Agrarian Reform Infrastructure Support Project – Phase III (ARISP-III)

I. The Project

Using the tripartite approach - a collaboration among implementing agencies, the Agrarian Reform Infrastructure Support Project Phase III (ARISP-III) involves the provision of Rural Infrastructures such as: irrigation facilities, farm-to-market roads, post-harvest facilities, and rural water supply systems.

The project also involves Agrarian Information and Marketing Centers Development; Organizational/Institutional Development; and Agricultural & Agri-enterprise Development in the ARCs through appropriate training and capacity building approaches.

The ARISP aims to increase average household income by at least 30% and improve productivity of at least 129 ARCs nationwide  by providing integrated package of support services.

This project is assisted by the Government of Japan/JICA.

II. Project Concept

1.     Development of ARCs

Development of ARCs to give greater emphasis on agri-business enterprise development, provision of support infrastructure and formation of People’s Organizations (POs)

2.     ARC Connectivity

The Project will provide support for the establishment of agri-business enterprises by promoting linkages between and among ARCs. Furthermore, to facilitate marketing of agri-based products there will be provision of micro-finance and agricultural extension services within the province through the Agrarian Information and Marketing Centers (AIM-C)

III. Coverage

The Project targets at least 129 ARCs in 54 provinces. The Project is expected to benefit 68,330 Agrarian Reform Beneficiaries (ARBs) in 132 ARCs.

IV. Objectives

1.     To increase crop productivity in irrigated lands.

2.     To develop viable agribusiness enterprises opportunities in 129 ARCs, thus improving technology, agribusiness linkages and provision of appropriate facilities.

3.     To organize and strengthen People’s Organizations (POs) and improve connectivity between and among POs, cooperatives, resource institutions and business partners.

4.     To improve the efficiency of commodity flow and mobility of people within, to and from the ARCs in support to agribusiness, livelihood and domestic activities.

5.     To improve access to and availability of potable water in the ARCs and strengthen Water Users Associations (WUAs) to operate and manage facilities.

6.     To build upon and enhance existing project management and monitoring and evaluation systems.

V. Components and Scope

A. ARC Development

(1)   129 viable primary coop-managed agri-business

(2)   Construction/rehabilitation of 111 Irrigation Facilities involving 21,845 hectares;

(3)   Construction/rehabilitation/improvement of 677.20 kms. of Farm-to-market-roads (FMR) and 1,334 lms. bridges;

(4)   Construction of 81 Potable Water Supply (PWS) - Level 1 and 2 to serve 33,495 households; and

(5)   Organizing/strengthening 111 Irrigation Associations (IAs), 81 Water Users’ Associations (WUAs) and 129 ARB Primary Cooperatives.

(6)   Construction of 67 Post-Harvest Facilities (ARC-based AIM-C)

B.    ARC Connectivity

(1)   56 viable Federation-managed agri-business; 54 ARC clusters provided assistance;

(2)   Establishment of 26 Provincial Agrarian Marketing and Information Centers (AIM-C);

(3)   Rehabilitation of 30 kms of critical access roads; and

(4)   Organizing/strengthening of 56 Federations of ARB Primary Cooperatives.

VI. Implementing Agencies

1.     Lead Agency

     Department of Agrarian Reform (DAR) – In charge of overall project management and implementation of institutional development component

2.     Co-operating Agencies

a.     Local Government Units (LGUs) – Implements the potable water supply component; PHF/AIM-C facilities, organizing and strengthening of WUAs, and in maintenance of FMRs

b.    Department of Public Works and Highways (DPWH) – Prepares the pre-engineering studies and implements the construction, rehabilitation and improvement of FMRs

c.     National Irrigation Administration (NIA) – Prepares the pre-engineering studies and Implements the rehabilitation construction of irrigation subprojects and the institutional development for irrigators’ associations’ component for irrigation.

3.     Other Partner Agencies: DTI, TESDA, DA in support to agricultural and agribusiness development

4.     Technical Assistance Partner Institutions (TAPIs): NGOs, SUCs, private sectors, for instuitional, agriculture and agri business development

VII. Project Cost and Financing

Total Project Cost                                    :        P 7,964.64 Billion (¥ 11,802 million)

Loan Proceeds                                        :        P 5.973 Billion(75% of the total project cost)

GOP Counterpart Fund                          :        P 1.991 Billion

Loan Agreement Number                     :        PH-P242

Fund Source                                            :         JICA

Loan Effectively                                       :         April 2008

Loan Agreement Signing                      :         December 2007

Cost Per Component ( in Million Pesos)

ARC Development                                            

Irrigation Facilities                          :          1,640.38        - 20.60%

AIM-C Buiding                                 :            50.64         - 0.64%

FMR,Bridges & Structures            :        1,942.61          - 24.39%

Potable Water Supply                    :           173.10         - 2.17%

Institutional Dev./Agri-business   :          495.24         - 6.22%

Sub-total                                          :         4,301.97
ARC Connectivity-Provincial AIM-C

AIM-C Building                                :             59.15        - 0.74%

FMR                                                  :             94.60        - 1.19 %

Institutional Dev./Agri-business     :             181.51        - 2.28 %

Sub-total                                         :           335.26

Admin/Eng’g./Project Preparation             :           992.20        - 12.46 %

Contingencies                                               :       1, 809.07         - 22.71 %

Taxes                                                              :             526.13        - 6.61%

Total                                                :        7,964.64  

VIII. Project Duration

The Project will be implemented starting April 2008 until 2014.

IX. Milestones

Ø  19 October 2005                            ARISP III Proposal submitted to NEDA

Ø  12 July 2006                                   Approval by ICC-Technical Board

Ø  15 February 2007                          Signing of Minutes of Discussion between JBIC and DAR

Ø  20 June 2007                                 Forward Obligational Authority for the Project was issued