The Mindanao Rural Development Program 2 (MRDP 2) is a continuation of a 1999 program by the World Bank’s Adaptable Program Loan (APL) facility. It aims to reduce poverty among the rural poor, women, indigenous peoples and local communities. The program is sponsored by the Department of Agriculture (DA).
Of the total project cost of $135.12 million, $90 million will be loaned from the World Bank.
The remaining $14.9 million (P770 million) and $30.22 million (P1.57 billion) will be funded by the National Government (NG) and the local government units (LGUs), respectively.
A supplemental grant of $7 million from the Global Environment Facility (GEF) will also be provided to support community-based natural resource management.
The approval, however, is subject to a number of conditions including the submission of a budget strategy certified by the Department of Budget and Management (DBM), the mechanics of the provision of the additional 20 percent grant under the project, as well as a revised economic and financial analysis reflecting changes in costs and beneficiaries.
The current government policy on NG-LGU cost-sharing provides for a maximum NG grant of 50 percent to LGUs.
However, an additional 20 percent NG grant can be provided to LGUs that will enroll in an LGU reform program and meet performance targets.
"The MRDP 2 program aims to institutionalize and decentralize services delivery to enhance productivity, transparency, accountability, and community participation, improve access to viable livelihood opportunities for targeted communities, and develop sound natural resources management practices," NEDA said.
The Mindanao program will cover around 200 municipalities. It will be implemented for five years, as the first phase of the project in 1999-2004 covered 32 municipalities located in five provinces in Mindanao.
MRDP 2 will implement four distinct but interdependent components. These are rural infrastructure, community fund for agricultural development (CFAD) sub-projects, natural resources management (NRM), and institutional strengthening and capacity building for decentralized services (ISCBDS).
The rural infrastructure component will make funds available to local communities for the construction or rehabilitation of local roads, irrigation, potable water supply systems, and other critical agriculture and fisheries-related support services infrastructure.
The CFAD component will fund skills development and sub-projects with inputs from relevant government agencies. The NRM component will support activities to protect the environment and alternative forms of income-generating projects for communities in environmentally-critical areas.
The ISCBDS component will assist government personnel at the regional and local levels who will make up the agricultural extension program for Mindanao of the DA.