THE National Economic Development Authority (NEDA) has approved the extension of a World Bank-financed irrigation development project in the Philippines.
In a letter dated December 21, NEDA’s Investment Coordination Committee-Cabinet Committee (ICC-CABCOM) said it has granted the National Irrigation Administration’s requested ad referendum for the Participatory Irrigation Development Project (PIDP) worth P5.111 billion.
PIDP is a co-based Project Management Office under NIA, which aims to improve irrigation service delivery on a financially and technically sustainable basis that will contribute to increased agricultural production and productivity among beneficiary farmers in irrigated areas.
NEDA Socioeconomic Planning Secretary Ernesto Pernia noted that the approval is critical given that PIDP significantly contributes to the delivery of NIA’s outcomes in terms of construction and restoration of irrigation facilities.
“PIDP also supports the attainment of NIA’s performance targets thru project financing that need urgent confirmation,” Pernia said, adding that the proposed loan extension is ready for President Rodrigo Duterte’s signature.
The approved requests include the one-year and six months loan extension from February 27, 2017 to August 31, 2018; reallocation of loan proceeds amounting to $8.414 million; increase in loan financing percentage for civil works from 72 percent to 100 percent and consulting services from 68 percent to 100 percent; and revision in the results framework and appraisal document.
For his part, NIA Administrator Peter Tiu Laviña welcomes the favorable decision of the committee.
“Rest assured that NIA under my administration will provide necessary services and assistance within our mandate to respond to the needs of our farmers,” he said
Among the key objectives of PIDP are to transform NIA into a strategically focused and financially viable service agency through the implementation of the Rationalization Plan and enhance the participation of Irrigators Associations (IAs) through capacity building in irrigation development and management and Irrigation Management Transfer.
It also aims to improve irrigation service delivery through rehabilitation, improved operation and maintenance and modernization of 58 national irrigation systems.