Document of

The World Bank

FOR OFFICIAL USE ONLY

L-A/. 316-3I^M 3/49qL -N. 3'S Report No.P-5199-PH

MEMORANDUM AND RECOMMENDATION

OF THE

PRESIDENT OF THE

INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT

TO THE

EXECUTIVE DIRECTORS

FOR THREE PROPOSED LOANS

IN AN AGGREGATE AMOUNT EQUIVALENT OT US$390 MILLION

AND CONSISTING OF

US$200 MILLION TO THE NATIONAL POWER CORPORATION

US$150 MILLION TO THE PHILIPPINE NATIONAL OIL COMPANY

(BOTH WITH THE GUARANTEE OF THE REPUBLIC OF THE PHILIPPINES)

AND

US$40 MILLION TO THE REPUBLIC OF THE PHILIPPINES

FOR AN

ENERGY SECTOR PROJECT

NOVEMBER 22, 1989

This document has a restricted distribution and may be used by recipients only in the performance oftheir ofricial duties. Its contents may not otherwise be disclosed without World Bank authorization.

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

CURRENCY EQUIVALENTS

Currency Unit = Philippine Peso (P)US$1.00 = P 21.5P 1.00 = 100 centavos (ctv.)

(as of July 1989)

FISCAL YEAR

January 1 - December 31

WEIGHTS AND MEASURES(metric s;stem)

MT - Million tonsTOE = Tons of oil equivalentm Meter (3.2808 feet)km Kilometer (0.6214 mile)kV K Kilovolt (1,000 volts)kW = Kilowatt (1,000 watts)MW = Megawatt (1,000 kW)GWh = Gigawatt hours (one million kWh)MVA m Megavolt ampere (one million

volt-ampers)

ABBREVIATIONS AND ACRONYMS

EHB Environmental Management BureauERB - Energy Regulatory BoardEximbank - Export-Import Bank of JapanICB - International Competitive BiddingLCB - Local Competitive BiddingLIB = Limited International BiddingNEA = National Electric AdministrationNPC National Power CorporationOEA = Office cf Energy AffairsPNOC = Philippines National Oil CompanyPNOC-EDC - PNOC-Energy Development CorporationPNOC-PETRON - PETRON Corporation of PNOCREC = Rural Electrification Cooperatives

FOR OFFICIAL USE ONLYPHILIPPINES

ENERGY SECTOR PROJECT

Loan and Project Summary

Borrowers: Republic of the PhilippinesNational Power Corporation (NPC)Philippine National Oil Company (PNOC)

Guarantor: Republic of the Philippines - for the loans to NPC andPNOC

Other Beneficiary Office of Energy Affairs (OEA), Energy RegulatoryAgencies: Board (ERB), Environmental Management Bureau (EMB),

National Electrification Administration (NEA),PNOC-Energy Development Corporation (PNOC-EDC), andPETRON Corporation.

Amount: Three loans amounting to aggregate of US$390 millionequivalent, consisting of a loan to NPC of US$200 mil-lion, a loan to PNOC of US$150 million, and a loan to theRepublic of the Philippines of US$40 million.

Lending Terms: Three loans repayable over 20 years, inc]uding five yearsof grace, at the Bank's standard variable interest rate.

On-lending Terms: The Government would pass on US$17.8 million of theproceeds of its loan to OEA, ERB ar.d EMB as budgetarycontributions, and would make US$22.2 million availableto NEA as an equity contribution. PNOC would on-lendUS$147.0 million equivalent to PNOC-EDC and PETRON on thesame terms as the World Bank loan, with PNOC-EDC andPETRON bearing the foreign exchange risk.

Financing Plan: IBRD US$390 millionExport-Im'ort Bank (Ex.mbank) of Japan US$150 millionCommitted loans from foreign sources US$1,170 millionInternal cash and other financing US$1,799 million

Total US$3,509 million

Economic Rate ofReturn: 17Z

Staff AppraisalReport: Report No. 8049-PH

Maps: IBRD 21900 and IBRD 21901

This document has a restricted distribution and may be used by recipients only in the performanceof their official duties. Its contents may not otherwise be disclosed without World Bank authorization.

MEMORANDUM AND RECOMMENDATION OF THE PRESIDENTOF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT

TO THE EXECUTIVE DIRECTORS ON THREE PROPOSED LOANS,ONE LOAN TO THE NATIONAL POWER CORPORATION,

A SECOND LOAN TO THE PHILIPPINE NATIONAL OIL COMPANY,BOTH LOANS BEING GUARANTEED BY THE REPUBLIC OF

THE PHILIPPINES, AND A THIRD LOAN TO THEREPUBLIC OF THE PHILIPPINES FOR AN

ENERGY SECTOR PROJECT

1. The following memorandum and recommendation on three proposed loansfor an aggregate of US$390 million is submitted for approval. The proposedloans would be extended respectivelv to the National Power Corporation (NPC)in the amount of US$200 million, the Philippine National Oil Company (PNOC) inthe amount of US$150 million and the Republic of the Philippines in the amountof US$40 million, at the Bank's standard variable interest rate with 20 years'maturity including five years of grace. The Republic of the Philippines willguarantee the loans to NPC and PNOC. The NPC loan, together with a US$150million equivalent parallel financing arrangement from the Export-Import Bankof Japan (Eximbank), will finance investments in the power sector. PNOC willonlend to its subsidiaries, the Energy Development Corporation (PNOC-EDC), andPETRON Corporation (PETRON), US$147 million, and the balance of US$3 millionwill be used by PNOC itself on institutional strengthening. The loan to theRepublic will be allocated to the Office of Energy Affairs (OEA), EnergyRegulatory Board (ERB), and the Environmental Management Bureau (EMB) in theform of budgetary support, and to the National Electrification Administration(NEA) in the form of equity contribution.

2. Background. The Philippine economy is going through a majorrestructuring and reorientation. During the 1970s, economic growth was rapidbut distortions in the incentive systems produced inefficient patterns ofinvestment, slow growth in employment, high rates of inflation and low levelsof domestic savings. Heavily dependent on imports and foreign capital, theeconomy did not adjust well Lo the external shocks of the Post-1979 period andexperienced declining growth rates, a deteriorating balance of payments and alarge accunmulation of external debt. Political instability and a globalrecession led to a payment crisis, forcing the Government to embark on a majorstabilization effort in 1983. Overall, the stabilization program has beensuccessful and has provided a basis for a healthy recovery, starting withimpressive growth rates of 5.7% and 7.OZ for 1987 and 1988, respectively, anda good outlook for continued growth over the next several years.

3. The energy sector faces a number of challenges as the countryrefocuses its efforts on sustained economic growth. First, energy demand,which had consistently declined during 1979-85, has erperienced a growth ofabout 40% during 1986-88; this indicates an immediate need for the expansionof energy supply capabilities, particularly power generating capacity.Second, the productive capacity of the energy sector, which was adverselyaffected by the limitations imposed by the stabilization program on investmentand maintenance expenditures, was further reduced by a Government decision in1986 to mothball the 620 MW nuclear power plant. Third, erratically

- 2 -

fluctuating international energy prices have introduced considerableuncertainty regarding the economics of domestic energy and the developmentpolicy of the energy sector. Fourth, the Government's decision in 1986 toabolish the Ministry of Energy has substantially weakened the coordination ofenergy sector activities, and, tn particular, has created a bottleneck inplanning and timely implementation of development, pricing and operationsdecisions.

4. To assist the Government in addressing these issues, the Bank carriedout an Energy Sector Study in 1988, which concluded, inter alia, that thecountry should redirect its energy strategy toward rapid development ofgeothermal resources. The study also developed specific recommendationsregarding investment, pricing, finance, operational efficiency and sectorcoordination. The Government is now seeking the Bank's assistance toimplement an action program aimed at pursuing these recommendations e.s well asfurther policies in privatization, energy regu.ation, energy demand managementand environmental monitoring of the energy sector.

5. Rationale for Bank Involvement. The energy sector, especially thepower subsector, is viewed as a key bottleneck to sustaining the economicrecovery, begun in the last two years. The sector impinges on economicgrowth in three ways: first, the present generating capacity is insufficientto meet increasing electricity demand; second, the sector is so capital-intensive that it is likely to drain a large portion of the economy'sresources; and third, the high cost of energy in the Philippines adverselyaffects the international competitiveness of the country's industrial sector.Therefore, a comprehensive plan to develop productive capacity whileincreasing the efficiency of resource allocation, utilization and mobilizationis crucial to the sector. The changes agreed under the proposed project arefundamental in nature and wide ranging in scope. These qualitative changeswill help create an environment for optimizing returns on investment in theenergy sector. Further, through its past operational involvement and in thecourse of preparing the Energy Sector Study, the Bank has developed aconstructive relationship with various sector entities which has beenimportant in facilitating coordination among them. Consequently, the Govern-ment, with the assistance of the Bank, prepared a comprehensive statement ofits strategy in developing the country's energy supply with due regard tostrengthening the technical capabilities of the sector entities, fullerdevelopment of domestic resources, increasing efficiency and improvingcompetitiveness within the energy sector. The policy component of thisstrategy, which has been translated into a detailed action plan (SAR,Annex 3.2), fits well into the Bank's overall strategy for the country forrevitalizing economic growth and improving the efficiency of publiccorporations. The investment component of the strategy supports the Govern-ment's macro-economic objectives by providing much needed investment funds inorder to meet the increasing energy needs for economic recovery.

6. Project Objective, Description and Implementation. The proposedproject would help finance the first phase of a reoriented developmentstrategy for the Philippines energy sector aimed at minimizing the cost ofenergy supply. The components of this strategy are: (a) a least-costinvestment program wnich has been agreed upon by all participating agencies;

- 3 -

(b) development of a sector-wide capability to plan and coordinate policy andproject implementation in the energy sector; (c) encouragement of privatesector participation through joint-ventures, build-operate-and-transferschemes, etc.; (d) consolidation of regulatory activities into an integratedsystem for monitoring the quality of service and consumer prices of petroleum,coal and electricity; (e) implementation of long-run marginal cost pricing forelectricity; (f) development of technical capabilities to assess, manage andmonitor the environmental impact of energy projects; and (g) implementation ofmeasures to improve operational efficiency of the power sector by reducingelectricity losses and rehabilitating aging plants.

7. The proiect would comprise components from the least cost investmentprogram for the 1989-93 period, including: (a) NPC's investments ingeneration and transmission amounting to US$2,722 million; (b) PNOC'sinvestments in geothermal resource appraisal arnd development, and debottle-necking of refinery facilities amounting to US$741 million; (c) a US$26million component of the National Electrification Administration's (NEA)rehabilitation and loss reduction program; and (d) the institutionalstrengthening programs of the Office of Energy Affairs (OEA), the EnergyRegulatory Board (ERB) and the Environmental Management Bureau (EMB). Thetotal investment program which would qualify for partial financing under thesector project is US$3,509 million, of which the foreign cost component isabout US$2,455 million. In order for the pa:rticipating agencies to utilizeeffectively other sources of financing, flexibility has been provided torevise the list of investments to be financed by the loan on an annual basis,from within the overall agreed sector investment program and to seek optionalfinancing packages while pursuing Bank's ptocurement guidelines. The WorldBank and Eximbank loans to NPC and the World Bank loan to PNOC may also beutilized to finance the shares of NPC and PNOC in investments in jointventures and other schemes with the privatf sector provided that Bank procure-ment guidelines are followed. Retroactive financing up to US$23 million isrecommended to cover expenditures on eligible goods and services incurredafter April 30, 1989. OEA would supervise the timely implementation of thedevelopment strategy and consolidate the monitoring activities of the invest-ment program. A Project Implementation Committee, with members from allparticipating agencies, will be established to monitor the implementation ofproject components. Components, notably from PNOC and NPC investment programsand totalling around US$100 million, are already at an advanced stage ofdesign and bidding preparation.

8. A breakdown of the project costs and the financing plan are shown inSchedule A. Amounts and methods of procurement and disbursement, and Lhedisbursement schedule are sho-.n in Schedule B. A timetable of key projectprocessing events and status of Bank Group operations in the Philippines aregiven in Schedules C and D, respectively. Two maps are attached. The StaffAppraisal Report, No. 8049-PH, is being distributed separately.

9. Agreed Actions. During negotiations, agreements and understandingswere reached that: (a) the Government will implement the proposed energypolicy and its corresponding action plans according to a schedule agreed withthe Bank; (b) NPC and PNOC will conduct, in consultation with the Bank, anannual review and update of their investment plans for the forthcoming year

- 4 -

and the following four years; (c) NPC will implement no later than December31, 1990 the first phase of a marginal-cost pricing system; (d) NPC and PNOCwill maintain catisfactory financial performance in accordance with thefinancial covenants agreed with the Bank; (e) no later than June 30, 1990, NPCand PNOC will prepare training programs for their staff in engineering,operations and maintenance, and management; and (f) PNOC will appointindependent international consultanto to assist in geothermal assessment andimplementation of the petroleum component of the proposed project. Duringnegotiations, the Government confirmed the understanding that to improveenvironmental assessment of energy projects, the Department of Environmentaland Natural Resources will be invited to provide input at an early stage ofproject preparation. The Government confirmed also the understanding that aProject Implementation Committee will be established prior to the date of loaneffectiveness.

10. Environment. All investments financed under the project will beeyscuted with due concern for their environmental impact. Environmentalimpact assessment reports will be prepared by the implementing agencies foreach subproject after the completion of the feasibility study and prior todesign and bidding preparation. The Bank will review each environmentalimpact study before agreeing to the use of IBRD resources for thecorresponding subproject. The subsequent compliance certificate to be issuedby EMB on completion of each subproject will also be reviewed by the Bank. Inaddition, the project would assist the Government in (a) rationalizingenvironmental monitoring activities by establishing clear roles for NPC, PNOCand the newly formed EMB; and (b) strengthening the institutional andtechnical capabilities of the EMB to carry out its monitoring tasks. The Bankis expected to play a major role in the design and implementstion of thestreamllned environmental monitoring system by reviewing the current practicesand assisting the Government to establish a coherent program of action.

Benefits

11. Risks. The project provides for development of 610 MW of geothermalresources, 1,650 MW of power generating capacity and substantial expansions intransmission and distribution systems during 1989-93. The physical risks inthe achievement of this capacity is small, limited to the low probability thatthe steam reserves in the Luzon fields to be commissioned during this periodcould turn out to be smaller, after field appraisal, than presently estimatedon available geoscientific data. However, there are two areas of concernregarding the implementation of the project and disbursement of the loans.First, there is an overall concern with regard to the implementationcapability of various agencies in view of the fact that most of the agencieshave not had significant investment projects during the last five years; thisrisk has been minimized by careful preparation of implementation schedules,creation of a Project Implementation Committee and a plan for project super-vision by the Bank. Sezond, there is some uncertainty with regard to theavailability of other scurces of financing and therefore with regard to thedisbursement schedule of the loan. By design, the proposed mode of operationprovides that for certain items the beneficiaries may search for othersources of financing while minimizing the cost by using InternationalCompetitive Bidding. As a result, the Bank loan may be disbursed more slowly

- 5 -

or faster than scheduled depending on the availability of other financingsources.

12. Recommendation. I am satisfied that the proposed loans would complywith the Articles of Agreement of the Bank and recommend that the ExecutiveDirectors approve the proposed loans.

Barber B. ConablePresident

Attachments

Washington, D.C.November 22, 1989

Schedule A

PHILIPPINES

ENERGY SECTOR PROJECT

Estimated Proiect Costs and Financing Plan

Project Costs Local Foreign Total------------…(US$ million)--------------

PNOC 438.1 303.1 741.2NPC 606.7 2,115.3 2,722.0OEA 2.1 2.2 4.3ERB 2.2 0.8 3.0EMB 0.3 11.9 12.2NEA 4.3 22.2 26.5

Total Costs 1.053.7 2.455.5 3.509.2

Financina Plan

World Bank 55.2 334.8 390.0Eximbank of Japan 50.0 100.0 150.0Committed loans fromforeign sources /a 132.S 1,037.5 1,170.0

Internal cash andother financing 816.0 983.2 1,799.2

Total Financing Plan l.053.7 2.455.5 3,509.2

/a Including US$100 million from IBRD loan No. 2969-PH.

-7-

Schedule BPage 1 of 3

PHILIPPINES

ENERGY SECTOR PROJECT

Procurement Method and Disbursements

Procurement Method(US$ million)

Agency LIB/DC TotalCategory ICB LCB Other N/A

PNOCEquipment and Material 317.2 2.0 156.6 475.8

(99.8) (2.0) (33.4) (135.2)Services 10.7 241.6 252.3

(7.7) (7.7)Consulting Servicesand Training 13.1 13.1

(7.1) (7.1)

Subtotal 317.2 2.0 180.4 241.6 741.2(99.8) (2.0) (48.2) (150.0)

NPCEquipment andMaterial La 2,009.9 301.4 70.6 2,381.9

(113.5) (30.0) (143.5)Civil and ErectionWorks 338.1 338.1

(54.5) (54.5)

Consultancy Studiesand Training 2.0 2.0

(2.0) (2.0)

Subtotal 2,009.9 338.1 303.4 70.6 2,722.0(113.5) (54.5) (32.0) (200.0)

OEA-ERB-EMB-NEAEquipment and Material 20.7 6.4 7,7 3.5 38.3

'20.3) (5.7) (7.5) (33.5)Consultancy Studiesand Training 7.5 7.5

(6.5) (6.5)

Subtotal 20.7 6.4 15.2 3.5 45.8(20.3) (5.7) (14.0) (40.0)

TOTAL 2,347.8 346.5 499.0 315.7 3,509.0(233.6) (62.2) (94.2) (390.0)

/a Bank financing will also cover procurement of materials and fuel againstworking capital increases (inventory) up to $30 million.

-8-

Schedule BPage 2 of 3

PHILIPPINES

ENERGY SECTOR PROJECT

Disbursement

Amount of theLoan Allocated Percent of(expressed in Expenditures

Category Dollar Equivalent) to be financed

PNOC(1) Equipment, materials

and installation 128,000,000 1002 of foreign expenditures,1002 of local expenditures(ex-factory cost) and 702 oflocal expenditures for otheritems procured locally

(2) Technical Assis-tance & Training 7,000,000 1001

(3) Unallocated 15.000.030

Total 150,000,000

NPC(2) Works 56,000,000 701

(2) Goods 108,000,000 1002 of foreign expenditures,10O2 of local expenditures(ex-factory cost) and 70? oflocal expenditures for otheritems procured locally

(3) Technical Assistanceand Training 2,000,000 1oo0

(4) Fuel 14,000,000 502 of purchased value ofinitial inventories of fuelsfor newly installed powerplants

(5) Unallocated 20.000,000

Total 200,000,000

NEA and RECs, OEA, ERB, and EMB(1) Goods 30,000,000 1002 6f foreign expenditures,

10O2 of local expenditures(ex-factory cost) and 702 oflocal expenditures for otheritems procured locally.

(2) Technical Assistanceand Training 6,000,000 1oo0

(3) Unallocated 4.000,000

Total 40,000,000

Schedule BPage 3 of 3

Estimated Disbursements:

Bank Fiscal Year 1990 1991 1992 1993 1994 1995

Annual 15.0 50.0 90.0 120.0 92.0 18.0Cumulative 15.0 70.0 160.0 280.0 372.0 390.0

- 10

Schedule C

PHILIPPINES

ENERGY SECTOR PROJECT

Timetable of Kev Proiect Processing Events

(a) Time taken to prepare s 12 months

(b) Prepared by s OEA, NPC, PNOC, EMB, ERB and NEA

(c) First Bank Mission : July 1988

(d) Appraisal Mission Departure t June 1989

(e) Negotiations i October 1989

(f) Planned Date of Effectiveness : May 1990

(g) List of Relevant PCRs and PnARs s Fourth Power Project (PPAR No. P-980)

t Fifth Power Projectd (PCR No. P-4388)

X Sixth Power Project (PCR NO. P-4847)

Rural Electrification Project(PPAR No. P-5732)

Coal Exploration Project(PPAR No. P-6960)

Geothermal Exploration Project(PCR prepared in July 1989)

Petroleum Exploration Project(PCR prepared in July 1989)

- 11 - pShedule D

THE STATUS OF BANK GROUP OPERATIONS IN THE PHILIPPINES

A, STATEMENT OF SANK LOANS AND IDA CREDITS /September r, 19N59

Loor. orCredit Fiscal Amount (lea. concellatlons)Number Year Borrower Purpose Eank IDA Undlobursed

Eighty-six loans and six credits fully disbursed 8,160.86 106.16 -

1809 1980 Rep. of the Phillppines Medlum-Scale Irrigation 82.98 4.082040 1982 Rep. of the Philippines Agric. Support Services 22.00 4.4821568 1962 Rep. of the Phillppinos National Fisherles Development 2.10 0.272178 1982 Rep. of the Phillppinos Communal Irrlg3tion 61.00 28.862200 1983 Rep. of the Phillppines Educatlon VIII 10.40 6.202206 1998 Rep. of the Phillppines Water Supply ond Sanitation 29.00 4,782267 1998 Rep. of the Phillppines Reglonal Clltes Devolopment 47.00 26.792380 1964 Rep. of the Phillppines Central Visoyos Regional Devolopment 24.97 11. 62418 1984 Rep. of the Phillppines Highways V 102.00 76.602486 1984 Rep. of the Phillppines Municipal Development 40.00 81.062496 1086 Rep, of the Phillpines Telecom. Tech. Assistance 4.00 0.062670 1986 Central Bank of the Phil. Agricultural Credit 100.00 9.712876 199e Rep. of the Phillppines Manila Water Distrlbution 88.00 20.902716 1986 Rep. of the Phillppines Rural Roads II 82.00 76.812787 1987 Rep. of the Philippines Economic Recovery Loan 800.00 100.002823 1987 Rep. of the Philippines Provincial Ports 82.00 20.152948 1988 Rep. of the Philippines Irrlgotlon Operations Support 28.50 20.81296e 1988 Rep, of the Philippines Program for Government Reform 200.00 126.002989 1988 Philippine Nat'l Oil Co. Bacon-Manito Oeothermal Power 41.00 88.862989-1 1999 Phil. Nat'l Power Corp. Bacon-Manito Oeothermal Power 69.00 59.002974 1998 Rep. of the Philippines Houelng Sector 160.00 71.3930B8 1989 Rep. of the Philippines SMI IV 60.00 66.008049 1989 Rep. of the Phillppines Financial Sector 300.00 260.003084 1989 Dev. Bank of the Phil. Manila Power Distribution 66.60 86.508099 1989 Rep. of the Philippines Health Development 70.10 70.10

Total 6,068.88 106.18 1,169.76

Of which has been repaid 1,269.69 2.68

Total Now Outstanding 8,788.69 102.65

Less: Amount sold 81.86 - -Of which has been repaid 81.85 - -

Total Now Held by Bank and IDA8,708.69 106.48

Total Undisbursed 1,169.76 - 1,169.76

/a The status of the projects listed In Part A Is described In a separate report on oll Bank/IDA-financed projectsin execution, which Is updated twice yearly and circulated to the Executive Directors on April 80 andOctober 31.

Schedule D- ] _ Page 2 of 2

B. STATEMENT OF IFC INVESTMENTS(As of September 30, 1989)

Investment Fiscal Loan Equity Totalnumber year Obligor Type of business ---- (USS million) ---

57/233 1963/1973 Private Dev. Corp. of the Philippines Development finance 16.0 4.4 19.4116/1088 1967/1989 Merelco Securities Corporation Utilities 38.3 4.0 40.3157/899/1091 1970 Phil. Long Distance Telephone Co. Utilities 57.7 0.8 68.6158/218 1970/1972 Mariwasa Manufacturing, Inc. Cement & constr. mat. 0.8 0.4 1.2

166 1970 Paper Industries Corp. of the Phil. Pulp A paper products 2.2 2.2188/389 1971/1977 Philippine Petroleum Corporation Chemicals & petrochem. 8.2 2.1 8.3207 1972 Marinduque Mining & Industrial Corp. Mining 16.0 - 15.0241 1973 Victorias Chemical Corporation Chemicals A petrochem. 1.9 0.3 2.2267 1974 Filipinas Synthetic Fiber Corp. Textiles & fibers 1.5 - 1.6

272/484 1974/1979 Maria Christina Chem. Ind. Inc. Iron A steel 1.6 0.6 2.2288 1974 Republic Flour Mills Corp. (RFM) Food A food processing 1.2 - 1.2300 1975 Philippine Polyamide Industrial Corp. Textiles A fiber 7.0 - 7.0329 1976/1980 Philagro Edible Oils, Inc. Coconut oil & copra 2.8 0.2 2.8

379/766 1977/1986 Acoje Mining Company, Inc. Mining 2.6 1.2 3.7374 1977 Sarmiento Industries, Inc. Plywood 3.6 - 3.6423 1978 Cebu Shipyard A Eng. Works, Inc. Ship repairing 2.1 - 2.1469 1979 General Milling Corporation Food & food processing 4.0 1.1 5.1

481/666/ 1980/83/ PISO Leasing Corp. (All Asia capital) Money A capital market 11.1 0.6 11.81148 86/89480 1980 Ventures in Industry & Business Money A capital market - 0.3 0.3

Enterprises, Inc.S51 1980 Consolidated Industrial Gases, Inc. Chemicals A petrochem. 4.6 - 4.6582 1981 Loans to Seven Corp. for SMSE Money A capital market 18.6 0.6 19.1S563 1981 Phil. Assoc. Smelting & Refin. Corp. Mining - 5.0 6.0572 1981 Davao Union Cement Corp. Cement & constr. mat. 16.0 - 18.0627 1982 NDC-Guthrie Plantations Palm oil 11.0 - 11.0841 1986 Pure Foods Food A food processing - 1.4 1.4946 1988 BPI Agricultural Develop.nent Bank Development finance - 1.0 1.01051 1988 Philifund Money A capital markets - 4.2 4.21126 1989 Hambrect and Quist Money & capital markets - 2.4 2.4

Total Gross Commitments 220.0 32.7 262.7

Less cancellations, terminations, 118.7 18.8 136.6repayments and sales

Total Commitments Now Held by IFC 101.3 16.9 117.2

Total Undisbursed (including participants' portion) 68.3 2.4 68.7

io6- 20- 124' 128-

PHILIPPINES

ENERGY SECTOR PROJECTENERGY RESOURCES

I CGeothermol apprisal / delineation loaions

*D Geothermol sites under exploration

* Existing geothermal power projects in operation

3?1 Coal development and prodution

| agua i Coal exploration

Hydro-electric plants

I Future hydra-electric plant

L UIZON -- Faults

Ambekloo Magat - -- International boundaries

Bingo(I Casecnan

1 Pantabangon KiInnoiert 0 100 200 300** %~ M asimay _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 1

Balunga a%_ 0 l O 200

GMt. Pinatubo\ - 4 * Mobile Zone

Angat \

Mariveles 69 l Kalayaan

E M kb.Ca" ray'a cBotocan oDoel Gatl. 90

o)Malbini Bn

\ Tiwi * E ?kMontelogo O \ BacSogMnito Geothermal Power Project

MI NOORO N O~~~~~5CBa.con - Manita tiM/N1DORO 7t>>>bd \ C~~~~~~~~Bule son

Xfi SAMAR

°a \ PANAV \ *Uongonan

10 Mombucol 0

PfA AWAN M Ptalinpinon I< bPlinpinonl \

Aguson

Agus \

44IN% M/NDANAOCHINA \C ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~PuIangi IV

VIET NAM tV/ZONlP HIILIPPINES

-' VISAYAS

PA/AWAN A N

- M/NVOANAO\

BRUNFI,

MALAYSIA no . e na M nnous fur bn moe us_" t clu

o F~~~~~~~~~~~~~~~~~~~~~~~~Tsnxrm7e oap Todnxusunosed 17 ovestu iowno on cmi snap dx nan

- I N )C N F I i A x axp lxr airy e ri xxl cxis

I2D0 122I 2- 1 2

PHILIPPINES

'9B Clwero ENERGY SEC1OR PROJECTGRID MAP OF NATIONAL POWER CORPORATION

,-0000

UNDERmooBOJOONO- COOST NVE--E00 FUUR

| /AlSnNG COqw01 lN m-5lMEN PUTUiZ FPOWER PLANTS;

& b , y *e) 01(0) Do{, Hydrob y() bI 01(G0 OCoth-erwol

ill 5 ' I*(CI Io(c) Cogl Thermalj 3101 Oil Thermal

*(D) Diesel

5/ / JTRANSMISSION LINES.Swn b|Albko b otg f- o of I)ma

BoyL"t bor.lfib og 500 kVbogu~.o Bo,go(0,

230 kV

Iobeowo' NCC I(IH) d<K8e non _______-_ l15-13R kV

16' 0---u,B'SURTATIONS. O

*Pw_ P000bong:nla 0 m 230 kV

\ 0 O O 115-138 kVL tU Z; O°N

t l F ~~~~~~~~~~~~~~~~~~~~~~~~~~~~PciliBies ro ke U0 0Toded\95,0 r-n-zKlrJ -- l _ _. ternetionol *J Emisting hydds p-wer stoTiOB

R .ounddrie * EhOti.g 230 kV Bobstatie-s* 0°olA \ l OAnootlM * E.isting 115-138 kV substotions

Ooo.~~~,,oo ~ J. e 115-138 kV substation undr

A EReistig 69 kV sobstoftons looly

0) 1on000101ovtH1o0lc; p7.i7 0 7bhG

~buh>r)G Ti(

146~~~~~~~~~~~~

TwJG r(G

MASBATE

2' SAMAR

PANAY &T-

Roto orbwot> )=be) E LErE

qkboolo l5 Mfr s: CEBU

PALAWAN ; S

>0. ia9etio^ee.OcwJ- ; BOHOL

NEGROSP, *0o.onlHl

CNofo ........ Mobm>~~~~~~~~~~~~~~~~~, , NA ffw>(0 wo

Aeiossq

(H)ffN*D} ~ ~ ~ ~ OI.~I() o

ror _t h,0 160 -OK</ IE.S

.C--. . ... ~1{U., ... ....

-,H~~~~~~~~~~~~~~~~~~~~~~~~~Aa

m v.ss Ml.l ~~~~~~~~~~~~~~~~~~~~~~~~~~~~tp nwCPt0,,T

-O.ESI man oo nol r w Ao

1s O hsreM_S r t Pu)ong )Vt H) 7lon

0 2 0 506 ao-0MtSr u g X a

120~~ ~ ~ ~~~~~~~~~ 'n f1

I~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ l0Um5MDm

,~~~~~10 , _U0

O oQKfi-

INDOES-