THE PHILIPPINES may receive P182.06 billion in grants and loans in the short term from foreign governments and international organizations, the Department of Agriculture (DA) said.
The DA said the current assistance includes P177.61 billion in loans and P4.44 billion in grants, including 19 programs.
Assistant Secretary of Agriculture Arnel V. de Mesa said that although the DA has been receiving aid from other countries for a long time, the existing resources are among the largest it has received in recent years.
“The good thing is that the international community really supports the agricultural system, and they put their trust in the Philippine government,” he said at the forum.
Mr. De Mesa said that most of the projects will start this year, while others are expected to start in 2027.
Among the biggest is the Philippines Sustainable Agri-Transformation (PSAT) project, funded by a $1-billion loan from the World Bank. PSAT is also part of the $24.5 million Transformation Agricultural Support Project grant.
PSAT is a series of programs aimed at supporting farm productivity, crop diversity, climate resilience, and efficiency in the use of public resources, according to the World Bank.
“This project has already received special authorization from the President and is expected to be approved by the World Bank Board on March 27,” said Mr. De Mesa.
The DA said agriculture will also benefit from the Philippine Solar-Powered Irrigation Project, which is funded by a $500 million loan from the Asian Development Bank (ADB) and additional support from the International Fund for Agricultural Development.
The DA recently announced that the Philippines and France will sign a 350 million euro loan agreement to finance the construction of 300 bridges.
The DA said that this program will improve the distribution of agriculture and also be in line with the construction of roads from farms to the market throughout the country.
Another major project is the MSME Financing Access and Climate Resilience (PRIME) program, supported by a $350-million World Bank loan and a $7.5-million grant from the Global Shield Financing Facility.
The World Bank’s PRIME project aims to increase credit facilities for small and medium enterprises (MSMEs), farmers and fishermen. It also aims to support the establishment of the Philippines’ first agricultural insurance pool.
Other projects include the Agricultural Investment Preparation Facility, a $140-million loan from ADB.
“The $140 million will help us prepare three major projects that include ports, a piped irrigation system, and infrastructure to support aquaculture,” said Mr. De Mesa.
The DA also received in February a ¥1.7-billion grant from the Japan International Cooperation Agency (JICA) for a rice processing plant to be built this year in Cauayan, Isabela.
The DA also received a $1.5-million grant from the Asian Infrastructure Investment Bank for the Transport Connectivity and Logistics Improvement Project, which will extend to a $500-million project that will include ports, warehouses, and cold storage facilities.
Mr. De Mesa said the influx of foreign grants and loans shows great confidence in the government’s agricultural policies.
“The administration has declared that agriculture is important to the economy as a whole. International partners have also seen that the agenda of the Secretary of Agriculture and the President is in line with the priorities of the global community,” he added. – Vonn Andrei E. Villamiel
