DA eyes rechanneling WB loan from agri-modernization project

The Department of Agriculture (DA) seeks to rechannel a loan intended to fund farm modernization for projects that would ensure ample food supply as government tries to fix an economy debilitated by the coronavirus disease 2019 (Covid-19) pandemic.

Agriculture Secretary William D. Dar said they are now in talks with the World Bank (WB) to convert the $380-million (about P19 billion) loan intended for the Philippine Rural Development Project (PRDP) to fund DA’S enhanced food production program it calls “Alpas,”or “break free from,” Covid-19. The DA has said this program requires P31 billion.

The DA said “Alpas” will boost and sustain the country’s food supply during the implementation of the Luzon-wide enhanced community quarantine (ECQ) that began last March 17.

The DA said “Alpas” has already secured P8.5 billion for the rice-resiliency project component, which aims to produce more rice and increase the country’s sufficiency level from 87 percent to 93 percent.

Dar said the remaining P21.5 billion funding is still awaiting approval from the national government. Their request is already on the queue among other agencies seeking a share in government’s recovery stimulus package.

“We are not just banking on the money coming from the national government; we are in talks with funding institutions like World Bank and Asian Development Bank,” Dar said in an online news briefing on Monday. The Agriculture Secretary added the DA already has $280 million from World Bank.

“[This] will have an additional $100 million, making it $380 million.”

Dar said the DA “will reprogram and refocus the funds to be used for PRDP for quick disbursement.”

“This is one of the funding sources for the remaining P21.5 billion,” he added.

Dar said the talks with the WB had “advanced” with the Department of Finance already submitting the details and activities to be considered by the Washington-based lender under Alpas, or also known as the “Plant, plant, plant” program.

The DA chief expressed hopes “a quick decision” would be made this April.

“May is our action month. It is the planting time for rice and other commodities,” Dar said.

Under the proposed program, the DA will allocate P7 billion to double the National Food Authority’s procurement capacity to increase the agency’s buffer stock to at least 30 days.

The DA will spend P1 billion to “upscale” its market linkage and distribution project.

The DA will also bankroll the following components under the PPP program: P1-billion integrated livestock and corn resiliency project; P1-billion Expanded Small Ruminants and Poultry Project; P300-million corn for food project; P1-billion coconut-based diversification project; P500-million urban agriculture project; P1-billion gulayan [vegetable] project; P1-billion fisheries resiliency project; P3-billion expanded financial assistance to farmers; P3-billion expanded insurance coverage for farmers; P3billion social amelioration program; and P200-million strategic communications project.

The PRDP is a 6-year project designed to establish the government platform for a modern, climatesmart and market-oriented agriculture-fishery sector. PRDP said within the six years, it is expected to see at least a 5-percent increase in annual real farm incomes of PRDP in household beneficiaries and a 30-percent increase in income for targeted beneficiaries of enterprise development.

Likewise, the PRDP is expected to result to a 7-percent increase in value of annual marketed output and a 20-percent increase in number of farmers and fishers with improved access to DA services.