NEDA body okays two agricultural projects

MANILA, Philippines - The Investment Coordination Committee of the National Economic and Development Authority (NEDA) has approved last month two government agricultural support projects.

The ICC, which approves government infrastructure projects, approved the second phase of the Establishment of Modern Rice Processing Complex project and the revised cost for the Agriculture Credit Support Project (ACSP).

The ICC technical board and the Cabinet Committee approved the project in a joint meeting last April 30, NEDA Agriculture Staff Director Sheila Encabo said during the weekend.

Through the project, the government hopes to increase the income of target farmer beneficiaries.

“Through this project, the income of target farmer beneficiaries shall be increased through improved efficiency in rice post-production system. This would reduce postharvest losses, enhance the quality of milled rice, improve distribution system and maximize rice by-products,” Encabo said.

The Korea International Cooperation Agency (KOICA) has committed to partly fund the P785-million modern rice processing complex project.

Of the P785 million, P649 million is the grant component and P136 million will be the counterpart of the Philippine government, to be provided by the Department of Agriculture (DA) and concerned local government units.

This, NEDA said, is expected to increase the income of 5,160 farmer beneficiaries and provide employment opportunities for people in Pangasinan, Iloilo, Bohol and Davao del Sur.

The processing centers, to be constructed simultaneously over the next two years, are set to be established in Sta. Barbara, Pangasinan; Pototan, Iloilo, Pilar, Bohol and Matanao, Davao del Sur.

Meanwhile, for the Agriculture Credit Support Project or the ACSP, the NEDA-ICC also approved the changes in the loan amount for the non-credit component and in the implementation schedule as recommended by the Japan International Cooperation Agency (JICA) Appraisal Mission.

The loan amount for the noncredit component will be revised from P154 million to P227 million and the schedule of implementation would be adjusted to seven from five years.

The increased allocation for the ACSP’s non-credit component will make possible the development of a marketing information system to capture client needs and promote the establishment of market linkages, as well as build the capacity of end users/sub-borrowers especially in the field of enterprise/business development, among others.

The ACSP will make available short, medium and long-term financing to address the credit needs of key agribusiness players through sub-loans for direct lending and relending. Through the project, the Land Bank of the Philippines aims to extend credit assistance to small farmers and fisherfolks, cooperatives, agribusiness enterprises, and small and medium enterprises.