Friday, October 05, 2007 Mindanao seen to benefit from AusAid-backed ECF By Joy Romares-Sevilla
A TOTAL of A$16 million fund was poured in by the Australian Government for the implementation of the Enterprise Challenge Fund (ECF) in four countries, including the Philippines.
Jason Magnaye, Philippine country manager of the ECF, said during a press conference at the Marco Polo Davao Thursday that the fund is intended for ECF implementation in Fiji, eastern Indonesia, Papua New Guinea, and Mindanao.
"These four areas will be competing with each other to get funds for business expansions and proposals," Magnaye said.
ECF, an AusAid-led initiative, is a new and innovative opportunity for businesses to develop a commercially sustainable business enterprise that will contribute to poverty reduction.
Businesses can apply for grants of between A$100,000 to A$1.5 million for projects that create commercial opportunities for low income markets.
The business is required to contribute a minimum of 50 percent of the project's costs. ECF funding must be commercially self-sustaining within three years.
"We are aware that businesses have difficulties in accessing for financial support. This ECF is a lot different from the existing finance resources. We're not looking into start-up businesses, we are looking for businesses with track records, with good financial records. ECF is not for sinking companies, but for healthy and competitive companies," Magnaye said.
Magnaye added that they encourage companies to submit concept notes/papers through the ECF's online facility (www.enterprisechallengefund.org) for panel assessment.
"We have a panel to assess the papers if it can go on to full-blown proposals, they will also be the one who will review the full proposal, we're keeping the panel anonymous because we don't want them to be pressured," Magnaye said.
He added that if a business enterprise will be qualified for a grant, ECF will not release the funds at one time.
On the other hand, Magnaye said there's no specific or priority industry that the ECF will consider for the grant.
"There will be no prioritization, but there are a lot of businesses from the agribusiness sector in Mindanao, they would have better chances to be qualified," he said.
He added that in the Philippines, it is only businesses from Mindanao that EFC will grant funds.
"It will not require businesses from Luzon, Visayas, or foreign companies to avail of the grant unless the business will be established here in Mindanao," Magnaye said.
Meanwhile, John Hardin, fund director, claimed that the Australian Government considered Mindanao for EFC project since it has large untapped business potentials.
"Mindanao also has large resources and minerals which remained to be untapped," he said.
