EC extends P880-M aid for Mindanao programs

The European Commission (EC) has approved 14 million euros (P880 million) in grants for poverty alleviation and reconstruction of conflict-torn areas in Mindanao. 

The grants were granted under the EC’s 2007 development program, according to Ambassador Alistair MacDonald, head of the EC delegation to the Philippines.  

“The European Community is bent on helping the Philippines in its economic, social and political reform processes by providing support to deepen dialogue on governance with and among all sectors of society, to promote trade and investment flows, and to help restore peace and security in Mindanao,” MacDonald said.

According to the EC, the 2007 Action Program is the first contribution under its Indicative Program for assistance to the Philippines from 2007 to 2010, which amounts to 61 million euros (P3.8 billion).

MacDonald said these programs were developed after consultations with the government and civil society groups to support the Philippines’ Medium Term Development Plan 2004–2010. 

He said the 2007 program covers three areas:

• The Strategic Projects Facility, which will contribute to improving governance as a condition to achieve Millennium Development Goals, and will cost 6.5 million euros (P410 million);

• The Trade-Related Technical Assistance, which will enhance the capacity of selected government agencies and non-state entities in the Philippines to achieve deeper integration into the international trading system, and will cost 6.5 million euros  (P410 million); and

• The second batch of contribution amounting to one million euros (P60 million) for the Mindanao Trust Fund, which will support the reconstruction and development of conflict-affected areas in Mindanao.

Other bilateral donors to the World Bank-administered fund include Australia, New Zealand, Canada, and Sweden.

The first phase focuses on capacity-building and implementation of reconstruction and development projects in conflict-affected areas while the peace process is in progress. 

The second phase, on the other hand, is intended to support full-scale reconstruction programs once a peace agreement is forged.