, 1976 THE PHllLIPINES RECEIVES $12 MILLION WORLD BANK LOAN FOR FISHERIES PROJECT The World Bank approved a $12 million loan to the Philippines to help finance a fisheries project. The demand for marine products has been growing rapidly in the Philippines which has been importing annually about $32 million worth of fish products, mainly sardines and mackerel. The fisheries development project, a continuation of a program started in 1973, will increase annual fish production by about 26,000 tons, at a value of $11 million, and will provide the Philippine population with a domestically produced sc~Jrce of protein. The project will result in 1,750 permanent jobs to benefit low income people; it will also build up the institutional base for financing investments in marine and inland fisheries. Under the project, the Development Bank of the Ph ill ippines (DBP) • will provide long-term credit to private rural entrepreneurs for: the con- struction of about 115 new fishponds encompassing an area of 2,700 hectares; the expansion and rehabilitation of about 265 existing fishponds, some of which have been damaged by typhoons and floods; the construct:on of 17 fishing vessels; the conversion of second-hand fishing vessels into fish carrier boats; the construction of three ice plants; and the con~;truction of a slipway, by the Visayan Sea Coast, to be used for the repair and main- tenance of fir'ing and carrier vessels. The $23.5 million fisheries develop·· ment project, which will be completed in 1980, is expet~ed to have an average weighted economic rate of return of 30%. The World Bank loan will be for a term of 18 years, including a grace period of 5 years, at St% per annum. The Philippine Government will on-lend the proceeds of the loan to the Development Bank of the Philippines which will undertake a three-year lending program for the development of fishery facilities by private entrepreneurs. The project will be the fifteenth Bank/lDA project for agricultural development in the Philippines. So far, the Philippines has received 35 Bank loans and 3 IDA credits total- ling $886.7 million . • NOTE: Money figures are expressed in U.S. dollar equivalents.  T EC HN I CAL DA T A PROJECT: COUNTRY: TOTAL COST: Second Fisheries Philippines $23.5 million • BANK FINANCING: $12 million, for 18 years, including a 5-year grace period, at 8t% per annum. OTHER FINANCING: Development Bank of Philippines (DBP); sub-borrowers IMPLEMENTING ORGANIZATION: Development Bank of Philippines (DBP), P.O. Box 800, Makati Rizab, Philippines PROJECT DESCRIPTION: The project will assist the Government in carrying out its program of increasing fish production for domestic consumption through financing to be administered by DBP for the following: Inland Sector - (i) con- struction of about 115 new fishponds for fish farming; and (ii) expansion and rehabilitation of about 265 existing fish ponds. Marine Sector - (i) construction of about fourteen 90-gross- ton fishing vessels; (ii) construction of three 45-gross-ton fishing vessels; (iii) conversi. of four second-hand vessels into fish carrier boats; (iv) construction of three ice plants with cold storage; and (v) construction of a slipway for repair of fishing vessels. PROCUREMENT: (a) Civil works for fishpond construction, expansion and rehabilita- tion will be arranged by sub-borrowers through engaging local labor or local contractors under arrangements satisfactory to DBP; (b) fishing vessels and second-hand vessels to be refitted to fish carriers will be procured by individual sub-bor- rowers through normal commercial channels under DBP supervision; (c) equipment for vessels will be procured by individual operators on the basis of quotations received from qualified suppliers established or represented in the Philippines. Through international advertisements, other suppliers will be encouraged to establish themselves in the Philippines and provide adequate service facilities and spare parts; and (d) contracts of over $200,000 for ice plants and slipways will be procured through international competitive bidding in accordance with Bank Group guidelines. Contracts between $100,000 and $200,000 will be awarded through com- petitive bidding advertised locally in accordance with procedures that are acceptable; con- tracts of less than $100,000 will be awarded through normal commercial channels. Foreign firms are represented in the Philippines and will be eligible to bid for these contracts. ECONOMIC RATE OF RETURN: The weighted average rate of return is 30%. • ESTIMATED COMPLETION DATE: June 30, 1980 - 0 -