The National Economic and Development Authority (NEDA) Board today approved the following projects: Renewable Energy and Climate Change (REACH) Facility, Agricultural Credit Support Project, Establishment of Modern Rice Processing Complexes in the Philippines and Request for a EUR7 million Fund Replenishment of the KfW (German Development Bank) Loan for the Local Government Units Investment Program.
Loan Facility for REACH projects
Loan Facility for REACH projects
The REACH financing facility, with the Land Bank of the Philippines (LBP) as loan conduit, aims to provide local government units (LGUs), government-owned and controlled corporations (GOCCs) and private enterprises access to medium and long-term funds to finance their projects involving renewable energy, climate change mitigation and adaptation including projects featuring European Union (EU) interests. Private corporations that can avail of the loan must be at least 70 percent Filipino-owned.national government agencies, on the other hand, cannot borrow from this facility.
The REACH facility is estimated to cost about PhP6.2 billion (Euro 100.0 million), of which 50 percent or PhP3.1 billion will be financed through the European Investment Bank (EIB) Loan while the remaining 50 percent will be provided through the LBP, financing from other banks or sub-borrowers' equity.
The facility, which will be disbursed in three years from the fourth quarter of 2009 to 2012, is expected to generate about 3,495 new jobs.
Loan assistance to farmers, fisherfolk and SMEs
The revised cost for the Agriculture Credit Support Project (ACSP) (formerly known as the Support Program for Agri-Enterprise Development) was also approved by the NEDA Board as this project can increase investments, create new job opportunities and improve agricultural productivity in the rural areas.
With the ACSP, loans directly from LBP or through its conduits shall be extended to small farmers and fisherfolk, small and medium enterprises (SMEs) and large agribusiness enterprises.
The Board approved the changes in the loan amount for the non-credit component and in implementation schedule of the ACSP which were recommended by the Japan International Cooperation Agency (JICA) Appraisal Mission dispatched last March.
The loan amount for the noncredit component will be revised from PhP154 million to PhP227 million.
The ACSP is expected to generate 53,230 jobs.
Modern Rice Processing Complexes
To be funded through a grant assistance from the Korea International Cooperation Agency (KOICA), the PhP785-million modern rice processing complex project is expected to increase the income of 5,160 farmer beneficiaries and provide employment opportunities for people in Pangasinan, Iloilo, Bohol and Davao del Sur.
Through this project, the income of target farmer beneficiaries shall be increased through improved efficiency in rice post-production systems.. This will reduce postharvest losses, enhance the quality of milled rice, improve distribution system and maximize rice by-products.
The total project cost is estimated at PhP785 million, of which PhP649 million is the grant component and PhP136 million will be the GOP counterpart to be provided by the Department of Agriculture and concerned local government units.
The processing complexes will be established in (1) Sta. Barbara, Pangasinan; (2) Pototan, Iloilo; (3) Pilar, Bohol; and (4) Matanao, Davao del Sur. These will be constructed simultaneously over the next two years.
This project is expected to generate 2,737 direct employment during construction, 3,957 direct employment during operations, and 189,724 indirect employment.
Investment Programme for LGUs
Moreover, the NEDA Board likewise approved LBP's request for a EUR7 million fund replenishment of the KfW loan for the LGUs investment programme (LIP).
The LBP requested for an additional fund replenishment amounting to PhP429.83 million and loan extension of four years, from December 31, 2010 to December 31, 2014.
The Programme aims to facilitate the access of LGUs to long-term funds and address their long-term financing needs for investment and development projects. This facility shall be available nationwide with preference to LGUs in the Visayas and Mindanao to complement other German development projects.
The project has generated 1,390 jobs during its implementation.