The World Bank has approved the second tranche of USD450 million in financing for DA
On Monday, the Department of Agriculture-Philippine Rural Development Project (DA-PRDP) announced that it has received confirmation from the World Bank (WB) for a USD280 million grant to fund initiatives that would help farmers and fishermen.
The sum reflects the Second Additional Financing (AF2), or the second tranche of the WB’s USD450 million loan authorized in 2016.
According to a DA release, the AF2 was modified to support the agency’s food security programs as well as other operations linked to the current Covid-19 epidemic.
DA Secretary William Dar thanked the World Bank and the PRDP for their dedication to improving the lives of beneficiaries and promoting the country’s agri-fishery industry.
“As we progressively help our beneficiaries in recovering from the pandemic, the acceptance of the AF2 with the European Union (EU) co-financing grant is a significant step towards the realization of a brighter future for our farmers and fisherfolk. “I am grateful to the World Bank for awarding us the AF2 and to everyone at the PRDP for their tireless efforts to improve communities and increase opportunities,” Dar said in a statement.
The financing agreement and associated papers for the DA-PRDP AF2 will be signed no later than July 15, 2021, according to DA-PRDP.
The AF2 provides the DA-PRDP with a broader and more focused type of support to its intended recipients, according to PRDP National Project Director Undersecretary Ariel Cayanan.
“As we continue to improve our beneficiaries’ rural incomes throughout the nation, the World Bank’s approval of the AF2 opens a new chapter for the PRDP in terms of expanding and intensifying its assistance to its partners and stakeholders across the country. Let us keep working hard,” he said.
Farmers and fisherfolk would benefit substantially from DA-PRDP initiatives aimed at increasing food yield, boosting business activities, and upscaling logistics to connect producing regions to the market.
More than 300,000 farmer and fisherfolk families are anticipated to benefit from the AF2-EU, which is estimated to generate more than 70,000 new employment via rural infrastructure sub-projects and business activities.
The AF2-EU also includes a plan to expand the DA-implementation PRDP’s efforts in Mindanao, to include conflict-affected regions, indigenous peoples’ communities, fourth to sixth-class local government units, and the Bangsamoro Autonomous Region in Muslim Mindanao.
The loan is anticipated to take effect 90 days from the date of signing, at the very latest.
Following that, implementation will begin in the fourth quarter of 2021.
The deadline for the AF2-EU, according to DA, is July 31, 2025.