Southeast Asia Agriculture, Natural Resources and Rural Development Facility -Phase II

Client: Asian Development Bank

Duration: 2021

Location: Mindanao, Philippines

Contract Value: USD 797,900

Project Description

Mindanao supplies more than 40% of the Philippines' agricultural products, accounting   for 60% of the country's agricultural exports. The agricultural value chain, including related services and industries, accounts for 60% of the GDP of Mindanao and provides 57% of the employment. However, more than 80% of the farmers in Mindanao can barely make a living or survive level on agricultural production, and only 16% of the farmers produce the marketable surplus agricultural products. The diversity of crops and agricultural products grown in Mindanao is limited, such as rice, corn, coconut, banana, rubber, coffee,mango, sugarcane, pineapple and cocoa. There are still some problems in the development of local agricultural enterprises, such as limited scale, low productivity, focusing on primary processing in the domestic market and so on. The outbreak of COVID-19 has also disrupted the main economic drivers of the region, such as infrastructure, agribusiness and agricultural manufacturing, industry, tourism and services.

The Mindanao agribusiness development project will assist the Philippine governmentin promoting the diversification and value-added of the island's agriculturalproducts and increasing its economic opportunities for agricultural development. The project will have three outputs: (i) private investments inagro-industry promoted; (ii) agricultural logistics and services improved;(iii) product quality and competitiveness enhanced.

ServicesProvided by NAREE

NAREE provides the transaction technical assistance (TRTA) to prepare the loan project, undertaking due diligence in technical, safeguards, economic and financial, and poverty and socials. NAREE ensured the project in compliance with the domestic and ADB’s requirements and incorporation of international best practices in the project design. Detailed tasks conducted by NAREE during the TRTA includes the followings:

• Sector assessment and baseline study

• Feasibility study report review and project design optimization

• Economicand financial due diligence

• Safeguards due diligence, including survey and field study, environmental, social and resettlement assessment, and relevant action plan

• Financial and procurement risk assessment of the EA/IA, and risk management planning

• Investment plan and procurement plan preparation

• Institutionalc apacity building

• Loanproject documents preparation and loan negotiation facilitating