PHL to access P182B in foreign agri loans, grants

THE PHILIPPINES can tap the equivalent of P182.06 billion in grants and loans over the short term from foreign governments and multilateral organizations, the Department of Agriculture (DA) said.

The DA said currently available assistance includes P177.61 billion in loans and P4.44 billion in grants, covering 19 projects.

Agriculture Assistant Secretary Arnel V. de Mesa said that while the DA has long been receiving foreign assistance, the current packages are among the largest it has obtained in recent years.

“The good thing is that the international community is really supportive of the agriculture agenda, and they are building their trust in the Philippine government,” he said at a briefing.

Mr. De Mesa said most of the projects will commence this year, with some expected to start in 2027.

Among the major items is the Philippines Sustainable Agri-Transformation (PSAT) project, funded through a $1-billion loan from the World Bank. PSAT also has a grant component of $24.5 million for the Transformation Agricultural Support Project.

PSAT is a series of programs intended to support farm productivity, crop diversification, climate resilience, and efficiency in the use of public resources, according to the World Bank.

“The project has already received special authority from the President and is set for World Bank Board approval on March 27,” Mr. De Mesa said.

The DA said farming will also benefit from the Philippine Solar-Powered Irrigation Project, funded by $500 million in loans from the Asian Development Bank (ADB) and additional support from the International Fund for Agricultural Development.

The DA also recently announced that the Philippines and France are set to sign a €350-million loan agreement to finance the construction of 300 modular bridges.

The DA said the project will improve agricultural logistics and complement the ongoing construction of farm-to-market roads nationwide.

Another major project is the Improving MSME Access to Finance and Resilience to Climate Shock (PRIME) initiative, 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 expand credit facilities for agri-micro, small and medium enterprises (MSMEs), farmers, and fisherfolk. It also aims to support the establishment of the Philippines’ first agricultural co-insurance pool.

Other projects include the Agricultural Investment Preparation Facility, a $140-million loan from the ADB.

“The $140 million will help us prepare three big projects involving ports, pipe irrigation system, and aquaculture support infrastructure,” Mr. De Mesa said.

The DA also obtained in February a ¥1.7-billion grant from the Japan International Cooperation Agency (JICA) for a rice processing system to be constructed 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, for which aid will later expand to a $500-million project that will include ports, warehouses, and cold storage facilities.

Mr. De Mesa said the inflow of foreign grants and loans reflects strong confidence in the government’s agricultural policies.

“The administration has announced that agriculture is important to the overall economy. International partners have also seen that the agenda of the Agriculture Secretary and the President is aligned with the priorities of the global community,” he added. — Vonn Andrei E. Villamiel