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THE Department of Agriculture announced that the
Investment Coordination Committee (ICC) has finally approved the
proposed 50:50 cost-sharing arrangement for the Phase 2 of the
Mindanao Rural Development Program (MRDP), which aims to fast-track
rural development projects in the region.
“We are glad that finally this
issue has been addressed now, we can fully implement the
multimillion infrastructure projects critical in increasing
agriculture production here in Mindanao,” said MRDP Program
Director Roger Chio.
In an inter-agency meeting
between the Department of Finance, Department of Agriculture and the
National Economic and Development Authority (NEDA), the ICC gave
their approval to adopt the proposed 50:50 cost-sharing arrangement
for the MRDP rural infrastructure component.
The infrastructure projects
include construction and rehabilitation of communal irrigation
projects, farm-to-market roads, potable water supply, and single
lane bridges.
With the 50:50 cost-sharing
scheme, the national government will cover 50 percent of the project
cost, while the local government unit-recipient will shoulder the
balance as their corresponding cash equity.
In contrast, the 2003 NEDA Board
Policy enforces a cost-sharing mix based on the income class of
local units, with only the fifth to sixth class enjoying a 50:50
cost sharing.
Chio said the program has slowed
down for one year because of the unresolved cost sharing policy.
MRDP Deputy Program Director
Arnel de Mesa clarified that the approved 50:50 cost sharing comes
with a condition that the program must obtain a “very
satisfactory” rating from the World Bank during its two
consecutive periodic supervisory missions.
“If not, the Program will have
to follow the 2003 NEDA Board Policy,” he added.
De Mesa added that the funds for
the performance-based grants will no longer be implemented as the
funds are already reallocated to rural infrastructure and will be
spent mostly for water and irrigation subprojects.
MRDP is a program implemented by
the Agriculture department that is geared towards the alleviation of
poor communities in Mindanao through rural infrastructure,
livelihood enterprise, and biodiversity conservation projects. The
World Bank provides the funding.
--Ira Karen Apanay
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