P10.3B in grants, loans sought for agri sector
By Amy R. Remo
Philippine Daily Inquirer
First Posted 18:48:00 04/27/2008
MANILA, Philippines--The Department of Agriculture is seeking P10.3 billion in grants and loans from international agencies to fund projects aimed at boosting the farm and fisheries sector.
Based on documents, the department is eyeing P1.08 billion in grants from the Food and Agriculture Organization, European Union, World Bank, Asian Development Bank and Asian Disaster Reduction Center.
Another P9.25 billion in multilateral loans are being sought from the World Bank, ADB, International Fund for Agricultural Development (IFAD) and Opec Fund for International Development (OFID), documents from the DA showed.
According to the DA, these projects will focus on capacity building, production support, market access, irrigation, technical assistance, provision of inputs, credit, disaster reduction and preparedness, extension work and infrastructure.
These will cover rice, corn and other crops, vegetables, poultry, swine, high value commercial crops and fisheries.
Of the total grants, P380.67 million is expected to come from FAO; P124.83 million, EU; P500.86 million, World Bank, and P78.66 million, from the ADB and ADRC, documents showed.
In the meantime, the DA has sought loans worth P4.79 billion from the World Bank; P2.378 billion, IFAD; P1.665 billion, ADB, and P416 million, OFID.
Most of the projects have already been endorsed to the respective international donors and are awaiting decisions.
Last month, the DA held a donors' forum where Agriculture Secretary Arthur C. Yap had urged the country's international development partners to assist the local agriculture sector in tapping commercial banks' excess liquidity and funnel the funds into the farm sector.
The DA had invited foreign diplomats and representatives from the World Bank, IFAD, ADB, Japan International Cooperation Agency and Korea International Cooperation Agency.
In the forum, Yap told guests that while the country's financial system was awash in cash, the farm sector had reportedly tapped only 5 percent of the banks' loan portfolio.
"We need the advice and experience of our global partners on how we can harness this excess liquidity and channel them to agriculture," Yap said.
"Agricultural microfinancing needs the most in terms of assistance from our donors."
Yap gave the guests an account of the country's priority areas for investment.
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