Philippines - Second Magat River Multipurpose - Stage Two - Project

Document of FILE COPY The World Bank FOR OFFICIAL USE ONLY Report No. P-24 17-PH REPORT AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LCAI TO THE REPUBLIC OF THE PHILIPPINES FOR THE MAGAT RIVER MULTIPURPOSE PROJECT: STAGE II IRRIGATION November 28, 1978 This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS US$ 1.00 = Pesos (P) 7.40 P 1.00 = US$0.135 WEIGHTS AND MEASURES 1 hectare (ha) = 2.47 acres 1 kilometer (km) = 0.62 miles 1 square kilometer (sq km) = 0.386 square miles 1 meter (m) = 39.37 inches I square meter (sq m) = 10.76 square feet 1 cubic meter (cu m) = 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 (paddy) = 50 kg 20 cavans 1 metric ton 1 megawatt (MW) = 1,000 (kW) Kilowatts ABBREVIATIONS ADB - Asian Development Bank ADCC - Agricultural Development Coordinating Council IFAD - International Fund for Agricultural Development MARIS - Magat River Irrigation System MCM - Million cubic meters of water MRMP - Magat River Multipurpose Project NIA - National Irrigation Administration SIFRIS - Siffu River Irrigation System SPO - Special Projects Organization WMT - Water Management Technician GOVERNMENT OF THE PHILIPPINES FISCAL YEAR January 1-December 31  PHILIPPINES FOR OFFICIAL USE ONLY MAGAT RIVER MULTIPURPOSE PROJECT: STAGE II IRRIGATION Loan and Project Summary Borrower: Republic of the Philippines Beneficiary: National Irrigation Administration (NIA) Amount: $21 million equivalent Terms: The loan would be for a term of 20 years, including 5 years of grace with interest at 7.35% p.a. Project Description: The- project consists of: (a) construction of the Baligatan diversion dam; (b) construction of irrigation and drainage facilities and roads on a total area of about 26,770 ha of currently rainfed land; (c) construction of three pumping stations to serve lands at higher elevations covering 8,000 ha of the project area; (d) supply and installation of pumps, motors, auxiliary equipment and pipelines; (e) provision of consulting services to assist NIA in design- ing the pumping stations, and procurement, installation and testing of pumping equipment; and (f) procurement of vehicles and equipment for project imple- mentation and operation and maintenance. About 8,000 farm families and 4,400 landless laborers' families, most of whom are below the poverty line, would benefit directly from increased production and consequent employment. The project would create a demand for an additional two million man-days of farm labor per year equivalent to some 8,400 full- time jobs. At full agricultural development the project would result in increased rice production with an export value of about $25 million per year at forecast world market prices. The economic rate of return is sensitive to the possibility of farmers achieving less than expected yields. However, since farmers in Stage 1A are already obtaining the projected yields and there is an effective Agricultural Development Coordination Committee in the Magat area which coordinates government agencies providing agricultural supporting ser- vices, the likelihood of a shortfall in expected yield levels is small. This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  - ii - Estimated Cost: Local Foreign Total F.E. --- ($ million) ---- (%) Baligatan diversion dam 1.1 1.0 2.1 48 Irrigation, drainage & roads 21.0 15.4 36.4 42 Supply & installation of pumping equipment 0.3 2.5 2.8 89 O&M equipment 0.1 1.7 1.8 95 Consulting services 0.1 0.1 0.2 75 Engineering, supervision & administration 4.5 - 4.5 - Base cost estimate 27.1 20.7 47.8 44 Physical contingencies 3.5 2.5 6.0 42 Expected price increases 4.4 3.8 8.2 43 Total project cost 35.0 27.0 62.0 43 Financing Plan: Bank IFAD Government Total --------------- ($ million) ------