DAR seeks release of P1.1-B budget

Agrarian Reform Secretary Roberto M. Pagdanganan is seeking the release of the P1.1 billion supplemental budget from the Department of Budget and Management (DBM) to meet the commitment of Department of Agrarian Reform (DAR) to the local government units (LGUs) participating in the Agrarian Reform Communities Project (ARCP).

The main bulk of the project funds has already been released by the Asian Development Bank (ADB) as its equity share for the approved projects under the ARCP worth P2.8 billion. The ADB had earlier expressed concerns on the budgetary shortfall to fund the approved ARCP infrastructure in calendar year (CY) 2003.

The ADB extended the loan assistance which requires a counterpart fund from the national government and the participating LGUs. The latter had already extended its equity share worth P484 million.

Without the counterpart funds, Pagdanganan expressed concern that the DAR would not be able to enter into the second phase of the ARCP. The ADB had already expressed its support and continued assistance for the program as long as both the national government and LGUs fulfill their counterpart obligations.

Pagdanganan nonetheless expressed confidence that given the high level of performance in implementing foreign assisted projects, the department is prepared to pursue the ARCP Phase 2 with the help of the ADB.

The ADB had recently expressed satisfaction on the initial implementation of the first phase of the ARCP. A report released by the midterm review mission cited gains and initial positive impact of the DAR-initiated project.

The ARCP is a six-year poverty alleviation project with funding assistance from the ADB. The project, which started in mid-1999, covers about 140 agrarian reform communities in 35 provinces.

ADB mission head Dr. Sununtar Setboonsarng spent three-weeks starting last May 5 visiting 26 municipalities participating in the ARCP. The mission held on-site discussions with ARC organizations, LGU officials and DAR field personnel and ocular inspections of rural infrastructure and development support projects.

The infrastructure projects consist mostly of farm to market roads and bridges, irrigation facilities and potable water supply systems. Development support projects involve technology promotion programs for high-value and off-season crops, livestock and inland fisheries.

At the mid-term of project implementation, the ADB review mission underscored the significant gains and initials project impact of the project in increasing farm productivity and household income and improving the quality of life of the agrarian reform beneficiaries.

It likewise highlighted the ARCP benefits including diversification of farming systems and income sources leading to increase in household income ranging from 15 to over 200 percent, and improved social services i.e. better access to credit, schools, health and other medical services, particularly during emergency cases and stable peace and security conditions in the ARCs.

"In addition, completed rural infrastructures reduced travel time by 30- to 80-percent and in remote communities, decreased transport cost of passengers and farm products from 40- to over 300-percent and reduced incidence of water-borne diseases by 65 percent," the ADB report pointed out.