RP gets ¥300-M Japanese grant for rice provinces

The Philippines and Japan are set to sign on March 19 a ¥300-million Kennedy Round 2 (KR2) – productivity enhancement project (PEP) grant, the proceeds of which would be distributed to 37 rice producing provinces.

This was disclosed over the weekend to reporters by Agriculture Secretary Arthur C. Yap who said that while the grant assistance would come in the form of urea, the Department of Agriculture plans to initially monetize it and distribute the proceeds to 37 rice producing provinces.

The KR2 is a Japanese Official Development Assistance fund specifically intended for the PEP.

It was temporarily discontinued by Japan for a time because the funds were not being used as intended for the PEP but were instead being used for budgetary support.

However, Japan has recently agreed to resume the KR2 with the signing of a ¥300-million urea grant.

The DA used to be the sole implementor of the KR2-PEP, but following the problems encountered with the grant package, the DA now has to share administration of the KR2 with the National Economic Development Authority on an 80-20 basis.

However, Yap believes that "NEDA should concentrate on planning, and DA is an implementing agency."

In fact, Yap feels that the grant assistance should be fully restored to the DA.

"Actually if it were up to me I would like it 100 percent DA because I have also my data to show it is not DA that is slow, it is the Japanese government that takes time to approve projects," Yap said. Yap added that "because KR2 is a grant we have to respect Japan’s wishes on the usage of the fund."