Philippines - Manila Sewerage and Sanitation Project

Document of The World Bank FOR OFFICIAL USE ONLY FILE CoPy Report No. P-2729-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 MANILA SEWERAGE AND SANITATION PROJECT February 29, 1980 This deument bas testcted distribution and may be used by eipients only In the perfonmnce of their offcial duties. Its contents maY not othenrise be disclosed wltoumt World Bank auhorization.  CURRENCY EQUIVALENTS (As of March 3, 1980) Currency Unit = Peso (P) (100 centavos) P 1.00 = US$0.135 US$1.00 = P 7.40 MEASURES AND EQUIVALENTS mm = mil lime ter = 0.04 inches cm = centimeter = 0.39 inches m = meter = 3.28 feet km = kilometer = 0.62 miles sq km = square kilometer = 0.39 square miles ha = hectare = 10,000 square meters or 2.47 acres cu m = cubic meter = 264 US gallons cu m/s = cubic meters per second = 22.8 million US gallons per day 1 = liter = 0.26 gallons lcd = liters per capita per day = 0.26 US gallons per capita per day Mld = megaliters per day = 0.26 million US gallons per day mg/l = milligrams per liter = parts per million m/s = meters per second = 3.28 feet per second PRINCIPAL ABBREVIATIONS AND ACRONYMS ADB - Asian Development Bank LUJUA - Local Water Utilities Administration MM4A - Metropolitan Manila Area MMC - Metropolitan Manila Commission IMNUTE - Metro-Manila Infrastructure, Utilities and Engineering Program MWSS - Metropolitan Waterworks and Sewerage System MPW - Mlinistry of Public Works NPCC - National Pollution Control Commission PROGRESS - Program for Removing Sewage from the Streets UP - University of the Philippines ZIP - Zonal Improvement Program MlWSS' FISCAL YEAR January 1 to December 31  FOR OFFICIAL USE ONLY PHILIPPINES MANILA SEWERAGE AND SANITATION PROJECT Loan and Project Summary Borrower: Republic of the Philippines Beneficiaries: The Metropolitan Waterworks and Sewerage System (MWSS) and the National Pollution Control Commission (NPCC) Amount: $63 million equivalent Terms: The loan would be for a term of 20 years, including 5 years of grace, with interest at 8.25% p.a. Relending Terms: The Government would relend $62.5 million of the proceeds to MWSS on the same terms and conditions as those of the Bank loan. The foreign exchange risk would be borne by MWSS. The Government would allocate the balance of $0.5 million of the loan proceeds to NPCC to finance the foreign exchange component of the monitoring of water quality in Manila Bay. Project The project aims to improve environmental sanitation in Description: the poor and densely populated areas of Metropolitan Manila and develop an institutional strategy for the imple- mentation of similar projects in the future. The project provides for (a) rehabilitation of the sewer system in the central area of Manila; (b) construction of a sewerage collection system in about 2,050 ha of low-income and blighted areas; (c) staff training and technical assistance; and (d) water quality monitoring. The project should make immediate improvements in the living conditions of about 900,000 urban poor, of a total estimated 3 million popula- tion served by the project. The main risk of the project is that this is the first major sewerage and sanitation undertaking by MWSS. Because of its innovative nature, a cautious approach is being taken by implementing only 13% of the combined sewers construction program in areas of signif- icant hazard to public health, in order to give time for the institutional strategy to be tested. Technical and management assistance and training provided under the proposed project and under a recent water supply project (Loan 1615-PH) would help to minimize this risk. Th 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 Local Foreign Total Cost: /I ----- $ million ----- Part A Rehabilitation of existing sewer system 40.8 42.8 83.6 Part B Sewerage collection system 22.3 12.5 34.8 Pilot project and laboratory 1.4 3.7 5.1 Subtotal Part B 23.7 16.2 39.9 Part C Technical assistance and training 8.2 14.8 23.0 for future water supply and sewerage projects Part D Manila Bay monitoring 0.4 0.4 0.8 Engineering and administration (Parts B and D) 3.2 1.2 4.4 Contingencies (Parts B to D) 14.9 10.8 25.7 Subtotal Parts B to D 50.4 43.4 95.8 Total Projlect Cost 91.2 86.2 177.4 Financing Plan: MWSS and Bank ADB Government Total --------------- $ million -------------- Part A - 42.0 41.6 83.6 Parts B to D 63.0 - 30.8 93.8 Total 63.0 42.0 72.4 177.4 Estimated IBRD FY Disbursements: 1981 1982 1983 1984 1985