Announcement of World Bank Lends One Hundred Million Dollars for Highway Project in the Philippines on March 8, 1979

FOR IMMEDIATE RELEASE .World Bank 1818 H Street, N.W., Washington 1 D.C. 20433, U.S.A.• Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 79/51 MARCH 8, 1979 WORLD BANK LENDS $100 MILLION FOR HIGHWAY PROJECT IN THE PHILIPPINES A World Bank loan of $100 million will help finance construction and upgrading of national and feeder roads and improve highway maintenance in the Philippines. The roads to be improved under the $205 million p~oJect wi11 serve areas which are predominantly agricultural. The improvement of eight national roads .totaling 345 kilometers (km.) and six feeder roads totaling 63 km. will reduce transportation costs and wi11 provide the local population with opportunities to market their products. Land use will be intensified and the quality and quantity of farmers' yields will be improved through prompt, low-cost de1 ivery of agricultural inputs. People living in the rural areas served by the roads which are scattered among the • southern islands of the archipelago generally have a per capita inoome of Jess than $190 a year. Government strategy favors reconstruction of deteriorated roads in preference to building new, high standard highways. The project provides for 8,400 km. of badly deteriorated national road sections to be restored to a condition where routine maintenance work can be undertaken. Road maintenance wili be improved by constructior or improvement of one central equipment depot, seven base workshops and 32 area workshops. The restoration and maintenance elements of the project constitute the second phase of a five-year program which was initiated under an earlier Bank- supported project. Implementation of the project will be supported under the loan through tech- nical assistance to three government ministries. The Ministry of Public Highways will be assisted in improvement of its organization, administration arid operation. The Ministry of Local Government and Community Development will initiate a program for improved administration, planning, design, construction supervision and main- tenance of provincial roads and the Ministry of Public Works, Transportation and Co1TTI1unications will be able to extend transport planning advisory services. • The World Bank loan to the Republic of the Philippines is for 20 years, in- cluding a grace period of 5 years, with interest at 7% per annum. NOTE: Money figures are exorPssed in U.S. dollar equivalents. FORM NO. 1121 (5-76) T E C HN I CAL D A T A PROJECT: COUNTRY: TOTAL COST: Fourth Highway Re?ublic of the Philippines $205 million • BANK FINANCING: $100 million for 20 years, including 5 years of grace at an interest rate of 7% per annum OTHER FINANCING: Government of the Philippines IMPLEMENTING ORGANIZATIONS: Ministry of Public Highways (MPH), Second Street, Port Area, Mani 1a, Phi 1 i pp i nes. (Study of rural roads: Ministry of Local Government and Community Development--MLGCD), Quezon City Hall, Quezoa, City, Philippines.) (Transport planning: Ministry of Public Works, Transportation and Communications, NIA Building, E. de las Santos Ave.,Quezon City, Philippines.) PROJECT DESCRIPTION: It includes: a) improvement of high priority major and connecting feeder roads; b) upgrading maintenance and restoration procedures and operations of the MPH; c) training of staff of the MPH and MLGCD; and d) strengthening planning, administrative, engineering and maintenance capabilities of the provincial highway authorities. PROCUREMENT: A) Civil works contracts for national roads (amounting to about $44 million) will be awarded on the basis of inter- national cmmpetitive bidding (ICB) according to the Bank's guidelines. B) Contracts for • feeder road construction and improvement (about $3.5 million), for road restoration works (about $30 million) and for construction and installation of equipment for maintenance depots and workshops (about $40 mill ion) will be awarded following bids advertised locally in accordance with the borrower'~ procedures which are acceptable to the Bank. Foreign contractors operating in the country will be permitted to participate in all local bidding. C) Weighbridges, road maintenance equipment, workshop mdchinery, etc.,total ing about $33 million will be procured according to ICB. Local manufacturers will be accorded a preference of 15% of the c.i.f. price or the applicable customs duty (whichever is lower) in the evaluation of bids. Off-the-shelf items costing less than $15,000 and hand tools for road maintenance to a total of $500,000 may be procured according to normal government procurement procedures. CONSULTANTS: The MPH will be assisted by consultants in supervising the construction and improvement of roads and workshops and in maintenance work. In addition, the MPH will be assisted in improvement of its organization, administration and operation. The MLGCD will also be assisted by consultants in carrying out the study of rural road development and maintenance. ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: 50% 1982 - 0 - •