Announcement of the Bank Completing an Inquiry about Hydro-Electronic Projects for the Island of Luzon

;..2.6 • FOR THE PRESS INTERNATIONAL BANK FOR RECONSTRUC'fION AND DEVELOFl~NT FOR IMMEDIATE RELEASE Press Release No. 120 November 15, 1948 The IJXt5rnational Bank for Reconstruction and Dev~lopment announced today that it has completed th.~ preliminary phase of an inquiry into hydro-electric pro.jecte · for the island of Luzon which form part of an over-all Philippi~e development pro- gram. The results of the inquiry thus far indi'cate that there will be need on Luzon for at least the amount of electric energy which would be produced by com- :t:letion r.if two of the projects. The Bank has entered into loan negotiations for an amount up to ~;il5 million to finance foreign exchange costs or t~ese t~o Luzon projects. Be~ore negotiations can be co~pleted, however, and a loan cont:·act can be submitted for the approval of the Bank's Board of :Executive Directors, the :Sank rnust satisfy itself on such matters as designs and specificati.ons, investment and production coat estimates, and a final mark9t analysis, not all of which are yet oompleted. The loan application which bas been received ~1 the Bank from the Philippine Government also covers other hydro-electric projects and a fertilizer project. As these additional projects become ready for financing, the Bank is prepared to give them serious consideration. Such additional negotiations would be subject to the limitations of the Bank's available resources and to effective application hy the Philippine Governmen·t of the recorn..rnendations of the Joint Philippine-American Finance Com.l'Q;ission which studied tr1e Philippine economy in 1947. These recommendations include measures for ·~he c0nservation of foreign exchang~ holdings_, the channeling of local savings into capital investment, the conduct of a sound monetary policy, and completion of effective toclmical plans for economic development. The Philippine Governmerrl;, has assured the Bank that it intends to continue with the rapid implementation of these recon,nendations. The projeots included in the Philippine loan appllcation f~m part of. a broAd development program for the years 1949-1953, covering the fields of agric1iltlU"e, • mining, power, industry, transportation, communications and public works. Th~ Philippine Government bas estimated the program's total cost at approximately $980 million. The major part of its cost would be met through local financing, and external assi&tance will be required to meet only a part of the foreign exchange requirements. The Bank has discussed the development program with t.h~ Philippine Economic Mission, headed by SeGretary or Finance Miguel Cuaderno, and co.nsidera the program to be soundly conceived.