DA-RFO 1 Regional Executive Director and PRDP-RPCO 1 Project Director Valentino C. Perdido presenting the PRDP request for additional funding in a meeting with the RDC.
Regional Project Coordination Office 1 (RPCO 1) Project Director Valentino C. Perdido met with the Regional Development Council 1 (RDC 1) on June 30, 2016 at the National Economic and Development Authority (NEDA) Regional Office 1, in San Fernando City, La Union and presented the request for additional $450 million-funding for the Philippine Rural Development Project (PRDP).
The PRDP, which is a loan of the Philippine Government to the World Bank, has an existing fund of $500 million or P27.4 billion. The Project provide funds for infrastructure and enterprise development subprojects of eligible proponent local government units (LGUs) and farmer organizations in the entire country to improve the socio-economic conditions of farmers.
However due to the influx of infrastructure development subprojects, the PRDP has far exceeded its target number of subprojects for the first two years of implementation. The Project has allocated P16.3 billion to fund infrastructure subprojects but as of February 2016 the infrastructure development subprojects portfolio for the entire country amounts to P29.5 billion, hence PRDP needs an additional P13.28 billion to fund all approved and pipelined subprojects as of February 2016.
The PRDP’s request for additional funding must be endorsed by all the RDCs in the Philippines, as required by law. During the presentation, RDC 1’s presiding officer and NEDA Regional Director Nestor G. Rillon inquired about the implications of the additional fund to the Philippine Government and to the Ilocos Region.
The additional $450 million fund will increase the Philippine Government’s allocation by 10% for PRDP as it employs counter-parting scheme. Also, the additional funding will give way to the funding of P1.1 billion pipelined infrastructure development subprojects in the Ilocos Region. Including the pipelined infrastructure subprojects, the Ilocos Region has a P2.08 billion infrastructure portfolio under the PRDP.
Most importantly, the additional funding will enable PRDP to fund other infrastructure subprojects, or those which have not been pipelined, amounting to P4.73 billion.
Dir. Perdido explained that eighty-two percent (82%) of the additional funding or $368,834,736 will be allocated for infrastructure development subprojects; 5% of the additional funding or $22,665.264 will fund post-harvest facilities supporting the operation of enterprise development subprojects; and, 13% or $58,500,000 is allocated to fund operational expenses.
Recognizing the role of PRDP in propelling countryside development through infrastructure and enterprise development projects that will benefit foremost the farmers, the RDC endorsed said request of additional funding for PRDP.
The PRDP aims to attain the following in six years: 5% increase in household incomes of farmers and fisher folk beneficiaries; 30% increase in incomes for targeted beneficiaries involved in enterprise development; and, 7% increase in value of annual marketed output. The PRDP will run until 2020.