Philippines - Rainfed Agricultural Development (ILOILO) Project

Document of The World Bank FILE COPY FOR OFFICIAL USE ONLY Report No. P-2726-PH REPORT AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN TO THE REPUBLIC OF THE PHILIPPINES FOR A RAINFED AGRICULTURAL DEVELOPMENT (ILOILO) PROJECT February 29, 1980 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 authorintion.  CURRENCY EQUIVALENT (July 1979) US$1 = Pesos (P) 7.4 p 1 = US$0.1351 ABBREVIATIONS AND GLOSSARY BAEx - Bureau of Agricu-ltural Extension BPI - Bureau of Plant Industry FSDC - Farm Systems Development Corporation IRRI - International Rice Research Institute MOA - Ministry of Agriculture NGA - National Grains Authority NIA - National Irrigation Authority NFAC - National Food and Agriculture Council PCARR - Philippine Council for Agricultural Resources and Research GOVERNMENT OF THE PHILIPPINES FISCAL YEAR January 1-December 31 CROP YEAR July 1-June 30  FOR OFFICIAL USE ONLY PHILIPPINES RAINFED AGRICULTURAL DEVELOPMENT (ILOILO) Loan and Project Summary Borrower: Republic of the Philippines Amount: $12.0 million Terms: The loan would be for a term of 20 years including 5 years of grace period, with interest at 8.25%. Project Description: The primary objective of the proposed project is to extend a new multiple cropping technology to lowland areas of Iloilo province which have satisfactory rainfall but no access to major irrigation systems. The project would also support and reinforce other ongoing investments in Iloilo under the national pro- grams to increase their impact on agricultural pro- ductivity, and assist in preparations for the exten- sion of multiple cropping technology to other provinces. It provides for increasing agricultural production, improving marketing and extension, training support staff and community members and strengthening existing institutions responsible for project implementation. The project would also provide for the construction of a grains storage and shipment facility and water impounding facilities, programs for improving nutrition through the control of anemia and diarrhea, and consultant services for the preparation of future similar projects in Mindanao. Approximately 40,000 farm families and 5,000 landless laborers' families, or a total of about 270,000 people, would benefit directly from increased production and employment resulting from the project. Risks related to drought damage to crops and increased labor and capital requirements for farmers would be minimized by promoting less risky cropping patterns and husbandry techniques, and by encouraging appropriate financing methods such as the Integrated Agricultural Financing Scheme. Risks related to the water impounding schemes and the relative inexperience of farmers with their construction and operation would be reduced by the small size and cost of the proposed schemes and the close coordination planned between the experienced irrigation and agricultural agencies in the country. F This document has a restricted distribution and may be used by recipients only in the performance of their omcial duties. Its contents may not otherwise be disclosed without World Bank authorization.  - ii - Estimated Cost: Local ForeiRn Total ----- ($ million) ----- Agricultural production services 1.21 0.40 1.61 Adaptive trials and research 0.82 0.38 1.20 Water impounding 1.88 2.33 4.21 Grains shipment facility 0.78 1.72 2.50 Training 1.23 0.61 1.84 Nutrition 0.98 0.40 1.38 Project preparation 0.51 0.68 1.19 Project management 0.81 0.31 1.12 Subtotal 8.22 6.83 15.05 Physical contingencies 1.10 0.90 2.00 Price contingencies 2.37 1.93 4.30 Total project cost 11.69 9.66 21.35 Less customs duties and taxes 1.84 - 1.84 Total net project cost 9.85 9.66 19.51 Financing Foreign Local Total Plan: ------- ($ million) --------- Beneficiaries - 0.38 0.38 Government - 8.97 8.97 IBRD 9.66 2.34 12.00 Total 9.66 11.69 21.35 Estimated Disbursements: Bank FY 1981 1982 1983 1984 1985 1986 ---------------- ($ million) -----------