|
Archives
May 16-31, 2001
GSDP
aims for sustainable growth
by Carmela B. Brion
For a more productive and competitive
grains industry in the Philippines, the Grains Sector
Development Program (GSDP) was conceptualized to attain
a sustainable growth in productivity, improve the economic
well-being of the rural poor and attain a cost-effective/
resource efficient food security.
GSDP is divided into two components: policy
and investment. The policy component calls for a liberalized
and more cost-effective grain pricing and import policies.
This policy also aims to restructure the National Food
Authority (NFA) from a marketing monopoly to a public
regulatory agency. On the other hand, the investment
component seeks to improve the irrigation infrastructures
in grains production, strengthen the generation, as
well as the dissemination of grains technology and enhance
the capacity building in the Department of Agriculture
(DA). The investment component also covers the establishment
of the GSDP - Project Management Office (PMO).
Project officers at the national and provincial
levels have been designated and these people have started
working on the program. The PMO has been established,
with a full time Project Director and a detailed core
of support staff from the DA's attached agencies. The
Steering Committee and Investment Sub-Steering Committee
have already conducted meetings. Both the work and financial
plans of the implementing agencies have been reviewed
and finalized. The only problem is, program implementation
has been stalled due to the inability of the government
to release its counterpart funds. This is the recent
conclusion of the Asian Development Bank (ADB) Mission
on the current status of the GSDP implementation in
the country.
Background
Policy component. The policy loan did not require government
counterpart funds, however, certain conditions must
be satisfied first before the fund is disbursed to the
implementors. These conditions are on policy reforms
related to National Food Authority (NFA), corn tariff
and R&D/public sector investments. The loan, worth
$100 million, will be disbursed in three installments
within a period of 24 months. The amount of thirty million
dollars was disbursed to the first tranch on August
2000.
Investment component. A counterpart fund
from the Philippine government is required in the investment
loan worth $75 million. If the government cannot provide
its counterpart fund of $45 million, the loan remains
untouched; and whether or not this loan is disbursed,
the government will still pay for the interest or capital
amounting to $43,389. The investment loan is necessary
for the establishment of irrigation infrastructures,
conduct of grains R&D, upgrading of laboratories
and training centers at the regional/provincial levels,
and improving the capacity of various DA agencies for
policy analysis. The National Irrigation Administration
(NIA), Philippine Rice Research Institute (PhilRICE),
Agricultural Training Institute (ATI), Bureau of Agricultural
Research (BAR), Bureau of Agricultural Statistics (BAS)
and Bureau of Soils and Water Management (BSWM) are
the implementing agencies of the investment loan components.
Investment loan: what now?
Initially, ADB made an advance deposit, which was close
to a million dollars for NIA and PMO. This could amount
have been used for the project, unfortunately, the release
of the counterpart funds was delayed.
The delay was due to the Philippine budget
cycle. The cycle started in March or April, and the
loan became effective only in August. Therefore, no
budget was allocated to the program for year 2001.
To address this concern, Project Director
Francisco Ramos III disclosed that DA had already requested
the Department of Budget and Management in April 2001
to issue a special budget of P250 million to start the
project.
In a meeting last May 21 with ADB mission
leader Yuen Loh Yee, it was found that the project structure
was established on time but the construction and rehabilitation
of agricultural facilities, and the procurement of office
equipment were suspended. Prior to the meeting, Mr.
Yuen Loh Yee, and Ms. Cynthia Carreon, the assistant
project analyst, conferred with the officials of the
DA, its staff bureaus and attached agencies involved
in the program on 2-5 May regarding the details and
progress of the GSDP.
The program was approved on 24 April 2000
and became effective on 11 August the same year. It
is an integrated package of policy reforms and sectoral
investments made possible through policy and investment
loans, in cooperation with the ADB. 
May 16-31 2001 Articles: ::
CERDAF
approves network programs
::
GSDP
aims for sustainable growth
::: More May 2001 articles :::
|
