Philippines - Housing Sector Project

The World Bank - , FOR oCFI%AL uw ONLY / 4A. 'w7~ -m ; 2- q5_ f - r~~ '? u .No. P-4685-PH. a,? - ' . . MORANDUM ANI) RECOMDATION OF TRE PRESIDENT OF THE INTEmUITONAt MBNK FOR RECONSTRUCTIO10 ^AND DEVELPMW TO THE' g ~ ~~~~ ,4 d?,tt R EXECUTIE -DIRECTORS 0ONA / : VROOSED LOAN . , 3 IN AN AIJT EQUIVALENT TO US0160 "MILLION THE . EPUBLIC OF'THE PHILIPPINES = FOR A HOUSING SECTOR PROJECT June 1, 1988 This document bas a resftritd dlstributom and may.be used b~'recfpiefts only in the perfornmance of their offidia duties. Its contests aay not otherwise be discosed *wihut Wowl Blank authorzation.I ,.~~  Currency nnit Peso - p1eso - 'UPe0tQ.049 r. US$1 1 *0.4 motor (a) '- ' '.7 .chs (,n) 1 square meter (sq a) - 10.8 square feet (sq ft) 1 kilometer (km) - 0.62 mile. (mI) I square kilometer (sq'kt) - 0.386 square ml)e (sq ml) .- hectare- (ho) - .10,000 squarematers- (s a)o . 2,47 acres (ac) ABBREVATIONS AD R ADB . Asian Development Bank ARM. adjustable rate mortgage BB.. .... Builder's Bricks Development Corporation BDC.. Bliss Development Corporation CAP.. Constructton Industry Association of the Philippines COA.. * .. Commission on Audit DEN .Department of Budget and Management DBP . Development Bank of the Philippines DOF . Departmeat of Finance DPW .. Department of Public Works and -ighways EO . . xecutive Order GNP .. .Gross National Product CDP .. Gross Domestic Product GSIS ............. Government- Social Insurance System- HDF . Home Development Mutual Fund _FC . Housing Finnce Corporation HIGC. * ...... Home Insurance Guaranty Corporation UJRB ..... H. ousing and Land Use Regulatory Board: USDC ...... ,Human Settlements Development Corporation RC ...... umuan Settlements Regulatory Commission HUDCC ..H ousing and Urban Development Coordinating Council IBRD .. International Bank for Reconstruction and Development NCR .. mortgage contract receivable MS . . . Ministry of Human Settlements NRC ....... . t-to Manila Commission NEDA ... . ~.,National Economic and Development Authority R.A...... National Housing'AutFhority NRC ...... Natioral Housing Corporation NMFC ...... National HRe Mortgage Finance Corporation Pag-IBIG ...... Forced Savings Provident Fund administered by HDKF SR..# .. .. Slum Improvement and Resettlement Program of NuA - SSS ...... Social Security System - VW ...... Woodwaste Development Corporation FISCAL YEAR January 1 to December 31  FOROFICIAL-VSE ONLY 4- ~ ~ - 4_: , 9HOUSING SIECTOR PROJECT LOAN M D PROJECT SURY ; lUrzr~ ReplibliU of #th Philippines. - - BeneficiLrM: . National Home Mortgage Finance Corporation' (*. C), and National Housing Authority (WU) hAgsnt: > r 1US$160 million equivalett. A Q Ter_m: Twenty years including a five year grace period, at the Bank's sta4atd. variable' interest rate. Onlending Terms: Govert ent will onlend US$80 million equivalent to NH'FC for mortgage financing at 20 years, and a / , fixed' rate t'o be agreed hnnually witth-, the Bank, linked to a proxy for long term funds. Government vill bear the foreign exchange risk. Bank funds viIL be blended with fixed rate loans ffom the Social Insurance System,- Onlending from I IMFC to sub-borrowers would range from a fixed rate -of 9% to 15% depanding-tbn loan amount. ThM US$5 million for techncial assistance,'training, equipment and ,studies vould be made available by Government to2 - the participating agencies on terms agreed with' * , ~ the Bank. Financing Plan: Social Insurz ce System 115 165.0 million' --orld Bank - U35 160.0 million TOTAL US$.325.0 million Economic Rate of Return: Serviced sites: - Metro Manila ...... 27% Regional Cities .... 28% Upgrading: Mtro, Manila ....... 31% ' Regional Cities ... 37%, Staff Appraisal Report: Report No. 6997-PH - . none This document las a restricted distribution and may be used by recipients only in the perfomance 'of their official duties. Its contents may not otherwise be disclosed witikout World Bank authorztion.  FO Aalor -,szco Cioi (~~~~~~~~~~~~~~~~~~~~A . s ~~~EON.ANDUM AND PECONNENDTIO?* OF THE PRISSIDISIT OF THE INTEIAIONA BAK11RC1UCTSI0NAN DEVWPNU - i. ~TOk TlUt'IXICITIVE DIRCTO: - ' m~~~~~~~T .-.a -EUBI OF TiE wus AS * FOR A HOUSING SECTOR ?lOJECt ~ , 1. Tho following nmiorandum a"n re