World Bank approves new $170-M loan for rural development project

The World Bank approved additional loan for the Philippine Rural Development Project (PRDP) aiming to boost rural incomes and reduce poverty in the country.

In a statement, the Washington-based multilateral institution said the lender will provide addition $170 million financing for the project, which will be implemented local government units and the Department of Agriculture.

“The additional financing will also support development of rural infrastructure such as roads, bridges, communal irrigation systems, potable water supply, solar dryers, greenhouses, and composting facilities,” World Bank said.

According to the World Bank, ,ore than 400,000 rural residents are estimated to directly benefit from the project’s infrastructure initiatives, and another 100,000 persons would benefit from the development of rural enterprises.

“The practice of the DA preparing provincial commodity investment plans together with local governments have empowered local executives to mobilize additional resources and bring in programs of other government agencies,” Mara K. Warwick, World Bank Country Director said.

“The PRDP helps to consolidate and efficiently plan programs and activities that alleviate poverty in rural areas,” she added.

Targeting at least two million farmers and fisher-folk, the Philippine government developed PRDP in 2014 to improve rural infrastructure and support small business and livelihood projects across the country.

The World Bank provided a loan and grant package amounting to $501 million.

Based on initial estimates, once the project is implemented, it will increase the average household incomes by almost 60 percent, while reducing by 43 percent the travel time in the communities and will reduce by 54 percent the hauling costs of agricultural inputs.

Residents will also see an increase in school attendance and higher levels of enrollment, faster response to medical emergencies, as well as improved peace and order in the communities served.

Hundreds of projects have been approved for the PRDP, including 232 projects that will deliver 1,700 kilometers of roads and bridges, 100 post-harvest facilities, 18 small-scale irrigation facilities encompassing 1800 hectares, and 512 enterprise projects with some 100,000 direct beneficiaries.

Under the PRDP, the DA provides technical and financial support to the planning process of provinces and municipalities, as well as in the implementation and delivery of services, rural infrastructure, and enterprise development based on provincial commodity investment plans, value chain analyses and suitable production areas.

This integrated planning approach is an important step in merging local priorities and national development programs, thus making the DA and local governments effective partners in the development of the farming and fishing sector.