Announcement of Philippines Rehabilitates Coconut Industry on May 29, 1990

FOR IMMEDIATE RELEASE SWorld Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.* Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 90/88 Contact: Pastor Sison (202) 458-0344 Leandro V. Coronel (202) 477-3641 PHILIPPINES REHABILITATES COCONUT INDUSTRY WASHINGTON, May 29, 1990 -- The Philippines is launching a project that will improve coconut yields and the quality of coconut-based products, boost the incomes of small-scale farmers and increase export earnings. The World Bank has approved a loan of $121.8 million to support the project. The project is the first phase of a 20-year program to develop small private coconut farms and rehabilitate the coconut industry, ensuring the industry's contribution to the country's export trade. The Philippines accounts for more than 70 percent of world trade in coconut-based products, which are the country's third largest foreign-exchange earner. Because of declining yields from aging trees, farmers--most of whom are smallholders--need to undertake a major replanting effort. The five-year project includes establishing seedgardens, nurseries and other facilities to support a program of replanting 50,000 hectares a year; support for intercropping during the first three years of replanting; and rehabilitating nearly 350,000 hectares of middle-aged palms and developing another 50,000 hectares of young trees. The project also includes equipment for laboratories and a pilot program to introduce hot-air copra driers to smallholders. Technical support will be provided to strengthen the Philippine Coconut Authority. Project benefits will include about 50,000 farm jobs a year over five years and close to $100 million a year in additional exports. Cofinancing for the $176.6 million project will be provided by the Philippine government and the Philippine Coconut Authority, the farmers, and the Overseas Development Administration of the United Kingdom. The World Bank loan is for 20 years including five years' grace, with a variable interest rate, currently 7.74 percent, linked to the cost of the Bank's borrowings. It also carries an annual commitment charge of 0.25 percent on the undisbursed balance. NOTE: Money figures are expressed in U.S. dollar equivalents.