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PIA Press Release

MRDP resolution complements DA's shifting to agri-infra projects

by Elaine O. Ratunil

Cagayan de Oro City (17 February) -- The Mindanao Rural Development Program (MRDP) has recently approved a resolution requiring covered local government units (LGUs) to implement at least one rural infrastructure subprojects.

Approved during its 4th Program Advisory Board (PAB) Meeting, such resolution complements with the new directions of the Department of Agriculture (DA) and will enable its LGU partners to embrace MRDP as a package of investments to pump prime the rural economy, Jesus Emmanuel Paras, DA Undersecretary for Operations, said.

A five-year program launched in 2007, MRDP is jointly funded by the national government, the local government units (LGUs) and the World Bank and implements infrastructure projects and provides livelihood to alleviate poverty in rural Mindanao.

As of January 2009, the Rural Infrastructure (RI) component of the MRDP show a total of 19 LGUs in Mindanao had received their Certificate of Availability of Funds (CAF) with a total project cost of Php160.89 million for the 25 subprojects on the ground, of which four are in Region 10.

The RI component includes the rehabilitation and construction of communal irrigation systems, farm-to-market roads, single lane bridges, potable water supplies and other agricultural infrastructure needed in enhancing farm productivity and access to markets.

For the Community Fund for Agricultural Development (CFAD) component, 27 towns, of which four are in Region 10, had received their CAFs amounting to P67.5 million for the livelihood projects to increase incomes of the disadvantaged sectors, especially women and indigenous peoples.

The RI component has total budget of US$43 million, i.e. US$3 million for Potable Water System (PWS) subprojects and US$40 million for FMRs, irrigation and other infrastructures while the CFAD component has a total budget of US$18 million for the entire program.

For the CFAD, each municipality receives Php2.5 million with LGU equity of Php500,000.

For the RI, the CAF is equivalent to 50% of the total project cost while the other 50% is from the LGU since the component applies the 50/50 cost-sharing policy. (PIA 10) [top]

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