Announcement of Philippines Environmental and Natural Resources Sector Adjustment Program on July 1, 1991

FOR IMMEDIATE RELEASE World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. *Telephone: (202) 477-1234 NEWS RELEASE NO. 91/116 Contact: Pastor B. Sison IDA NEWS RELEASE NO. 91/124 Tel: (202) 458-0344 PHILIPPINES: ENVIRONMENTAL AND NATURAL RESOURCES SECTOR ADJUSTMENT PROGRAM The following is information on a project approved by the World Bank's Board. DATE: July 1, 1991 WORLD BANK GROUP SUPPORT: World Bank loan: $158 million; International Development Association (IDA) credit: SDR 50 million ($66 million). The loan is for 20 years, including five years of grace, with a variable interest rate, currently 7.73 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. The IDA credit is for 35 years, including 10 years grace; it carries no interest but has an annual charge of 0.75 percent on the disbursed balance and a variable charge of up to 0.5 percent (currently zero percent) on the undisbursed balance. TOTAL COST: $369 million THER FINANCING: Government of the Philippines and beneficiaries, $19.4 million; Overseas Economic Cooperation Fund, $100 million; Global Environmental Fund (GEF), $20 million; Japan-World Bank Technical Assistance Grant, $4.6 million; Nordic Development Fund (NDF), $1 million IMPLEMENTING AGENCY: Department of Environment and Natural Resources ESTIMATED COMPLETION DATE: 1998 PROJECT DESCRIPTION: The Environmental and Natural Resources Sector Adjustment Program is a hybrid operation consisting of a quick-disbursing sector adjustment operation based on policy and institutional reforms and an investment project to support institutional strengthening and regional community-based resource management activities. The objectives of the sector adjustment program are to preserve what remains of biological diversity in areas where resources have been degraded or destroyed, to re- establish them wherever feasible, and to introduce sustainable land-use practices. These objectives will be pursued through a program of legislative and administrative action and studies to determine what areas of the Philippines need to be preserved and to implement the appropriate measures. This component ($266 million) will finance the foreign exchange costs of eligible imports. The investment component ($103 million) will finance: (a) the design of an Integrated Protected Areas System (IPAS), including a suitable legislative framework; (b) program support for managing 10 priority protected areas; (c) improved monitoring of logging perations and enforcement of forestry laws and regulations (through ,rovision of equipment, training, and technical assistance to DENR regional and local offices); and (d) development of the capacity of local govern- ments and line agencies in four regions to generate and service small- scale, community-based resource management projects in watershed areas.