NEDA okays 2-yr extension of MRDP2

MANILA, Philippines - The National Economic Development Authority-Investment Coordination Committee (NEDA-ICC) has approved the two-year extension of the second phase of the Mindanao Rural Development Program (MRDP2), a five-year program of the Department of Agriculture (DA) to raise the income of farmers in 225 towns in Mindanao through infrastructure and farm assistance.

The program, which was initially launched in 2007, was intended for implementation until December 2012. The implementation was delayed to 2009 because of policy issues pertaining to the sharing of funds between the national government and local government units.

With the extension given by NEDA, the program is expected to be completed by 2014. The program’s total funding of $123.90 million is sourced from an $83.752 million loan portfolio from the World Bank and the equity share of the national government and local government units.

The Australian government, through the Australian Agency for International Development (AusAID), has also recently provided a $3 million grant to the program.

MRDP2 director Lealyn Ramos said that as of July 27, the disbursement rate of the program was placed at 42.37 percent, an increase of 17 percent in the past five months.

Agriculture Secretary Proceso Alcala said a disbursement rate of 60 percent is targeted for this year.

The MRDP2 covers the provision of rural infrastructure, and the creation of Community Fund for Agricultural Development (CFAD) components which will provide funding to agriculture-based livelihood projects.

Rural infrastructure completed to date under the program included 365.96 kilometers of farm-to-market roads, 128.60 line meters of bridges, communal irrigations servicing a total of 508 hectares of rice field; 24 potable water systems; and 16 post harvest facilities.

The community fund component has so far provided funds for 2,046 agriculture-based livelihood projects.