World Bank OKs new $10-M loan for irrigation program
An additional $10-million loan has been approved by the World Bank last week to help complete the construction and rehabilitation of the country's irrigation facilities under the Second Agrarian Reform Communities Development Program (ARCDP2).
This amount will be on top of the $50-million fund extended by the multilateral lender for the second phase of the ARCDP2 in 2003, which is aimed at providing rural infrastructure and support services to increase farm productivity.
According to the World Bank, the $10-million fund will help complete the construction and repair of communal irrigation systems being implemented by the National Irrigation Administration, which covers 4,153 hectares in Ilocos Norte, Isabela, Bataan, Zambales, Quezon, Mindoro Occidental, Albay, Zamboanga del Norte, and Misamis Occidental.
These subprojects, World Bank said, are expected to benefit 3,880 farmers through an increase in yields and crop intensity by about 70 percent.
“Irrigation has always been an important part of the Government’s strategy to achieve sustainable economic growth and food security. The Bank supports this effort through ARCDP2 because it is consistent with our mandate of helping the government alleviate poverty and achieve inclusive growth,” World Bank Country Director Bert Hofman said in a statement.
Implemented by the Department of Agrarian Reform (DAR), the ARCDP2 includes community development and capacity building, rural infrastructure, agricultural and enterprise development, and access to financial services.
According to DAR Secretary Nasser Pangandaman, majority of ARCDP's targets have already been achieved, which include a 15-percent increase in the real net household income (against the target of 20 percent), 20-percent increase in annual average yield per hectare of major crops after four years (against the target of 15 percent), and a 220-percent increase in cropping intensity (against the target of 140 percent).
With the additional financing by the World Bank, Pangandman said all of ARCDP's targets will surely be met.
“The Government gives high priority to providing irrigation facilities to farmers, especially communal irrigation facilities, as part of our efforts to address concerns about sufficiency of food supply and high food prices,” Pangandaman said.
Last week, the World Bank said it may provide as much as $3 billion in funds for the next three years as part of its country assistance strategy, which would particularly address poverty and governance in the Philippines.