Jica, LBP ink ¥4.9-B loan agreement

The Japan International Co­operation Agency (JICA) has signed a loan agreement with the Land Bank of the Philippines (LBP) for an ODA loan of up to ¥4.928 billion for Harnessing Agribusi­ness Opportunities through Robust and Vibrant Entre­preneurship Supportive of Peaceful Transformation (Harvest).

This project will pro­vide the funds required by agricultural enterprises, co­operatives and other such organizations for capital in­vestment and operations in and around the Autonomous Region in Muslim Mindanao (ARMM), which is centered in the western part of Mindan­ao. By improving access to fi­nancing and stimulating eco­nomic activities, this project will create employment and promote a higher standard of living, thereby contributing to the consolidation of peace in the region. The loan funds will be provided to agricultur­al enterprises, cooperatives and other such organizations through the LBP and its fi­nancial intermediaries.

The southwest part of Mindanao has been affect­ed by conflict for more than four decades, and due to challenges such as a lack of basic social services and infrastructure, the area has a poverty rate exceeding 50 percent, making it one of the poorest regions in the coun­try.

Since the Comprehen­sive Agreement on Bang­samoro was signed by the government and the Moro Islamic Liberation Front in 2014, efforts have been made to promote agroin­dustry utilizing superior ag­ricultural products that are produced in Mindanao in order to create employment opportunities and advance reconstruction and develop­ment. Although agricultural and agro-related private en­terprises are creating em­ployment through plantation operations in and near the project target area, there is a need to improve access to long-term financing for capital investments in order to encourage investments by not only large enterprises but also by small and medi­um-sized agricultural related enterprises and coopera­tives.

In parallel with this proj­ect, Jica will provide hu­man resource training and technical assistance to the LBP (the executing agency for this project), agricultural cooperatives and other re­lated institutions. Through such assistance, Jica aims to further improve access to financing and to strengthen the value chain of agricultur­al products from production to logistics and sales, and to create synergy from the ef­fects of this project.

To achieve the consoli­dation of peace in Mindanao, JICA will continue to provide comprehensive assistance for the formulation and ex­ecution of human resource training and regional devel­opment plans based on the organizations and systems established by the ARMM.

Jica President Kitaoka sometime in November held talks with President Duter­te where the former hand­ed over school building and signed infrastructure loan deals.