Philippines - Industrial Investment Credit Project

Doclmmt of The World Bank FOR OMCAL USE ONLY RepwtNo. 12127 PROJECT COXMPLETION REPORT PEILIPPINES INDUSTRIAL INA ESTHENT CREDIT PROJECT (LOAN 3123-PH' JUNE 30, 1993 MICROGRAPHICS Re-ort No: 12127 Ty"s: PCR Industry and Energy Operations Division Country Department I East Asia and Pacific Regional Office This document has a restricted distribution and may be used by rcipients only in the performance of dhir off'ical duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY LEUIALENTS Currency Unit - Peso P US$1.00 - P 21.3 (at Appraisal, March 1989) US$1.00 - P 21.7 (Average 1989) US$1.00 - P 24.3 (Average 1990) US$1.00 - P 27.5 (Average 1991) US$1.00 - P 24.8 (Average October 1992) ACROMYMS ANM ABBREVIATIONS COA - Commission on Audit CBP - Central. Bank of the Philippines DBP - Development Bank of the Philippines DTI - Department of Trade and Industry EP - Economic Recovery Program Loan FR - Financial Rate of Return FSAL - Financial Sector Adjustment Loan IDP - Institutional Development Program/Plan _Es - Investment Enterprises IICP - Industrial Investment Credit Project IRP - Industrial Restructuring Project JGF - Japanese Grant Facility OPG - Operating Policy Guidelines PCR Project Completion Report PFIs - Participating Financial Institutions SAR - Staff Appraisal Report SOE - Statement of Expenditures TA - Studies, Training and Technical Assistance JnSCAL YEAR DBP: January 1 to Deceliber 31  FOR OFFICLAL USE ONLY THE WVORL SANK THFWO^ O x W.slltn 0.G 20438 UA. June 30, 1993 MI5M~~ORlJm THE ,2OIbD1ECIt RS-AND 3RESXi SUBJEC: Project Completion Report on MTe Philippines - Industrial Investment Credit (Loan 3123-PH) Attached is the Project Completon Report on The Philippines - Industrial Investment Credit (Loan 3123-PH) prepared by the East Asia and Pacifc Regional Office. Tne Governmet completed Part IL, which is generally in aveement uith Parts I and HI of the PCR as prepared by the RegicL. The quality of the PCR is satisfactory. 1ne objecte of the project included. (a) prviding working capital, leasiog, term credit and equity financing to medium and large private enterpnses; (b) strengthening the wholesale bnkig funcin of the Development Bank of the Philippines (DBP); (c) broadening the scope of other financial serices available to enterpries; and (d) strengthening the analytical capacity within DBP and the Department of Trade and Industry (DTI) carrying out policyoriented studies on industrial subsector The proect outcome is rated as satisfaty. This asesment is based primarily on its succeSS as an industrial investment credit project whih effectively supported second tier development credit institutions. Ihe credit was commtted ahead of schedule, primarily due to greater than anticipated demand for aedit, altbough the pilot componet for equity financig was not used. While subproject data are scarce, the project appeas to have had a hWi than proected positive impact on employment. Sustainability is likely, with partial institutional development the transformation of DBP into a wholesale bank was not fully achieved since the expected privatization of its retail branch network did not take place and DBPs role in the financial sector is still evolving. The project may be audited together with the follow-up Industrial Restrucuing Project. Attachment ha docnan ha a rat:d dhtni nd my be and by du only in te psomae of th * oUIga dtum IN _ ne tq ma oth bse te disdcnd Wcdl dana aRNxlo I  FOR OFFICIL US ONLY p PRCS COO RIPOol Table of Contents Preface ........ ........ . . . . . . . . ...... I Evaluation Sumary .... . . . . . . . . . . . .. 1 I. PROJECT REVIEW FRC4 BANK'S PERSPECTIVE . . . . . . . . . . .1 Project Identity . . . . . . . . . . . . . . . . . . . . . . Project Background . . . . . . . . . . . . . . . . . . . Project Objectives and Description . . . . . . . . . . . . . 2 Project Design oad Organ