DAR defends P1-B consultancy expenses

MANILA, Philippines – A Department of Agrarian Reform (DAR) official justified before Congress yesterday the agency’s almost P1-billion expenses on foreign consultants.

Responding to a query from Palawan Rep. Abraham Mitra, DAR director Minnie San Juan said foreign consultants were needed to start major infrastructure and electrification projects meant to boost the productivity of farmers and the income in 500 agrarian reform communities (ARC) nationwide.

Of the almost P1 billion, the biggest was the P503 million that was used to pay consultancy fees for the construction of electrification and power structures in remote and off-grid farming communities through the use of photovoltaic energy systems, she added.

San Juan is DAR director for foreign-assisted projects monitoring and evaluation.

She said the money was used to pay consultancy services for 2005 and 2006 for six loan-assisted projects totaling to some P16.8 billion.

The project is officially named Solar Power Technology Support Project (SPOTS), which was under a loan from the government of Spain, she added.

San Juan said power structures built under this project benefited ARCs in Regions 3, 4-B, 5, 8, 9, 10, 11, 12, and CARAGA Region in Mindanao.

“Since the electrification project was implemented on a turnkey basis, the services of consultants are necessary,” she said.

San Juan said the remaining amount went to engineering consultancy services required by the other five major loan-assisted projects “to ensure quality design and implementation of infrastructure projects.”

Among these projects are arm-to-market roads, bridges, potable water systems, irrigation, post-harvest facilities, and village health centers, she added.

The STAR learned that the five major loan-assisted projects are:

• Agrarian Reform Infrastructure Support Project (ARISP) II, which consultancy fees amounted to P182 million;

• Mindanao Sustainable Settlement Area Development Project (MSSADP), with a total of P161 million consultancy fees;

• Northern Mindanao Community Integrated Resources and Environmental Management Program (NMCIREMP), with P75 million consultancy fees;

• Agrarian Reform Communities Development Project (ARCDP), with P19 million consultancy fees; and

• Agrarian Reform Communities Project (ARCP) II, with P14 million.

The ARISP II and MSSADP were funded through the Japan Bank for International Cooperation (JBIC); the NMCIREMP through the International Food Agriculture Development (IFAD); the ARCDP  through the World Bank (WB); and the ARCP II was funded through the Asian Development Bank (ADB).

“Payments to consultants were either based on or in accordance with the loan agreement or guidelines of the donor,” a DAR source said.

DAR records showed that as of December 2007, the agency has generated P58 billion for a total of 56 projects in the form of capital and technical assistance.