ADB earmarks P221 M for Luzon projects

SAN ISIDRO, Nueva Ecija - The Asian Development Bank (ADB) has earmarked P221 million worth of financial assistance to fund various projects in 40 municipalities in nine provinces of Luzon for this year.

Ed Grafilo, ADB project manager for Luzon, told The STAR over the weekend, that the funding, the second biggest after Mindanao which covers 50 towns, will be used in the construction of farm-to-market roads, communal irrigation systems and potable water in identified agrarian reform communities (ARCs) under a joint program of the Department of Agrarian Reform, the ADB and the Agrarian Reform Community Project (ARCP).

He said the amount will be infused in areas where there is a critical mass of agrarian reform beneficiaries to make their lands productive.

Grafilo graced the ground-breaking of the 3.56-kilometer road-concreting project at the Tama ARC in barangays Tabong and Mangga here last week. The project will benefit 2,700 families. Present during the ground-breaking rites were Gov. Tomas Joson III, fourth district Rep. Julita Lorenzo-Villareal and Mayor Sonia Lorenzo.

Lorenzo said the project, which costs P12 million and is identified under the Rural Productivity Enhancement Sector Projects (RPESP), forms part of a two-project package approved for funding by the ADB for this town. The other is a water systems project worth P13 million.

The National Government secured in 1995 $93 million or roughly P7.1 billion for the DAR-ADB-ARCP which will run up to 2005. It will come in the form of grants to local government units (LGUs).

Of the funds to be channeled to the municipal government of San Isidro, a fourth class municipality, 90 percent will be shouldered by ADB while the remaining 10 percent represents the LGU’s equity.

Grafilo said that the LGU is under obligation to maintain the project and if it is unable to do so in seven years, the grant will be converted into loans.

"That is why the LGU should be responsible enough to maintain the project," he stressed.

Grafilo further stated that in municipalities classified belonging to the first up to third class, the equity of the LGU is bigger, at least 20 percent which is understandable because they have a higher internal revenue allotment (IRA) share.

The ADB earlier approved P27 million for projects in Talavera town and P32 million in Muñoz town, both in the province. It is also in the final stages of completing the program of works, technical description and feasibility for the LGU of Cabiao as requested by Mayor Gloria Congco.

Grafilo said that the ADB earmarked P50 million for each of the 40 towns in Luzon over the next five years under the DAR-ADB-ARCP. Collectively, this amounts to P2 billion.

Other potential ADB-funded project recipients are ARCs in the Nueva Ecija towns of San Antonio, Cabiao, Gen. Natividad, Gen. Tinio, Licab, Quezon and Talugtog in DAR-North. - Manny Galvez