Philippines: Mindanao Agro-Enterprise Development Project

Sovereign Project | 53273-001

The project will support the Government of the Philippines to enhance agricultural diversification and food value chain development in Mindanao through (i) promoting private investments in agro-industry; (ii) improving agricultural logistics and services; and (iii) enhancing product quality and competitiveness.

Project Details

  • Project Officer
    Song, Hyunyoung
    Southeast Asia Department
    Request for information
  • Country
    Philippines
  • Sector
    • Agriculture, natural resources and rural development
Project Name Mindanao Agro-Enterprise Development Project
Project Number 53273-001
Country Philippines
Project Status Proposed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan: Mindanao Agro-Enterprise Development Project
Ordinary capital resources US$ 100.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Regional integration
Drivers of Change Gender Equity and Mainstreaming
Knowledge solutions
Partnerships
Private sector development
Sector / Subsector

Agriculture, natural resources and rural development / Agro-industry, marketing, and trade - Rural market infrastructure

Finance / Small and medium enterprise finance and leasing

Gender Equity and Mainstreaming Effective gender mainstreaming
Description The project will support the Government of the Philippines to enhance agricultural diversification and food value chain development in Mindanao through (i) promoting private investments in agro-industry; (ii) improving agricultural logistics and services; and (iii) enhancing product quality and competitiveness.
Project Rationale and Linkage to Country/Regional Strategy Mindanao's economy is largely based on capital-intensive businesses of plantation crops, forestry, mining, and heavy manufacturing, which have limited multiplier effects on the local economy without decent job creation, technology and skills transfer, and involvement of local processing. Mindanao supplies over 40% of the country's total agricultural outputs and accounts for 60% of its agricultural exports. Agricultural value chains, including related services and industries, account for 60% of Mindanao's gross regional domestic product and 57% of its employment; however, over 80% of Mindanao farmers are subsistence or near-subsistence, and only 16% of farmers produce a marketable surplus. While women are involved in different segments of agricultural value chains from farming to trading, they often have limited access to credit, services, and technology. Mindanao produces several key commodities such as rice, corn, coconut, banana, rubber, coffee, mango, sugarcane, pineapple, and cacao, but crop diversification is limited. Many exports are produced by multinational corporations and local conglomerates. Local agribusinesses are still small and less productive, and focus on primary processing for the domestic market. COVID-19 also disrupted regional major economic drivers such as infrastructure, agribusiness and agri-manufacturing, industries, tourism, and services. The project aligns with the (i) Philippine Development Plan, 2017-2022; (ii) Micro, Small, and Medium Enterprises Development Plan, 2017-2022; and (iii) Mindanao 2020 Peace and Development Framework Plan, 2011-2030. It also supports the regional development strategies of the Mindanao Development Authority to promote agro-processing and agro-industrialization.
Impact Economic opportunities in agriculture expanded in Mindanao
Outcome Diversification and value addition of agro-based products increased in Mindanao
Outputs

Private investments in agro-industry promoted

Agricultural logistics and services improved

Product quality and competitiveness enhanced

Geographical Location Mindanao
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples B
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Responsible ADB Officer Song, Hyunyoung
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Environment, Natural Resources & Agriculture Division, SERD
Executing Agencies
Department of Trade and Industry
4th Flr., Industry & Investment Building
385 Sen. Gil J. Puyat Avenue, Makati
Philippines
Timetable
Concept Clearance 27 Jul 2020
Fact Finding 14 Feb 2022 to 28 Feb 2022
MRM 11 Apr 2022
Approval -
Last Review Mission -
Last PDS Update 28 Jul 2020

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Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

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Evaluation Documents See also: Independent Evaluation

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Related Publications

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Tenders

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Contracts Awarded

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Procurement Plan

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