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| Marikina |
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| Summary of Proposed Investment |
| This Summary of Proposed Investment is prepared and distributed to the public in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only. |
| Project number | 26408 |
| Company name | Marikina City |
| Country | Philippines |
| Sector | Utilities |
| Environmental category | B |
| Department | Sub-National Finance |
| Status | Pending Approval |
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| Date SPI disclosed | November 21, 2007 |
| Projected board date | December 21, 2007 |
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| View Environmental & Social Review Summary (ESRS), click here |
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| Overview |
Sponsor/Cost/Location |
Development Impact |
Contacts |
Attachments |
| Project description |
| The City of Marikina has a five-year program of capital investments totaling around PhP1.8 billion (or around $42 million) in the areas of essential infrastructure. The project involves a local currency loan for an amount of up to PhP685MM (equivalent to $15MM) to the City to finance a portion a portion of their capital expenditure program. |
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| Project sponsor and major shareholders of project company |
| The City of Marikina, with a population of 457,000 (2005), is one of the local governments comprising Metro Manila area. The City is one of the most industrialized areas in Metro Manila. Historically, the shoe industry was the City’s prime economic base (with around 260 shoe manufacturers). However, Marikina has gradually diversified its economy by attracting a growing number of food, tobacco, and other manufacturing and service firms, with more than 14,000 commercial and industrial establishments currently registered. The City’s budget for 2006 was around $24 million. |
| Total project cost and amount and nature of IFC's investment |
| The total project cost is estimated at around $42 million. The proposed IFC investment is a senior loan of up to PhP685MM (equivalent to $15MM). |
| Location of project and description of site |
| The City of Marikina is one of the twelve cities and five municipalities comprising Metro Manila area located approximately 21 km away from Manila. |
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| Anticipated development impact of the project |
| The proposed project will help the City of Marikina diversify its funding sources and finance essential infrastructure assets that will expand access and improve service delivery for the residents of the City. |
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| IFC's expected development contribution |
| IFC’s role is to provide the City of Marikina with long term, fixed rate local currency funding to finance investments in essential infrastructure at reasonable terms. |
| Environmental and social issues - Category B |
This is a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects because it may create a limited number of specific environmental and social impacts that can be avoided or mitigated by adhering to generally recognized performance standards, guidelines, or design criteria. The IFC investment will be used to finance a portion’s of the City’s capital expenditures in the areas of roads, social and environmental infrastructure. These projects are of high priority to the City of Marikina to improve public safety as well as quality of life for the residents of Marikina.
Performance standards that are applicable for this investment include:
- PS 1: Social and Environmental Assessment and Management System
- PS 2: Labor and Working Conditions
- PS 3: Pollution Prevention and Abatement
- PS 4: Community Health, Safety and Security
- PS 5: Land Acquisition and Involuntary Resettlement
Because this investment may be used to support future, but as yet, undefined projects in addition to existing projects, the principal Performance Standards to be applied to this investment are those listed above. A condition of IFC’s investment going forward will be that any and all projects undertaken shall consider all relevant social and environmental risks and impacts, including the issues identified in PS1 through PS8.
The identified environmental, social and health and safety impacts which require ameliorative measures will be included in IFC’s Loan Agreement. Upon successful implementation of the agreed mitigation measures, the proposed project is expected to comply with host country laws and regulations, IFC Performance Standards and applicable World Bank/IFC guidelines. |
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| For inquiries about the project, contact: |
Melvin A. Cruz, City Administrator
Marikina City Hall
Shoe Ave. Brgy. Sta Elena Marikina City
Telephone: (632) 646-1634
Fax: (632) 646-5277
E-mail: melvin.cruz@marikina.gov.ph
Website: http://www.marikina.gov.ph |
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| For inquiries and comments about IFC, contact: |
General IFC Inquiries
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384
E Mail: Webmaster |
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