PHL taps Japanese ODA for P7-B irrigation project

The Philippines has tapped Japan to finance up to P5.07 billion of the P7-billion irrigation project the National Economic and Development Authority (NEDA) approved last week. "The Neda will forward the project to the Department of Foreign Affairs for formal endorsement to the Government of Japan for possible ODA [official development assistance] loan," Agriculture Secretary Proceso Alcala said Wednesday. According to the Department of Agriculture, the Philippine government will shoulder P1.93 billion in counterpart funding with the Japan Bank for International Cooperation shouldering the lion’s share with an official development assistance loan at low interest rate. NEDA’s Investment Coordination Committee last week approved the second phase of the Malitubog-Maridagao Irrigation Project in Region XII and the Autonomous Region of Muslim Mindanao. Alcala said he talked to a JBIC official, asking the Japanese to help fast-track the loan so government can go for an early start by 2012 and complete the three-year project by 2015. The project has three components — irrigation, agriculture and social development, according to a brief the Agriculture Department released Wednesday. The irrigation part involves building new irrigation facilities in Upper Malitubog to serve 2,206 hectares of farmlands, as well as in Lower Malitubog (6,590 hectares), and Pagalungan (988 hectares). "The agriculture component involves the provision of pilot demonstration farms and seed production farms, farm inputs, production postharvest equipment and marketing assistance," the department said. Under the social component, potable water supply facilities, classrooms, barangay health stations, daycare centers, and farm to market roads will be constructed. — VS, GMANews.TV