PHILIPPINES: Second Phase of Mindanao Rural Development Project Gains Momentum

MANILA, October 12, 2009—The second phase of the Mindanao Rural Development Project (MRDP2) is gaining momentum and is well-positioned to meet its objectives of improving livelihood opportunities in targeted communities as well as decentralizing agriculture and fishery services delivery in a way that promotes participation, transparency, and accountability.

This is one of the major findings of the recently concluded portfolio review mission conducted by the World Bank together with the officials of the Department Agriculture (DA) implementing the project in 26 provinces, 225 municipalities, and cities in Mindanao.

“I’m happy that we are gaining traction in the implementation of MRDP2. This project will significantly contribute in our efforts to address poverty and enhance food security in Mindanao,” said Agriculture Secretary Arthur C. Yap.

Mr. Yap said some provincial governments have released more than their share of counterpart funds for municipalities in their areas that have found it difficult to cough up the 50% equity contribution required under the project, showing laudable commitment to the project’s objectives. “The next year of implementation would enable us to evaluate the impact of this local government unit-local government cost sharing,” he added.

Mr. Jesus Emmanuel M. Paras, DA Field Operations Undersecretary and MRDP2 Program Advisory Board Chairman, said that 146 towns in Mindanao have already reaped initial gains, noting that about PhP1.2 billion worth of infrastructure projects are under various stages of implementation and preparation. These are mostly farm-to-market roads, bridges, small-scale irrigation facilities, and water supply projects. "Some municipalities have completed their projects, others are nearing completion, and others are at procurement level," he explained.

MRDP2 Executive Director Lealyn A. Ramos added that there are about Php156 million worth of livelihood projects that are changing lives in targeted poor communities composed mostly of disadvantaged indigenous peoples, women-headed households, upland and marginal farmers, and coastal fishers. Close to Php40 million were spent to conserve upland resources, and coastal and marine biodiversity.

Jointly funded by the World Bank, the national government and local government units, MRDP2 has four components, namely:

• Investments for governance reform and program administration to strengthen the institutional capacity of the DA and participating LGUs in Mindanao in agriculture and fisheries service delivery as well as in agricultural development planning, research, and extension;
• Rural infrastructure to improve access of farmers and fishers to basic rural infrastructure services;
• Community fund for agricultural development to provide livelihood projects, alternative income-generating projects, and small infrastructure; and
• Natural resources management component for the conservation of upland resources as well as coastal and marine biodiversity in selected municipalities in Mindanao.

The World Bank provided US$83.752 million worth of loans to support the project. Recently, a US$6.351 million grant from the Global Environmental Facility (GEF) was also approved to support the national resources management component of the project.

“Promoting poverty reduction and rural growth specifically in Mindanao is high in the government’s development agenda. We are glad to support this initiative because it fits well with our own mandate of promoting inclusive growth,” said World Bank Country Director Bert Hofman.

Of the six regions in Mindanao, Region 10 (Northern Mindanao) leads in the implementation of MRDP2 subprojects with its Php270 million worth of infrastructure projects.

Caraga Region followed with Php215 million. Other top performing provinces include Agusan del Sur, Sultan Kudarat, Zamboanga del sur, Lanao del Norte, and Sarangani Province.