Announcement of Philippines Expands Development of Urban Areas on June 7, 1984

FOR IMMEDIATE RELEASE < World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. BANK NEWS RELEASE NO. 84/90 Contact: P.B. Sison June 7, 1984 (202) 477-3573 PHILIPPINES EXPANDS DEVELOPMENT OF URBAN AREAS The Philippines is launching the first phase of a new program to develop its cities and municipalities. The project will be implemented over six years, starting in July, at a cost of nearly $70 million. The World Bank is providing financing of $40 million. The project, covering some 15 urban centers, is designed to assist local governments to provide infrastructure and improved municipal services to the people. It includes improvement of slum areas, drainage, roads, markets, and slaughterhouses. The project also aims to help local governments find long-term financial resources for their own projects and to manage these resources and projects effectively, with emphasis on improving maintenance. Works include the rehabilitation of drainage systems, and shoreline protection and other flood control measures. Communal sanitation facilities, solid waste disposal, and squatter and slum communities will be improved. Markets and slaughterhouses will be constructed or rehabilitated. Roads will be rehabilitated, and systems to improve traffic flow, especially in central business districts, will be put in place. Bus terminals will be built to relieve congestion and to improve passenger transport between cities. Technical assistance will be provided to help local governments manage their operations more efficiently. These operations include the management of finances, revenues, and municipal enterprises. The local governments will also receive assistance in planning, budgeting, and developing projects. Financial assistance to local governments will be administered through the Municipal Development Fund (MDF), which is under the Ministry of Finance. Consultants will assist the Ministry and the Central Project Office in overall project management, and in reviewing the local government grants system. The consultants will also assist in carrying out a nationwide assessment of real estate values to determine appropriate taxes. Training needs will also be ascertained. Besides the funding from the World Bank, $23 million will be provided by the central government, and $5.7 million by the local governments involved. The World Bank loan is for 20 years including five years' grace, with a variable interest rate, currently at 10.08 percent, linked to the cost of the Bank's borrowings. It also carries an annual commitment charge of 0.75 percent on undisbursed balances and a front-end fee of 0.25 percent on the amount of the loan. NOTE: Money figures are expressed in U.S. dollar equivalents.