Philippines assistance program support

Project activities will include studies, operational support to the Committee on Official Development (CODA), and funding of a private sector pre-investment facility (PIF). The studies component, the largest in terms of funding, will produce the pre-feasibility and feasibility studies, area development plans, engineering master plans, environmental analyses, etc., needed to fund projects under the PAP, as well as broader studies. Studies will fall into 4 categories: (1) studies of potential investments in any of the 16 regional growth centers identified by the GOP as "economic development zones" (EDZs); (2) feasibility studies or design work for major nationwide infrastructure (roads, power, or telecommunications) projects; (3) feasibility studies for small projects proposed by local governments and NGOs; and (4) broader sectoral and issue-related studies which can help in planning and utilizing PAP resources. Conservative output estimates are 3 detailed area development plans, 10 major infrastructure studies, 50 small projects studies, and 4 planning/sectoral/issue studies. Secondly, the project will provide operational assistance to CODA, the GOP agency which will administer the PAP. This will include: (1) a small team of expatriate and Philippine engineering, environmental, and project design/finance/economics advisors in programming and monitoring; (2) institutional development support, primarily training for regional and local personnel in project preparation, implementation, and monitoring, usually undertaken in conjunction with studies; and (3) office supplies and equipment. In addition, some TA may be provided to the Coordinating Council of PAP (CCPAP). Finally, the project will fund a PIF to promote business development -- off-farm enterprises and on-farm agroprocessing and marketing -- especially in and around EDZs. The PIF will help reduce investment risks by paying 50% (up to $250,000) of the costs of a feasibility study, if an investment is made, and 25% or $125,000 if no investment is made. The PIF will be administered by an NGO. Amendment of 9/30/93 increases funding, extends PACD from 1/95 to 9/98, and refocuses A.I.D."s role from financier of infrastructure to facilitator. The institutional support component will be reoriented toward making CCPAP technically self-sustaining by 1996, including developing its capacity to market projects to other donors and the private sector. A new component will finance feasibility studies, with emphasis on Build-Operate-Transfer projects, Master Area Plans, and EDZs. The PIF will be absorbed into a more broadly focused Private Sector Initiatives component which will provide incentives for private sector involvement in infrastructure financing, especially in secondary urban centers. The project will include activities to enhance GOP budgeting and tax collection, reform energy and telecommunications policies, and promote regional enterprise development, focusing on secondary urban centers. (PD-ABG-997)