Document of The World Bank FOR uFFICIAL USE ONLY Public Disclosure Authorized ReportNo. 7948 PROJECT COMPLETION REPORT Public Disclosure Authorized PHILIPPINES RURAL INFRASTRUCTURE PROJECT (CREDIT 790-PH) JUNE 30, 1989 Public Disclosure Authorized Adra-hure Operations Division CouintryDepartment II Public Disclosure Authorized Asia Regional Office This document has a restricted distribution and mat be used by recipients only in the performance of their official luties. Its contents may not otherwise be disclosed without World Bank authorizstion. CURRENCYEQUIVALENTS Currency unit - Philippines Peso (O) P 1 - US$0.135 US$1 - 1 7.40 WEIGHTSAND MEASURES 1 ha - 2.47 acres 1 km - 0.62 miles 1 sq km - 0.386 sq mile 1 m - 3.28 ft 1 sq m = 10.76 sq ft 1 cu m - 35.31 cu ft 1 M cu m 3 810.7 ac ft 1 mm 00.039 in 1 kg - 2.2 lb 1 cavan = 50 kg 20 cavans = 1 m ton ABBREVIATIONS ADB - Asian Development Bank AID - Agency for International Development BAE - Bureau of Agricultural Extension BBR - Bureau of Barangay Roads BHS - Barangay health Station BPI - Bureau of Plant Industry BPW - Bureau of Public Works CCC - Cabinet Coordinating Committee on Rural Development CP - Cooperative Program CPO - Central Project Organization DAR - Department of Agrarian Reforms DLGCD - Department of Local Government and Community Development DOH - Department of Health DPH - Departmont of Public Highways DPWTC - Department of Public Works, Transportation and Communications FAO - Food and Agriculture Organization FSDC - Farm Systems Development Corporation ISA - Irrigation Service Association MLWL - Mean Low Water Level NEDA - National Economic and Development Authority NFAC - National Food and Agricultural Council NGA - National Grain Authority NIA - National Irrigation Administration O&M - Operation and Maintenance PDAP - Provincial Development Assistance Program PDD - Project Development Department PMS - Proj ect Management Staff PPA - Philippines Port Authority PPDS - Project Planning and Development Service PRIP: I - Philippines Rural Infrastructure Project: I RB - Rural Banks RHU - Rural Health Unit UPRP - Upper Pampanga River Project WHO - World Health Organization GLOSSARY Barangay - Village GOVERNMENT OF THE PHILIPPINES FISCAL YEAR January 1 - December 31 THEWOPLD BANK Wash.ngton.D.C. 20433 U.S.A. 0ke dowf tm.GmCi June 30, 1989 MHDORANDWMTO THE EMECUTIVE DIRECTORS AND THE PRESIDENT SUBJECT: Project Completion Report on Philippines Rural Infrastructure Proiect (Credit 790-PH) Attached, for information, is a copy of a report entitled "Project Completion Report on Pnilippines - Rural Infrastructure Project (Credit 790-PH)" prepared by the Asia Regional Office. No audit of this project has been made by the Operations Evaluation Department at this time. Attachment This documenthas a restricteddistribution and may be usedby recipientsonly in the performance of their ofmicialduties. Its contents may not otherwise be disclosedwithout World Bank authorization. FOR OFFICIALUSE ONLY PROJECT COMPLETION REPORT PHILIPPINES RURAL INFRASTRUCTUREPROJECT (CREDIT 790-PH) Table of Contents Preface ............................................................i Basic Data Sheet. ii Evaluation Suammry ..................................................iv OVERVIEWOF THE PROJECT COMPLETIONREPORT General. 1 The Project. 2 Project Cost and Financing. 2 Implementation. 3 Project Impact. 5 Bank Performance. 8 Lessons Learned. 8 BORROWER'S PROJECT COMPLETIONREPORT NMAPS.11 I. BACKGROUND.49 II. PROJECT FORMULATIONAND APPRAISAL.50 III. PROJECT IMPLEMENTATION.52 IV. PROJECT COST AND DISBURSEMENT.61 V. INSTITUTIONALPERFORMANCE .63 VI. ECONOMIC REEVALUATION.66 VII. BANK'S PERFORMANCE.73 VIII. CONCLUSIONS.75 ANNEXES MAP: IBRD 13274 This document hasa restricteddistribution and may be usedby recipientsonly in the performance of their official duties. Its contents may not otherwisebe disclosedwithout World Bank authorization. PROJECT COMPLETION REPORT PHILIPPINES RUkAL INFRASTRUCTURE PROJECT (CREDIT 790-PH) PREFACE This is a Project Completion Repo-t (PCR) on the Rural Infra- structure Project-I, for which an IDA credit in the amount of US$28.0 million to the government was approved on April 21, 1978. The credit was closed after two extensions totalling 2-1/2 years on June 30, 1986. The undisbursed balance of US$6.5 million was cancelled. The Project Completion Report (PCR) was prepared by the Department of Public Works and Highways of the Government and an Overview of the PCR was prepared by the Agriculture Operations Division, Country Department II, of the Asia Regional Office. The PCR Overview is based on a review of the Staff Appraisal and the President's Reports, the credit documents, other records on Bank files, and on discussions with Bank staff. This PCR was read by the Operations Evaluation Department (OED). The draft PCR was sent to the Borrower on May 31, 1989, for comments by June 20, 1989, but none were received. - ii - POJECT COWLETIOlrREOT RURALDPA3ThUCTURE PROJECT I (CREDIT790-PFi BASICDATA S1EET KEYPRMJECT DATA Appraisal Actual or Actual as X of Exectation Current Estimate Asereieal Estimate Projoect Coat (US$ million) 59.9 48.8 61.9 Credit Amount (USN million)/I 29.6 21.6 77.0 Dot. Board Approval 64/11/7S Date EffectIven ee *7/2x/79 Date Physical Components Completed 12/41/92 so/w/Uo 196.6 Closing Date 12/31/65U6/9/S6 165.6 Economic Rote of Return (3) /b 17 17 1 Financial Rate of Roturn (X) n.s. n.e. CUMULATVEDISURSEMENTS FY79 FYUO FYS1 FY62 FY65 FY34 FY3S FYIS Appraisal Estimat (USS million) 6.2 6.5 14.0 21.6 26.6 29.9 23.6 269. Actual (US million) - *.6 2.6 7.2 10.2 14.8 17.6 21.5 Actual as I of Entima-e - 14.6 17.9 54.5 69.2 61.1 Data of Final Disburament 67/16/SO Principal Repaid to 12/15/67 (USS million) O."I STAFF INPUTS (staff weeks) FY76 FY76 FY77 FY73 FY79 FYU9 FY61 FY62 FY65 FY64 FY6S FYSO FY67 FYS9 TOTAL Preappraisal 11.6 .0 22.0 6.6 42.1 Appraisal 37.9 63.9 91.7 Negotiations 7.2 7.2 Supervision 1.6 18.7 26.4 9.2 9.6 6.5 11.9 6.7 6.9 O.69 .1 99.1 Other t.1 0.2 2.2 0.2 2.7 Subtotal 11.7 .0 59.9 73.5 16.6 26.4 9.2 9.6 6.J 11.6 6.7 6.9 0.0 1.1 242.7 MISSION"DATA Date Ne. of Staff/Day* Speei.lizatio. Permeme. Typs of (selvr) Porsons In field nrog *Otit Trl is Prabhw 1! Identifioation 11/75 4 in2 A,Ee,Em(2) - - - Prepratien 06/76 5 1 A,E,,E*(&) - - - Appraisal11/77 7 lu A(2),Ec(2),En(8) - - - Appraisal2 11/77 b 1t Ec.En(4) - - - Subtotal 21 470 Supervision1 17/7? 2 12 En(2) 1 2 - Supervlsion2 9a/79 a so En(t) 1 1 - Supervisiona 19/79 2 St Eni) 1 2 N Superv;sionJ(o)* 'J/9 1 14 En 1 1 - Supervision4 " /66 4 24 A,En(3) 2 2 N Supervision4(c)o 10/6 1 En - - - Supervision5 68/61 2 14 En(2) 2 1 i Supervision5(a)e 56/61 1 a En - - - Supervision6 08/82 1 7 En 2 1 UT Supervision7 *J/J8 2 26 En,Ec 2 a UTF Supervision3 16/83 2 6 En(2) 2 1 MTFP Supervision9 638/4 1 7 En 2 1 bTFP Supervision1 11/64 1 1i En 2 1 MFG Supervision11 16/"U 1 16 En 2 - - Subtotal 24 2eo Total 46 670 3 Not full ission--SPNof one componentonly. OTHERPROJECT DATA Borrowor Republicof the Philippinos Executing Agency Departmnt of Public Works and Highways(OPEl) National Irrigation Administration (NIA); and Department of Health (DON) Fiscal Year jnanuary 1 - D e _ r *1 Cofinanciors None Nome of Currency (abbroviation) Peso (P) Currency Exchange Rate Appraisal Year Average 1978 USU110 * 7.37 Intervening Years Average 1962 USS11 * 8.37 Completion Year Ave-age 196 USSIl. u 2 .60 Follow-on Project: None la The undisbursedcredit balanceof US86,481,600.6J was cancelled *ffective July 11, 1906. lb The weightedERR on the basisof relativecosts of the irrigation,roads and posts componentsof the ML project. benofitsfrom the healthand eater supplycomponents wero not quant;iled et appraisaland completion. /e A a agriculturIst;Ec z eonomiat;En a engineer. I1d a problem-freeor minor problemo;2 a moderateproblems; and * a major problems. L 1 * improvIng; 2 a stationary;8 a deteriorating. f F a financial;M a sanagorial;T a technical; P a political;and 0 a other. i-iv - PROJECT COMPLETION REPORT PHILIPPINES RURAL INFRASTRUCTURE PROJECT (CREDIT 790-PH) EVALUATION SUMMARY Objectives 1. The Philippine Rural Infrastructure Project-I was an effort by the Government of the Philippines to raise the socio-economic conditions of the rural population in six provinces by providing relatively small-scale infra- structure works. The project aimed to establish: (a) communal irrigation systems; (b) barangay (village) roads; (c) small ports; (d) barangay health stations; and (e) rural water supply facilities. Implementation 2. IDA Credit 790-PH for US$28 million became effective on July 20, 1978. This represented the entire foreign exchange component of the project, or 48 percent of the total cost of US$59 million. At appraisal, disburse- ments were expected to be completed by December 31, 1983, one year after the scheduled completion of all project works. However, the implemenLaLion of the project took about four years longer than predicted at the time of ap- praisal. Delays were caused by severe weather conditions, lengthy adminis- trative procedures, peace-and-order problems, shortages of materials, con- tract modificati ns necessitated by price increases, funding delays and contractor difficulties. 3. Difficulties that arose in the renegotiation of the fees of consultants involved in the detailed engineering phase of the barangay roads project delayed construction bidding for almost two years. Some of the sites proposed for roads or irrigation systems were found tc have low expected economic returns or to present technical difficulties, so they were abandoned in favor of more favorable locations.