PHILIPPINES: WB Approves US$10M Additional Loan for Communal Irrigation Systems to Help Boost Incomes of Agrarian Reform Communities

Contacts:
In Manila: Dave Llorito (632) 917-3047
E-mail: dllorito@worldbank.org
Kitchie Hermoso (632) 917-3013
E-mail: mhermoso@worldbank.org
In Washington: Mohamad Al-Arief (1-202) 458-5964
E-mail: malarief@worldbank.org

MANILA, MARCH 23, 2009—The World Bank’s Board of Executive Directors approved on March 19 an additional US$10 million loan to the Philippine government to finance the completion of critical infrastructure components of the Second Agrarian Reform Communities Development Project (ARCDP2) launched in 2003.

The additional funds will help complete the construction and rehabilitation of communal irrigation systems (CIS) being implemented by the National Irrigation Administration (NIA) covering 4,153 hectares in the provinces of Ilocos Norte, Isabela, Bataan, Zambales, Quezon, Mindoro Occidental, Albay, Zamboanga del Norte, and Misamis Occidental. These subprojects are expected to benefit 3,880 farmers through an increase in yields and crop intensity by about 70 percent on average.

Mr. Bert Hofman, World Bank Country Director, welcomed the Board’s approval of the Government’s request for additional financing, stressing that these investments in communal irrigation facilities would raise farmers’ incomes and help them escape poverty.

“Irrigation has always been an important part of the Government’s strategy to achieve sustainable economic growth and food security. The Bank supports this effort through ARCDP2 because it is consistent with our mandate of helping the government alleviate poverty and achieve inclusive growth,” Mr. Hofmansaid.

On  January 22, 2003, the World Bank and the Philippine government signed the US$50 million loan to kick off the second phase of ARCDP  to reduce rural poverty and enhance the quality of life of agrarian reform beneficiaries, building on the success and lessons learned from the phase 1.  Implemented by the Department of Agrarian Reform (DAR), the project specifically aims to increase household incomes of agrarian reform beneficiaries in about 80 agrarian reform communities throughout the country by providing rural infrastructure and support services to increase farm productivity. 

ARCDP2 has several components including:

• Community development and capacity building to ensure active community participation and self-reliance in the planning processes of Agrarian Reform Communities (ARC) and in implementing integrated community-identified priorities. It also builds the capacity of ARC peoples’ organizations, such as the "barangay" implementing teams, cooperatives, associations, farmers' groups, women's groups, producer groups, as well as strengthening the capacity of DAR and LGUs to support appropriate development activities.
• Rural infrastructure which contributes directly to sustaining increases in rural incomes of the target beneficiaries based on community demand-driven approach. The infrastructure includes rural roads, bridges, small-scale irrigation, potable water supply systems, post-harvesting facilities, and social buildings.
• Agricultural and enterprise development which provides strategic support services to help generate viable increases in agricultural productivity and diversification.
• Access to financial services which comprise capacity building support to cooperatives and microfinance institutions.

To close by June 30, 2010, ARCDP2 covers the provinces of Batanes, Ilocos Norte, Isabela, Bataan, Zambales, Tarlac, Quezon 1, Quezon 2, Mindoro Occidental, Albay, Masbate, Camarines Sur, Negros Oriental, Bohol, Zamboanga del Norte, Misamis Occidental, Davao del Norte and Misamis Occidental.

“The additional financing will ensure that all ARCDP key implementation activities would be effectively completed and target outcomes fully achieved,” explained DAR Secretary Nasser Pangandaman. He stressed that majority of these indicators have already been fully achieved including a 15 percent increase in the real net household income (against the target of 20 percent), 20 percent increase in annual average yield per hectare of major crops after four years (against the target of 15 percent), and a 220 percent increase in cropping intensity (as against the target of 140 percent).

“The Government gives high priority to providing irrigation facilities to farmers, especially communal irrigation facilities, as part of our efforts to address concerns about sufficiency of food supply and high food prices,” Secretary Pangandaman stressed.

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For information on the World Bank’s support to the Philippines,
please visit www.worldbank.org.ph