Announcement of Five Million to Benefit from Rural Electrification Project in Philippines on April 6, 1978

FOR.IMMEDJATE RELEASE •World Bank 181P i-f Street, N.W., Washington, D.C. 20433: U.S.A. • Telephone: (202) 393-6360 - I • BANK NEWS RELEASE NO. 78/71 APRIL 6, 1978 FIVE MILLION TO BENEFIT FROM RURAL ELECTRIFICATION PROJECT IN PHILIPPINES About 500 towns and 8,540 villages throughout the Philippines will be provided with reliable electricity service under a rural electrification project to be assisted with a World Bank loan of $60 mill ion. The project will benefit some 5.3 million people in the country 1·s three regions, Luzon, Mindanao and the Visayas. The $160.5 mill ion project will cover the rural electrification program of the National Electrification Administration (NEA) for 1979 and 1980. It will assist the Philippine Government in meeting its target of bringing electricity to the entire population by 1990. The project will improve the standard of living and help create new jobs in provincial towns • and rural areas . The project's main feature is the construction of new distribution facilities and the rehabilitation of old distribution facilities acquired by cooperatives from pri~ate franchise holders and municipalities. Some 120 rural electric cooperatives will carry out the project under the super- vision of NEA. About 12,000 jobs will result from project construction work. The Bank loan is for 20 years, including a grace period of 5 years, with interest at 7.45% per annum. • NOTE: Money figures ar·e expressed in U.S. dollar equivalents . FORM NO. 1121 (5-76) T ~ C HN I CA L DAT A PROJECT: COUNTRY: TOTAL COST: Rural Electrification Republic of the Philippines $ l 60. 5 mi l 1 ion • BANK FINANCING: $60 million for 20 years, including a grace period of 5 years, with interest at 7.45% per annum. OTHER FINANCING: Government, $78.7 million; External sources, $21.8 million. IMPLEMENTING ORGANIZATION: National Electrification Administration (NEA) 1050 Capitol Building Quezon Avenue - Quezon City Cable: NEAPHIL Metro Manila, Republic of the Philippines Metro Manila PROJECT DESCRIPTION: The project will support NEA's rural electrification program during 1979-80, thereby assisting the Government in meeting its target of bringing electricity to the entire population by 1990. The project includes: 476 km of 69 kV transmission lines; 20,334 km of primary • distribution lines at 13.2/7.6 kV; 8,743 km of secondary distribution 1 ines at 220 V; radio communication and other equipment; electric motors, pumps, and mac!iinery for load promotion; and headquarters facilities, including warehouses for cooperatives. PROCUREMENT: Contracts for equipment and materials of more than $50,000 to be financed by the proposed loan will be awarded on the basis of international competitive bidding in accordance with Bank guidelines. For purposes of bid comparison, a preference limited to 15% of the c. i .f. price of imported goods, or the customs duty, whichever is lower, will be extended to qualified local manufacturers. Contracts for materials and equipment of $50 ·, 000 or 1es s up to an a gg reg ate l i mi t of $350 , 000 , and c i v i 1 wo r ks con t r act s (which the Bank will not finance) will be tendered on a competitive basis in accordance with NEA's normal procedures, which are satisfactory to the Bank. ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: 1981 22% - 0 ·- •