Thursday, February 5, 2009

To pump prime the economy, funds are ready to fund Mindanao rural infra

There is budget for implementation of rural infrastructure project in Mindanao.

Director Helena B. Habulan of the Municipal Development Finance Office of the Department of Finance said there is budget and this is more than the $10 million funding under the Mindanao Rural Development Program (MRDP) for the first set of projects for implementation within the first six months this year.

"We have the budget that can cover more than the $10 million fund and there is about P1.3 billion to be spent this year in Mindanao rural projects," she said.

The Department of Agriculture (DA) as what Undersecretary Jesus Emmanuel M. Paras said the rural infrastructure is upon instruction of President Arroyo for their department to focus more on infrastructrure development in Mindanao and with the MRDP phase 2 some $10 million is programmed for implementation of infrastructure projects for the first semester this year.

The implementation will take within next two months and this would consists of farm to market roads, cold storage, post harvest facilities and rehabilitation of irrigation systems.

The rural infra project aims to generate employment especially during this time of crisis and the MRDP is a program implemented under DA geared towards alleviation of the poor communities in Mindanao and jointly funded by World Bank, DA and the local government units.

World Bank team leader Carolina F. Geron said the release of funds will given directly to the LGUs even as she said that the process went through consultation with them and the LGUs and the communities and the DA.

The projects pass through national competitive bidding and part of the agreement is to allocate 70 percent of labor to be taken from the local communities and this type of intervention will have impact at the local level.

The implementers of the program are accountable of the project the WB representative said and Geron continued that it is important to really build their capacity.

Anti-corruption measures she said are embodied in the MRDP projects and their role is to ensure that measures are implemented in all the projects.

The $10 million fund or P586 million comprises 90 percent of farm to market road, 6 percent potable water system, 2 percent for single bridges, and 2 percent on irrigiation projects. Another P200 million is for livelihood assistance and P40 million for protection and sustainable management of natural resources.

MRDP 2 covers 27 provinces in Mindanao and 225 town of the 400 municipalities of the island with 75 subprojects. The rural infa component under MRDP 1 covered only 19 municipalities with total project cost of P160.889 million for the 25 subprojects on the ground.

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