World Bank OKs $600 million financing for rural development in Philippine

MANILA, Philippines — The World Bank has approved a $600 million rural development project aimed at further increasing market access and incomes of farmers and fisherfolk in the Philippines.

In a statement, the World Bank said its board of executive directors approved this week the Philippine Rural Development Project (PRDP) Scale-Up, which will build on the implementation of the PRDP launched by the Department of Agriculture in 2014.

World Bank financing for the PRDP Scale-Up will come from a loan from the International Bank for Reconstruction and Development.

As the PRDP has helped strengthen the country’s agriculture and fisheries sectors, through rural infrastructure and enhanced connectivity, the World Bank said the PRDP Scale-Up aims to stimulate further growth in these sectors.

“Almost 60 percent of the poor work in agriculture in the Philippines, so accelerating the growth of agriculture and fishery is vital for the country’s development overall and for poverty reduction,” World Bank country director for Brunei, Malaysia, Philippines, and Thailand Ndiamé Diop said.

“Improving access to markets will help farmers and fisherfolk in rural areas raise their incomes, provide for their families, and elevate their standards of living,” he said.

The Rural Development Project, which is active in 80 provinces, including 640 municipalities and 32 cities, has reached almost 633,000 farmers, helping raise incomes and improve market links through the construction of roads, bridges, and post-harvest facilities.

Under the PRDP Scale-Up, there will be support for micro- to medium-scale agricultural and fishery enterprises to access resources, knowledge, and income-generating activities.

It will also involve support in terms of inputs, production, marketing, and enterprise management, as well as help increase women participation in these activities.

“The Rural Development Project concentrated on spurring growth among farming and fishing enterprises,” World Bank Senior agriculture economist Mio Takada said.

“The Scale-Up takes this further, emphasizing support throughout the value chain, from production through to marketing, ultimately increasing the competitiveness and profitability of these businesses,” she said.

Aside from strengthening rural infrastructure and connectivity, the PRDP Scale-Up will also fund climate-proof infrastructure, including roads, bridges, irrigation systems, and post-harvest storage facilities such as warehouses, drying, and cold storage.

To help ensure a stable supply of food and agricultural products, the project will involve

providing technology to reduce post-harvest losses and putting in place an efficient logistics system.

In addition, there will be enterprise grants to support farmers’ and fisherfolk cooperatives, associations, and local government units.