THE Department of Agriculture (DA) said on Monday that it is seeking about $1.69 billion from the World Bank and the Asian Development Bank (ADB) to fund agricultural infrastructure projects.
“Our agri-infrastructure projects for the longest time have been lacking in financing, so the (loans) will be used for those projects,” Agriculture Assistant Secretary and Spokesman Arnel V. de Mesa said in a briefing.
Mr. De Mesa said among the projects is the proposed Philippine Sustainable Agriculture Transformation Project.
“This will become the single largest project within the department,” he added.
He said that the loan agreement is expected to be signed by June and will run for five years. The full implementation of the project is expected by July.
“We have disbursement-linked indicators, where the department will commit to certain policy reforms. In exchange is the disbursement of funding which would be used for priority projects like agri-infrastructure,” he said.
Mr. De Mesa added that the World Bank has sent a pre-appraisal mission to evaluate the project.
The DA is also looking at $300-million loan from the World Bank to support micro, small and medium enterprises (MSMEs) in accessing financing for climate resiliency projects.
“This will help MSMEs that have been hit by natural calamities to recover… It will be for the next five years,” Mr. De Mesa said.
Among the DA’s partners are the Agricultural Credit Policy Council, and the Departments of Finance (DoF), and Trade and Industry (DTI).
“The DoF has endorsed the concept to the World Bank and so now the scoping mission can begin. Hopefully, by next year the loan will be signed,” he added.
Additionally, Mr. De Mesa said that the ADB approved a $250-million loan to fund its flagship solar-powered irrigation project.
The project aims to construct irrigation facilities in rice, corn, and vegetable growing areas.
“Our priority here is to ensure first that the water will be sustainable because we don’t want it to become stagnant or unusable,” he added.
He said that the ADB will also disburse a $140-million grant to fund the DA’s agricultural ports, pipe irrigation and aquaculture projects.
Meanwhile, Mr. De Mesa said that the DA will submit to the National Economic and Development Authority a €350-million bilateral loan agreement with the French government to fund a bridge project.
The project aims to construct about 300 farm-to-market bridges. — Adrian H. Halili