Announcement of World Bank Approves Forty-Five Million Dollars Loan for a Livestock and Fisheries Project in the Philippines on July 17, 1980

FOR' IMMEDtA TF RELEASE . World Bank 1818 H Street. N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 81/6 July 17, 1980 WORLD BANK APPROVES $45 MILLION LOAN FOR A LIVESTOCK AND FISHERIES PROJECT IN THE PHILIPPINES The World Bank ~~s approved a $45 million loan to the Philippines to help increase the production of animal protein. The $140.7 million Third Livestock and Fisheries Credit Project will finance through the Development Bank of the Philippines production of small 1 ive- stock such as hogs and poultry, cattle on hill pastures and in the villages, construction of fishing vessels and fishponds and support facilities> such as slaughterhouses and iceplants. The project wi 11 also provide support to the Cureau of Animal Industry and the Fisheries Industry· Development Council by financing some of their programs • or related expertise . The Development Bank of the Philippines wi 11 receive support for the development of a new management information system for its expanding loan portfolio and establishment of a professionally oriented training function. These and a number of related changes in the allocation of departmental responsibilities wi 11 strengthen the institution's effectiveness as the country's largest supplier of medium- and long-term credit to agriculture. The project builds on satisfactory experience of four previous projects in the two subsectors, financed by the Bank through the Development Bank of the Philippines. Within a broad range of categories to be financed, it allows the credit channel flexibility of choice on the basis of an annual lending program, whose components will reflect national and regional priorities and which will be prepared in consultation with relevant agencies of the government and the World Bank. The World Bank's loan is for 20 years, including 5 years of grace, with interest rate set at 8.25% per annum. Borrower's equity will account for $15. 12 million while the remaining $80.54 mill ion of the costs will be borne by the Government of the Philippines and the Development Bank of the Philippines. NOTE: Money figures are expressed in U.S. dollar equiv~lents . • FORM NO. 1121 (5-76) T E CHN I CA L D A T A PROJECT: COUNTRY: TOTAL COST: Third Livestock and Fisheries Credit Philippines $ l 40. 7 mi 1 l ion • BANK FI NANC I NG : $45 mill ion for 20 years, including 5 years of grace, with annual interest rate of 8.25% OTHER FINANCING: Government of the Philippines, $80.5 mill ion; borrowers' equity, $15.l mil lion IMPLEMENTING ORGANIZATION: Development Bank of the Philippines P.O. Box 800, Commercial Center Makati, Metro Mahila CABLE ADDRESS: PHJLDEBANK PROJECT DESCRIPTION: The project includes: a)financing of small livestock, cattle, fishponds, and marine vessels; b) related facilities such as slaughterhouses and iceplants; c) strengthening of participating institutions (the Bureau of Animal Industry and Fisheries lnd Jstry Development 1 Council) through the financing of their programs; and d) technical asssitance • to the Development Bank of the Philippines. Selection of subprojects under a) and b) will be flexible, based on an annual lending program of the Development Bank of the Philippines. PROCUREMENT: Cont~acts costing more than $300,000 will be procured through international competitive bidding. Other contracts will be awarded after local competitive bidding. CONSULTANTS: 143 staff-months of consultant services will be required for all aspects of the project. ECONOMIC RATE OF RETURN: 28% (this may vary subs tant i a 11 y according to the mix of • subprojects financed.) ESTIMATED COMPLETION DATE: 1983 - 0 -