Project Data Sheet

Project Data Sheets (PDS) contain summary information on the project or program: Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

PDS Creation Date 12 Dec 2006
PDS Updated as of 21 Oct 2013

Project Name Infrastructure for Rural Productivity Enhancement Sector Project
Country Philippines
Project/Program Number 30552-013
Status Approved
Geographical Location Island provinces of Region 4-Southern Tagalog;cities of Davao and Zamboanga; and all the provinces of Regions 5- Bicol, 8- Eastern Visayas, 9-Western Mindanao, 10-Northern Mindanao, 12I-Central Mindanao, 13 or CARAGA-Northeastern Mindanao, and the ARMM.
In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
Sector and/or Subsector Classification Multisector
/ Multisector
Strategic Agendas
Drivers of Change
Gender Mainstreaming Categories

Financing

Type/Modality of Assistance Approval Number Source of Funding Approved Amount (thousand)
Loan1772Ordinary capital resources75,000
Counterpart 74,000
TOTAL US$ 149,000

Safeguard Categories

For more information about the safeguard categories, please see http://www.adb.org/site/safeguards/safeguard-categories

Environment B

Summary of Environmental and Social Issues

Adverse environmental impacts of the Project will be minor. Careful consideration has been given to the route alignment to avoid environmentally sensitive areas, existing villages, and valuable agricultural land. Compensatory and mitigative measures have been identified to address potential impacts.

Environmental Aspects
Involuntary Resettlement
Indigenous Peoples

Stakeholder Communication, Participation and Consultation

During Project Design
Policy dialogue during project preparation has focused on advancing decentralization, improving operation and maintenance for infrastructure, and promoting beneficiary participation.
During Project Implementation

Description

The long-term development goal is increased rural incomes in areas with high agricultural potential. The immediate objective of the Project is the removal of constraints to the improvement of productivity caused by the lack or inadequacy of rural infrastructure. This will be achieved by the provision of infrastructure in areas where there is potential for sustainable gains in productivity that will, in turn, lead to increases in rural incomes, particularly for smallholders and the poor. The Project will have three components: (i) improved rural infrastructure; (ii) capacity building for devolved project implementation and project management; and (iii) project management and coordination.

Project Rationale and Linkage to Country/Regional Strategy

Most of the rural poor are engaged in subsistence agriculture and are concentrated in the eastern-central and southern Philippines, particularly in the Bicol region, Eastern Visayas, the Autonomous Region of Muslim Mindanao (ARMM), and Central Mindanao. The Government?s Medium Term Philippine Development Plan (MTPDP) for 1999 to 2004 and the Agriculture and Fisheries Modernization Act (AFMA) of 1997 emphasize the importance of mechanisms for the realization of agricultural production potentials and the creation of viable employment and income opportunities in rural areas, particularly in the southern part of the country. Inadequate rural infrastructure stands out as a principal cause of constraints that smallholders face in becoming more productive and profitable. Chief among them is the difficulty and cost of hauling their inputs to the farm and their outputs to market caused by the lack of access infrastructure. The Project aims to remove these constraints. ADB's operational strategy for the Philippines emphasizes on poverty reduction and social development. It promotes equitable growth, better provision of basic social services, and environmental protection. It also recognizes that rural development is a key to advancing equitable growth and poverty reduction, and supports more balanced regional development, with special emphasis on the southern Philippines. The Project is fully consistent with ADB's country and sector strategy, and contributes to achieving ADB's overarching objective of poverty reduction.

Development Impact

Increased rural incomes with distributional gains favoring the poor in the project areas

Project Outcome

Description of Outcome
Increased agricultural productivity and profitability and decreased poverty incidence
Progress Towards Outcome
As of 30 March 2011, achievements of three outcomes indicators are estimated as follows: (i) annual farm household incomes in the project areas were estimated to have increased from P35,000 to the range of P60-65,000 per annum for approximately 70% of the households; (ii) average poverty incidence in the project areas was estimated to have reduced from 60% to the range of 35-50% in municipalities with completed subprojects; and (iii) transportation costs for agricultural products were estimated to have reduced between 30-50% depending on specific local market and farm conditions.

Outputs and Implementation Progress

Description of Project Outputs
Improved Rural Infrastructure Capacity Building for Devolved Project Implementation
Status of Implementation Progress (Outputs, Activities, and Issues)
This component comprises 141 contract packages (CP) implemented by 92 LGUs . As of 31 March 2011, the Project has constructed 1,382 km out of 1,435 km of farm-to-market roads (FMR) (96.5% of the March 2011 target or 93% of the global target). Irrigation services (new construction and rehabilitation) have been improved covering 1,454 ha of farm lands (100% of the March 2011 target and 76% of the global target), and 28 potable water schemes (PWS) (100% of target) have been established and put into operation. Nine (9) PWSs are scheduled for completion by 30 June 2011. Planned activities under this component have been completed. However, capacity building for local government units (LGUs) is still in high demand. As agreed in the review mission of April 2009, the PCO and PO have continued to provide assistance on capacity building and knowledge transfer to LGUs and regional field units (RFUs) focusing on engineering contract management, financial management, engineering and contract variation order preparation, agricultural intensification planning (AIP), and land acquisition and resettlement plan (LARP) title consolidation practices. Since the November 2009 review mission, capacity building and technical assistance to LGUs has been a high priority especially for finance and accounting procedures. Training of trainers workshops have been conducted to prepare DA-RFU staff to train LGU personnel in financial closure, subproject completion report preparation, operation and maintenance (O&M) and Benefit Monitoring and Assessment (BIA).
Status of Development Objectives
Material Changes

Business Opportunities

Date of First Listing 2006 Dec 12
Consulting Services
A total of about 243 person-months of specialist services from short-term domestic consultants and about 42 person-years of long-term domestic and international consultants are required for the duration of the Project. Consultants will be selected and engaged in accordance with ADB's Guidelines on the Use of Consultants and other arrangements satisfactory to ADB for the selection and engagement of domestic consultants.
Procurement
Procurement of civil works/goods shall be subject to the provisions of the "Guidelines for Procurement under Asian Development Bank Loans: revised February 1999, as amended from time to time.
Procurement and Consulting Notices
http://www.adb.org/projects/30552-013/business-opportunities

Timetable

Concept Clearance
Fact-finding 21 Feb 2000 to 29 Mar 2000
Management Review Meeting 27 Apr 2000
Approval 31 Oct 2000
Last Review Mission

Milestones

Approval No. Approval Signing Effectivity Closing
Original Revised Actual
Loan 1772 31 Oct 2000 22 Oct 2001 04 Feb 2002 30 Jun 2008 30 Jun 2011 16 Aug 2012

Utilization

Date Approval Number ADB (US$ thousand) Others (US$ thousand) Net Percentage
Cumulative Contract Awards
30 Jul 2014 Loan 1772 50,442 0 86.00%
Cumulative Disbursements
30 Jul 2014 Loan 1772 58,411 0 100.00%

Status of Covenants

Covenants are categorized under the following categories—audited accounts, safeguards, social, sector, financial, economic, and others. Covenant compliance is rated by category by applying the following criteria: (i) Satisfactory—all covenants in the category are being complied with, with a maximum of one exception allowed, (ii) Partly Satisfactory—a maximum of two covenants in the category are not being complied with, (iii) Unsatisfactory—three or more covenants in the category are not being complied with. As per the 2011 Public Communications Policy, covenant compliance ratings for Project Financial Statements apply only to projects whose invitation for negotiation falls after 2 April 2012.

Approval No. Category
Sector Social Financial Economic Others Safeguards Project Financial Statements
Loan 1772 Satisfactory Satisfactory Satisfactory Satisfactory

Contacts and Update Details

Responsible ADB Officer Bui Minh Giap (buigm@adb.org)
Responsible ADB Department Southeast Asia Department
Responsible ADB Divisions Environment, Natural Resources & Agriculture Division, SERD
Executing Agencies Municipal Dev'l Fund Office-(Implementing Agency)
Ms. Helen Habulan

Dept. of Agriculture (Office of the Secretary)
Roy Abaya

Links

Project Website http://www.adb.org/projects/30552-013/main
List of Project Documents http://www.adb.org/projects/30552-013/documents