Announcement of Philippine Industrial Restructuring Project on January 8, 1991

FOR IMMEDIATE RELEASE #Norld Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.* Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 91/38 Contact: Richard Kollodge Tel.: (202) 473-1792 PHILIPPINE INDUSTRIAL RESTRUCTURING PROJECT Following are details of a project approved by the World Bank's Board: DATE APPROVED: January 8, 1991 WORLD BANK GROUP SUPPORT: IBRD LOAN: $175 million. TOTAL COST: $541 million. OTHER FINANCING: Participating financial institutions, $55 million; Subborrowers, $220 million; Local contributions, $1 million; Bilateral funds, $15 million; Export credits, $75 million. IMPLEMENTING AGENCY: The Development Bank of the Philippines (DBP), Head Office, P.O. Box 800, Makati, Metro Manila, Philippines, Telex: RCA 22197, Telephone: 816-1292, 818-9511, Facsimile: 818-8037, Contact: Mr. Manuel A. Reyes, Senior Vice President. ESTIMATED COMPLETION DATE: 1996 PROJECT DESCRIPTION: The objectives of the Industrial Restructuring Project are to: (a) support the revival and the strengthening of the industrial sector; (b) support sound industrial investments in subsectors (by removing major distortions resulting from inappropriate trade and regulatory policies); (c) help make the cement, pulp and paper, textiles, shipping, and ship repair subsectors more competitive through reforms of subsector-specific policies and institutional strengthening; (d) strengthen the institutional framework for environmental protection; and (e) strengthen DBP's capabilities to play a more active role in developing the capital market and to act as a wholesale bank channeling term funds to retail financial institutions. The project includes: (a) a credit line and export credits to be mobilized under the Export Credit Enhanced Leverage (EXCEL) Program to DBP, to be passed on to participating financial institutions for on-lending to enterprises in eligible industrial subsectors for modernization, expansion, and new facilities, including investments in energy conservation and pollution control devices; (b) lease financing for the participating financial institutions for the purchase of industrial equipment, to be leased to subborrows; and (c) training and technical assistance for selected subsectors and environmental protection, to strengthen existing institutions in identification, analysis, and appraisal of restructuring investments and for the design and monitoring of pollution control components in industrial development.