Japan provides P1.8B for conflict-hit areas in Mindanao

JAPAN has extended P1.76 billion to fund a five-year project that aims to jumpstart agribusiness investments in the Autonomous Region in Muslim Mindanao (Armm) and other conflict-affected areas in the South, the Department of Finance (DOF) said Tuesday.

The Land Bank of the Philippines (LandBank) president and CEO Alex Buenaventura and Japan International Cooperation Agency (Jica) chief representative to the Philippines Susumu Ito signed the loan agreement worth Y4.93 billion for the Harnessing Agribusiness Opportunities through Robust and Vibrant Entrepreneurship Supportive of Peaceful Transformation (Harvest) Project.

President Rodrigo Duterte and Prime Minister Shinzo Abe witnessed at Malacañang last Thursday the signing of the loan agreement as well as the guarantee letter for the deal inked by Finance Secretary Carlos Dominguez III on behalf of the Philippine government.

“The Harvest project is seen to help create an enabling investment environment in the Armm and other conflict-affected areas in Southern Philippines to help rev up the economy and raise incomes in these communities,” Dominguez said.

The Y4.93 billion loan from Jica matures in 25 years, inclusive of a seven-year grace period with an interest rate of 1.4 percent, the DOF said.

On top of the proposed loan, Jica intends to provide a technical grant of $6 million (equivalent to P290 million) to support the capacity building of eligible Harvest beneficiaries and LandBank’s project management.

The Exchange of Notes for Harvest was signed by Japanese Ambassador Kazuhide Ishikawa and Foreign Affairs Secretary Perfecto Yasay, Jr. last October 26 during Duterte's official visit to Tokyo.

Harvest, which will be implemented by the LandBank from 2017 to 2022, aims to open a lending window for agribusiness ventures and other related investments in Armm and other conflict-affected areas in Mindanao.

According to the DOF, loans funded under the Harvest project will be made available to large agribusiness enterprises, farmers’ organizations or cooperatives, micro, small and medium enterprises (MSMEs) as well as “corporatives” or corporation-managed farms supported by the LandBank in Armm and other conflict-affected areas.

Projects that source or obtain products or goods from the Armm and other covered areas as part of a value chain are also qualified to borrow from this Harvest facility. (SDR/SunStar Philippines)