Announcement of Philippines to Receive World Bank Loan for Agricultural Support Services on July 16, 1981

. 0 ' ' . FOR IMMEDIATE- RELEASE 1818 H St;e~1t, N.W., Washingt,C?,n, Q.C. 20433, lJ.S.A. • Telephone: (202) 477-1234 \i. . BANK NEWS RELEASE NO. 82/8 July 16, 1981 PHILIPPINES TO RECEIVE WORLD BANK LOAN'FOR'AGRICULTURAl'SUPPORT SERVICES V The World Bank today .approved a loan of $45 mi 11 ion to the Phi Hppines for a project to improve and expand agricultural research and increase crop and live- stock production. ( .( The $74.5 million project focusses on integrated small farm systems research, aimed at developing new and innovative farming practices to assist smallholders. The project is also designed to provide additional staff, equipment, and training to the country's agricultural support agencies and to improve the policy formulation and planning capability of the Ministry of Agriculture. ~ Over a six-year period, the project will provide funds for basic and applied research on seasonal crops other than rice, including corn, sorghum, sweet potato, soybean, peanuts, and cassava. The research will emph·asize plant breeding, as well as sma'll farm systems designed to integrate backyard livestock and v«!getable growing with annual and perennia·1 crops, including tree crops. 'Nine research stations throughout the country, administered by the Ministry of Agriculture,will be upgraded to Regional Integrated Agricultural Res.~arch Stations. These stations will test small farm systems technology deal.ing with crops, soils, livestock, and farm management, ancl will evaluate innovations from otheir instituti.ons. The Ministry of Agriculture's plant and livestock regulatory services will also be reinforced. These services include commodity a:tt?feed analysis, plant certi- fication, livestock and plant quarant.ene, disease diagnosis, vaccine production, and quality control. Under the project, additional staff, improved facilities, equipment, veh i c 1es, training, and techn i ca 1 as,s ij;tance wi 11 be provided. The project includes measums to build up the planning capability of the Ministry's regional offices, and assist in the formulation of regional development programs in each region. Funds are earmarked for a series of surveys and studies on t~e rural economy and for a second nationwide nutrition survey. The results of the survey will provide .a basis for carrying out the Food and Nutrition Plan, which aims to increase food production, improve the national diet, and help to alleviate mal- nutrition. The project is expected to strengthen and expand a wide range of agricultural support services other than extension, and .wi 11 raise food output and rura 1 incomes, particularly those of smallholders. The World Bank loan to the Republic of the Philippines has a term of 20 years, • including five years of grace, and bears interest at 9~6% per annum • NOTE: Money figures are expressed in U.S. dollar equivalents.  0 TECH NI C A L DA 1 A PROJE.CT: COUNTRY: TOTA,L COST: Agri cul tura14Support Services Phi' 1i pp i nes " ·$ 74. 5 m'i 11 i on • BANK FlNANCl"NG: $45 million, for 20 years, including five years oft/grace, with interest at 9.6% per annum II l QTHER FINANCING: Government of the Phi 1ippines, $32 mU 1 ion IHPLEMENtlNG ORGANIZATION! Ministry of Agriculture DA Building E11 i pt i ca 1 Road Diliman, Quezon City, Manila, Philippines PROJECT DESCRIPTION: The project wi 11, over ·a six-year period, provide funds to: i) strengthen agricultural research, particularly on crops other than rice and on Small farm systems; ii) upgrade nine ~xisting fesearch stations into Regional Integrated Agricultural Research Stations to undertake the testing .of technology applicable fo small farm systems; iii) improve and expand the ·Ministry of Agriculture's. (MOA) crop and livestock regulatory services; iv) stren~then MOA's capability for planni preparing, and implementing projects, and for conducting special studies on food and· nutrit tion and on the rural economy; and v) support the second national nutrition survey. PROCU.REMENT: Civi i works to be procured include construction of staff hous- .ing, laboratories, greenhouses, ~ireenhouses, fumigation rooms, machinery sheds, storage space, loca 1 access roads and fences. On 1y ci vi 1 works contracts, of 11 million or above will be submitted to internationa1 competitive 'bidding (ICB). Others will be carried out through local,competitive bidding (LCB) under procedures satis- factory to the Bank, or by force account when LCB is.not feasible. Equipment and vehicles will be procured through ICB in accordance with Bank guidelines. Local manufacturers will 0 be allowed a preference margin pf 15% of the c. i.f. price of imported goods, or the appl i- cable customs duty, whichever is lower, for purposes of bid evaluation. Specialized items and i terns purchased i ~, sma 11 quantities, such as 1aboratory equipment costing not more than $50,000 per item, will be procured through LCB advertised nationally in accordance with government procedures. Office supplies will be procured through prudent shopping, after at least three price quotations. CONSULTANTS: About 80 man-months of foreign consultant services and about 2,800 man-months of local consultants will be required. ~ i! I J • f ECONOMIC RATE OF RETURN: n.a. ESTIMATED COMPLETION OA1"E: 1987 .... 0 -