ARMM agribusiness funding project hurdles ICC

AN agribusiness project for the southern Philippines funded by Japan through Land Bank of the Philippines has been approved by the Cabinet- level Investment Coordination Committee ( ICC) and has been elevated to the National Economic and Development Authority (NEDA) Board.

The Harnessing Agribusiness Opportunities through Robust and Vibrant Entrepreneurship Supportive of Peaceful Transformation ( HARVEST) will be a lending facility for agribusiness and agribusiness- related investors in the Autonomous Region in Muslim Mindanao ( ARMM).

“For the HARVEST, we’ve gone through with the ICC Cabinet. It passed shortly before the New Year,” NEDA Deputy DirectorGeneral for Investment Programming Rolando G. Tungpalan said in a phone interview.

HARVEST is the lone project approved by ICC Cabinet Committee during its ad referendum session at the end of December.

Ad referendum means the project is going through further consideration by the NEDA Board for a final decision.

The project will be funded solely through official development assistance, particularly from the Japan International Cooperation Agency, and is proposed by the Lank Bank to cost $40 million, but NEDA will still have to finalize the details.

“It is now going through NEDA Board ad referendum. We are working on it,” said Mr. Tungpalan as the public investment staff is still trying to garner enough votes for the project to go ahead.

According to Mr. Tungpalan, HARVEST will have an implementation period of five years and is expected to begin this year if it is approved by the NEDA Board.

“( Implementation will be) 2017-2021,” said Mr. Tungpalan.

The proposed agribusiness program will provide a line of credit to Land Bank to lend to eligible sub-borrowers directly or through accredited channels.

The project aims to encourage investment and create sustainable jobs in Mindanao.

Its aim is to help private enterprises in their expansion and modernization plans, as well as assist them in undertaking new projects by providing loans to finance production and operating expenses as well as capital investment requirements.

The project, according to Mr. Tungpalan, will have a “more focused program for large agribusiness development as well as small to medium that will boost the income of the rural areas in the ARMM and other regions.” —