Philippines - Investments Systems Organization Project

Document of The World Bank FOR OMCIAL USE ONLY Repo No. 6006 PROJECT COMPLETION REPORT PHILIPPINES - PISO DEVELOPMENT BANK (FORMERLY, THE PHILIPPINE INVESTMENTS SYSTEMS ORGANIZATION) (LOAN 1555-PH) December 27, 1985 IDF Division East Asia and Pacific Region JThb deoumit ha a r.utLcte dlstdbd mmd my be mmd by recipleul omly In the perfonmmnee of dr Woickil dut. Kb msls way m oherbise be diwsoed witho Wodd Bank audhoaon.  CURRENCY EQUIVALENTS Currency unit - Peso (P) FISCAL YEAR January I - December 31 EXCHANGE RATES 1978 US$1 = P 7.38 1979 US$1 = P 7.38 1980 US$1 = P 7.51 1981 US$1 = P 7.90 1982 US$1 = P 8.54 1983 US$1 = P 11.11 ABBREVIATIONS ADB - Asian Development Bank DBP - Development Bank of the Philippines DFU - Development Finance Unit ERR - Economic Rate of Return EVP - Executive Vice President FRR - Financial Rate of Return GNP - Gross National Product IGLF - Industrial Guarantee and Loan Fund LBP - Land Bank of the Philippines MSLA - Market Savings and Loan Association OFC - Operations and Finance Committee PCR - Project Completion Report PDB - Private Development Bank PDCP - Private Development Corporation of the Philippines PISO - Philippine Investments Systems Organization PLC - PISO Leasing Corporation PNB - Philippine National Bank SAL - Structural Adjustment Loan SGV - Sycip, Gorres, Velayo and Co.  FOR OFCIAL USE ONLY PHILIPPINES PISO DEVELOPMENT BANK (LOAN 1555-PH) PROJECT COMPLETION REPORT Table of Contents Page No. PREFACE . .............. ..................4.............. BASIC DATA SHEET ............. ...................................... HIGHLIGHTS ......... ............... 1. INTRODUCTION .... 1 2. ENVIRONMENT .... 2 3. PISO DEVELOPMENT BANK. ... 4 4. LOAN OBJECTIVES ................................ ... 5 5. UTILIZATION OF LOAN 1555-PH ................................. .. 5 Resource Transfer ............... 5 Subproject Characteristics .. 6 Operational and Economic Performance of Subprojects . . 8 Status of Subloans ......................... ....... 9 6. INSTITUTIONAJ. DEVELOPMENT. ............................ IO Institutional Aspects ................... 10 Standards and Procedures ....................... .13 Resource Mobilization ............................. 15 7. OPERATIONAL AND FINANTCIAL PERFORMANCE OF PISO BANK . 16 Operational Performaace ..................... 16 Financial Performance ..................... 18 8. CONCLUSIONS ............. ............................... '9 This document has restricted distribution and may be used by recipients oniy in the performance of their ofrlcial duties. Its contents may not otherwise be disclosed without World Bank authorization  LIST OF ANNEXES PAGE NO. 1. Schedule of Estimated and Actual Disbursements 25 2. List of Subprojects, Commitment Dates and Amount of Disbursement 26 3. Sectoral and Geographical Distribution of Subprojects 27 4. Characteristics of Subprojects Financed under Loan 1555-PH 28 5. Reasons for Delays in Completion of Subprojects 29 6. Financial Performance of Subprojects 30 7. Economic Performance of Subprojects 31 8. Current Status of Subloans, as of September 30, 1983 32 9. List of Shareholders, as of September 30, 1983 36 10. Manpower Turnover and Breakdown of Manpower Complement 37 11. Projected and Actual Lending Operations, 1978-81 38 12. Summary of Operations, 1978-September 1983 39 13. Characteristics of Loans ADproved, 1979-September 1983 40 14. Projected and Actual Balance Sheets, 1978-81 41 15. Summarized Balance Sheets, December 31, 1978-82, and as of Septenber 30, 1983 42 16. Projected and Actual Income Statements, 1978-81 43 17. Summarized Statements of Income and Unappropriated Retained Earnings for Years ended December 31, 1978-82, and as of September 30, 1983 44 18. Collection Performance, 1979-September 1983 45 19. Analysis of Loans in Arrears, 1979-September 30, 1983 46 20. Comparative Statement of Arrears Position, 1979-September 1983 47 Attachments A. Comments Received from PISO Bank 48 B. Comments Received from the National Economic and Development Authority 54  PHILIPPINES PISO DEVELOPMENT BA?( (LOAN 1555-PH) PROJECT COMPLETION REPORT Preface This project completion report (PCR) presents a review of the first Bank loan made to PISO Development Bank (formerly, Philippine Investments Systems Organization) for US$15.0 million approved in April 1978. After ran- cellation of US$0.506 million, the loan was fully disbursed in April 1984. This PCR was prepared by the Bank's East Asia and Pacific Regional Office on the basis of a mission to the Philippines, and a draft PCR and additional information furnished by PISO Development Bank. Comments received from PISO Bank and the Government have been taken into account in finalizing the report and are reproduced as Attachments A and 3, respectively, to the PCR. This project has not been audited by the Operations Evaluation Department.  - tIf - pRil)fF'r' (f,mPiro I,/ i ffi% R-oir R.Sf' nATA Cur.- pq I l Patl: _TI PTrOr rFVFIfnFM9riv RtAW: _ TN S-llP VP',' P'R(l. IFf ' rl4TA P,Ar, t I.l f" -1: 'I T I- r,.ie -tpt.nl, I rr^r f It I l- r~~~~~O' I I Ir 6___ fvj-tcIt. ,-ln eV b .;?or.srj) 9iS ,-v