WB
funding for
agri reform
GOV. Erico Aumentado recently
strongly proposed to the World Bank (WB) the funding for the Agrarian Reform Community
Development Project Phase 3 (ARCDP 3) in Bohol.
Aumentado
made the proposal during a recent two-hour meeting with a WB delegation led by
Country Representative Bert Hofman at the Capitol.
The
delegation visited various WB-funded projects in Bohol under the Kapit Bisig Laban
sa Kahirapan (Kalahi-CIDSS) project of the Department of Social Welfare and Development,
Second Agrarian Reform Communities Development Project (ARCDP-2) of the Department
of Agrarian Reform, Coastal Resource Management Project (CRMP) through the Local
Government Finance and Development (Logofind) Project and the Land Administration
Management Project-2 Bohol (Lamp 2).
The
team visited Catigbian and Getafe towns to interact with their counterparts and
the beneficiaries of the three projects assisted by WB. The meeting with the governor
followed the town visits.
| | | He
briefed the delegation on the positive impact of the poverty alleviation programs
in the province.
WB
had poured P392 million for the Kalahi-CIDSS projects implemented in 12 towns,
P230 million for ARCDP-2, over P200 million for the CRMP, and P200 million for
Lamp 2-Bohol or a total exposure of over P1 billion.
Responding
to the governor's recommendation, Hofman said the possible implementation of ARCDP-3
depends on the extension of the Comprehensive Agrarian Reform Program (CARP) and
WB's assessment of other areas in the Philippines. | In
turn, Aumentado apprised Hofman that the Arroyo administration has earlier committed
a five-year CARP extension that the League of Provinces of the Philippines (LPP)
and the Union of Local Authorities of the Philippines (Ulap) had strongly lobbied
for before both houses of Congress.
The
LPP and Ulap had pushed for the passage of extension and enabling legislative
measures that would allow qualified local government units (LGUs) like Bohol to
avail of loans direct from WB's Official Development Assistance (ODA) funds and
concessional loans.
Hofman
also said there is a need to amend the Local Government Code which mandates that
ODA assistance and loans shall be with the sovereign guarantee of the national
government.
He
suggested that the governor work for the amendment of the law which incidentally
is one of those LGC provisions that the LPP and ULAP are working on to be amended
by Congress.
When
amended, LGUs stand to keep some of the funds they allocate to pay interest on
loans as they would no longer need to pay the service and other fees that conduit
banks charge.
To
note, under the present system, the International Finance Corporation (IFC), a
member of the WB Group, has to deal with conduit banks only like the Land Bank
of the Philippines (LBP) and the Development Bank of the Philippines (LBP).
As
such, the preferred conduit banks get to enjoy the interest rates of as low as
two percent. On the other hand, LGUs that avail of loans from these banks - depending
on the type, term and other conditionalities - have to pay at interest rates of
from six to even 14 percent.
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