'234565784!+494:;6

PHILIPPINERURALDEVELOPMENTPROJECT

EnterpriseDevelopment

Component

(I-REAP)

August2016

PhilippineRuralDevelopmentProjectOperationsManual

I-REAPComponent

i

Contents

1Introduction.............................................................................................................................1

1.1RationaleandPurposeoftheManual..................................................................................1

1.2UseandUsersoftheManual...............................................................................................2

1.3ContentsoftheManual.......................................................................................................2

1.4ScopeandLimitations..........................................................................................................2

1.5DefinitionofTerms...............................................................................................................3

2ComponentDescriptionandObjectives..................................................................................5

2.1BackgroundoftheI-REAPComponent.................................................................................5

2.2I-REAPObjectives.................................................................................................................6

2.3I-REAPComponentGoals,Objectives,OutcomesandOutputs...........................................6

2.4I-REAPDesiredOutcomesandExpectedOutputs................................................................7

2.5I-REAPLinkagewithotherPRDPComponents.....................................................................7

2.6I-REAPOperationalStrategies..............................................................................................9

2.7I-REAPComponentScopeofInterventions..........................................................................9

2.8I-REAPPossibleProponentGroup......................................................................................10

2.9I-REAPSubprojectFinancingModalities...........................................................................12

3ImplementationFeatures.....................................................................................................13

3.1ImplementingAgencyandPartnerAgencies.....................................................................13

3.2ImplementationStructure..................................................................................................14

3.2.1NPCOI-REAP................................................................................................................14

3.2.2PSOI-REAP...................................................................................................................15

3.2.3TheRegionalProjectAdvisoryBoard(RPAB)...............................................................15

3.2.4RPCOI-REAP.................................................................................................................16

3.2.5P/C/MPMIU.................................................................................................................17

3.3CapabilityBuildingProgramforProjectImplementers......................................................18

4ImplementationProceduresandProcesses..........................................................................19

4.1Implementation Process of Subcomponent 3.1 (Rural Agri-fishery Enterprise and

ProductivityEnhancementSupport).......................................................................................19

4.1.1RequirementsforLGUI-REAPPartners......................................................................19

4.1.2RequirementsforProponentGroups.........................................................................19

4.1.3ImplementationProceduresandProcess…………………………………………………………………21

4.1.3.1Implementation of I-REAP Subprojects in Areas Affected by Natural Calamities and

Conflict….………………………………………………………………………………………………………………………35

4.1.4PrivateSectorPartnershipwiththeProponentGroup...............................................35

4.2GEFSupportedActivities....................................................................................................36

4.2.1Pre-Implementation....................................................................................................36

4.2.2ImplementationProcessforI-REAPSubcomponent3.2(Technologyand

InformationforEnterpriseandMarketDevelopment).......................................................48

4.3Post-Implementation.........................................................................................................52

4.3.1Post-ProjectDataCollectionandEstablishmentofTechnologyDatabase..................52

5FinancialManagement.........................................................................................................53

5.1FinancingMixforI-REAPComponent................................................................................53

5.2FundEstablishmentattheLGU..........................................................................................54


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5.3PRDPFundReleasestoLGU...............................................................................................54

5.4FundTransferfromtheLGUtothePG...............................................................................55

5.4.1RequirementsforFundRelease..................................................................................55

5.4.2LiquidationofFundsReleasedtoPG...........................................................................55

5.5NegativeListofFundsUtilization.......................................................................................56

5.6Provision of Working

Capital......................................……………………………………………………………………………………………56

5.7DisbursementProceduresforTechnologyandInformationforEnterpriseand

MarketDevelopment(Subcomponent3.2)............................................................................57

5.8BooksofAccountsandRecords.........................................................................................57

5.9FinancialReports................................................................................................................58

6ProcurementGuidelines.......................................................................................................58

6.1Scope..................................................................................................................................58

6.2ProcurementArrangementundertheI-REAPComponent................................................58

6.2.1LGU-ManagedProcurement........................................................................................59

6.2.2ProponentGroup(PG)-ManagedProcurement..........................................................59

7SocialandEnvironmentalSafeguards...................................................................................59

8GrievanceMechanism..........................................................................................................64

9Results-BasedMonitoringandEvaluation............................................................................66

9.1Introduction.......................................................................................................................66

9.2OverviewofthePRDPRBMEFramework...........................................................................66

9.3OperationalizingthePRDPRBMESystemfortheEnterprise

DevelopmentComponent………………………………………………………………………………………………70

9.3.1ProgressM&ESub-system…………………………………………………………….……..………………….70

9.3.1.1Scope…………………………………………………………………………………………….……………………70

9.3.1.2SubprojectProgressM&EInstrument………………………………………………….……………..70

9.3.1.3SubprjectProgressM&EProcedures………………………………………………….……………….70

9.3.1.3aRegistryoftheEnterpriseDevelopmentSubprojectProposal………….……………71

9.3.1.3bRegistry/ReportingthestatusoftheEnterpriseDevelopmentSubproject….…73

9.3.1.3b.1Registry/ReportingofStatusofSuproject)FromAttendanceto

WorkshoponBusinessPlanningtoProcurement)…....................................73

9.3.1.3b.2Registry/ReportingofStatusofSubprojectImplementation

(AfterProcurement)……………………………………………………………………………….75

9.4SubprojectResultsM&ESub-system……………………………………………………………………………...77

9.4.1SubprojectBaselineData…………………………………………………………………………………………..77

9.4.1aTimingoftheSurvey…………………………………………………………………………………………….78

9.4.1bMechanicsfortheConductofSurvey……………………………………………………………………78

9.4.2RegistryoftheSPProfileincludingtheSubprojectBaselinetothe

Web-basedM&ESystem……………………………………………………………………………………….....81

9.4.3ConductofRapidAppraisalofEmergingBenefits(RAEB)………………………………………….81

9.5ResultsM&E…………………………………………………………………………………………………………………..82


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ListofTables

Table2-1.SampleTargetProponentGroupsbyCommodity.......................................................11

Table4-1.EligibilityRequirementsforProponentGroupsbyAmountofSubproject..................20

Table4-1.A.DocumentaryRequirementsforthePGEquity.........................................................21

Table4-2SubprojectProcedures,Activities,Tools,OutputsandResponsibilityCenter .............22

Table4-3.FinancingMixforI-REAPFunding...............................................................................33

Table5-1.FinancingMixforI-REAPComponent..........................................................................53

Table5-2.FinancingMixforI-REAPProjects................................................................................57

Table6-1.ProcurementTimeline-CFAforGoods(I-REAP)...........................................................59

Table7-1.SummaryofPotentialSocialImpactsandRequiredDocumentsforMitigation.........60

Table7-2.SummaryofImpactScenariosonIPsandRequiredDocumentsforMitigation.........61

Table7-3.SummaryofThresholdLevels-PotentialI-REAPEnterpriseComponents..................62

Table9-1.IntermediateOutcomestobeAchievedUnderI-REAPComponent............................82

Table9-2.ProceduresforMonitoringandEvaluationofI-REAPIntermediateOutcomes............83

ListofFigures

Figure2-1.I-REAPComponentConceptualFramework..............................................................7

Figure2-2.Inter-ComponentLinkages.......................................................................................8

Figure2-3.VerticalCommodityLinkages ...................................................................................10

Figure4-1.ProcessFlowforI-REAPImplementation:Sub-component3.1(RuralAgri-fishery

EnterpriseandProductivityEnhancement) ................................................................................45

Figure4-2.ProcessFlowforI-REAPImplementation:Sub-component3.2(Technologyand

InformationforEnterpriseandMarketDevelopment)...............................................................51

Figure9-1ThePRDPRBMESchematicFramework ....................................................................69

Annexes

Annex1.A-SampleMenuofEnterprisestobeSupportedbyI-REAPSub-Component3.1:

RuralAgri-fisheryEnterpriseandProductivityEnhancement.....................................................85

Annex1.B-SampleofActivities/Sub-ProjectstobeSupportedbyI-REAPSubcomponent3.2

(TechnologyandInformationforEnterpriseandMarketDevelopmentSupport)......................87

Annex2.A-MenuofPossibleNRMOGIsPerCommodityValueChain........................................89

Annex2.B-GlobalEnvironmentFacility(GEF)SupportedActivities ........................................94

Annex3-NegativeListofSub-projectsNotEligibleforI-REAPFunding.......................................96

Annex4-ProspectivePartnerAgenciesbyCommodityGroupandbySupportServices.............97

Annex5–SampleTermsofReferencesfortheBusinessDevelopmentStaff.............................98

Annex6-SampleProductSegment/EnterprisePrioritizationProcessandScoringSheet .......106

Annex7-GuideQuestionforBusinessModelFormulation/InformationGathering................109

Annex8-SampleLetterofIntentoftheProponentGroup......................................................110

Annex9.A-SampleProponentGroup(PG)PrioritizationProcessandScoringSheetfor

MicroenterpriseSubprojects ...................................................................................................111

Annex9.B-SampleProponentGroup(PG)PrioritizationProcessandScoringSheet


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forSmallandMediumEnterpriseandUpgradingEnterprises...............................................112

Annex10-PGValidationProcessandScoringSheet...............................................................113

Annex11-GuideQuestionforBusinessPlanData/InformationGathering..............................120

Annex12-A-I-REAPBusinessPlanOutline..............................................................................130

Annex12-B-SubprojectProposalOutlineforMicro-EnterpriseSubprojects...........................132

Annex12-C-TemplateoftheEnterpriseGeneralProfile.........................................................134

Annex13-A-ChecklistofRequirementsforSmallandMediumEnterpriseSubproject...........138

Annex13-B-ChecklistofRequirementsforMicro-enterpriseSubproject...............................144

Annex14-GuideintheConductoftheParticipatoryResourceAssessment-ResourceandSocial

Assessment(PRA-RSA) ............................................................................................................150

Annex15-BusinessPlanReviewTrackingForm ....................................................................159

Annex16-I-REAPInitialEvaluationForm ..............................................................................160

Annex17-SampleBusinessPlanorSubprojectProposalAppraisalorEvaluationForm..........162

Annex18-A-SampleImplementationManagementAgreement(IMA)forSubprojectswith

EnterpriseDevelopmentOnly ...............................................................................................166

Annex18-B-SampleImplementationManagementAgreement(IMA)forSubprojectswith

EnterpriseDevelopmentandCivilWorks ................................................................................177

Annex19-SampleEnterpriseInvestmentAgreement(EA) ...................................................189

Annex20-SupplementalGuidelinesfortheImplementationofSmallI-REAPLivelihood

SubprojectinYolandaandEarthquakeAffectedAreas(Region6,7and8)ofthePhilippineRural

DevelopmentProject ............................................................................................................199

Annex21-SubprojectProposalOutline ...................................................................................202


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1 Introduction

1.1 Rationale and Purpose of the Manual1

Agricultureaccountsfor35%ofthePhilippineeconomyandemploysabout50%ofthelabor

force.However,itscontributiontoGrossDomesticProduct(GDP)andtotalemploymenthas

declined. Formanyyears, thecountry’sagriculture sectorhasbeencharacterizedby low

farmer’s income, low rural employment, precarious food security, low agricultural

competitivenessandhighruralpovertyoverall. Increasingdemandsforagriculturaloutput

havealsoputpressureonnaturalresources.Unsustainablepracticestoimproveyieldshave

resulted in landdegradation,decreasingwateravailabilityandmarineresourcedepletion,

which have been exacerbated by climate change. Development efforts need to focus on

transformingthesectorintoonethatisnotonlyhighlyproductivebutalsoclimate-resilient,

environment-friendlyandsustainable.

ThePhilippineRuralDevelopmentProject (PRDP) isdesignedtoaddressthissituationand

contribute to achieving the national goals of inclusive growth, job creation and poverty

reduction.Itbuildsonexistingpolicyframeworks,principlesandlessonslearnedfrompast

programsoftheDepartmentofAgriculture(DA).ThePRDPisasix-year(2013-2018)initiative

envisioned to increase farmand fisheryproductivityand incomes in targetareas inall16

regionsofthecountry. Theprojectseekstoachievethisobjectivebyimprovingaccessof

farmers and other industry players to a strategic network of infrastructure, market

information and support services. Specific investments and interventions are to be

implemented under four central components of the project, namely: 1) Local Planning

(IPLAN);2)InfrastructureDevelopment(I-BUILD);3)EnterpriseDevelopment(I-REAP);and4)

ProjectSupport(I-SUPPORT).

Through I-REAP, PRDP will engage broad sections of the sector in the production of

marketablesurplusthroughinvestmentsinstrategicsegmentsofprioritycommodityvalue

chainsprioritizedunder theRegionalAgricultureandFisheryModernizationPlan (RAFMP)

andtheProvincialCommodityInvestmentPlans(PCIPs).I-REAPisalsodesignedtostrengthen

collaborationbetweentheDAandtheprovincialgovernments.Itwilladoptthefarm-to-table

service delivery strategy being pursued under the Agrikulturang Pilipino (AgriPinoy)

framework.ItwillutilizetheBureauofSoilandWaterManagement’s(BSWM)vulnerability

and suitability assessment (VSA)methodology and results and the participatory resource

assessment (PRA) that will be conducted as bases for incorporating climate resiliency

strategies.

The implementationof the I-REAPcomponent,and thePRDPasawhole, involves several

institutionalpartnersattheregional,provincial,municipalandbarangaylevels.Theseinclude

severalnationalgovernmentagenciesandtheentirelocalgovernmentunit(LGU)community

inthecountry.Italsoinvolveslocalcommunities,households,people’sorganizations,non-

governmentorganizations,privatesector,academicinstitutionsandothercivilsocietysector.

ToensuretheI-REAPcomponent’seffectiveandefficientimplementation,includingthatof

1ThissectioncontainsinformationtakenfromthePRDPFeasibilityStudyMainReport.


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theactivitiestobesupportedbytheGlobalEnvironmentFacility(GEF),itisimportantthat

thestakeholders,mostespeciallytheprojectimplementers,gainsharedunderstandingofits

operatingmechanisms.ThismanualthusaimstoensureacommonunderstandingoftheI-

REAPcomponentbyallstakeholders.

1.2 Use and Users of the Manual

Thismanualseekstoprovideacomprehensiveandstep-by-stepguidefortheimplementation

ofI-REAPactivities–fromtheselectionofenterpriseproponents,enterpriseplanningand

implementation, to themonitoringof theenterprises’progress and theevaluationof the

immediateandfinalimpactsoftheenterprises.Italsoclarifiesrolesandrelationshipsamong

implementers and prescribes measures to control the quality of outputs and to ensure

optimumuseofprojectresources.

Thismanualwasprepared for theuseof thepersonnel of theDA (the executing agency,

includingitsattachedagenciescriticalintheI-REAPimplementationaswellasotherpartner-

agencies,namely:DepartmentofEnvironmentandNaturalResources(DENR),Department

of Trade and Industry (DTI), Department of Science and Technology (DOST), National

CommissiononIndigenousPeople(NCIP),andtheLGUsfromtheprovincialandmunicipal

levels;theregionalandotherlocalunitsoftheparticipatingnationalagencies,participating

schools,collegesanduniversities,participatingnon-governmentorganizations(NGOs),and

the partner producer group organizations, private sector and other stakeholders. Any

proposedchangestothemanualasaresultofexperiencesinthefieldandlessonslearned

willbeadoptedandincorporatedinsubsequenteditionsofthemanual.

1.3 Contents of the Manual

Themanualcontainsthefollowingmajorparts:I-REAPcomponentdescriptionandobjectives,

which summarizes thecomponents’ interventions, theexpectedoutputsand someof the

major activities; the general conditions for implementation, which discusses the

implementingagencyandimplementationpoliciesthatprovidethepolicyframeworkforthe

component and its interventions; the implementation structure which describes the

administrativeframeworkandfinancialoperationsofthecomponent;the implementation

proceduresatthepre-implementation,implementationandpost-implementationphasesof

thecomponent;financialmanagementto includereleaseoffundstoProvincialLGU(LGU)

and proponent groups (PG); the procurement process for goods, works and services in

support to enterprises; social and environmental safeguards (SES); and results-based

monitoringandevaluation(RBME).

1.4 Scope and Limitations

ThismanualcontainsonlytheimplementationguidelinesoftheI-REAPcomponentandits

GEF-supported activities at the project management level. Specific guidelines for the

operation of the I-REAP supported enterprises will be contained in the Implementation


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ManagementAgreement (IMA),Enterprise InvestmentAgreement (EA), andother related

documents.

1.5 Definition of Terms

Thefollowingoperationaltermswillbeusedonthismanualforclarityandmutualreference;

thusthesewillbedefinedasfollows:

BusinessPlan–referstothesubprojectproposalordocumentthatwillbethebasisfor

financing the proposed enterprise. The business plan should have a description of the

enterprise, its composition, products and services; market analysis; competitor

assessment;marketingplan;operationalplan including technical assumptions, facilities

andequipment,processflowandorganizationandmanagement;financialplanincluding

discussiononcapital investmentrequirements;andfinancialplanincludinganalysisand

financialratiostodeterminethetechnical,marketandfinancialviabilityofthesubproject

orenterprise.

BusinessModeling – refers to theactivity thatwill beundertakenby the LGUand the

ProponentGroupwiththeassistanceoftheRPCOwhereinthebusinessconceptforthe

proposed enterprise will be drawn. The businessmodel should answer the questions,

“What, Who, How”. What are the products/services of the enterprise? Who are the

suppliersandbuyers?Whataretheproblemsbeingaddressedandopportunitiesbeing

pursued?Whatistheuniquesellingpropositionoftheenterprise?Whoaretheenterprise

partners?Whatarethecostsinvolvedandrevenuestobegenerated?Howthefarmers

willbenefitfromtheenterprise.

Enterprise–referstothesubprojectdrawnfromthePCIPthatwillbefundedbythePRDP

IREAP.Itisthebusinessventurethatwillbeundertakenbytheproponentgrouporcluster

ofproponentgroups.

Enterprise Investment Agreement (EA) – is an agreement between the LGU and the

ProponentGroup/LeadProponent(andtheclusterofproponents).TheEAindicatestheroles

andresponsibilitiesoftheLGUandPGintheimplementationandoperationoftheenterprise

asidentifiedintheBusinessPlan.Itshallalsoidentifytheprovisionsinthefundreleasesand

procurementofgoods,worksandequipmentthatwillbeusedbytheenterprise.

EnterpriseProjectFund(EPF)-referstotheenterprisecostconsistingoftheloanproceeds,

theGOPcounterpartandtheLGUcounterpartwhichwillfinancethegoods,smallworksand

operationalcostsoftheenterpriseasrequiredinthebusinessplan.

EnterpriseSupportFund–referstotheI-REAPprogramfundconsistingoftheloanproceeds

andtheGOPcounterpartintendedtofinanceactivitiestobefundedunderSubcomponent

3.2insupporttothecommodityvaluechainsuchastraining,crossvisits,provisionofmarket

information,marketlinkageandpromotion,technologydevelopment,technodemoandthe

like.


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ImplementationManagementAgreement(IMA)–isanagreementamongPSO,RPCOand

LGUthatspellsouttheimplementationarrangementsforallI-REAPsubprojects/enterprises

withinagivenperiodincludingthescheduleoffundreleasesandliquidations.

LeadProponent–isthemajorpartneroftheLGUintheenterpriseandwillserveasthemain

I-REAPsubprojectproponent,inthecaseofclusterofproponentgroups.

Micro,smallandmediumscaleenterprises–thesearethesubprojectsthatwillbefunded

by PRDP I-REAP Sub-component 3.1 with costs falling under the following categories:

Micro: not more than Php3,000,000; Small: Php3,000,001 - Php15,000,000; Medium:

Php15,000,001 – Php50,000,000. This amount include the costs of the enterprise

operation,equipment,facilitiesandcivilworks,netofPGequity.

ProgramContract–anagreementamongthePSOand/orRPCOandthepartneragencyor

entitythatcoverstheengagementofthepartneragencytoprovidetechnicalandsupport

servicesrelatedtotechnology,informationandproductandmarketdevelopmentsupport.

Thelistoftechnologysupportservicesshallsupportthecommodityvaluechain.

ProponentGroup-refersmainlytotheproducergroups(suchasfarmers/fishersgroups,

cooperatives,associations,RIC)engagedinthecommodityvaluechainandhavealegal

personality. Proponent group could also include micro, small and medium-scale

enterprises (i.e.agri-processors, consolidators,exporters,etc.)whoarewilling toassist

producer groups in vertical clusteringor joint business planning, and forge contract or

formalmarketingarrangementwithproducergroups.

Provincial Commodity Investment Plan (PCIP) – is a strategic plan that rationalizes the

interventionswithin the various segments of the value chain of commodities that are of

significancetotheprovinceandthatwillcontributetothenationalgoalsoftheagriculture

andfisherysector.Itis3-yearrollingconsensusplanbetweentheDAandLGUbasedonthe

valuechainanalysesofthesecommoditiesconductedwithstrongparticipationofthevarious

stakeholders.ThePCIPwillbethebasisinidentifyingpossibleenterprisesinwhichaprovince

decidestomakeapackageofinvestmentsthattheDAwillprovideassistance,withadequate

counterpartfromtheLGU.

Start-up Enterprises – refers to financing of I-REAP subproject that is a new business

undertakingoftheselectedproponentgroup.Thiswillalsofinanceproposedsubprojectsof

PGsthatfallwithinLevelIandLevelIIofthevaluechainladder.Thetotalenterpriseproject

costthatwillbeprovidedshallnotexceedPhP15Million.

TotalEnterpriseProjectCost–isthetotalcostoftheI-REAPsubprojectthatwillbefunded

bytheLoanProceeds,GOPcounterpart,LGUcounterpartincludingthecostofthecivilworks

component,netofPGequity.

TotalInvestmentCost- isthetotalamountofthebusinessplanwhichincludecostofthe

enterpriseoperation,equipment,facilities,civilworksandPGequityincashand/orinkind.


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Upgrading/ExpansionofEnterprises–financingofI-REAPsubprojectthataimstoexpandor

upgradeexistingbusinessactivityofthePG.Expansionandupgradingcouldbeintermsof

equipment,facilitiesandproductlines(suchasdevelopmentofnewproducts,development

ofnewmarketsorincreaseinproductioncapacityofthePG).Someexamplesinclude:aPG

withexistingbusinessonflavoredmilkprocessingwillbeproposingsubprojectforPRDPon

cheeseandyoghurtprocessing;existingPGproducinggeonetwillexpandingoperationby

buyingwholenutfromcoconutfarmerstoproducecopraandusethehusktoincreasevolume

of production of geonets; existing PGproducing cassava granuleswill increase volumeof

production by expanding source of raw materials thru increase in farmer members and

consolidating volume of output of other cooperatives or associations thru enterprise

clustering. The total enterprise project cost thatwill be provided shall not exceed PhP50

Million.

2. Component Description and Objectives

2.1 Background of the I-REAP Component2

The conceptualization of PRDP and the I-REAP component, in particular, considered the

experiences, lessons and approaches drawn fromDA’s implementation of twoMindanao

RuralDevelopmentProjects(MRDP1&MRDP2).Such lessons includefeasible institutional

arrangements with LGUs and community-based approaches to ensure that project

interventionsareresponsivetotheneedsofLGUsandstakeholders.

UnderpinningPRDP’sapproachisbuildingastrongerpartnershipandengagementbetween

theDA(atthenationalandregionallevels),andthevariousdevelopmentstakeholdersatthe

local level (e.g., LGUs, farmers and fishers, private sector, academe, etc.) in investing in

prioritycommodityvaluechains.AllRegionalFieldUnits(RFUs)willundergotheprocessof

enhancingtheirregionalAFMPsthatidentifyhowregionalplanswillcontributetoachieving

nationalAFMPgoals.Thisisdesignedtoensurebettercongruenceinthesectorinvestments

beingfinancedatthelocallevelswhilefulfillingthenationalAFMPtargets.

TheLGUswillbesupportedinbuildingtheircapacitiestoidentifyandinvestininfrastructure

andsupportservicesneededtodeveloppriorityvaluechainsandamoremarket-oriented

agricultureandfisherysectorintheirareas.Complementingthis,communityentrepreneurial

activitieswouldbesupportedtohelpproducergroupsraiseincomesthroughbetterlinkages

andaccess tomarkets.Thisapproachhasalreadybeenpilot testedandadopted in those

regionsandLGUsimplementingMRDP2.WhileMRDP2wasdesignedtosupportcommunity

livelihoodactivities, thefocusofPRDPI-REAPComponentwouldbemoreonbuildingand

supportingagriculturalandfisheries-basedenterprises.OneofthekeyfeaturesofI-REAPis

theintegrationofnaturalresourcemanagement(NRM)intheenterprises.Therewillalsobe

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agreaterfocusinensuringamoresystematicprovisionoftechnologyandmarketsupport

servicesforallenterprises.

2.2 I-REAP Objectives

The general objective of the I-REAP component is to strengthen and develop viable agri-

fishery based enterprises through efficient value chains of key agricultural and fishery

productsintargetedprogramareas3.Itsspecificobjectivesareasfollows:

a. Toincreaseproductivityandmarketabilityofagricultureandfisheryproductsthrough

increasedaccesstoinformationandsupportservices;

b. Toincreasefarmandfisheryhouseholdincomesthroughengagementinvalue-adding

activities;and

c. Toimprovetheprotectionandconservationofthenaturalresourcebaseofidentified

enterprisesthroughalternativelivelihoodsandsupportfacilities.

2.3 I-REAP Component Goals, Objectives, Outcomes and Outputs4

Thecontributionof the I-REAPcomponenttotheoverallPRDPgoalof increasing farmers’

incomeandmarketablesurplusintheagri-fisherysectoristostrengthenanddevelopviable

agri-fisherybasedenterprisesthroughefficientvaluechainsofkeyagriculturalandfishery

productsintargetedprojectareas.

Toachievetheobjectiveofcreatingaclimateresilientandadaptivestrategyforenhancing

thevaluechainneedsoftheprioritycommodity,GEFsupportwouldbeprovidedintarget

areas in Central Philippines. TheGlobal EnvironmentObjective (GEO) of theGEF support

wouldbetocontributetotheconservationofbiodiversityandstrengtheningthecoastaland

marine resources base in targeted project areas. This would be achieved through (i)

enhancing institutional and planning capacities of LGUs and communities, (ii) providing

support to Marine Protected Areas (MPAs) in particular areas of global biodiversity

significanceandselectfisheryco-managementarrangements,and(iii)sharingofknowledge

and best practices. By integrating the GEF support with the institutional reforms being

“rolled–out” under the PRDP, the mainstreaming of innovations and best practices for

sustainableecosystemmanagementwouldbeenhanced.

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2.4 I-REAP Desired Outcomes and Expected Outputs

The goal or intended impact of I-REAP is increased farmer’s income in agri-fishery sector

(Figure 2-1). The desired outcomes are: a) increased producer groups operating viable

enterprises;b)enhancedproducergroups’productivitythroughformalizedarrangementsfor

marketingand/ortechnicalservices;andc)increasedproducerandfishergroups’resilience

toclimatechangeandadverseweatherconditions.

I-REAPactivitiescanbecategorizedintotwosub-components:1)ruralagri-fisheryenterprise

andproductivityenhancementand2)technologyandinformationforenterpriseandmarket

development).Theexpectedoutputsforsub-component1are:1)enterprisesupgraded,up-

scaledorestablishedattheappropriatecommodityvaluechainsegment,2)productionand

market support facilities established, and 3) LGU investments in the agri-fishery sector

increased.Ontheotherhand,outputsforsub-component2are:1)capacityoffarmerand

fishergroupsenhancedinadoptingappropriateproductivityenhancementtechnologies,2)

technologyextensionandbusinessdevelopmentservicedeliverystandardizedtosuitpriority

commodities;3)capacityofproducerandfishergroupstomanageandoperateagri-fishery

enterpriseenhanced;and4)farmtomarketlinksestablished.

Figure2-1.I-REAPComponentConceptualFramework

(BasedontheLogicalFramework)

2.5 I-REAP Linkage with other PRDP Components

Althougheachmajorinvestmentcomponent–I-PLAN,I-REAP,andI-BUILD–haveseparate

and distinct objectives, they are all designed to contribute to the accomplishment of the

project’s development objective. Thus, it is imperative that component processes and


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outputs are in sync with each other (See Figure 2-2). Ensuring this synchronicity and

articulating the common element and the thread that ties key features across each

componentisthePCIP.Thismainlycontainsthestrategicareasofproductsegmentsinthe

valuechainof theprioritycommoditiesof theprovincesthatcouldbesupportedunder I-

REAPandI-BUILD.ThedevelopmentofthePCIPistheprimaryresponsibilityoftheI-PLAN

component, but with substantial contributions from the I-REAP and I-BUILD components

duringthePCIPdevelopmentprocess.

SpecificallyfortheI-REAPcomponent,assistancetoI-PLAN’sPCIPprocedureswillinvolvethe

applicationofthevalue-chainanalysisandfocusingontheproperapplicationofthecriteria

foridentifyingthepriorityenterprisesthatwillbeincludedinthePCIPforpotentialfunding

underI-REAP’sSubcomponent3.1.I-REAP’sworkingrelationshipwiththeI-BUILDcomponent

is linked with the infrastructure investments supporting the priority enterprises, also

containedinthePCIP.

I-SUPPORTisprogrammedtoprovidethestrategicadministrative,logistical,andoperational

assistancetothevariouscomponentsinimplementingtheiractivities.

Figure2-2.Inter-ComponentLinkages

PROJECTDEVELOPMENTOBJECTIVE

PRDPaimstoincreaseruralincomeandenhancefarmandfisheryproductivityintargetprogramareas.

PROVINCIALCOMMODITYINVESTMENTPLAN

I-REAP

Supportverticalclustering,joint

businessplanningandinvestmentsoftheproponentsgroupsengagedinenterpriseswithinthe

priorityvaluechainbasedon

thePCIP

I-BUILD

Infrastructuresupporttoenterprisesbasedonthe

PCIP

I-PLAN

Supporttoimprovingtheagricultureandfisheryplanningprocessusingscience-basedapproaches


I-REAPComponent

9

2.6 I-REAP Operational Strategies5

Inconsonancewiththeabovementionedpoliciesandprojects,thefollowingkeystrategies

willguidetheimplementationoftheI-REAPcomponent:

• Broad-basedandinclusiveenterprisedevelopmentthroughclusteringofproponents

which engages farmer and fisher groups in surplus generation and value-adding

activities;

• Graduatedmarketaccesstomatchproductioncapacitiesandmarketrequirements

throughjointbusinessplanning;

• Value chain-determined product segments and interventions for enterprise

engagement;

• Equityinvestmentstobeputupbythegovernmentwiththeprivatesector;

• Farm-to-table service delivery, i.e., interventions and investments to improve

efficiencyofvaluechainsfromproductiontotheendconsumer;

• Integrationofnaturalresourcemanagementintocommunityenterpriseprojectsto

ensuresustainabilityofinvestments,preservethenaturalresourcebaseanddevelop

climate-resiliententerprises;

• InstitutionalizationoftechnicalsupportservicesinDARegionalFieldUnitsaimedat

improving productivity, market linkages and entrepreneurship skills among

participatingproducergroups;and

• Localownershipandsynergisticpartnership.Oneofthelessonslearnedfromprevious

ruraldevelopmentprojectssuchastheMRDP, InfrastructureforRuralProductivity

Enhancement Sector (InFRES), Agrarian Reform Community Development Project

(ARCDP2),etc.isthecriticalroleplayedbyLGUsinimplementingruraldevelopment

projects. I-REAPproject interventions/componentsshouldhaveaclear linkto local

economic development priorities and agenda to ensure local ownership and

community“buy-ins”.

2.7 I-REAP Component Scope of Interventions6

This component would support the development, implementation and sustainability of

agricultural, livestock or fishery-based entrepreneurial activities, based on the analysis of

priorityvaluechainsbeingsupportedunderAFMPs,andasreflectedinthePCIPs.Thetypes

ofinterventiontobesupportedwouldneedtobetailoredtothelevelofdevelopmentand

capacityoftheproducers.Annex1.Ashowsthesamplemenuofenterprisestobesupported

byI-REAPSub-component3.1whileAnnex1.Bpresentsthesampleofactivities/sub-projects

tobesupportedby I-REAPSub-component3.2. Annex2.Apresentsthemenuofpossible

NRMOn-the-GroundInvestment(OGIs)percommodityvaluechain.Annex2.Bcontainsthe

GEFsupportedactivitiesandAnnex3containsthenegativelistofenterprisesoractivitiesthat

cannotbesupportedbyI-REAP.

5PRDPFeasibilityStudyVolume3:I-REAPComponent6PRDPFeasibilityStudyVolume3:I-REAPComponent


I-REAPComponent

10

Forplanningpurposes,threelevelscouldbeconsidered,assummarizedinFigure2-3,with

verticallinkagebetweenproponentsofenterprisesthroughclustering,whichwouldinvolve

forward,andbackwardcontracting/arrangements.Theverticalconvergenceofproponents

engagedinenterprisesidentifiedatdifferentlevelsoftheagri-fisherydevelopmentladderis

guidedbytheproperconductandresultofthevaluechainanalysis.Thevaluechainanalysis

shouldshowattheveryleastthecriticalsegment(s)intheproductflowchartthatrequire

supportthatwilldetermineappropriateclusteringofproponents in identifiedenterprises.

Small farmers and fishers who have the capacity to produce marketable surplus will be

capacitatedthroughclusteringorintegratingwithmoreorganizedgroups.Producersgroup

couldalsobeclusteredorintegratedwithmarketstoachievefullmarketintegration.

Figure2-3.VerticalCommodityLinkages

2.8 I-REAP Possible Proponent Group

ThepossibleproponentgroupsforI-REAPenterprisesarethefollowing:

a. Existingproducergroupswithmembersproducingcommoditieswhichareincludedin

thepriorityvaluechainsandhavepotentialtoincreasetheirmarketablesurplus;

b. Smallholder(farmersandfishers)groupswhichhavepotentialtoproducemarketable

surplus and demonstrate willingness to voluntarily adopt clustering with other

groupsandforgecontractsorformalmarketingagreementswithbuyersorprivate

intermediaries;

Commonservicefacilities,post -harvestfacilities,home-basedprocessing,feedmixingfacility,fishcages,plantingmaterialnurseries,NRMOGIs,GISinstruments,bancas,surveytools,etc.

Level2EnablingFarmtoMarketLinkages

Vertic

al

Com

modit

y

Linka

ge

Level1BuildingFoodSecurityandMarketableSurplus

Packinghouses,haulingequipment,consolidationcenters,multi -specieshatcheries,pasteurizingplants,drying,millingfacilities,livestockauctionmarkets,etc.

Level3Fullmarketintegration

Incubationforfood

Processing,vaporheattreatmentforexportcommodities,tripleAslaughterhouses,testingcenter,laboratories,etc

Clustering

ofproponentgroupsengaged

inenterprise

Clustering

ofproponentgroups

engagedinenterprises


I-REAPComponent

11

c. Producergroupsorclusterofgrowers shouldbeeitheroperationaland/or showa

willingness to undergo capacity building on enterprise development and

management;and

d. Micro,small-andmedium-scaleprocessors,consolidators,exporters,etc.,whowould

bewillingtoassistproducergroupsinverticalclusteringorjointbusinessplanning,

andforgecontractorformalmarketingagreementswithsuchproducergroups.Joint

business planning and investments of the producer groups and agro-processors,

wouldbesupportedifitwouldresultinincreasedengagementoftheproducergroups

invalue-addingactivities.

Farmersandfisherswhoarenotmembersofanyorganizationoperating inthepriority

commodityvaluechainmustjointheproponentgroups(PG)forthemtobeeligibleinthe

I-REAPsupportedenterpriseseitherasmemberofthePGorassuppliertotheenterprise.

SampletargetproponentgroupsbycommodityareshowninTable2-1.

Table2-1.SampleTargetProponentGroupsbyCommodity

Commodity SampleTargetProponentGroups7

Cereals Riceandcorngrowersorganizedinto

• Farmersassociation(FAs)

• Irrigatorsassociation(IAs)

• Agrarianreformbeneficiariesassociations(ARBAs)

• Primarycooperatives

• Upland rice and corn cultivators especially IPs (with CADTs/CADCs) and upland

migrantsettlers

Root

Crops/Tubers

(Sweet

Potato,

Cassava)

• Localsweetpotato,cassavaandotherrootcropsgrowersassociation

• IPs(withCADTs/CADCs)anduplandmigrantsettlers

Vegetables • Localvegetablesgrowersassociation


• Organicproducersassociation

• Localvegetablesgrowersfederationorcommoditygroups

• Vegetableindustrycouncils(provinceandregion)

FruitCrops • Localfruitgrowersassociation


• Fruitgrowersfederationorcommoditygroups

• Fruitindustrycouncils(provinceandregion)

Livestock • Localcattleraisersassociation

• Localhograisersassociation

• Localpoultryraisersassociation

• Goatraisersassociation


• Cooperatives

Fishery

Subsector

• Fisherfolkassociations

• Cooperatives

7Targetproponentgroupsshouldincludewomen


I-REAPComponent

12

2.9 I-REAP Subproject Financing Modalities

I-REAP Subproject financing modalities can be categorized into two: a) by amount of

subproject;andb)bynatureofbusinessundertaking.

A. ByAmountofSubproject

I-REAPenterprisescanbecategorizedintomicro,smallandmediumenterprises(MSMES).

AdoptingthedefinitionofMSMEsasdefinedinRA9501ortheMagnaCartaforMicro,

Small and Medium Enterprises the following are the type of I-REAP subprojects by

amount:

1. Micro-enterprisesubproject-notbemorethanPhP3,000,000

2. Smallenterprisesubproject-PhP3,000,001-PhP15,000,000

3. Mediumenterprisesubproject-PhP15,000,001–PhP50,000,000.

B. ByNatureofBusinessUndertaking

1. Restorationorrehabilitation–thesearesubprojectsthatcouldbeavailedinresponse

totheneedsofthefarmersandfisherswhowereaffectedbycalamitiesandconflicts.

Adeclarationof“StateofCalamity”bythelocalgovernmentunitand/oridentification

bytheNationalDisasterRiskReductionManagementCouncil (NDRRMC)willbethe

basisforthis.Ontheotherhand,thelistofmunicipalitiesandprovincesbyDILGwill

be the basis for the areas affected by conflicts or peace and order situation. A

certificationfromDILGshouldbesubmittedassupportingdocument.

Asageneralrule,all I-REAPsubprojectsshouldbebasedonVCAsandalignedwith

prioritiesofthePCIPs.

However, for micro-enterprise subprojects responding to restoration and

rehabilitationefforts,asdefinedinSection2.9B.1,thatarenotalignedwithVCAsand

PCIPs,amaximumof10%oftheLoanProceedsoruptoUS$9Millionmaybeusedand

allocatedfromthetotalI-REAPSub-component3.1funds.Themaximumamountper

subprojectthatcanbeproposedunderthiscategoryisPhP1Million,netofPGequity.

TheNPCOshallgiveclearancetothePSOfortheuseofthefunds.

2. GEFArea–thesearesubprojectsthatwereidentifiedtoprovideincomegenerating

activities to fisherfolk communities in support to the biodiversity conservation

activities in the identified marine protected areas. The maximum amount per

subprojectthatmaybeproposedforGEFareasisuptoPhP5Million,netofPGequity.


I-REAPComponent

13

3. Start-up Enterprises – financing of I-REAP subproject that is a new business

undertakingoftheselectedproponentgroup.Theamountofsubprojectthatmaybe

proposedasstart-upshallnotexceedPhp15Million,netofPGequity.

4. Upgrading/Expansion of Enterprises – financing of I-REAP subproject that aims to

expandorupgradeexistingbusinessofthePG.Expansionandupgradingcouldbein

termsofequipment,facilitiesandproductlines(suchasdevelopmentofnewproducts,

development of newmarkets or increase in production capacity of the PG). Some

examples include: a PG with existing business on flavored milk processing will be

proposing subproject for PRDP on cheese and yoghurt processing; existing PG

producinggeonetwillexpandingoperationbybuyingwholenutfromcoconutfarmers

to produce copra and use the husk to increase volume of production of geonets;

existing PG producing cassava granules will increase volume of production by

expandingsourceofrawmaterialsthruincreaseinfarmermembersandconsolidating

volumeofoutputofothercooperativesorassociationsthruenterpriseclustering.

Insomeprovinces,theseenterprisesmayalsocoverLevelsI,IIandIIIasindicated

intheverticalcommodity linkages(seeFig.2-3,p.10).Themaximumamountof

subproject that may be proposed as upgrading/ expansion shall not exceed

PhP50Million,netofPGequity.

The over-all target of I-REAP is to upgrade existing micro enterprises to small

enterprises and build their assets from PhP3Million to PhP15Million. On

exceptionalcases,PRDPmayalsoselectandsupportsmall-scaleenterprisesand

upgrade/expandthemintomedium-scaleenterprises.

UndertheladderizedI-REAPinterventions,PGisexpectedtobecompetentfortheenterprise

itcanengagewith.Whilemanagingtheenterprise,itcanincreaseitseligibility,capabilityand

competencytoqualifyforthenexthigherlevelofenterprise.Forexample,aPGwasqualified

forthecassavaproduction.Aftersomeyears,itcanexpanditsoperationtoprocessinggiven

thatitsatisfiesthecriteriasetunderLevelIIwhileutilizingthefundsgeneratedintheinitial

projectinvestmentwithinfusionofadditionalcapital.

3. Implementation Features

3.1 Implementing Agency and Partner Agencies

TheDAwillbetheexecutingagencyofthePRDP.Itwillhave,aspartneragencies,relevant

DA-attached agencies e.g., Philippine Coconut Authority (PCA), National Dairy Authority

(NDA), BSWM, Philippine Center for Postharvest Development and Mechanization

(PHilMech),BureauofFisheriesandAquaticResources(BFAR),AgriculturalTrainingInstitute

(ATI),AgriculturalCreditandPolicyCouncil (ACPC),BureauofAgriculturalResearch (BAR),

etc.OtherpartneragenciesincludeDepartmentofAgrarianReform(DAR),DENR,DOST,DTI,

andDepartmentofInteriorandLocalGovernment(DILG),amongothers.


I-REAPComponent

14

Annex4providesthelistofprospectivepartneragenciespersubsectororcommoditygroup

andthekindoftheassistancethattheycanprovideforenterprisedevelopment,including:

1) improving production and productivity including agricultural extension services, skills

development, provision of production inputs, equipment and facilities/infrastructures for

production and post-production activities, etc.; 2) improving producers’ and enterprises’

accesstofinancingintheformofcreditorgrantsaswellascropinsurance;3)provideaccess

toimprovedtechnologiesthroughresearchanddevelopment;and4)provisionofbusiness

supportanddevelopmentservices,particularlyintheareasofmarketing,networking,etc.

Partner agencies will serve as project collaborators and will primarily provide technical

supportandassistancetosupporttheenterprisesinthecommodityvaluechainwhichshall

executedthroughaProgramContract.

3.2 Implementation Structure

A PRDP National Project Coordinating Office (NPCO) at the DA Central Office will be

established and headed by the Undersecretary for Operations. Under this, four8Project

SupportOffices(PSOs)willbesetup,twoforLuzon(LuzonACluster-CAR,Regions1,2,3and

LuzonBClusterRegions4A,4B,5);oneforVisayasandoneforMindanao.I-REAPUnitswill

beconstitutedineachofthesePSOs.CarryingouttheI-REAPcomponentoperationsatthe

locallevelwillbetheI-REAPteamsintheRegionalProjectCoordinationOffice(RPCO)and

the Project Management and Implementation Unit at the provincial/city/municipal

(P/C/MPMIU)levels.ThefunctionsandstaffcomplementoftheI-REAPunitineachofthese

officesareasfollows:

3.2.1 NPCO I-REAP

a. ServeasoversightofPSOandRPCOI-REAPunits;

b. AssisttheI-PLANinthereviewofVCAsandPCIPs;

c. AssistintheorientationoftheI-REAPOperationsManual;

d. Preparetheannualandglobalworkplanforthecomponent;

e. ConductofcapabilitybuildingneedsofPSOs;PSOstoRPCOsandRPCOsto

P/C/MPMIUs

f. Coordinatetheeffective implementationofthe I-REAPcomponentactivitiesacross

thedifferentPSOI-REAP;

g. Assistintheconductofsiteandproponentgroupvalidation;

h. IssueNoObjectionLettertoallI-REAPsubprojectswithinthegiventhreshold;

i. Monitor the implementation of the enterprise implementation and operation

includingSEScompliance;

j. ProvideregularreportsontheoverallimplementationofI-REAPactivities;and

k. FacilitatesharingofbestpracticesacrossPSOs.

8NPCOwillalsofunctionasthePSOforLuzonBCluster(Regions4A,4Band5)


I-REAPComponent

15

TheNPCO I-REAP isheadedby theAgribusinessandMarketingAssistanceService (AMAS)

Director. At the minimum, the NPCO I-REAP Team, will be composed of a Business

Development Specialists (BDS), EnterpriseDevelopment andMarketing Specialist (EDMS).

businessandenterprisedevelopmentstaffandprojectdevelopmentassociates.

3.2.2 PSO I-REAP

a. Coordinatetheeffective implementationofthe I-REAPcomponentactivitiesacross

thedifferentRPCOI-REAP;

b. Assist the RPCOs in facilitating collaboration activities of various stakeholders and

engagementofothersupportinstitutionsandagencies;

c. ProvidesupporttotheRPCOsinimprovingaccessoftheproponentgroupstoresearch

andtechnologyresources;

d. BuildthecapacityoftheRPCOI-REAPunitstafftoprovidetechnicalassistanceand

supportservicestotheLGUandthePG;

e. ProvidetechnicalassistanceandcoherenceacrossRPCOs;

f. FacilitatesharingofbestpracticesacrossRPCOs;

g. Conductsiteandproponentgroupvalidationandissueletterofconfirmationonthe

selectedproponentgroup;

h. Facilitate theconductof complianceand technical review toensure feasibilityand

viability of the business proposals, and check completeness, consistency and

correctnessofthedocumentsbeforeendorsementtoNPCO;

i. Review and approve through issuance of No Objection Letter all micro-enterprise

subprojectsandothertypesofsubprojectswithinthegiventhreshold;

j. ProvidetechnicalassistanceinthepreparationandfinalizationofIMAsandEAs;

k. Assist InfoACE Unit in the conduct of I-REAP information, education and

communication(IEC)activitiesinthecluster;

l. AssisttheRPCOinfacilitatingtheconductofworkshopfortheP/C/MPMIUandthe

PG in coming up with policy and implementing guidelines relating to the

implementationoftheenterprise;

m. MonitortheimplementationandenterpriseoperationoftheI-REAPsubprojectsand

coordinatewithSESUnit inconsolidatingsafeguardscomplianceandwithMandE

UnitonimpactmonitoringreportinthecoveredRPCOs;and

n. ProvideregularreportsontheoverallimplementationofI-REAPtoNPCO.

ThePSOwillbe ledby I-REAPComponentHeadcomplementedbythe followingtechnical

staff:BDS,EDMSandbusinessandenterprisedevelopmentstaff.

3.2.3 The Regional Project Advisory Board (RPAB)

The RPAB is the regional counterpart of the National Project Advisory Board. The

implementationtasksoftheRPABareto:


I-REAPComponent

16

a. ReviewandapproveI-REAPbusinessplansanditscorrespondingworkandfinancial

planforfunding;

b. EnsurepolicydirectionsarecarriedoutintheplanningandimplementationofI-

REAPenterprisesintheregion;

c. EnsureoverallharmonizationofsupporttoI-REAPenterprisesfromcollaborating

NationalLineAgencies’(NLA)regionaloffices;and

d. Generate support for and participation in I-REAP implementation by LGUs, people

organizations(POs)andNGOs.

TheRPABwillbecreatedthroughaSpecialOrderfromtheOfficeoftheSecretaryoftheDA

andchairedbytheDARegionalExecutiveDirector.

3.2.4 RPCO I-REAP

TheChiefoftheMarketingAssistanceDivision(MAD)oftheDA-RFOswilltaketheleadrole

incoordinatingtheoverallimplementationoftheI-REAPComponentactivitiesattheregional

level.

TheRPCOI-REAPunitswillhavethefollowingfunctionsandresponsibilities:

a. AssisttheP/C/MPMIUinprioritizingenterprisestargetedforI-REAPfundingbasedon

thePCIPandpreparingbusinessmodelsorconceptthereof;

b. Assistintheconductofsiteandproponentgroupvalidation;

c. ProvidetechnicalassistancetotheP/C/MPMIUI-REAPTeaminpreparingthebusiness

plansincludingallrequireddocumentsandattachments,EAandIMA;

d. Conductcollaborativetechnicalreviewofbusinessplansincludingthecompleteset

ofattachments,withcommodityexpertswithinDAbureausandattachedagencies,

other government agencies, institutions and/or organizations ensuring alignment

withexistinggovernmentprojects;

e. Endorseappraisedbusinessplans,EAandIMAtoPSO;

f. FacilitatepreparationandfinalizationofIMAsandEAsandendorsetheIMAtothe

PSOforfundrelease;

g. FacilitatesubmissionandcomplianceinthedocumentsrelatedtoI-REAP;

h. MonitortheimplementationandoperationoftheI-REAPsubprojectsandcoordinate

withSESUnitinconsolidatingsafeguardscomplianceandwithMandEUnitonimpact

monitoringreportfromtheP/C/MPMIUinthecoveredLGUs;

i. EnsureSEScomplianceinenterpriseprioritizationandbusinessplanpreparationby

assistingPGandP/C/MPMIU in theconductofenvironmentalandsocial screening

andassessment,conductofcommunityconsultations,preparationofEnvironmental

and Social Management Plans (ESMPs) and Relocation Action Plans (RAPs), and

acquisitionanddocumentationofEnvironmentalComplianceCertificate(ECC),Right

ofWay (ROW)and IndigenousPeople (IP) consentandendorsement,whichever is

applicableandnecessary;

j. ProvideregularreportsontheoverallimplementationofI-REAPtoPSO;


I-REAPComponent

17

k. Develop a system of popularizing technologies developed by DA and organize

technologyroadshowsintheprovincesasneeded;

l. Design and develop agri-fishery enterprise development information resource

system;

m. ConductcapabilitybuildingneedsofP/C/MPMIUsandPGs;

n. PreparetheannualworkplanandbudgetforI-REAP;

o. AssistInfoACEUnitintheconductI-REAPIECactivitiesintheregion;and

p. Develop partnership agreements with agencies involved in agri-fishery business

developmentservices,extension/researchserviceproviderssuchasthefollowing:

• Regional-basedStateorPrivatestateuniversitiesandcolleges(SUCs),NGOs,

theRegionalDevelopmentCouncil’sEconomicDevelopmentCommittee(RDC-

EDC),andtheDTIRegionalOfficeand;

• RelevantNLAsincludingattachedagencies.

TheRPCOI-REAPwillbecomplementedbyatleastfour(4)businessdevelopmentstaff/team

with the following specialization: finance, marketing, technical and organizational. The

finance staff for business developmentwill provide support in developing the enterprise

budget, financial analysis, financial management system, and other finance-related

requirements; themarketing staffwill assist the enterprise in developingmarketingplan,

linking with potential buyers and develop marketing communications for the enterprise

productsand/orservices;technicalstaffshallassistinidentifyingthetechnologyrequiredfor

theenterprise and its adaption and implementation aswell as identificationof livelihood

optionsforNRMandGEFsites;andtheinstitutionalandorganizationaldevelopmentstaff

shallassistindevelopingthebusinessstructurefortheenterprise,staffingrequirement,job

descriptionandqualificationandcapacitybuildingrequirementsfortheproponentgroupand

itsproducers. Theminimumqualification for the I-REAPRPCOstaff include the following:

collegegraduateof any course related toagriculture (e.g.BSAgriculture,BSFisheries,BS

Agricultural Economics, Agribusiness Management, Agricultural Engineering etc), and

accounting,managementandengineering courses. SeeAnnex5forthesampleTermsof

Reference for the business development staff/team. Additional technical staff may be

requestedbytheRPCOdependingonthenumberofapprovedsubprojectsandthetypeof

enterprises.

3.2.5 P/C/MPMIU

AnI-REAPProvincial/City/MunicipalTeamundertheP/C/MPMIUwillbeorganizedtoperform

thefollowingfunctions:

a. Serve as Component’s management and supervision team and focal point for

coordinationofallprovincialI-REAPimplementationactivities;

b. ParticipatewiththeI-PLANComponentasleadinthereviewandpreparationofthe

PCIP;

c. SpearheadinprioritizingenterprisestargetedforI-REAPfundingbasedonthePCIP;

d. Formulatebusinessmodelorframework;

e. Conductorientationofpotentialproponentgroupandselection;

f. Assisttheproponentinthebusinessplanpreparation;


I-REAPComponent

18

g. PackagethebusinessplanforI-REAPfunding,theEAandtheIMA;

h. Review the compliance of the required documentary requirements (Checklist of

requirements and Tracking Form) before forwarding the same to the RPCO and

checklistshallbeattachedtothetransmittaltoRPCO.

i. Developpartnershipwithagencies thatcanrenderbusinessdevelopmentservices,

researchandextensionsuchasthefollowing:

• Provincial-basedStateorPrivateSUCs,NGOs,ProvincialDevelopment

Council’s(PDC)EDC,andtheDOSTandDTIRegional/ProvincialOfficeand;

• Otherrelevantprovincial-basedNLAsincludingattachedagencies.

j. MonitortheimplementationoftheI-REAPComponentintheprovince;

k. ProvideregularreportsontheoverallimplementationofI-REAPtoRPCO;

l. ConductI-REAPIECactivitiesintheprovince;and

m. Develop capacity building proposals to strengthen the capacities of the LGUs to

providetechnology,informationandenterprisedevelopmentsupporttoagri-fishery

sectorplayers.

The Provincial/City/Municipal Agricultural Officer (PAO) is recommended to be the

P/C/MPMIUI-REAPHead.ABusinessDevelopmentTeamshallbecreatedattheLGUlevel

whowillberesponsibleinassistingtheProponentGroupsinthepreparationofthebusiness

plans,compliancetoreviewsandrequirementsandfinalizationandpackagingofthebusiness

plansincludingtherequiredattachments.I-REAPTeam.

3.3 Capability Building Program for Project Implementers

Priortoandduringimplementation,technicalassistancewillbeprovidedtotheNPCO,PSO,

RPCO, P/C/MPMIU/LGUs and to the PG to develop knowledge, skills and attitudes of the

projectimplementersandbuildtheircapacitytoimplementthePRDPactivitiesparticularly

thoseunderI-REAP.

Capabilitybuildingprogramwouldincludebutnotlimitedtothefollowingareas:

• Businessplanpreparation;

• ParticipatoryResourceAppraisal-ResourcesandSocialAssessment(PRA-RSA)

• Financialmanagement (includingestablishmentof theCFTrustAccount, simplified

financialandmanagementsystem,developmentand installationof theaccounting

system,auditandfinancialmonitoringandcontractadministration);

• Enterprisedevelopment;

• Organizationaldevelopment;

• Marketingmanagement;

• Procurement,

• Socialandenvironmentsafeguards;

• Projectmonitoringandevaluation;

• Contractmanagement;and

• Simplebookkeepingandaccounting


I-REAPComponent

19

ThePSOtogetherwiththeRPCOwilldevelopcapability-buildingprogramsandundertakethe

conductoftheseactivitieswhichwillbefacilitatedandcoordinatedbytheP/C/MPMIU.The

PSO and RPCO may tap other national and/or regional technical agencies, private and

governmentSUCs,andprivatesectorexperts toconductcapability-buildingprogramsand

undertake supportive monitoring visits, in order to ensure timely provision of training

assistanceresponsivetotherequirementsoftheI-REAPenterprises.Thefundthatwillbe

usedintheconductofthecapabilitybuildingactivitieswillcomefromI-REAPSub-Component

3.2.

4. Implementation Procedures and Processes

Thefollowingsectionspresenttheguidelines,activities,processes,andproceduresthatwill

beundertakenintheimplementationoftheI-REAPComponent

4.1 Implementation Process of Subcomponent 3.1 (Rural Agri-fishery

Enterprise and Productivity Enhancement Support)

4.1.1 Requirements for LGU I-REAP Partners

Ingeneral,subprojectswillbeimplementedbytheparticipatingprovincialLGUs.However,in

some instances, when the case warrants, municipal or component city may directly

implementsubprojectsprovidedthattheywillbeidentifiedtohavecriticalroleinthevalue

chainupgradingoftheprioritycommodities.Theirroleshouldbespecifiedintheresultsand

findingsoftheVCA,E-VSAandinthePCIP.TheparticipatingC/MLGUshallalsobewillingto

providethecounterpartfundfortheenterpriseandiswillingtobetheprocuringentityfor

worksandgoodstobeprocuredfortheenterprise.

AparticipatingLGUmustcomplywiththefollowingrequirementsinordertoparticipateand

submitsubprojectsunderI-REAPComponent:

a) MemorandumofAgreementbetweenDAandtheLGU

b) SealofGoodHousekeeping/FinancialHousekeepingissuedbyDILG

c) ApprovedPCIP

d) CertificateofLiquidationfromconcernedDA-RFOforthePRDPI-REAPsubproject

previouslyundertakenbytheLGU.

4.1.2 Requirements for Proponent Groups

ProponentGroup/swho signified interest to implementanenterprise/subproject through

submission of Letter of Intent to the LGU shall comply with the eligibility requirements


I-REAPComponent

20

enumeratedinTable4-1.TheeligibilityrequirementsforthePGdependontheamountof

subprojecttobeproposed.

Table4-1.EligibilityRequirementsforProponentGroupsbyAmountofSubproject

RequirementsEnablingInstrumentsbyAmountofSubproject

MicroEnterprise SmallEnterprise MediumEnterprise

Legalpersonality Maybenewlyregisteredwith

CDA/SEC

CertificateofRegistration

(SEC/CDA/DOLE)

Profileoffarmermembersand

officers

Mustbeatleastregistered

foroneyearwith

CDA/SEC/DOLE

CertificateofRegistration

(SEC/CDA/DOLE)

Profileoffarmermembers

andofficers

Mustbeatleastregisteredforthree

yearswithCDA/SEC/DOLE

CertificationofRegistration

(SEC/CDA/DOLE)

Profileoffarmermembersand

officers

CertificateofCompliance

GoodStandingforCDA

registeredorCertificateof

noDerogatoryRecordfor

SECregisteredorCertificate

ofRegistrationforDOLE

registered

CertificateofComplianceGood

StandingforCDAregisteredor

CertificateofnoDerogatoryRecord

forSECregisteredorCertificateof

RegistrationforDOLEregistered

AuthenticatedorCertified

TrueCopyofArticlesof

Incorporation/Cooperation

and

CopyofBy-Laws

AuthenticatedorCertified

TrueCopyofArticlesof

Incorporation/Cooperation

andCopyofBy-Laws

AuthenticatedorCertifiedTrueCopy

ofArticlesofIncorporation/

CooperationandCopyofBy-Laws

Financialcapability PhotocopyofOfficialReceipt

(OR)foritsfinancial

transactions

PhotocopyofOfficialReceipt

(OR)foritsfinancial

transactions

AuditedFinancialReportsforthe

Last3Years

Organizational

capability

CertifiedTrueCopyofthe

Policies,Systemsand

Procedures(PSP)areinplace.

AccomplishmentReports

andphotographsofagri-

fisheryorrelatedprojects

undertakenforatleastone

year

AccomplishmentReportsand

photographsofagri-fisheryor

relatedprojectsundertakenforat

least3years

CertificatefromtheLGUor

DAthatOfficersand

membershaveattended

basicorganizationaltraining

andtechnicaltraining

requiredoftheirsubprojects.

LGUCertificationonthe

organizationalandtechnical

capabilityofthe

PG

LGUCertificationonthe

organizational,technicaland

financialcapabilityofthePG

AffidavitofDisclosure Aswornaffidavitofthe

SecretaryoftheNGO/POthat

noneofitsincorporators,

organizers,directors,or

officialsisanagentofor

relatedbyconsanguinityor

affinityuptothefourthcivil

degreetotheofficialsofthe

governmentagency

authorizedtoprocessand/or

approvetheproposal,the

MOAandthereleaseof

funds.

Swornaffidavitofthe

SecretaryoftheNGO/POthat

noneofitsofficersare

Aswornaffidavitofthe

SecretaryoftheNGO/PO

thatnoneofits

incorporators,organizers,

directors,orofficialsisan

agentoforrelatedby

consanguinityoraffinityup

tothefourthcivildegreeto

theofficialsofthe

governmentagency


approvetheproposal,the

MOAandthereleaseof

funds.

Swornaffidavitofthe

SecretaryoftheNGO/PO

AswornaffidavitoftheSecretaryof

theNGO/POthatnoneofits

incorporators,organizers,directors,

orofficialsisanagentoforrelated

byconsanguinityoraffinityupto

thefourthcivildegreetothe

officialsofthegovernmentagency


approvetheproposal,theMOAand

thereleaseoffunds.

SwornaffidavitoftheSecretaryof

theNGO/POthatnoneofits

officersareemployeesoftheDAor

theimplementingLGU.


I-REAPComponent

21

employeesoftheDAorthe

implementingLGU.

thatnoneofitsofficersare

employeesoftheDAorthe

implementingLGU.

Liquidation LGUAccountantCertificate

thatthePGhasNo

UnliquidatedAccountorCash

AdvancewiththeLGU

LGUAccountantCertificate

thatthePGhasNo

UnliquidatedAccountor

CashAdvancewiththeLGU

LGUAccountantCertificatethatthe

PGhasNoUnliquidatedAccountor

CashAdvancewiththeLGU

20% equity

requirement

Equitycouldbeallin-kindor

anycombinationofcashorin-

kind

Equitycouldbeany

combinationofcashorin-

kind

Equitycouldbeanycombinationof

cashorin-kind

The followingaretherequireddocumentaryrequirements for theequityof thePGand its

members.

Table4-1.ADocumentaryRequirementsforthePGEquity

TypeofEquity Document Remarks

Cash Bankcertificateunderthenameofthe

PG

Actual amount of cash in bank or

availablecashonhandequivalenttothe

cashequitywillberequiredbasedonthe

WFPandProcPlan

Land Forownedland:

CertificateofLandTitle

Forleaseofland:

Dependingon the infrastructure to be

build(adaptedfromCOACircular2003-

007A):

• Lease Agreement with provision

forrenewaloroptiontopurchase

(Forprivateland)

o Wood–10yearsrenewablefor

another10years

o Mixed–20yearsrenewablefor

another10years

o Concrete–30yearsrenewable

foranother20years

• UsufructAgreementwithprovision

forrenewal(Forpublicland)

In case when the land was donated or

boughtbythePGandthetransferofland

titleisstillon-going,acopyoftheDeed

ofSaleandDeedofDonationmaysuffice

forthebusinessplanapproval

Landshouldhavenoencumbrances.

Landequity shouldbe valuedbasedon

assessedvalueofthelotareathatwillbe

usedfortheenterprise

Labor/Manpower List of workers with corresponding

wageorsalaryratesorPayroll

Listwill be required based on theWFP

andProcPlan

Equipment and

materials

Latestauditedfinancialstatements Shouldbevaluedbasedonbookedvalue

4.1.3 Implementation Procedures and Process

Pre-ImplementationProcess

ThePCIPpreparedunder I-PLANwith the involvementof I-BUILDand I-REAPwill identify

prioritycommodities,productsegments/enterprisesandselectkeystakeholdersthatcould


I-REAPComponent

22

besupportedandfundedunderI-REAPineachprovince.SeeAnnex5ofI-PLANOperations

ManualforthecontentsofthePCIP.

ThePCIPisastrategicplanthatrationalizestheinterventionswithinthevarioussegmentsof

the value chain of commodities that are of significance to the province and that will

contributetothenationalgoalsoftheagricultureandfisherysector.Itisthree-yearrolling

consensus-basedplanbetweentheDAandLGUbasedonthevaluechainanalysesofthese

commoditiesconductedwithstrongparticipationofthevariousstakeholders.ThePCIPwill

bethebasisinidentifyingpossibleenterprisesinwhichaprovincedecidestomakeapackage

ofinvestmentsthattheDAwillprovideassistance,withadequatecounterpartfromtheLGU.

Thepre-implementationprocessshowingtheresponsibleentities/unitsandthestep-bystep

proceduresfortheimplementationofI-REAPenterprises/subprojectsisshowninTable4-2.

Table4-2.SubprojectProcedures,Activities,Tools,OutputsandResponsibilityCenter

Step Procedures/

ActivityWorking

DaysTools Input Output Responsibility

Center

1.EnterprisePrioritization

Prioritizationof

possible

enterprisesper

segmentas

identifiedinthe

PCIP

2 Annex6 VCA,PCIP,

EVSAEnterprisePrioritizationresult

Lead:P/C/MPMIUSupport:RPCO

2.Formulation

ofBusiness

Model/Framework

Workshopin

theformulationofBusinessModel

2

Annex7 VCA,PCIP,EVSAandEnterprise

Prioritization

BusinessModel,

Atleastonepage

descriptionof

thebusiness

modelor

subproject

Lead:P/C/MPMIUSupport:RPCO,

PSO

3ProponentGroupSelection

a.PGSelection 2 Annex9A;

Annex9BPriority,

enterprise,

Letterof

Intentfrom thepotentialPGs w/eligibilityrequirements

Ranking of

potentialPGs,NominatedPG

Lead:P/C/MPMIUSupport:RPCO


I-REAPComponent

23

b.Validation 2 Validation

Form

(Annex10)

Rankingof

potentialPGs,Eligibilityrequirements

ofPGs

Validation

report/

Confirmation

letter

Lead:PSO

Support:NPCORPCO

4.Preparation

ofBPor

Subproject

Proposalinc

all

attachments

andrequirements

a.1.Business

planning

workshop

a.2.Conductof

environmental

andsocial

screeningof

proposed

subproject

a.3Conductof

sitevalidation

andgeotagging

activities

7 Data

Gathering

(Annex11);

Business

Plan

Outline

(Annex12-

A);

Subproject

Proposal

(Annex12-

B)

Businessplan

outline,VCA

DraftBP

including

attachmentsand

requirements

I-REAPInitial

EvaluationForm

Lead:RPCOP/C/MPMIU,PGSupport:PSO

b.Seriesof

business

planning

sessionsand

preparationof

attachments

and

requirements

55 Checklist

andtrackingform

(Annex13-

Aand13-B)

DraftBP RevisedBPincludingattachmentsand

requirements

(IBUILD, SES,

Procurement,

Finance,GGU,M

andE,I-PLAN,M

andE)

Lead:RPCO,

P/C/MPMIU,PGSupport:PSO

c.BusinessPlan

packaging10 Business

Plan

Review

Tracking

Form

(Annex15)

RevisedBP Letterendorsement

fromLGU

Lead:P/C/MPMIU,PGSupport:RPCO

5.SubprojectReviewandAppraisal

BPtechnical

revieww/

commodity/technical

experts

2 I-REAP

Initial

Evaluation

Form

(Annex16);

Business

Planor

Proposal

Appraisal(Annex17)

RevisedBP

endorsedby

LGU

Technical review

report,BPAppraisalsheet,

SESappraisal

report

Lead:RPCO

Technical

ReviewTeam

Support:PSO


I-REAPComponent

24

6.ComplianceReview

Review ofBPsincluding

allattachment

oncomplianceto PRDP

requirementsandcomments

5 TechnicalReviewReport,BPAppraisalSheet,RevisedBP

Compliance

ReviewReport,EndorsementLettertoRPCO

Lead:PSO

Support:RPCO

7.RPAB Approvalofthe

BP1 Final

BusinessPlan

RPABResolution RPCO

8.Issuance

ofNOLConfirmation

ofprojectimplementation

leadingtoprocurement

5 FinalBP NOL Lead:Dependsonthe

thresholdPSO,

NPCO,WB

Theestimatedtotalnumberofworkingdaystocompletethewholeprocessfromenterprise

identification to NOL Issuance 93working days or approximately 4months. The detailed

proceduresarediscussedbelow.

Step1:IdentificationandPrioritizationofProductSegment/Enterprise

The priority interventions identified in the PCIP will be the basis in the identification of

possibleproductsegmentsorenterprises.Theidentifiedproductsegmentsorenterpriseswill

beprioritizedbytheP/C/MPMIUwithguidancefromtheRPCOusingthecriteriasetinAnnex

6todeterminetheenterprise(s)thatwillundergobusinessplanpreparation.Adraftbusiness

modelfortheproposedenterprisewillbepreparedbytheP/C/MPMIUwhichwillbethebasis

ininvitingpossibleProponentGroups.

The criteria thatwill be followed in the prioritization of product segment or selection of

enterprisesareasfollows:

1. Importanceoftheproductsegment/enterpriseinthelocaleconomy(30points)

o Numberofproducersintheprovinceinvolvedassuppliersofrawmaterialsof

theproductsegment/enterprise

o Percentage of municipalities in the province involved in producing the raw

materialsoftheproductsegment/enterprise

o Numberofjobstobegeneratedbytheproductsegment/enterprise

2. Marketpotential(30points)

o Potential for value-addition of the enterprise (in terms of the number of

productsegments)


I-REAPComponent

25

o Strongdomesticand/or internationaldemandfortheproduct(availabilityof

local markets, percentage share to total exports of agricultural products,

percentagesharetototalimportsofagriculturalproductsasimportsubstitute)

o Identifiedindustrialorcommercialbuyerwithpotentialforsupply/marketing

contract

3. Resourcebase(20points)

o Percentageshareofthecommodity/rawmaterialstothetotalagriculturalarea

oftheprovince/totallivestockpopulation

o Percentage share of the commodity/raw materials to the total agricultural

volumeofproductionoftheprovince/totalfishcatch/totallivestocktraded

4. Environmentalimpact(10points)

o Impactoftheenterprisetotheenvironment(positive,neutralornegative)

5. Women’sparticipation(includingindigenouspeople(IP))(10points)

o Percentageofwomendirectlyandindirectlyparticipatingintheenterpriseand

along thevalue chainof theenterprise including the forwardandbackward

linkages

TheYear1subprojectsoftyphoonYolanda(Hainan)andtheareasaffectedbytherecent

earthquakeinBoholareexemptedfromthisstepbecauseoftheirexemptionfromVCA

andPCIPpreparation.Itisunderstoodthattheseareaswouldneedimmediatelivelihood

support and income augmenting activities. This exemptionwas further extended to

micro-enterprise subprojects that would fall under rehabilitation or restoration

subprojectsinareasaffectedbycalamityandconflicts.

Step2:BusinessModel/FrameworkFormulation

Once theproduct segment is selected, theP/C/MPMIUassistedbyRPCOwill formulatea

businessmodel. This istoensurethatcommodityfarmerswillbenefitfromtheproposed

enterprise.

The business model will be captured in 1 to 3 pages that will cover the hereunder key

questions:

1. Whatistheproductorservicesthatcouldbeofferedbytheenterprise?

2. WhoaretheUSERs(Farmers)orDIRECTBENEFICIARIESoftheenterprise?Whoare

theBUYERS?(identifiedmarket)

3. What is the problem and gaps that the enterprise will address? What are the

opportunitiesthattheenterprisewilltakeadvantageof?

4. Whatistheuniquesellingproposition?

5. Whoarethebusinesspartners?(horizontalandverticallinkages)

6. Whatarethecostsinvolved?


I-REAPComponent

26

7. Whataretherevenuestobegeneratedofthebusiness?(comparisonbetweenwith

orwithoutPRDPinterventions)

8. Howcanthefarmersearnfromtheenterprise?

Dataneedsforthepreparationofbusinessmodel/frameworkarefromVCA,PCIP,Socio-

EconomicProfileofanLGUandothersourcesofdataandinformation.SeeAnnex7forthe

GuideinBusinessModelFormulation.

Step3:SelectionofProponentGroupandSubmissionofLetterofIntent

The P/C/MPMIU will send letter of invitation to possible proponent group (PG) on the

prioritizedenterprisewithbriefdescriptionofthedraftbusinessmodel.Aprojectorientation

onthecontentofthedraftbusinessmodelmaybepresentedtothepotentialPGs.Thelistof

PGwillcomefromthedirectoryofproducergroupsandgroupofindustryplayersidentified

inthevaluechainandincludedinthePCIP.

TheinterestedProponentGroupwillsubmitLetterofIntent(LOI)(templateinAnnex8)with

the statement of compliance on the eligibility criteria together with the eligibility

requirementsidentifiedinTable4-2A,totheP/C/MPMIUaddressedtotheGovernor.TheLOI

will serve as the PG’s expression ofwillingness to participate or undertake the proposed

enterprise.

Step3.A:SelectionofProponentGroup

ThepossiblePGs that submitted LOIwith completeeligibility requirements (basedon the

levelof intervention)willbeevaluatedbytheP/C/MPMIUwiththeguidanceoftheRPCO

usingthefollowingcriteria(Annex9-Aand9-B9).ThehighestrankingPGwillbeselectedas

theLeadProponentwiththepossibilityofworkingwithotherproponentsascluster.

ForMicroEnterpriseSubprojects

1. Atleast15ormorefarmer/fisherfolkcurrentlyproducingthecommodity(5points)

2. Opentoinvestmentsbyenterprisesoperatingwithinprioritycommodityvaluechains

identifiedinthePCIP(5points)

O Valueofinvestment/equityoffered

3. Readinesstoworkinverticalcluster(5points)(alllevelsofPGinterventions)

O Stakeholdersparticipationatvariousphasesofthemarketingchain

O Presenceoforganizedproducer’sgroupthatsuppliesrawmaterials

4. Performancebasedonpreviousorexistingcontractswithotherfundinginstitutions

(5points)

ForSmallandMediumEnterpriseSubprojects

9ForPGwithoutpreviousorexistingcontractwithotherfundinginstitutions,ratingforcriteria1to3shouldbe

pro-ratedtoreach20points(e.g.,criteria1=7points,criteria2=6points,criteria3=7points).


I-REAPComponent

27

1. Engagesthemostnumberofproducers(5points)

O Noofparticipatingfarmersorproducers

2. Readinesstoworkinverticalcluster(5points)

O Stakeholdersparticipationatvariousphasesofthemarketingchain

O Presenceoforganizedproducer’sgroupthatsuppliesrawmaterials

3. Opentoinvestmentsbyenterprisesoperatingwithinprioritycommodityvaluechains

identifiedinthePCIP(5points)

O Valueofinvestment/equityoffered

4. Performancebasedonpreviousorexistingcontractswithotherfundinginstitutions(5

points)

ForSEC registeredassociationswhose registration isnon-stockornon-profitorganization,

they may be eligible to be the Lead Proponent Group provided that the Articles of

Incorporationstatethattheyaremandatedtoengageinincomegeneratingactivities.

Incasesofclusteringofproponents,aLeadProponentfromamongtheproponentgroups

mustbeidentifiedwhichwillserveastheleadfirmormainproponentoftheenterprise.The

LeadProponentwillbetheauthorizedrepresentativeofthemembersofthePGinsigning

theEAwiththeLGU.TheEAwillindicatetherolesandresponsibilitiesofthePG,theLead

ProponentandtheLGUasdiscussedinthejointbusinessplan.Itwillalsoindicatethefund

allocationanditsliquidationaswellastheidentificationoftheprocuringentityforgoodsand

worksthatwillbeneededintheenterprise.AsupplementalagreementbetweentheLead

ProponentandthemembersofthePGshouldbeattachedandformanintegralpartofthe

EA.

TheLeadProponentwillbedeterminedaccordingtothefollowingcriteria:

• Abletoprovidetherequiredequityof20%ofthetotalenterprisecost

• Acceptabletoallclustermembers;

• Broadnetworkwithinthecommoditysector;

• Accesstotechnicalandfinancialresources;and

• Proventrackrecordinmanaginganorganizationandanenterprise.

Insomecasesandatacertainextent,theLGUwillonlybeallowedtobeaproponentofan

enterpriseunderALLofthefollowingconditions:

• Absenceofprivate investment in theproposedenterprise inaprovincedue to

peaceandordersituationoritissituatedinremoteareas;

• Lackofcapableproducergrouptoundertaketheproposedenterpriseduetoits

nature i.e. highly integrated along the value chain that would affect themost

numberoffarmersandfishersinthearea;and

• WillingnessoftheLGUtoinvestonspecificenterprises.


I-REAPComponent

28

Step3.B:ProponentGroupValidationandEvaluation

The PSO shall conduct site and PG validation after the P/C/MPMIU has identified the

enterpriseandPGwhowillimplementtheenterprise.ThePSOshallissuetheConfirmation

LetterwithrecommendationstotherespectiveRPCOscopyfurnishtheNPCO.RefertoAnnex

10ValidationandScoreSheet).

TheNPCOmayassistintheconductofsitevalidationandPGevaluationaftertheP/C/MPMIU

hasidentifiedtheenterpriseandthePGwhowillimplementtheenterprise.

Step4:BusinessPlanPreparationandFinalization

Step4.A.1:ConductofTraining/WorkshoponBusinessPlanning

UponselectionofenterpriseandPG,theRPCOwillarrangeameetingtobeattendedbythe

P/C/MPMIUandtherepresentativesofthePGtodiscussthefollowing:

• Data needs for the preparation of the business plan, process of gathering data,

sourcesofdata,andtaskingofwhowillgatherpertinentdata(SeeAnnex11)forGuide

QuestionsforBusinessPlanData/InformationGathering).

• Conduct of the PRA-RSA for the set of prioritized enterprises that have significant

dependence/relationswithnaturalresourcebase

• Finalize schedules of the data gathering activities, the conduct of the business

planningtraining/workshopandPRA-RSAtraining.

TheRPCOwiththeassistanceofthePSOwillfacilitatetheconductoftheBusinessPlanning

WorkshopandassistthePGandtheP/C/MPMIUinpreparingthebusinessplan.

The participants to the Business Planning Workshop will include but not limited to the

following:

• RepresentativesofthePG;

• P/C/MPMIUHeadandI-REAPHead;

• ConcernedLGUstaff(PPDO,OPAg,OPV,etc)

• MunicipalAgricultureOfficer(MAO)ofthemunicipalitywheretheenterprisewillbe

located;

• RPCOI-REAPHead

• AMADstaff;and

• Concernedunitsoragenciesorcommodityexperts

• Industryexperts/practitioners

Theoutputoftheworkshopwillbethedraftbusinessplan(SeeAnnex12-AfortheBusiness

PlanOutlineandAnnex12-BfortheSubprojectProposalformicroenterprises).Tomaximize

resourcesandenhancethelearningexperience,two(2)groupsofproponentsofenterprises,

asapplicable,willundergoaBusinessPlanningWorkshoptogether.


I-REAPComponent

29

Atthispoint,subprojectbaselinedatashouldbegatheredofwhichinformationwillbeused

inthepreparationoftheSubprojectProfileincludingfarmersprofile.Thedatagatheringwill

bedonejointlybytheRPCOI-REAPandRPCOMandE.Thesubprojectprofilewillbeuploaded

intheweb-basedMISwhilethefarmersprofilewillbeattachedtothebusinessplan.Guide

ingatheringthebaselinedataispresentedinAnnex13.

During thepreparationof theBusinessPlan, the termsof thebusiness arrangement (e.g.

PartnershipAgreement, LeaseAgreement, LeasePurchaseAgreement, etc.), between the

LGUandtheProponentGroupwillbethoroughlydiscussedandtheagreedtermswillform

partoftheBusinessPlan(specificallyontheoperationalplanandthefinancialsectionsofthe

businessplan).

An enterprise with infrastructure component will be proposed under I-BUILD. It will be

requiredtohaveDetailedEngineeringDesign(DED)followingtheguidelinessetintheI-BUILD

Operations Manual and should conform to the Social and Environmental Safeguards

Framework of the project. Refer to the I-BUILD Operations Manual and Integrated

EnvironmentalandSocialSafeguardsFramework(IESSF)forthechecklistofrequirementsand

procedures.

Step4-A.2:ConductofParticipatoryResourcesAppraisal-ResourcesSurveyand

Assessment(PRA-RSA)forGEFAreasandSubprojectwithNRMInterventions

TheconductofPRA-RSAshouldbuildontheresultsoftheVCA.TheNRMinterventionsfor

theprioritycommodityshouldbeidentifiedinthePCIP.Anenterprisethatwillbeestablished

inGEFareasand/orisresource-basedshouldbesubjectedtoarapidPRA-RSAofwhichNRM

interventions will be included in the business plan. (See Annex 2.A for possible NRM

interventions)

AllsubprojectsidentifiedinGEFsitesshouldhavePRA-RSA.

Theconductofenterprise-basedrapidPRA-RSAwillbejointlyconductedbytheRPCOandthe

P/C/MPMIU.Preferably,thePRA-RSAwillbeledbytheRPCO’sNRMfocalperson,actively

supportedbythePSO’sNRMSpecialist.IfcapacitytodothePRA-RSAisnotpresentatthe

RPCOlevel,thePSOhastheoptiontoengagetheservicesofaconsultanttoaugmentthe

limitationsoftheRPCO.

Theactivitiesandoperational featuresof thePRDPPRA-RSA isa simplifiedandpurposive

adaptationoftheMRDP2PRA-RSAdesign.ForalltheGEFsites,inventoryandassessmentof

thecoastalresourceswillbeconducted.

TheguideintheconductofthePRA-RSAispresentedinAnnex15.


I-REAPComponent

30

Step4.B:BusinessPlanningSessions

Within 55 days, the PG and the P/C/MPMIU will finalize the business plan and all its

attachmentsincludingDetailedEngineeringDesignfortheinfrastructurecomponentofthe

enterprise,SocialandEnvironmentalSafeguards(SES)document/s,asapplicable,Workand

FinancialPlan (WFP),ProcurementPlan (PP),geotagpicturesof theproposed I-REAPsub-

project and its location and other supporting documents or attachments as necessary.

(PleaserefertothefollowingOperationsManualandGuidelinesforguidance:Supplemental

Guidelines for I-REAP Civil Works, IESSF for I-REAP Subprojects, Geotagging of I-REAP

Subprojects,FinancialManagementandProcurementGuidelinesforI-REAPSubprojects).

Step4.C:BusinessPlanPackaging

The business plan, the WFP, PP, and DED and SES documents will be packaged by the

P/C/MPMIUandshouldbeapprovedbytheGovernor.Uponapprovalofthesedocuments,

the P/C/MPMIUwill prepare the Endorsement Letter to be signed by the Governor. The

P/C/MPMIUshallsubmitthebusinessplanandallitsattachmentsinsoftandhardcopyto

theRPCO.SeeAnnex14AforChecklistofRequirements

Step5:SubprojectReviewandAppraisal

Upon receiptof the completepackageof thebusinessplan includingall attachmentsand

documentary requirements with letter endorsement from the Local Chief Executive, the

RPCO will convene the Technical Review Committee which will be composed of

representatives from the different units and components of PRDP, commodity experts,

industryexpertsandpractitionersandothertechnicalexpertsasmaybedeemednecessary.

ATechnicalReviewReportshallbepreparedprovidingdetailsontheessentialelementsof

thebusinessplanandthefindingsoftheTechnicalReviewCommittee.Thebusinessplanwill

beevaluatedusingtheguidequestions inAnnex12andtheSubprojectAppraisalForm in

Annex13.Basedontheevaluation,thebusinessplanwillbereturnedtotheP/C/MPMIUand

thePGforrevisionandcompliancetofindings.ThedulyaccomplishedSubprojectAppraisal

Form(Annex15),checklistandrecommendationstorevisedbusinessplanshallbeforwarded

LGUforcompliancetothetechnicalReport.Abusinessplantrackingformshouldbeprepared

tokeeptrackofcommentsandcompliances(Annex16).

Step6:ComplianceReviewReport

ThePSOwillconductComplianceReviewonthesubmittedrevisedbusinessplanincludingall

attachmentstocheckitscompliancestoPRDPrequirementsandthecommentsandfindings

in the Technical Review. Depending on the review of the PSO, the business plan will be

returnedtotheRPCOforrevisionandcomplianceoftheP/C/MPMIUandthePG.However,

ifthereviewissatisfactory,therevisedbusinessplantogetherwiththeComplianceReview

ReportwillbeendorsedtotheRPCOfortheschedulingofRPABdeliberation.


I-REAPComponent

31

Step7:RPABApproval

Uponapproval,theRPCOservingasthesecretariatoftheRPABwillpreparethe‘Noticeof

Approval’andtheRPABResolutiontobesenttotheP/C/MPMIU.Thiswillbethebasisfor

thepreparationoftheIMA.

A template for the preparation of the IMA is shown in Annex 17.A for subproject with

EnterpriseDevelopmentonlyand14.BforEnterpriseDevelopmentwithCivilWorks.

Step8:IssuanceofNOL

ThefollowingthresholdwillbefollowedfortheissuanceofNoObjectionLetter.

NOL1IssuingOffice Threshold

PSOLuzonA

Allsubprojectswithtotalenterpriseprojectcost

notmorethanUS$300,000.00

PSO (Luzon B and

Visayas)

LP+GOPamountofthetotalenterpriseproject

costnotexceedingPhP5Million

Mindanao Allsubprojectswithtotalenterpriseprojectcost

notmorethanUS$1Million

NPCO LP+GOPamountofthetotalenterpriseproject

costabovePhP5MillionbutbelowPhP15Million

Allfirstmicro-enterprisesubprojectpercluster

WorldBank LP+GOPamountofthetotalenterpriseproject

costPhP15Millionandabove

TheNPCOatanytime,dependingontheresultoftheperformancereviewevery6months,

lift the authority given to the PSOs in the issuance of NOL for start-up and upgrading/

expansionsubprojects.

Step9:SigningoftheIMAamongPSO,RPCOandLGUandthePreparationofEAbetween

theLGUandthePG

Step9.A:SigningoftheImplementationManagementAgreement(IMA)

UponissuanceofNOL,theRPCOwillprovidecopyoftheNOLandtheRPABResolutiontothe

LGU.TheP/C/MPMIUwillproceedtothefinalizationandsigningoftheIMAwhichwillbethe

basisinthepreparationoftheEA.OnlyoneIMAwillbepreparedforI-REAPsubproject.The

LGUwillprepareandendorsetheIMAtotheRPCO,whichwillthenendorsethesametothe

PSO, with the following documents: a) Sangguniang Panlalawigan/Panlungsod/Bayan

ResolutionAuthorizingtheLocalChiefExecutivetosigntheIMA;b)AppropriationOrdinance

for the LGU equity; c) Approved business plan; d) ApprovedDED and POW; e) Approved

ProcurementPlan;f)ApprovedWorkandFinancialPlan;ande)NOL.


I-REAPComponent

32

TheLGUmayalsoincludeintheendorsementofthesignedIMA,therequestfortheissuance

ofCertificateastoAvailabilityofFund(CAF).

UponreceiptoftheIMAandtherequestforCAF,theRPCOwillreviewandsigntheIMAand

endorsethesametothePSO.

ThePSOwillreviewtheIMAandsignthesame.ThePSOwillalsoreviewtherequirementsfor

theissuanceofCAFandiffoundthedocumentsinorder,willprocesstheissuanceofCAF.

ThePSOthroughtheRPCOwillprovidethesignedIMAandtheCAFtotheLGU.

Step9.B:SigningoftheEnterpriseInvestmentAgreement(EA)

After finalizingand signing the IMA, thedraft EAwill be finalizedby theP/C/MPMIUand

endorsedtotheRPCOforreviewandapproval.SampleEAisshowninAnnex18.Uponreview

andapprovalof theRPCO,theEAwillbeforwardedtotheGovernor forhisapprovaland

signature.

Step10:ProcessingandReleaseoftheEPF

The PSOwill release the Enterprise Project Fund to the LGU at least two tranches or as

providedintheIMAbasedontherequirementsoftheenterpriseasstipulatedinthebusiness

plans,procurementplanandworkand financialplan (WFP).For the infrastructureorcivil

workscomponentoftheenterprise,thefundreleaseswillfollowtheI-BUILDprocess(Refer

toI-BUILDOperationsManualandFinancialManagementGuidelinesfortheprocedures).

Formicro-enterprise subprojectswithone-itemor single itemprocurement, fundmaybe

releasedtotheLGUusingonetrancheonly.TheWorkandFinancialPlanwillbethebasisin

thefundreleases.

TherequirementsforthereleaseoffundtotheLGUareasfollows:

a. RequirementforIssuanceofCertificateastoAvailabilityofFund(CAF)

1. Approved,signedandnotarizedIMAbetweenthePSOandLGU

b. ForInitialRelease

a. Approved,signedandnotarizedIMAbetweenthePSO,RPCOandLGU

b. AppropriationOrdinancefortheLGUequity

c. CAF

d. ApprovedProgramofWork,ProcurementPlanandWorkandFinancialPlan

e. LetterfromLCErequestingRPCOforthereleaseoffundsinaccordancewiththe

IMA

f. BankcertificationfortheopeningofaccountsofLoanand/orGrantProceedsand

GOPCounterpart


I-REAPComponent

33

g. BankcertificationofLGUequityreflectingfulldeposit(100%)ofequityshareinthe

enterprise

h. EndorsementbyRPCOtothePSOontherequestofLGUforthereleaseoffunds

c. ForSucceedingandFinalRelease

a. LetterfromLCErequestingforthereleaseoffunds

b. SubmissionofSREfortheliquidationofatleast70%ofthepreviousrelease

c. Certifiedcopiesofsupportingdocuments

d. Geotaggedphotosofaccomplishments

e. ValidatedrequiredaccomplishmentreportasstatedintheIMAandEA

f. EndorsementfromRPCOtothePSOontherequestofLGUforthereleaseoffunds.

ThePSOuponprocessingofthefirsttranchewillissueacheckorletterofadviceandtransfer

thefundinthenameoftheLGUforPRDPSubProjectTrustAccountbasedontheoriginal

copy of Bank certification submitted by LGU. The LGU will issue its Official Receipt or

ConfirmationLetterorAcknowledgementReceiptwithinthree(3)daysuponconfirmation

thatfundshadbeencredited.

ThefinancingmixforI-REAPfundingisshowninTable4-3.

Table4-3.FinancingMixforI-REAPFunding

WB-Loan

Proceeds(LP)

GoP–DA GEF LGU

Counterpart

Total

Enterprise

Project

Cost

60% 20% 0 20%

Total

Enterprise

Project

Cost-GEF

0 0 80% 20%

ThetotalEPCisnetofthe20%PGequityfromthetotalinvestmentcost.ThePGequitymaybe

intheformofcashand/orinkindsuchasland,labor,equipmentandmaterials,amongothers.

Thelandequityshouldhavenoencumbrances.

IncaseofGEFidentifiedenterprise,thefinancingmixis80%oftotalEPC-GEFand20%from

the LGU as equity. Types of activities applicable for GEF financing would include

implementation support for improved conservation, technical training, awareness-raising,

andknowledgesharing.RefertoGuidelinesintheImplementationofGEF-fundedSubprojects

fortheproceduresandrequirements.

TheLGUshallprovidetherequired20%LGUcounterpart.


I-REAPComponent

34

Step11:ReleaseofI-REAPfundfromtheLGUtothePG

TheLeadProponentwillopenaseparatebankaccount,preferablycurrentaccounttoany

governmentorcommercialbanks,butpreferablyLandBankofthePhilippines,fortheI-REAP

fund.TheLGUwillreleasethefundsbasedontheapprovedWFPasstatedintheEA,upon

submissionofthefollowingrequirements.

1 Approved,signedandnotarizedEAbetweentheLGUandthePG;

2 ApprovedWorkandFinancialPlan(WFP);

3 BankcertificationoftheBankAccountinthenameofPG;

4 DocumentshowingthatPGhasequityequivalenttotwentypercent(20%)ofthetotal

incrementalenterprisecost.Forcashequity,bankcertificationreflectingtheamount

ofequitydeposit.Incaseofequityinkind,suchasland,buildingorequipment,the

valuationshouldbebasedonbookvalue;

5 Certified photocopyof the PurchaseOrder/MarketingAgreement/Contract for the

releaseoftradingcapital,asappropriate.

Step12:ImplementationoftheProposedEnterprise

TheP/C/MPMIU in coordinationwith theRPCOwill conductpre-implementationmeeting

withPGanditsmembers

The PG will implement the enterprise as detailed in theWork and Financial Plan of the

approvedbusinessplan.

TheP/C/MPMIUwillconductregularmonthlymonitoringandreportingoftheprogressofthe

enterprise implementationtotheRPCO.TheRPCOwillprocessthereportandsubmit the

processeddatatothePSO.ThePSOwillconsolidatethereportssubmittedbythedifferent

RPCOandwillsubmittheprogressreporttotheNPCO.

Uponliquidationofthe70%ofthefundpreviouslydownloadedtothePG,itcanrequestthe

releaseofthesucceedingorfinaltranche.

Step13:SubmissionofCompletionReportbytheP/C/MPMIU

After the full release (100%) of the EPF to the LGU and the PG and completion of the

subproject implementationasstatedintheWFP,theP/C/MPMIUwillnotify inwritingthe

RPCOthatthesubprojecthasbeencompleted.TheRPCOwillmobilizetheJointInspection

TeamwhichshallbecomposedofrepresentativesfromthePSOandRPCOI-REAP,I-BUILD

(when there is civilworks),GGU,Procurement and SES to validate the completionof the

subproject.

Step14:TurnOveroftheCompletedSubprojecttothePG


I-REAPComponent

35

Uponsubmissionof reportof the Joint InspectionTeamandwithsatisfactory remarkand

acceptanceof completedsubprojectby theRPCO, theLGUshall turnover thecompleted

subprojecttothePG.Theturnovershallincludeallgoodsandworksprocuredandfunded

byPRDP.ACertificateofTurnOverwillbeissuedbytheLGUtothePG.

4.1.3.1 Implementation of I-REAP Subprojects in Areas Affected by Natural

Calamities and Conflict

PRDPwouldpayspecialattentiontothoseareasaffectedbytoareasaffectedbyTyphoon

Yolanda(Haiyan)andtheearthquakeinBoholduringthefirstyearofprojectimplementation

(SeeAnnexAforthe list).Thetypesofenterprisesandinfrastructuretobesupportedare

flexibleintheseaffectedareassuchthatitwillspecificallytargetthegaps.Forexamplesmall-

scalefarmersandfisherswhohavelostproductiveassets(boats,coconuttrees,etc.,)coconut

nurserydevelopmentlinkedwithreplantingbygroupsofsmall-scalefarmersorboatbuilding

linked to fisheries or seaweed production, among others. Annex 20 provides for the

supplementalguidelinesintheimplementationofI-REAPsubprojectsintheaffectedareas.

I-REAPsubprojectsinareasaffectedbytyphoonHaiyanandtheearthquakeinBoholwere

eligible for support without necessarily being alignedwith PCIPs. This exemptionwas

furtherextendedtoaffectedfarmersandfishersofthesubsequentnaturaldisasterssuch

astyphoonLandoandNonain2015.

Itwasagreedthatallnewenterprisesubprojects,includingmicro-enterprisesshouldbe

basedonVCAsandalignedwithprioritiesofthePCIPs.However,formicro-enterprises

thathavealreadypassedRegionalProjectAdvisoryBoard(RPAB)Approval,processingcan

continue. In addition, recognizing the fact that PRDP has established considerable

capacity,robustmechanismsandproceduresthroughwhichtheDAcanrespondtofuture

declareddisastersandcalamities,amaximumofUS$9Million (10%)of theLoanFunds

allocatedtoSub-component3.1canbeused insuchcasesformicroenterprises (PhP1

Million below),without the need for their alignmentwith priorities established in the

PCIPs.

4.1.4 Private Sector Partnership with the Proponent Group

The P/C/MPMIU in its efforts to increase the integration of smallholder producers in

performing remunerative value chains may develop and implement productive alliances

between smallholders and the private sector aimed at improving market access of the

producersgroupinthearea.Inthiscase,theP/C/MPMIUwillinviteprivatesectorasbusiness

partnersinprovidingsupportservicestotheidentifiedproducersgroup.Thisistrueforvalue

chainor subprojects thatarehighly integrated suchas cacao, coffee,geonet,andpoultry

amongothers.Thecriteriaforselectingprivatesectorpartnercouldincludethefollowing:


I-REAPComponent

36

• Committed to enter into marketing contract or buy back agreement with the

producersgroup

• Willundertaketechnologytransferontheprovidedgoodsand/orservices

• Financialandorganizationalcapabilitytoundertaketheproposedenterprise

• Established actual experience in undertaking or implementing the proposed

enterprise

ThebasisforinvitingoracceptingtheparticipationoftheprivatesectoristhePCIPproposed

interventions. Specifically private sectors are expected to complement the proposed

interventionswithnoexistingvaluechainplayersorstakeholders.Examplesincludeinvestors

orcompanieswillingtoputupprimaryorsecondaryprocessingfacilitiesandwouldrequire

localrawmaterials(e.g.fermentedcacaobeansasingredientforchocolate).Otherexamples

are companies thatwill add local investments in product or technology innovations (e.g.

coconutfiberasrawmaterialforrubberizedmat).

The private sector, with its available advance technology and who needs quality raw

materials,willforgeagreementwiththeLGUinbehalfoftheproponentgroup.Theprivate

sectorshouldalsobeidentifiedtohavecriticalroleinthecommodityvaluechainandcould

provide technical assistance to thePGsand serveasmarket /buyerof the rawmaterials

producebyfarmers.

PrivatesectorsinvitedbytheproponentLGUmustsubmitinvestmentproposalsbasedonthe

enterpriseidentifiedandthefollowingrequirements:

a. MustberegisteredunderPhilippineLawsforatleast5years(SECregistration

asstockcorporationwithCertificateofGoodStanding)

b. Musthaveequityinvestmentofatleast50%ofthetotalprojectcost

c. Proofoffinancialstabilitywiththreeyearsauditedfinancialreports

d. Companyprofile

e. Certification from government or non-government organizations on the

performanceoftheprojectscompletedorpartnershipwithindustrysectorfor

thepastthreeyears

TheP/C/MPMIUtogetherwithRPCOwillevaluatethesubmittedinvestmentproposalswith

considerationsontheconsistencytotheVCAfindingsandtheE-VSAresultforthelocationof

theproposedinvestments.TheproposalwillthenbesubmittedtothePSOforfurtherreview

onthecomplianceswithPRDPrequirementsandendorsethesametotheNPCOandWBfor

issuanceofNOL.

4.2 GEF Supported Activities

4.2.1 Pre-Implementation

Amorepurposivepre-implementationprocesswasconductedforidentifyingtheGEFsites.

Thisfeaturewasmainlytoensurethatthesiteshavebothsignificanceintermsofthepriority


I-REAPComponent

37

commodity in the region and province, and the level of biodiversity. As part of the pre-

implementationprocess,theDAandDA-BFARcreatedalistofcandidatesitesthatarelisted

aspriorityconservationareas,andhavebeenidentifiedbyDA-BFARaskeymarineandcoastal

resourceproductionareas.Theinitiallistofcandidatesiteswerefurthertrimmeddownbased

onspecifictechnicalandoperationalconsiderations.

ThefollowingarethefinalGEFsitesforPRDP:

a. TayabasBayinQuezonProvince(Region4A),

b. GuimarasStrait,GuimarasProvince(Region6),

c. GuiuanCoast,EasternSamarProvince(Region8),

d. DanajonBank,BoholProvince(Region7),

e. Donsol-Ticao-BuriasPass,SorsogonandMasbateProvinces(Region5),

f. GreenIslandBay,PalawanProvince(Region4B).

All of these project sites have been listed as priority conservation areas in the National

BiodiversityStrategyandActionPlan(NBSAP)andfurtherlistedaskeymarinebiodiversity

areas by the International Union for Conservation of Nature (IUCN), Conservation

International(CI),andDENR.TheDA-BFARalsorecognizesthesesitesasmajorcoastaland

fisheryresourceareas.Theseareaspossessgloballythreatenedspeciesthatarecategorized

undertheIUCNRedListascriticallyendangered(CE),endangered(EN)orvulnerable(VU).

Threatstothesesixsitesrangefromunsustainablefarmingandfishingpracticesresultingin

soilerosionandsiltationofcoastalzones,illegalfishing,over-fishingandover-exploitationof

resources.Climatechangeisexpectedtocontributetothesethreatsandnegativeimpacts,

as coastalanduplandcommunitieshave limitedcopingandadaptationcapacities.Within

eachGEFtargetarea,theGEFfinancedactivitieswillbeconcentratedincloseproximityto

PRDPareaswherethereisacommodityvaluechaininordertobetterintegratesustainable

ecosystemmanagement.Hence,MPAswouldbeselectedforGEFfinancingbasedontheir

distance fromPRDPareas, theirglobalbiological significanceandwhere localdemand for

improvedmanagementeffectivenessishigh.

GEF supported activitieswould be integrated into the components of I-PLAN and I-REAP.

Identification of NRM and conservation activities in the GEF sites will follow the normal

prioritizingandplanningproceduresoftheI-REAPcomponent.Thus,thetypesofactivities

supportedateachGEFtargetareawouldbeadaptablebasedonregionalandlocalneeds,as

contained in the PCIP and specified in the business plan. The types of supportwould be

catalytic in terms of ensuring that biodiversity conservation and coastal resources co-

management arrangements are included in thedeterminationof interventionsneeded to

supportcommodityvaluechains.

Through theseGEF-supported activities,measureswill be taken to protect or restore the

componentsofbiodiversitythatcontributetoecosystemfunctioningandlocaldevelopment.

ThetypesofactivitiessupportedateachGEFtargetsitewillbeadaptablebasedonregional

andlocalneeds.Specificactivitieswillbeselectedatthesitelevelbasedontheinformation

generatedbytheVCA,PRA-RSA,andGEFTrackingTools.


I-REAPComponent

38

Subcomponent3.1:Rural Agri-fishery Enterprise, Productivity and Sustainability

Enhancement

Thetypesofsupportavailabletoeachsitewillinclude:

1. EnhancementofTechnicalandOperationalCapacitiesofStakeholders-Trainingfor

smallholder farmer and fisher groups on natural resources management and

conservation strategies such as Participatory Resource Assessment (PRA) on

mangrove,sea-grassandcoralreefecosystemthatarecriticalhabitatstoendangered

marineorganisms;

2. Strategic Awareness Campaigns - These campaigns will focus on biodiversity

conservation,fisheriesmanagementandcoastalresourcemanagementissues;

3. Facilitating Stakeholders to Pursue Co-management Arrangements - Support for

facilitatingandbuildingpartnershipsbetweencommunity/producergroups,market

stakeholders,andlocalgovernments.Consultationsandorganizationaldevelopment

building activities will lead to co-management arrangements over key coastal

resources. These co-management arrangements will increase the likelihood for

sustainabilityandensureintegrativeattentiononconservationandproperresources

managementandutilization;

4. ConservationImplementationInvestments-Examplesofpotentialactivitiesinclude

coastal andmarinehabitat restoration; providing enhanced enforcement capacity;

equipmentandfinancingrequiredforenhanceMPAmanagement;

5. Coastal and Marine Ecosystem Management Implementation - Assisting with the

implementation of strengthened local policy frameworks for improving local

conservationofvitalresourcesinconjunctionwiththecommodityvaluechain.

Subcomponent3.2:TechnologyandInformationforEnterpriseandMarketDevelopment

ThisGEFsupportwillprovideknowledgeandexperiencesharingofgoodpracticesamong

stakeholders. This project will contribute to the IW: LEARN knowledge sharing platform

throughtheestablishmentofaprojectwebsitefollowingIW:LEARNguidelines,participation

intheGEFIWbiennialconferences,andsharingofexperienceswithatleasttwoExperience

Notes. Specificactivitieswill includeagro-forestry;nurseryestablishment;marinehabitat

restoration techniques for mangrove, seagrass and coral reefs, promotion of Sloping

Agricultural LandTechnology (SALT).Moreover,GoodAquaculturePractices (GAP)will be

appliedsuchasenhancementof seedqualityand improvementof stockingpractices,and

habitatmanagementandbio-security.

GEFActivitiesImplementation


I-REAPComponent

39

TheimplementationofGEFsupportedactivitieswillfollowtheGuidelinesforImplementing

GEF-FundedSubprojects

PhilippineRuralDevelopmentProgramOperationsManual

I-REAPComponent

40

ThetotalareacoveredbytheMPAsinthetargetedsitesisabout14,000hectares.AlltheMPAswereestablishedthroughlocalgovernment

ordinancesfollowingtheproceduresundertheFisheriesCode(RA8550).AllMPAsareclassifiedasIUCNCategory-6MPAs(LocallyManaged

MPA).

Target

Sites

Municipalities TriggerSpecies Bio-

Geographic

Zone/LME

MPAs(overallMETT

score)

GEFSupportedActivities

Tayabas

Bay,

Quezon

R.4-A

Sariaya,

Lucena,Pitogo,

Unisan,

Agdangan,

Gen.

Luna,

Macalelon,

Mulanay,San

Francisco,

Catanauan,

Pagbilao,Padre

Burgos

Hawksbill Turtle

Eretmochelysimbricata(CR);

GreenSeaTurtleCheloniamydas

(EN);

Olive-ridley'sTurtle

Lepidochelysolivacea(EN);

Cantherellusnoumea(EN);

Catalaphylliajardinae(VU);

Gonioporaburgosi(VU)(EN)

TayabasBay • BahurangSilag

MarineSanctuary

(37%)

• SanRoqueReefFish

Sanctuary

(75%)

• PadreBurgosFish

Sanctuary(54%)

Component1.1

• PRA-SRA,VSA,VCA,METT,

MEAT,MSPandTNAas

preliminaryactivitiestocritically

assesstheprioritysitesand

subsequentlybeusedinregional

planningprocesses.

Component3.1.

• Enhancementoftechnicaland

operationalcapacitiesof

stakeholdersincludingconduct

ofParticipatoryResource

Assessment(PRA),onmangrove,

sea-grassandcoralreef

ecosystemthatarecritical

habitatsto

Ticao

Pass,

Masbate

and

Sorsogon,

R.5

PioDuran,Ligao;

Magallanes,

Bulan,Castilla,

Donsol,

Pilar(Sorsogon);

Monreal,San

Jacinto

(Masbate).

WhalesharkRhincodontypus(VU);

HammerheadSharks(VU);

Extensivemangrove,seagrassand

coralreefecosystem

Burias and Ticao

PassandSan

Bernardino

Strait

• ButagBayFish

Sanctuaryand

MarineReserve

(49%)

• PilarMarineFishery

Reserveand

Sanctuary(43%)

• MagallanesFishand

Marine


I-REAPComponent

41

Sanctuary(20%)

• MatnogMarine

Reserve(27%)

• SanFernandoFish

Sanctuaryand

MarineReserve

(18%)

Southeast

Iloilo,

Guimaras

andIloilo,

Buenavista,

San Lorenzo,

Sibunag,

Jordan,Nueva

Valencia

HawksbillTurtle

Eretmochelysimbricata

(CR);

GreenSeaTurtleChelonia

Sulu Sea in the

South and

VisayanSeainthe

• PamanculanFish

Sanctuary(53%)

• LawiMarineResrve

andFish

Sanctuary(54%)

• ToyoReefFish

Sanctuary(54%)

R.6

(GuimarasIs.);

Dumangas,

Leganes,Iloilo,

Oton(Iloilo)

mydas(EN);

WhitefinTopeShark

Hemitriakisleucoperiptera(EN);

Camptostemonphilippinense

(EN);

White-spotted Guitarfish

Rhynchobatusaustraliae(VU);

DugongDugongdugon(VU);

Avicenniarumphiana(VU);

North ·TumalintinanPoint

FishSanctuary

(60%)

endangeredmarine

organisms;

• Strategic awareness campaigns

activitiesfocusedonbiodiversity

conservation,fisheries

managementandcoastalresource

managementissues;

• Facilitating Comanagement

arrangements and building


I-REAPComponent

42

partnerships, including

organizational

development

• Provision of conservation

implementationinvestmentssuch

as coastal and marine habitat

restoration and enforcement for

enhancingMPA

management;

• Strengthening local policy

frameworksfor


I-REAPComponent

43

Green

Island,

Palawan

Region4-B

Roxas (Green

IslandBay),

HawksbillTurtle


(CR);

GiantClamTridacnagigas

(EN); GreenSea Turtle

Cheloniamydas(EN);

LoggerheadTurtle

Carettacaretta(EN);

HumpheadWrasse

Cheilinusundulatus(EN);

White-spotted Guitarfish

Rhynchobatusaustraliae (VU);

LeopardShark

Stegostomafasciatum(VU);

DugongDugongdugon(VU);

SuluSea • CaramayMPA(44%)

• JohnsonIslandMPA(45%)

• MalcampoMPA(56%)

• RizalMPA(57%)

• SanMiguelMPA(29%)

• TinitianMPA(38%)

• TumarbongMPA(79%)

Danajon

Bank,

Cebu,R.7,

Ubay, Pres. C.

Garcia, Jetafe,

Inabanga,

HumpheadWrasse

Cheilinusundulatus(EN);

Barbour's

CamotesSea • AguiningMarineSanctuary

(55%)

• AsinanReefFishSanctuary

(33%)

• BatasanMarineSanctuary

(76%)


I-REAPComponent

44

Buenavista,

Talibon, Clarin,

Tubigon, Calape,

Loon,BienUnido,

Trinidad,Banacon

Island

SeahorseHippocampusbarbouri

(VU);

HumpbackGrouper

Cromileptesaltivelis(VU);

Spotted

SeahorseHippocampuskuda

(VU);

Hippocampuscomes(VU);

H.spinossisimus(VU);

H.trimaculatus(VU);

Acroporaloisetteae(VU);

Acroporahoeksemai(VU);

Nemenzophylliasp.;

ChineseEgret

Egrettaeulophotes(EN).

• Bilang-bilanganmarineSanctuary

(69%)

• CatabanMarineSanctuary(65%)

• CuamingMarineSanctuary(83%)

• GuindacanMarineSanctuary

(35%)

• HambonganMarineSanctuary

(50%)

• HandumonMarineSanctuary

(54%)

• HingotananWestMarine

Sanctuary(65%)

• JandayanMarineSanctuary(29%)

• PangapasanMarineSanctuary

(29%)

• SidakanMarineSanctuary(79%)

• SinandiganMarineSanctuary

(71%)

improvinglocal

conservationofvital

resourcesinconjunction

withthecommodity

valuechain.

Component3.2.

· Knowledgegeneration

andsharingofbest

practicesthrough

websiteestablishment

ondifferent

technologiesused,

lessonslearnedand

experiences.

Guian

Coast,

Eastern

Samar,

R.8

Salcedo,Guiuan,

Gen. MacArthur,

Giporlos,Hernani,

Mercedes,

Quinapondan

HawksbillTurtle


(CR);

LeatherbackTurtle

Dermochelyscoriacea(CR);

Green Sea Turtle

Cheloniamydas(EN);

Smooth Giant Clam

Tridacnaderasa(VU);

PacificOcean • BagonbanuaMarineReserveand

Sanctuary(55%)

• BalangigaReefFishSanctuary

(33%)

• BaolIslandMarineReserveand

FishSanctuary(76%)

• BinabasalanIslandMarine

Sanctuary(69%)

• BolusaoFishSanctuary(65%)


I-REAPComponent

45

Montiporasamarensis(VU)

• CanigaranFishSanctuary(83%)

• CabuohanFishSanctuary(35%)

• CanticanIslandSanctuary(50%)

• Can-usodFishSanctuary(54%)

• Guinob-anFishSanctuary(65%)

• LupakonandBilangbilangReefs

MarineSanctuary(29%)

• MaglutoReefFishSanctuary(29%)

• ManapagReefSanctuary(79%)

• MantampokIsletMarine

Sanctuary(71%)

• MaslogFishSanctuary(65%)

• MinonbonanReefMarine

Sanctuary(65%)

• MonbonFishSanctuary(63%)

• PanoloytoyonReefMarine

Sanctuary(57%)


I-REAPComponent

46

Figure4-1.ProcessFlowforI-REAPImplementation:Sub-component3.1(RuralAgri-fisheryEnterpriseandProductivityEnhancement)

PROPONENT P/C/MPMIU RPCO PSO RPAB NPCO WORLDBANK

Technical

ReviewReport

10.Compliance

Reviewand/orNOL

issuanceforall

micro-enterprise

subprojectsandall

othertypesofSPs

withinitsthreshold

(2workingdays)

1.ConductEnterprise

Prioritization(2working

days)

3.InvitePossiblePG

7.BusinessPlanning

WorkshopIncludingPRA-

RSAActivities,ifapplicable

(7workingdays)

5.ProponentGroup

Selection(2workingdays)

9.Subproject

Reviewand

Appraisal

(2 working

days)

11.RPAB

Approval(2

working

days)

Confirmation

Letter

12.NOL

Issuancefor

alltypesof

SPswith

grantamount

of(LP+GOP)

oftotal

enterprise

projectcost

abovePhp5

Mbutless

Php15M

(2working

days)

NOL

A PCIP

2.Business

Model/Framework

Formulation (2working

days)

8.BusinessPlan

Preparation,Review,

Revisions,and

Packaging(45

workingdays)

6.PG

Validation

(2working

days)

RPAB

Resolution

Compliance

Report NOL B

12.WBtoissue

NOLfor:First

Subprojectper

Clusterandall

othertypesof

SPwithgrant

amount

(LP+GOP)of

thetotal

enterprise

projectcost

Php15Mand

above(7

workingdays)

4.Submit

letterofIntent

andEligibility

Requirements


I-REAPComponent

47

PROPONENT P/C/MPMIU RPCO PSO RPAB NPCO WORLDBANK

B

15.Review

andSignIMA

andprocess

CAF(2

workingdays)

PLGU/PG can

start preparatory

activities for

procurement of

goods/works

13. Finalization and

SigningofIMAbythe

Governor and

preparation for

request for CAF (5

workingdays)

17. Sign EA

(2working

days)

22.Implement

theSubproject

MonthlyProgressMonitoringand/orGeo-taggingofEnterpriseImplementation

14.Review

andSign

IMA(2

working

days)

21. Process and

Release First Tranche

toPG(5workingdays)

18.Submit to RPCO

RequestforReleaseof

First Tranche (3

workingdays)

16. Finalize and

Sign EA

(2workingdays)

19.EndorseRequestof

LGUforReleaseofFirst

Tranche (3 working

days)

SignedIMA

SignedIMAby

PSO

CAF

Issued

20.Processand

ReleaseFirst

Tranche(3working

days)

C


I-REAPComponent

48

ProponentPLGU/

PPMIURPCO RPAB PSO NPCO WORLDBANK

Process and Release

Succeeding Tranche

totheLGU(5working

days)

MonthlyProgressMonitoringand/orGeo-taggingofEnterpriseImplementation

Submit Liquidation

Report for First

Tranche and Request

for Succeeding

Tranche to PSO

through the RPCO (5

workingdays)

PG to Liquidate

First Tranche

and Submit

Request for

Release of

Succeeding

Tranche

Process and Release

Succeeding Tranche

tothePG(5working

days)

Continue

Subproject

Implementation

based on

Approved Work

andFinancialPlan

13. Submission of

Subproject

CompletionReportto

RPCO and Turn-Over

ofSubprojecttoPG

14. Inspection of Completed

SubprojectbytheRPCOandPSO

JointInspectionTeam


I-REAPComponent

49

4.2.2 Implementation Process for I-REAP Subcomponent 3.2 (Technology

and Information for Enterprise and Market Development)

Thiscomponentwillbeavailedofonthebasisofaproposalstatingthetypeoftrainingand

consultancyservicesandthedesiredresultsoftheseactivities.Theproposalmayoriginate

fromtheRPCOs,PSOsandNPCO.ThiswouldcomplementtheenterprisesupportunderSub-

component3.1byassistingsmall-scaleproducergroupsacrossthecountrytoincreasetheir

productivityandincomesthroughimprovedtechnologicalandoperationalknowledge,along

withincreasedawarenessofmarketrequirements,opportunitiesandfacilitationofmarket

linkages.Aparticularfocuswouldbeonpromotingandfacilitating"demand-side"linkages

withagro-processors,marketingagents,exporters,etc.

Activitiestobesupported,primarilythroughtechnicalassistancewouldinclude:

(i) showcasingexperiencesgainedfrompreviousprojects in thePhilippinesandother

countriessupportingmarketdevelopmentandintegration;

(ii) trade facilitation through conduct of market matching, trial shipment of priority

productsfromproductionareastoidentifiedmarkets,andassistanceinpreparing

market contracts between producers, agro-processors, market agents, exporters,

etc.;

(iii) marketpromotionofqualityproductsthroughtradefairs,caravans,crossvisitsand

studytours;

(iv) assistance in aggregation of supply and improved handling/packaging and proper

labellingofpriorityproducts;

(v) fasterprocessingofregistrationandbusinesspermits;

(vi) partnershipandnetworkbuildingwithProducerandProcessingFederations;

(vii) Climate Field Schools providing weather-related production information to small

scaleproducers;

(viii) capability building inGAP,GMP,product standards, businessplanning, enterprise

management and operation including bookkeeping , internal control and cost

analysis;and

(ix) climate-smart agricultural and fisheries practices and technologies, such as crop

diversification,IPM,constructionofrainsheltersforcrops,anddripirrigation.

Newtechnologiesandapproacheswouldalsobeintroduced,incollaborationwithagencies

suchas theDOST, InternationalRiceResearch Institute (IRRI), andStateUniversities and

Colleges(SUCs),e.g.,promotionofprecisionagriculturedesignedtolinkclimateandweather

datasothatfarmersandfisherscanbebetter informedinmakingtimelyproductionand

marketingdecisions,varietalimprovement,etc.ThismaybecontractedbytheProvincewith

privateserviceproviders,e.g.,agro-processors,nursery/seed/fingerlingsuppliers,technical

andtrainingoutreachofStateUniversitiesorprivateorganizations.Itmayalsobeprovided

as appropriate through Program Agreements between the RPCO/PSO and specialized

DepartmentofAgricultureagencies.

50

ThedisbursementsaretobemadebyNPCO,PSOsandRPCOs.Approvalandsigningauthority

ofofficials,thenatureandamountofdisbursementsmustfollowtheapprovedWBGuidelines

of eligible expenditures and existing DA policies and procedures on approval of

disbursements.

ThestepbystepprocessinimplementingI-REAPSub-component3.2isshowninFigure4-2,

particularlyintheexecutionofaProgramContract.

Step1:IdentificationofTechnicalAssistanceRequirements/Interventions

BasedontheVCAand/orPCIP,theNPCO/PSO/RPCOshallidentifythecriticalinterventions

and technical assistance to support the enterprises or to support commodity value chain

upgrading.

Step2:PreparationofProjectProposal

Upon identificationofpartneragency, theconcernedunitNPCO/PSO/RPCOwillmeetand

discusswiththepartneragencytherequiredinterventionandwillcraftaprojectproposal

andthecorrespondingworkandfinancialplan.

ProjectproposalemanatingandforimplementationbytheRPCOshouldbesubmittedtothe

PSO for review and approval of funding. While the project proposal emanating and for

implementationby thePSOshouldbesubmitted to theNPCO for reviewandapprovalof

funding.ProjectproposalemanatingandforimplementationbytheNPCOwillbesubmitted

totheNationalProjectDirectorforapproval.

Step3:ApprovaloftheProjectProposal

ThePSO/NPCO,whicheverisappropriate,willreviewandapprovetheprojectproposaland

theworkandfinancialplan.Aletterofapprovaldulysignedbythedesignatedauthorityshall

beissuedtotherequestingparty.

Step4:PreparationofProgramContract

Theimplementingunit(NPCO/PSO/RPCO)willpreparetheProgramContractwiththepartner

agencyfortheimplementationofthetechnicalassistance.TheContractshouldprovidethe

project details, the deliverables of the contracting parties, timelines of activities, funding

requirementsandtheliquidationoffund.

Step5:DownloadFundtoPartnerAgency

UponsigningandnotarizationoftheProgramContract,theNPCO/PSO/RPCOwilldownload

thefundtothepartneragency.


I-REAPComponent

51

Step6:ImplementationoftheActivitiesorTechnicalAssistance

Theactivitiesforrequiredtechnicalassistancewillbeimplementedbasedontheapproved

WFP. This could be jointly undertaken by the partner agency together with the

NPCO/PSO/RPCO.

Step7:ProjectMonitoringandReporting

NPCO/PSO/RPCOwillregularlymonitortheprogressoftheactivities.Thepartneragencywill

submit progress or accomplishment reports, the frequency of which is identified in the

ProgramContract.

Step8:ProjectCompletionandFundLiquidation

Upon completion of the activities based on the approvedWFP, the partner agencywill -

submitFinalReportorCompletionReporttogetherwiththefundliquidationreporttothe

NPCO/PSO/RPCO.

ActivitiesandsubprojectstobefundedunderSub-component3.2whichwillbeimplemented

solely by the NPCO/PSO/RPCO without executing a Program Contract with partner

implementingagencywillonlyneedasubmissionofWorkandFinancialPlandulysignedby

designatedauthorityandapprovedbytheNationalProjectDirector.

52


I-REAPComponent

Figure4-2.ProcessFlowforI-REAPImplementation:Sub-component3.2(TechnologyandInformationforEnterprise

andMarketDevelopment)

NPCO/PSO/RPCOtoidentifyTechnicalAssistanceorInterventionsandPartnerAgency(SUC/OtherGovernmentAgencies/DABureaus/AAs/Units)

VCA/PCIP

CapabilityNeedAssessment

RPCOtoprepare

ProjectProposaland

WorkandFinancialPlan

(5workingdays)

NPCOReview

andApproval(5

workingdays)

YES

PreparationandSigningofProgramContractbytheImplementingUnit(NPCO/PSO/RPCO)andthePartnerAgency(30workingdays)

TransferEnterpriseSupportFundtoPartnerAgency(10workingdays)

ImplementationofActivitiesbasedontheProjectProposalandWorkandFinancialplan

NO

SubmissionofAccomplishmentandLiquidationReport

NPCO/PSOtoprepareProject

ProposalandWorkand

FinancialPlan(5working

days)

PSOReview

andApproval

(5working

days)

53

4.3 Post-Implementation

The head of the ProjectManagement Implementing Unit of the concerned LGU and the

proponent,aftercompletionofthe‘Project’implementationwillrequestfinalinspectionby

theRPCOJointInspectionTeam.”

4.3.1 Post-Project Data Collection and Establishment of Technology

Database

The Monitoring and Evaluation (M&E) unit of the P/C/MPMIU will collect post-project

implementationdata.ThedetailsondatacollectionarediscussedintheRBMEGuidelines.

ThePRDPthroughthePSOswillassisttheRegionalIntegratedAgriculturalResearchCenters

(RIARCs) in establishing and maintaining an Agriculture and Fishery Information and

Technology Database where LGU Agriculture Technicians can access downloadable

technologypackages to support future implementationofenterprise(s) in their respective

areas.

54

5. Financial Management

TheprincipalroleoftheLGUistoserveasthefundmanageroftheEPFandwillberesponsible

forthesuccessfulimplementationoftheI-REAPenterprisesintheprovince.

The total EPC will fund eligible enterprises of the PG including among others facilities,

equipment, inputs, and infrastructure needed by the enterprise. The total EPC does not

includethePGequityofat least20%(incashor inkind)ofthetotal investmentcost(See

Table5-1.).

Funds,equipmentorfacilitiestransferredtothePGforI-REAPenterprisewillbeconsidered

asinvestmentintheenterpriseandwillbegovernedbytheprovisionsoftheIMAandtheEA.

ThePGshalltakecareoftheoperationandmaintenanceofthesefacilities,equipmentand

infrastructure.

5.1 Financing Mix for I-REAP Component

EnterprisesundertheI-REAPSub-component3.1andGEFsupportedprojectswillbefinanced

following the financingmix presented below in Table 5-1 for enterprises proposed and

approvedbytheLGUforeachroundofI-REAPfundingcycle:

Table5-1.FinancingMixforI-REAPComponent

I-REAP

FinancingMix

WB-Loan

Proceeds(LP)

GoP–DA GEF LGU

Counterpart

Total

Enterprise

ProjectCost

(EPC)

60% 20% 0 20%

TotalEPC-GEF 0 0 80% 20%Note:ForPGimplementedenterprises,thefinancingmixaboveisnetof20%PGEquity(incrementalcostofthe

enterprise).PGequitymaybeintheformofcashorinkind.

TheinfrastructurecomponentoftheenterprisethatwereapprovedbytheRPABbeforeApril

28,2016will followthe financingmixstipulated in the I-BUILDOperationsManual.While

infrastructurecomponentoftheenterprisethatwereapprovedaftertheabovementioned

datewillbeincludedinthetotalenterpriseprojectcostandshallfollowtheI-REAPfinancing

mixstatedinTable5-1.

IncaseofGEFidentifiedenterprise,thefinancingmixis80%ofEPC-GEFand20%fromthe

LGUasequity.TypesofactivitiesapplicableforGEFfinancingwouldincludeimplementation

support for improved conservation, technical training, awareness-raising, and knowledge

sharing(Annex2.A).

55

5.2 Fund Establishment at the LGU

TheLGUisrequiredtoopenthree(3)separatetrustfundbankaccounts,preferablywiththe

LandBankofthePhilippines(LBP)oranyaccreditedgovernmentdepositorybanks,perfund

sourceforI-REAPimplementation.Thesaidaccountsmustbearthename:“PRDP-<Nameof

theProvince>-I-REAP/<FundSource>”.

TheLGUequitymustbeincludedintheenactedAppropriationOrdinancebytheSangguniang

Panlalawigan/Panlungsod/Bayan. Thetotalequity requirementmustbedepositedto the

PRDPTrustFundAccount–LGUEquityinthenameoftheprovincebeforereleaseoffunds

fromLPandGOPcounterpartsaretobemade.

5.3 PRDP Fund Releases to LGU

ThePSOwillreleasethecorrespondingfundstotheLGU,basedontheIMAsignedbetween

PSOandLGU.However,fundreleasestoLGUmustbeatleasttwotranchesdependingonthe

requirementoftheenterprisesasstipulatedintheapprovedWFP,businessplanandEA.In

casesofmicro-enterprisesubprojectsthatwouldrequireone-timeprocurementonly,release

ofthefundtotheLGUwillonlybedoneonce.Forinfrastructuretypeofinvestmentunder

theI-REAPcomponent,itwillfollowtheI-BUILDtrancherelease.

TherequirementsforthereleaseoftheLGUareasfollows:

A. ForInitialTrancheRelease

1. Approved, signed and notarized Implementation Management Agreement (IMA)

amongthePSO,RPCOandPLGU/CharteredCities

2. AppropriationOrdinancefortheLGUequity

3. CAF

4. ApprovedProgramofWork,ProcurementPlan,WorkandFinancialPlanandNOLfrom

theissuingoffice,asperthreshold

5. LetterfromLCErequestingRPCOforthereleaseoffundsinaccordancewiththeIMA

6. BankcertificationfortheopeningofaccountsofLoanand/orGrantProceedsandGOP

Counterpart

7. BankcertificationofLGUequityreflectingfulldeposit(100%)ofequityshareinthe

enterprise

8. EndorsementbyRPCOtothePSOontherequestofLGUforthereleaseoffunds

56

B. ForSucceedingandFinalTrancheRelease

1. LetterfromLCErequestingforthereleaseoffunds

2. SubmissionofSREfortheliquidationofatleast70%ofthepreviousrelease

3. Certifiedcopiesofsupportingdocuments

4. Geotaggedphotosofaccomplishment

4. ValidatedrequiredaccomplishmentreportasstatedintheIMAandEA

5. EndorsementfromRPCOtothePSOontherequestofLGUforthereleaseoffunds.

5.4 Fund Transfer from the LGU to the PG

5.4.1 Requirements for Fund Release

The PG will open a bank account preferably checking account with any

government/commercialbank,preferablywithLandbank,forfundsthatwillbedownloaded

bytheLGUfortheoperationoftheenterprise.

ReleaseoffundswillbebasedontheapprovedWFPattachedintheEA.Therequirements

forthereleaseoffundstothePGarethefollowing:

a. Approved,signedandnotarizedEAbetweentheLGUandthePG

b. ApprovedWFPbasedontheapprovedbusinessplan

c. BankcertificationofbankaccountinthenameofPG

d. Document showing that PG has equity equivalent to twenty percent (20%)

incrementalcostoftheenterprise.Forcashequity,bankcertificationreflectingthe

amount of equity deposit. In case of equity in kind, such as land, building or

equipment,thevaluationshouldbebasedonbookvalue.

5.4.2 Liquidation of Funds Released to PG

a. Fundutilizationreportindicatingthesummaryofexpensesandthestatusreportof

accomplishments,certifiedbytheAccountant,approvedbythePresident/Chairman

ofthePGandverifiedbytheinternalauditororequivalentofficialoftheLGU

b. Geo-taggedpicturesofimplementedenterprises

c. InspectionreportandcertificateofprojectcompletionissuedbytheLGUauthorized

representative

d. ProofofverificationbytheLGUofficialonthevalidityofthedocumentssubmittedby

thePG

e. OfficialReceipt(OR)issuedbythegrantingLGUacknowledgingreturnbythePGof

anyunutilized/excessamountofcashadvance.

f. List of equipment/ facilities/vehicles procured by the PG out of enterprise funds

indicatingitsbriefdescription,dateacquired,acquisitioncostandfinaldisposition

g. MonthlySREasLiquidationReport

57

5.5 Negative List of Funds Utilization

a. Moneymarketplacement,timedepositorotherformsofinvestment

b. Cashadvanceofanyofficialof thePGunless related to the implementationof

enterprise

c. Paymentofsalaries,honorariaoranyformofallowancesofthepersonnelofthe

LGU

d. Purchaseofsupplies,materials,equipmentandmotorvehiclesoftheLGU

e. Acquisition of assets of the PG, unless necessary for the execution of the

enterpriseandspecificallystipulatedintheEPF

f. Purchaseofweapons

g. Financingofpoliticalandreligiousactivities

h. Purchaseoffertilizer,pesticides,insecticidesandherbicides,asbestosandother

potentiallyanddangerousmaterialsandequipment

i. Chainsawsandexplosives

j. Financingofsawmills

k. Consumptionitemsorevents

l. Financingactivitiesthathaveanalternativepriorsourceofcommittedfunding

m. Financing labor and other costs that could be provided in-kind through the

membersoftheenterprise

n. Financingsalariesandwagesunless theenterprisepersonnel required ishighly

technicalorspecialized

o. Financingadministrativeexpensessuchasfuel,utilities,repairandmaintenance,

permitsandlicenses

p. Purchaseorrepairofvehiclesforgovernmentoffices

q. Salariedactivitiesthatemploychildrenunder16yearsofage

r. Financingactivitiesthatunfairlyexploitwomenormenatanyage

s. Useofmangroveorcoralreefsasbuildingmaterials

t. Purchaseoffishingboatsandotherrelatedequipmentunlessdirectlyrelatedor

neededintheenterprise

u. Purchaseofvehicleformonitoringpurposes

v. Constructionofenterprisesupportfacilitiesinprotectedareas

w. Useoffundsforpurchaseorcompensationofland

x. Constructionorrepairandbuyingofequipmentforgovernmentofficesandplaces

ofworship

y. Micro-financingactivities

z. Potablewatersystem

5.6 Provision of Working Capital

AllI-REAPsubprojectsshouldbesustainableandthePGshouldbeabletoshoulderpart

oftherecurringcostsoftheenterprise.However,aportionoftheinitialworkingcapital

maybeprovidedtothePGaspartofthesubprojectgrantforthefirstproductiononly,

58

nottoexceedPhP1Million.WorkingcapitalrequirementsforI-REAPsubprojectsmaybe

usedas roll-over fund for theoperationof theenterpriseexceptaspayment for fuel,

fertilizer, pesticide, insecticides and the like, labor expense, salaries and wages,

administrativeexpenses,utilities,repairandmaintenance,permitsandlicensesandother

coststhatcouldbeprovidedbythePGanditsmembersinkind.

Workingcapitalrequirementistheamountoffinancingabusinessenterpriseneedsto

carryoutitsday-to-dayactivities.Thisvarieswiththetypeofbusiness(e.g.production,

processing,trading)andtheproducts/servicesoffered,whichalsoaffecttosomeextent

theamountofinventoryheldandtheamountoftimeittakestopaythesuppliersandto

collectcashfromthebuyers.Theformulabelowcanbeusedincomputingthenetworking

capitalrequirement:

Networkingcapitalrequirement=AccountsReceivables+Inventory–AccountsPayable

5.7 Disbursement Procedures for Technology and Information for Enterprise

and Market Development (Sub component 3.2)

Activities/sub-projects proposed by the NPCO, PSO, RPCO and other partner agencies in

supporttoenterpriseswillbefinancedusingthefollowingfinancingmix:

Table5-2.FinancingMixforI-REAPProjects

I-REAPSub-

Component

3.2

LP GOP Total

FinancingMix 80% 20% 100%

The disbursements are to bemade by NPCO, PSOs and RPCOs as stated in the Program

ContractsignedbetweentheNPCO/PSO/RPCOandthepartneragency.Approvalandsigning

authorityofofficials,thenatureandamountofdisbursementsmustfollowtheapprovedWB

GuidelinesofeligibleexpendituresandexistingDApoliciesandproceduresonapprovalof

disbursements.

5.8 Books of Accounts and Records

TheBooksofAccountsandRecordsthatwillbeestablishedandmaintainedbytheLGUare

discussedindetailonChapter5oftheFinancialManagementGuidelines.

59

60

5.9 Financial Reports

The PG and LGU must submit monthly, quarterly and annual financial reports including

certified copies of supporting documents to the RPCO reflecting the receipts and

disbursementsoffunds.Therequiredreportsshouldbesubmittednotlaterthanthe5thday

oftheensuingmonthorquarter.

TherequiredfinancialreportstobesubmittedarepresentedinChapter6ofPRDPFinancial

ManagementGuidelines.

6. Procurement Guidelines

Procurement refers to the purchase of all the works, goods and services needed in the

establishmentandimplementationoftheenterprise.

ThePGortheLGUthruitsProcurementCommitteeorBidsandAwardsCommittee(BAC)will

beresponsibleintheprocurementprocessesunderthesupervisionoftheP/C/MPMIUand

theRPCO.

6.1 Scope

I-REAPprocurementisforworks,goodsandservicesidentifiedintheapprovedbusinessplans

andEA.ProcurementwillbeundertakenbythePGortheLGUfollowingtheproceduresas

definedintheWorldBankProcurementGuidelinesandtheProjectProcurementGuidelines.

6.2 Procurement Arrangement under the I-REAP Component

Upon approval of the proposed subproject (Business Plan, Work and Financial Plan,

Procurement Plan, Detailed Engineering Design, Program ofWork, O &M Plan, geo-

taggeddocumentsandthebiddingdocuments)thenoobjection1(NOL1)shallbeissued

whichsignalthestartoftheprocurementprocess.Theproposedsubprojectshallproceed

with the procurement of the packages described in the submitted prescribed

procurementplan.TheProcurementPlanshallbebasedfromtheapprovedWorkand

FinancialPlan.

Subprojects under I-REAP may compose various procurement packages considering the

natureofenterpriseproductivitydevelopment.

TwomodalitiesshallbeconsideredintheconductandmanagementofprocurementunderI-

REAP component; 1) LGU managed procurement; 2) Proponent Group (PG) managed

procurement;

61

6.2.1 LGU-managed procurement

TheLGUshallmanagetheprocurementofGoodsandWorksforcontractsunderthe

NCB and shopping method above US$200,000.00, including contract below said

thresholdwherethePGdoesnothavethecapacitytomanagetheprocurement.

6.2.2 PG-managed procurement

ThePGmaymanageprocurementofgoods,worksandservices.Thiswilldependon

the established procurement capacity of the PG of the Enterprise. The basic

requirement/capacity of the PG to manage the procurement within the allowed

threshold shall include formation (if no existing procurement committee) of

bidding/procurement committee, experience and knowledge on

procurement/purchasing,andshouldhaveattendedtheprocurementtrainingunder

thePRDP.

Composition of the Procurement Committee- with minimum of three member;

Chairmanandtwomembers.Ineligible:membersoftheBOD,GeneralManagerand

PresidentoftheAssociationtoauthorizetosigncontract,Accountant,Auditor.

Appropriate procurement arrangements should be made clear in the Enterprise

InvestmentAgreement(EA).

ThedetailedproceduresandrequirementsfortheprocurementofgoodsandworksforI-

REAPsubprojectwillbereferredtointheProcurementGuidelines.

7. Social and Environmental Safeguards

A Social and Environmental Safeguards Framework (SESF) was prepared for the PRDP to

ensurethatagriculturalandfisheries-basedentrepreneurialactivitiesundertheI-REAPare

environmentally and socially sound. The SES takes off from lessons gained from MRDP

implementation and integrates policy frameworks on land acquisition, rehabilitation and

resettlement, indigenouspeoples(IP),andenvironmentalmanagementthatareconsistent

withPhilippinelawsandWorldBanksafeguardpolicies(RefertotheGuidelinesonSocialand

EnvironmentalSafeguardsFramework(SESF)forPRDP).

TheSESFpromotesthesustainabilityofI-REAPenterprises,investmentsandsupportfacilities

through social acceptability, better social inclusion, and environmental management

initiativesduringenterpriseselectionuptoimplementation.Thissectionprovidesadetailed

guidetotheintegrationofSESFprovisionsinI-REAPmanagementandimplementation.

TheSESFprovidesthedetailsofthevarioussocialandenvironmentalimpactscenariosand

theappropriatemitigationmeasuresanchoredondocumentaryrequirements.Preparation

of the EIP for the proposed clusters of enterprises requires the inclusion of required

documentsasproofofcompliancetotheSESofthePRDP.Asearlyastheconceptionstage

62

and to be finalized during validation by RPCO, all proposals shall undergo mandatory

environmental and social screening using the form provided in the PRDP SESF to ensure

subproject eligibility for funding in terms of safeguards and also to determine the

environmental and social aspects and corresponding requirements for the subproject

preparation. Table 7-1 summarizes the different social impact scenarios to guide the

P/C/MPMIU and proponents as to the type of intervention or documentation needed to

establishsocialsafeguardcompliance.

Table7-1.SummaryofPotentialSocialImpactsandRequiredDocumentsforMitigation

PotentialSocial

Impact

Mitigation RequiredDocuments/

Attachments

Acquisitionofland

andROWJustcompensationthroughmutually

agreedcompensationscheme

consistentwiththeentitlementpolicy

oftheSESF

§ ESMP

§ DocumentationofCompensationExecution

Physicalandor

Economic

DisplacementofProjectAffectedPersons(PAP)

Note:Physical

displacementmeans

thePAPisuprooted

ortransferredfrom

hispresentdwelling.

Economic

displacementis

definedbelow.

Consultationwithandparticipationof

PAPsinplanningandimplementation

ofresettlementplans

Resettlementconsistentwiththe

entitlementpolicyoftheSESF

§ Documentationof

consultations(minutesofthe

meeting,attendancesheets)§ ResettlementActionPlan

withcomprehensive

inventory/survey§ Documentationof

CompensationExecution

Accessrestrictionto

resourcesJustcompensationoflostassetand

provisionoflivelihoodassistance

consistentwiththeentitlementpolicy

oftheSESF.Itshouldbenotedthatif

accessrestrictionconstitutelossof

morethan20%ofthelivelihood

sourceorincome,thePAPis

considered“economicallydisplaced”

andshouldbeprovidedwithaRAP

whichinvolvelivelihoodsupportor

restoration(seeabove).

§ ESMP§ Documentationof

CompensationExecution

Policyonlandacquisitionandresettlementadherestotheprinciplethatareasfortheuseof

prospectiveenterprisesarenotforcefullyacquiredandthatPAPsaretimelyconsultedand

justlycompensatedfortheinvoluntarylossesoflands,structures,cropsorotherproperties.

Thepolicyalsorequiresthatdisplacementleadstoassistedresettlementtoimprove,orat

leastmaintain,pre-projectlivingstandardsandincomeearningcapacity.Landandproperty

donationsareacceptedprovidedthatexecutionisvoluntaryandthedeedisdulynotarized

andannotatedbyanauthorizedagency.

63

SocialsafeguardsforIPsnecessitatefreeandpriorinformedconsultationwiththeIPgroups

and coordination with the NCIP (Table 7-2.). Ultimately, indication of broad community

support from IPs would reflect observance of cultural sensitivities associated with such

vulnerablegroups.

Table7-2.SummaryofImpactScenariosonIPsandRequiredDocumentsforMitigation

ImpactScenarioon

IndigenousPeople

Mitigation RequiredDocuments/

Attachments

Enterpriseswithcomponents

locatedwithindeclaredor

proposedIPAD

RA9178onestablishmentof

exemptionofotherbusiness

relatedrequirementsfor

BarangaySMEsand

AdministrativeOrder01series

of2006ofNCIPonthe

GuidelinesonfreePrior

InformedConsent(FPCI)

§ FPICforothertypeof

investmentsneedingsuch

document,MOAwithIP

Community§ CertificateofPre-Condition§ Documentationof

ConsultationProcesses§ESMP

ForenterprisesinsideADthatare

solicitedbyIPCommunityor

identifiedinADSDPP

ValidationbyNCIP § NCIPValidationReportor

NCIPCertificationaffirming

conditions§ ESMP

ForenterprisesinsideADthatwere

neithersolicitedbytheIPnor

identifiedintheirADSDPPbuttheIP

arethemselvestheprimary

beneficiaries

ValidationbyNCIP § NCIPCertificationaffirming

conditions§ ESMP

Enterprisesthatarewith

componentslocatedinareas

outsidedeclaredorproposedIPAD

buthavesignificantIPpopulation

andthemajorityoftheproponents

arenotIPmembers

Conductoffreeandprior

informedconsultationactivities

andsecuringbroadcommunity

support.Incorporation/

integrationofanIP

DevelopmentPlaninthe

businessplanforthepurpose

ofminimizingadverseimpacts,

ifany,totheIPcommunities

andensuringinclusionofthe

IPsinthebenefitsofthe

subproject.

§ DocumentationofFPIC

Consultation(IECmaterials,

attendancesheetsand

minutesofmeetings)§ IPCommunityEndorsement

orResolutionofSupport§ BusinessPlanshallinclude

assessment/analysisofthe

impactsoftheI-REAP

subprojecttotheIP

community;and§ IPDevelopmentPlan

EnterpriseinareasoutsideADbut

withsignificantIPpopulationand

themajorityoftheproponentsare

membersoftheIPcommunity

Nomeasuresneeded § EvidencethatIPmembers

constitutemajorityofthe

proponents

§ Evidenceofconsultation

conducted

§ IPcommunityendorsement

64

Potentialdamagetocultural

propertiesandresources*Avoidancethroughrelocation,

realignmentandredesignof

enterprisecomponent.

Forchancefindsordiscoveries

ofarchaeologicalartifacts,

immediatecoordinationwith

theNationalMuseumis

required

§BusinessplanandESMP

indicatingavoidance,relocation

orrealignmentoftheaffecting

subprojectactivity.Ifthe

subprojectinvolvesignificant

excavation,proponentis

requiredtoadoptthePRDP

ChanceFindProcedure

*Forinclusiontonegativelistofenterprises

Forenvironmentalsafeguards,thePhilippineEISSystemestablishedfourprojectcategories

that indicate themagnitude of potential impacts to the bio-physical and socio-economic

environment.Thecategorizationdeterminesthetypeofdocumentthatisneededtosecure

an Environmental Compliance Certificate (ECC). Category A is for Environmentally Critical

Projects (ECP)andwould requireanEnvironmental ImpactStatement (EIS).However, the

IREAP Component is not expected to support such undertakings, which include heavy

industries,resourceextractiveindustriesandmajorinfrastructureworks.

CategoryBProjectsareundertakingslocatedwithinEnvironmentallyCriticalAreas(ECA)and

would require an EIS, Initial Environmental Examination (IEE) Report or IEE Checklist

dependingonthesizeandscaleoftheproject.CategoryCisforenvironmentalmitigationor

enhancement projects, to include reforestation activities, artificial reef establishment,

embankmentandriverbanksstabilizationworks.CategoryDontheotherhand,isforprojects

thatareoutsidethecoverageofPEISSystemduetotheminimalnatureofenvironmental

impacts.BothCategoriesCandDprojectswouldnotrequireECCs.

While NRM OGIs of the I-REAP are classified as Category C and does not require ECCs,

prospective I-REAP enterprises are expected to fall under Categories B or D. Table 7-3

provides the threshold levels of enterprise components to guide the P/C/MPMIU and

Proponents with regard to compliance to the Philippine EIS System. For enterprise

componentsfallingunderCategoryD,anESMPmayberequiredbytheRPCOorPSO.

Table7-3.SummaryofThresholdLevels-PotentialI-REAPEnterpriseComponents

PossibleEnterpriseComponents

forI-REAP

Category

B D

Fishery/AquacultureProjects(inland-based,

e.g.,lakes,rivers,bays,etc.)>=1hectarebut<25hectares <1hectare

Fishery/AquacultureProjectsinwaterbodies

(coastalareas)>=1hectarebut<100hectares <1hectare

Compost/fertilizermaking >=15MTdailycapacityor

5,475MTannualcapacity<15MTdailycapacityor

5,475MTannual

capacity

65

Livestockprojects

Note:OnlyContractgrowingiscoveredby

thePhilippineEISSystem.Otherlivestock

projectsaredeemedtobeunderthe

jurisdictionoftheconcernedLGU

EIS: >= 100,000 heads

poultry/birdsOR>=1,000headspigs/goats

<10,000heads

poultry/birdsOR

<100headspigs/goatsIEE:>=10,000headsbut<100,000headspoultry/birds

OR>=100headsbut<1,000

headspigs/goats

Agriculturalplantation EIS:>=1,000hectares <100hectares

IEE:>=100hectaresbut<

1,000hectares

Agriculturalprocessingfacilities EIS:=>50,000MTannual

productioncapacity<5,000MTannual

productioncapacity

IEE:=>5,000MTbut<50,000

MTannualproductioncapacity

Fruitandvegetableprocessing EIS:>=500Kgdailyprocessing

capacity

IEE:<500Kgdailyprocessing

capacity

Processingofdairyproducts EIS:>=100,000L(liquid)OR>=100,000Kg(solid)monthly

productioncapacity

IEE:<100,000L(liquid)OR<

100,000Kg(solid)monthly

productioncapacity

Coconutprocessingplants EIS:>=25,000MTpermonth

productioncapacity

IEE:<25,000MTpermonth

productioncapacity

Animalproductsprocessing(fish/meat

processing,canning,slaughterhouses,etc.)EIS:>=10,000Kgdaily

productioncapacity<500Kgdaily

productioncapacity

IEE:>=500Kgbut<10,000Kg

dailyproductioncapacity

Othertypesoffood(andotherfood

byproducts,additives,etc.)processing

industries

EIS:>=50,000MTannual

productioncapacity(finishedproduct)

IEE:<50,000MTannual

productioncapacity(finishedproduct)

Leatherandrelatedindustries >=1MTrawhidesperday(or

25MTpermonth)<1.0MTperday(or25

MTpermonth)

Paperandplasticbasedproducts >=15,000MTannual

productioncapacity< 15,000 MT annual

productioncapacity

Commercialbuildingsandothersimilar

structuresincludingfoodpreservation(e.g.,

EIS:>=25,000squaremeters(gross/totalfloorareaincluding

parkingandotherareas)

<10,000squaremeters(gross/totalfloor

areaincluding

66

drying,freezing)andothermethodsaside

fromcanningIEE:>=10,000squaremeters

but<25,000squaremeters(gross/totalfloorareaincluding

parkingandotherareas)

parkingandother

areas)ORKiosk-typeormobilefast

foods

Storagefacilities,non-toxic/hazardous

materials>=10,000.0squaremeters

(gross/totalfloorarea)<10,000.0square

meters(gross/totalfloorareaincludingparking

andotherareas)

In the preparation of the business plan, the P/C/MPMIU will include a section on SES

considerations(i.e.adiscussiononthesocialandenvironmentalaspectsofthesubproject)

prior toendorsement to theRPCO. The sectionwill containdisclosure statementson the

statusoflandacquisition,applicabilityofdisplacement,presenceofIPsandenvironmental

screening and categorization of enterprise components. In cases where land acquisition,

resettlement, IP involvement, and/or Category B classification are applicable, respective

compliancedocumentswillbeattachedtotheEIPforreviewandclearanceoftheRPCOand

PSO. Compliance to the provisions of respective SES documents will form part of the

conditionalitiesstipulatedintheEAbetweentheP/C/MPMIUandProponent,aswellasthe

IMAbetweentheLGUandtheDA.

8. Grievance Mechanism

I-REAPsubprojectswillbecoveredbytheProject-wideGrievanceRedressMechanism(GRM)

systemtobeestablishedinallparticipatingLGUs.AllI-REAPsubprojectproposalsmustclearly

indicateadoptionof theGRMsystem.No I-REAPsubprojectwillbe implementedwithout

demonstrating that a function GRM has already been established and adequately

disseminatedwithinthesubprojectarea.

TheProjectGRMwillhavethefollowingelements:

1. Requirement. Each I-REAP subproject will have a system for airing and resolving

grievancesatthecommunitylevelsthatwillgenerallyconformtothisframework.

2. Objective. The objective of GrievanceMechanism is to provide stakeholders with

mechanism to voice out complaints at the subproject level and to provide the project

managementameanstohearandresolvecomplaintsonthesubproject.

3. GrievanceCommittee. The concernedLGU representativeplus two representatives

from civil society (e.g. leaders of local church/religious community and civil society

organization)tobeappointedbytheMayorwillconstitutetheGrievanceCommittee.

4. Secretariat to the Grievance Committee. The safeguards focal persons of the

P/C/MPMIUwillserveasthesecretariatoftheGrievanceCommittee.

67

5. Format of Complaint. Complaints will be written down either in the form of a

handwrittenortypewrittenletterorinaformofanemailmessage.Thefollowingminimum

information should be provided in the complaint: (a) Name of Subproject; (b) Name of

Community;(c)NameofMunicipality;(d)NameofProvince;(e)DetailsoftheComplaint;(f)

NameoftheComplainant;(g)AddressorContactInformationofComplainant.

6. Drop Boxes for Complaints. Complaints drop boxes (made of sturdymaterials and

securedwithalock)willbeinstalledinstrategicandconspicuousplaces,suchatthefollowing:

(a)attheprovincialcapitolhall/cityhalland/ormunicipalhall;(b)atcommunityhalls;and/or

(d) at the construction sites. The boxes will be duly labelled and provided with a brief

description of its purpose and a simple instruction for submitting complaints, including

submissionthroughemailifavailable.

7. Email Address for Complaints. Each P/C/MPMIU will, optionally and if technically

possible, maintain an email address account for complaints. The email address will be

registeredattheRPCOandPSOandcanbeaccessedbybothwhenneeded.Theemailaddress

name will be descriptive of the purpose of the address and easy to recall, for example:

[email protected].

8. Sending of Complaints. Letter complaints will be dropped at Drop Boxes for

Complaints.TheLetterwillbesignedbythecomplainantandwill indicatehis/hercontact

information. Email complaints should be sent from a valid address and should include

alternativecontactinformationsuchasatelephonenumber(oroptionallyahomeaddress)

thatcanbeverifiedandvalidated.Allcomplaintswillbeconsideredstrictlyconfidential.

9. CollectionofDropBoxesContentsandInitialScreening.ThecontentsoftheComplaint

DropBoxeswillbecollectedatleastonamonthlybasisbythesafeguardsfocalpersonsacting

assecretariattotheGrievanceCommittee.

10. CollectionofEmailMessagesandInitialScreening.EmailInboxesshouldbecleanedof

spamandinvalidmessageseveryweekandaprintoutofeachvalidemailmessagewillbe

compiledbythesafeguardsfocalpersonsactingassecretariattotheGrievanceCommittee.

11. ScreeningofComplaints.TheGrievanceCommitteewillbeconvenedwhenneededor

at least once a month and presented with the compiled complaints for the period. The

Grievance Committee will first determine the validity of each complaint. Anonymous

complaint or complaints using aliases may be accepted as long as adequate contact

informationand/orevidenceareprovidedthatcanbeverifiedorvalidatedbytheCommittee.

Forcomplaintsrulednotvalidornotrelevant,theGrievanceCommitteemaychoosetosend

areplytothecomplainantexplainingwhythecomplaints/issuesraisedisnotvalid.

12. Replyon theComplaints. Ifacomplaint isdeemedvalid, theGrievanceCommittee

shouldsendareplytothecomplainantinforminghim/heroftheactionsbeingundertaken

onthecomplaint ifany,and/orprovidinghim/herofanexplanationorclarificationofthe

issues,ifnecessary.

68

13. Resolution of the Complaints. The Grievance Committee will determine the

appropriateactionstobeundertakenonthecomplaints.TheGrievanceCommitteemay:(a)

address the complaints by itself if it is within its competence to do so; or, (b) refer the

complaints to the appropriate office who is competent to address/resolve the

issues/complaintsraised.

14. GrievanceReports.ThesafeguardsfocalpersonsoftheLGUactingassecretariatto

theGrievanceCommitteewillcompileallcomplaintsandmonitortheirstatusaswellasthe

actions undertaken by the committee. A semi-annual report on the grievances will be

preparedandsubmittedtotheirRPCOs.

9. Results-Based Monitoring and Evaluation (RBME) System for

Enterprise Development Component

9.1 Introduction

Thisdocumentdefinesthescope,responsibilitycenters,proceduresandinstruments

tobeusedinthemonitoringandevaluationoftheprogressofthePRDPEnterprise

DevelopmentComponent(I-REAP).Theinformationareexcerptedfromtherevised

Results-BasedM&EGuidelines10,whichwillbeendorsedtotheWorldBankforNo

Objection.

ItispreparedbytheNPCOM&EUnitasareferenceoftheNPCOI-REAPComponent

inupdatingtheI-REAPComponentOperationsManualSectiononthemonitoringand

evaluationoftheenterprisedevelopmentsubprojects.

9.2 Overview of the PRDP RBME Framework

The PRDP RBME schematic framework (see Figure 9-1) embarks on the Project’s

Results Framework andArrangement forMonitoring and is at playwith the three

aspectsofbuilding-uparesults-basedM&Esystem.Theseareenumeratedandbriefly

describedbelow.

a. Baseline information has been established through the conduct of the Baseline

Study11,whichwascompleted in2014. Itdescribes theconditions in the targeted

areasbefore the implementationof thePRDP. Thiswill allow theDA toassessor

measuretheproject’sresultsoreffectivenessbymid-temandend-ofproject.

10The RBME Guidelines secured No Objection from the World Bank in August 2014. The revision in the

GuidelinesismadetotakeintoaccounttheM&EprocessusingtheWeb-basedM&Esystemrecentlylaunched.11TheBaselineStudycompletedin2014didnotadequatelycapturetheappropriatebaselinedatafortheI-REAP

resultindicators.ASupplementalBaselineStudyfocusingontheI-REAPComponentshallbeundertakenthis

year.

69

b. Input-Process-OutputorProgressM&Eisaboutcontinuoustrackingandatthesame

timespearheading“efficiency”inimplementingthePRDP.Itsmainaimistobuilda

clearunderstandingwhetherornotinputs/resourcesandprocessundertakenasthe

project progresses translate to outputs the project needs to produce from each

component in order to achieve anticipated results (intermediate results by

component and PDOs). Findings shall be used to determine how inputs and/or

processcanbeadjustedorfactorsthatadverselyaffectitcanbeaddressedtoensure

thatproject’spacewillbeon-trackforthedesiredoutputsandresults.

c. ResultsM&Edelvesontrackingatspecificperiods(e.g.,annually,mid-termandend-

ofprogram) the “effectiveness”ofPRDP.Effectiveness shallbedeterminedat two

levelsnamelyProject-wideandSubprojectspecific.Thesearedescribedasfollows.

(i) Project-wide Level Results. By engaging a consulting service of a third

party, theevaluationat this level seeks tomeasureandunderstand the

Project’s performance in termsof achieving the intermediateoutcomes

envisagedfromtheimplementationofeachcomponentandachievement

of Project Development Objectives (PDOs). The latter shall provide

conclusionof the successor failureof theentire implementationof the

PRDP while the former shall facilitate evaluation of the success of the

implementationundereachcomponentoftheProject.TheProjectwide

levelevaluationisexecutedatthemidandendoftheProject.

A Midterm Evaluation Study shall be conducted in 2017 to measure

changesintheresultindicatorsfrombaseline(withoutPRDP)tothemid

of the Project implementation. This will determine how activities and

outputs delivered as of the half of the Project have become adequate,

relevant and sustainable towards achieving the intermediate outcomes

andthePDOsinthe2ndhalfontheProjectimplementation.

Thefindingsshallbeusedtoeithersustainimplementationapproachesor

potentially institute changes or modifications on any of the following

areas: (i) project design; (ii) result indicators, (iii) allocationof fundsby

component;(iv)operationsguidelines;(v)strategiesandactivities;(vi)DA

TopManagementpolicysupports;(vii)humanresources;and(viii)others

towardsthePDOs.

AProject-EndEvaluationStudyshallbeconductedin2021toconcludeor

assessthesuccessoftheProjectimplementationbycomponentandasa

whole.Theevaluationshallevolveontheextentimplementationofthe

Project translates to the desired changes in the result indicators. The

lessonsthatwillbeacquiredfromtheProjectimplementationexperience

shallbeutilizedbytheDAinimprovingthedesignandimplementationof

futureand/orotheron-goingsimilarProjects.

(ii) SubprojectLevelResults.Thisleveloftrackingresultsseekstodetermine

thesuccessofthesubprojectsthatwererealizedthroughtheRural

InfrastructureandEnterpriseDevelopmentComponentsoftheProject.

70

Thesuccessisdeterminedbymeasuringtheextentbywhichspecific

objectivesofthesubprojecthavebeenattained.

This serves as an intermediate evaluation activity that will facilitate

buildingknowledgeor feedback to thePRDPmanagementwhether the

desiredoutcomesandtheoveralldevelopmentobjectivesoftheProject

are likely or unlikely to be achieved given the situations and lessons

(positiveand/ornegative)emergingfromthecompletedsubprojects.As

theProjectprogressesthemanagementmayusethefindingsasbasesto

introduceadjustmentinhandlingthesubprojectstobemoresustainable.

71

Figure9-1:ThePRDPRBMESchematicFramework


I-REAPComponent

72

9.3 Operationalizing the PRDP RBME System for the Enterprise Development

Component

9.3.1 Progress M&E Sub-system

9.3.1.1 Scope

Themonitoringoftheprogressoftheenterprisedevelopmentsubprojectsthatare

proposedby theproponent LGUs for financing under the EnterpriseDevelopment

ComponentshallstartfromtheperiodtheproponentLGUandtheproponentgroup

oftheproposedsubprojectattendedtheWorkshoponBusinessPlanpreparationand

shall end upon completion of the subproject as validated or confirmed by the

concerned PRDP Regional Project Coordination Office (RPCO) and Project Support

Office(PSO).

9.3.1.2 Subproject Progress M&E Instrument

TheM&Eontheprogressofthesubprojectinpassingthroughtheprescribedprocess

fromsubprojectdevelopmenttocompletionshallbedoneon-linethroughthePRDP

Web-basedM&ESystem.

EachsubprojectshallhaveaDataCaptureForm(DCF)intheWeb-BasedM&ESystem

whereprofile,progressincludingtheissues/concernsandmeasurestobeorbeing

undertaken shall be recorded. The DCF along with the Subproject Identification

Number(SPID)willbecreatedbythesystemoncethesubprojectisenteredinthe

system.ThedetailsoftheprocessofusingtheDCFisdiscussedbelow.

9.3.1.3 Subproject Progress M&E Procedures

TheRPCOshallberesponsibleforthemonitoringandreportingoftheprogressofeach

enterprisesubprojectintheWeb-basedM&ESystem.EachRPCOhasdesignatedfocal

personstoreporttheprogressofenterprisesubprojectsintheRegion.Thenamesof

the designated personnel to use the system to report the profile and status of

enterprisesubprojectsareindicatedinaMemorandumsignedbyUsec.EmersonU.

PaladdatedApril14,2016.Theuseofthesystem,however,isnotconfinedtothesaid

list.OtherpersonnelinvolvedintheoperationoftheI-REAPComponent(e.g.,heads

of the I-REAP Component, Business Development Specialist andOfficers) can also

accessandusethesystem.TheotherusersshallberegisteredbythebytheNPCO

M&Eunit.

Eachdesignatedstaffmusthavea“Username”and“Password”withcorresponding

accesslevelandscopeofusingthesystem.ThestepstousetheI-REAPComponent

ModuleofthePRDWeb-basedM&Esystemareasfollows.


I-REAPComponent

73

9.3.1.3a Registry of the Enterprise Development Subproject Proposal

TheRPCOdesignatedstaffshallenteracertainsubprojectproposalinthesystemonce

the proponent LGU and enterprise group/s attended the Workshop on Business

Planning.Theregistryshallbemadeonthefirstworkingdayfollowingtheprovision

oftheWorkshoponBusinessPlanningtotheproponentLGUandenterprisegroups.

Theproceduresandthecorrespondingscreenshotstoregisterthesubprojectinthe

systemareillustratedbelow.

Step1:Access the PRDPWeb-based M&E System by simply typing in an internet

browser (preferably Google Chrome or Mozilla Firefox) the URL Address:

mis.daprdp.net

Step2:IntheUserEntryPage,entertheUsername(e-mailaddress)andPassword.

Foranewuser,thedefaultpasswordisprdpmis.Tochangeapassword,click“Change

Password”buttonatthetop(right)portion.Then,apop-upscreenwillappear.Enter

thedesiredpersonalpasswordandclick“Savenewpassword”button.

Step3Step3: In the SystemHome Page, click “I-REAP”menu tabs located at the

upperportion.

Step4:IntheDrop-downMenu,clickSubprojectSet-up.Then,theI-REAPSubproject

Set-uppagewillappear

1

2


I-REAPComponent

74

Step5:SupplytheinformationrequiredintheI-REAPSubprojectSet-uppage.The

SubprojectID12willbeautomaticallycreated/assignedbythesystem.

Step6:After providing the required information, click button Save to register the

subprojectincludingitsIDnumberinthesystem.

Step7:Toexitormoveoutofthesystem,simplyclick“Logout”tab.

12TheSubprojectIDcannolongerbedeletedoralteredoncetheUsersavedentriesintheSubprojectSet-up

Page.ThesaidIDshallbecarriedbythesubprojectuptoitscompletion.

4

3

5

6

7


I-REAPComponent

75

9.3.1.3b Registry / Reporting the status of the Enterprise Development

Subproject

Afterregistryofthesubprojectinthesystem,theRPCOdesignatedusercanalready

registerstatusofthesubproject.Theprogressormovementofthesubprojectfrom

attendance toWorkshop on Business Planning to the completion of Procurement

(IssuanceofNoticetoProceed)shallberegisteredrealtimeorwithinthedayacertain

processisrealized.Duringimplementation,theregistryofthephysicalprogressshall

bedonemonthlynotlaterthanendofthemonth.

Whileusereportingoftheprogressisprimarily lodgedattheRPCOs,thePSOsand

NPCO(particularlytheI-REAPComponent)arerequiredtoaccessthesystemtocheck

theinformationenteredbytheRPCOsandprovidecorrection,clarificationandother

informationasnecessary.ThestepstoregisterprogressinthesystemusingtheData

CaptureForm(DCF)areexplainedbelow.

9.3.1.3b.1 Registry / Reporting of Status of Subproject (From

Attendance to Workshop on Business Planning to Procurement)

Step1:Access the PRDPWeb-based M&E System by simply typing in an internet

browser (preferably Google Chrome or Mozilla Firefox) the URL Address:

mis.daprdp.net

Step2:IntheSystemUserEntryPage,enteryouUsernameandPassword.

Step3:IntheSystemHomePage,clickI-REAPmenutabslocatedattheupperportion.

Step4:In theDrop-downMenu, clickSubprojectList. Then, the listall subprojects

alreadyregisteredinthesystemthroughStep3.1.3awillappear.

1

2


I-REAPComponent

76

Step5:ClickbuttonoftheSubprojectIDofthesubprojecttobeupdatedorprovided

withnewstatus.Then,sub-menus,willpop-uptoselectthesubjectofupdating.

Step6:To update the status, click “Physical Progress”Menu. The sub-drop down

menutoappearwilldependonthecurrentstatusofthesubproject.Forinstance,if

thesubprojectisinthepre-implementation(Development)stage(noNOL1yet),click

sub-dropdownmenu“Pre-Implementation”.Then,theDCFwillappear.

Step7:IntheDCF,putdateofrealizingorcompletingacertainprocess/milestoneto

reflectthecurrentstatusofthesubproject. Citethefactorsaffectingtheprogress

(positive/negative)ifanyandthecorrespondingrecommendations.Putremarksas

necessary.

43

56


I-REAPComponent

77

9.3.1.3b.2 Registry/Reporting of Status of Subproject Implementation

(After Procurement)

Step1:RepeatSteps1to6illustratedabove.

Step2:In Step 6, click in the Sub-drop downmenu the “Implementation” button.

Then,subprojectpackages(ifany)willappear.

Step3:Toregisterupdatesorstatusofimplementation,clickSPIDcorrespondingto

a package of the subproject to be provided with updates. Then click “Items

7

2


I-REAPComponent

78

(Download)”button.OpentheMS-Excelfiledownloadedandsupplyupdates(e.g.,

itemsdelivered).

Step4:Toreflecttheprogressinthesystem,uploadtheMS-Excelfileprovidedwith

updates.ThisisdonebyclickingSPIDcorrespondingtoapackageofthesubproject

tobeprovidedwithupdates.Thenclick“UploadItems”button.SelecttheMS-Excel

filesavedinthecomputerandandclickUpload.

Whileusersof the I-REAPModuleof thesystemareat largestaff fromthe I-REAP

Component,theM&EUnitspersonnelattheRPCOs,PSOsandNPCOshallhavethe

overall responsibility to coordinate andensure efficient useof the system in their

3

4


I-REAPComponent

79

respective offices and provide feedback using the information contained in the

system.Theirspecifictasksareasfollows.

(i) Monitor and coordinate compliance of the designated persons to report

progressthroughtheweb-basedM&Esystem.Shouldthedesignatedstafffor

certain circumstance cannot access or register progress in the system, the

RCPO M&E unit staff may register the progress based on the information

providedbytheI-REAPdesignateduser.

(ii) Monitor the quality of the information provided in the system (e.g., citing

reasons whenever delay in the progress is incurred as well as the

recommendationsand /oractionsbeingundertaken). TheNPCOM&EUnit

shall coordinate with the concerned user from the I-REAP Component to

providethedatalackingorneedtobeclarifiedinthesystem.

(iii) EvaluatetheprogressoftheI-REAPsubprojectsintheRegionusingthereports

or data sets that are automatically generated by the system. A feedback

containing an aggregate assessment on the status of I-REAP subprojects,

outstanding issues and concerns including measures being or need to be

undertakenshallbeprovidedtothemanagementandtheI-REAPComponent

asbasesforProjectsteeringandmakingdecisions.ApartfromtheMonthly

andQuarterlyProgressReports13regularlyproducedbytheM&Eunit,concise

weekly reports shall be prepared focusing on outstanding issues the

managementneedstobeawareof,inordertorelaydecisionsandinstructions

tooperatingunits.

9.4 Subproject Results M&E Sub-system

9.4.1 Subproject Baseline Data

The baseline data corresponding to the specific objectives of the proposed

enterprise development subproject needs to be established during the

preparationofthesubproject. Thisistofacilitatecomparisonofchangesinthe

conditionofbeneficiariesfromwithouttowithsubprojectperiods.

Thegatheringof thebaselineof thesubproject (e.g., incomesofhouseholdsof

membersoftheenterprise,numberofmembers(bysex),numberofIPandNon-

IPmembers,etc.)shallbedoneduringthepreparationofthesubprojectproposal

particularly in the period after identifying the final list of proponent groups to

benefitfromtheproposedsubproject.

13TheMonthlyReportisrequiredbytheDA-SPCMADtoformpartofitsconsolidatedreportsoftheDA

ForeignAssistedProjects(FAPs)beingsubmittedtotheOfficeoftheSecretaryandoversightagencies.


I-REAPComponent

80

Inorder toensurecomplianceof theproponentLGUs, theSPProfileFormthat

includesbaselinedataofthesubprojectissetaspartoftherequirementsforthe

issuance of No Objection Letter (NOL) 114for the enterprise development

subprojects.

WhilesomeoftheinformationrequiredintheSPProfileformareavailableand

canbegatheredfromPGFarmersmasterlist,otherdataparticularlytheaverage

annualincomeofhouseholdsofmembersineachPG(brokendownaccordingto

source e,g, On-Farm, Off-Farm and Non-Farm) and others, can be obtained

throughasurveywiththePGmembers.Theproceduresforthesurveyincluding

the necessary collaboration between the Project and the Proponent LGUs and

Groupsareexplainedinthesucceedingparts.

9.4.1a Timing of the Survey

The survey for the profile of members of PGs to benefit from the enterprise

developmentSPshallbeundertakenonceaProponentLGUhasidentifiedtheLead

andClusterPGstomanagetheSPbasedontheProjectprescribedPGselection

criteria.Thismeansthatideally,suchsurveyisnecessarytobecompletedbefore

acertainProponentLGU (withPGs) isasked toparticipate in theWorkshopon

Business Plan Preparation. This will ensure that an LGU and PGs have the

necessary data to complete filling out of the SP Profile form during the said

workshop.

Alternatively, a Proponent LGU (with PGs) may be required to attend the

WorkshoponBusinessPlanPreparationthoughsuchsurveyisnotyetundertaken

/completed.Thisistopreventabsenceofthesurveyfromcausingdelayinthe

technicalassistancetoaProponentLGUandPGsontheformulationofBusiness

Plansof theproposedSPs. Under thisoption, the fillingoutofSPProfileForm

duringtheworkshopwillstillcommencetocoverdatathatarenotdependenton

survey(e.g.numberofmaleandfemalemembers,IPandNon-IPmembers,etc.).

ThesurveyamongmemberstocompletetheSPProfileFormwillbeundertaken

whiledevelopingtheSPBusinessPlan.Itisnecessarythatthesubprojectprofile,

whichincludebaselinedata,becompletedpriortopresentationofthesubproject

forRPABapproval.

9.4.1b Mechanics for the Conduct of Survey

TheconductofsurveyfortheprofilingofPGmembersshallbeundertakenbythe

Proponent LGUs and PGs with guidance from the concerned Regional Project

Coordination Office (RPCO) through its I-REAP component andM&E unit with

14IssuanceofNOL1servesasanapprovalforthegrantoffinancialassistancetotheProponentLGUs

in supporting PGs operating the enterprise development subprojects. Upon securing NOL 1, a

ProponentLGUandProponentGroupscanproceedwiththeprocurementprocessforthedeliveryof

theitemsindicatedintheEnterpriseBusinessPlanapprovedbytheProject


I-REAPComponent

81

supportfromthePSOandNPCOasnecessary.Thespecificstepsareenumerated

andbrieflydescribedintheTablebelow.

Steps(ActionsRequired) ResponsibilityCenter

1. Orient theProponentLGUandPGsofficersonthe

conduct of survey by using a “Survey

Questionnaire”.Thisentailsclarificationaboutthe

specific data required in the survey aswell as the

manner questionswould have to be asked by the

interviewer for the respondents. This activity shall

beconductedpreferablyintheSPareaaccessibleto

thetargetrespondents.

RPCO M&E staff with I-

REAPComponentstaff

2. ActualsurveyofPGsmembers(LeadandCluster

Groups).TheRPCOthroughthecollaborativeeffortsoftheI-REAPComponentandM&EUnit

shallbeaccountabletoundertakethesurvey.The

RPCOmaytakeassistancefromtheproponentLGU

andproponentgroup/sasmaybedeemed

necessaryincompletingthesaidtask.Thesurveyshallcoverthedirecthouseholdbeneficiarieslisted

ineachPG.AStratifiedRandomSamplingmethod

shallbeemployedtosavetimeandresourcesin

theconductofsurvey.Forconvenienceandto

speeduptheactivity,thesurveyisrecommended

tobeheldinstrategicplaceswherePGmembers

canbegatheredforthesurveyactivityinsteadof

house-to-housesurveythatwouldbetimeand

resourceintensive.

TheRPCOstafffromtheI-REAPandM&Egroups

shallbepresentduringthefirstdayoftheactual

survey to check on the process and quality

(completenessandappropriateness)ofthedata

gathered. The duration of the survey will

dependonthenumberofmembersofPGs.

ThesuggestedrespondentsfromeachPG(Lead

and Cluster) to be covered by the Stratified

RandomSamplingSurvey shall come from the

totalhouseholdsdirectlybenefiting(members)

from the enterprise. The survey sampling

shouldbebasedonthefollowing:

No. of

Households

(Members

of the PG)

Proponent Group (PG)

Composition

with

1-3

PGs

with

4-6

PGs

with 7

or

more

PGs

20 & below 100% (total enumeration)

21-50 50% 40% 30%

51-100 30% 25% 20%

100 & above 10% 10% 10%

RPCO M&E and I-REAP

staff


I-REAPComponent

82

Note:theno.ofPGwillincludeboththelead

andclustergroup/s(ifany)

As there are I-REAP subprojects that are

comprisedofanumberofclustergroupsaside

from that of the proponent lead group, the

sampling method has been designed in a

manner that the PG will not have too much

difficulty inaccomplishingthedesirednumber

ofrespondents.

The final list of respondents shall be selected

randomlybasedonthemasterlistofmembers

ofeachPG.Forinstance,ifaparticularPGhas

100 members in their masterlist, the 10%

samplesizeequivalentto10respondentsshall

be selected as those placed in the 10th, 20

th,

30th,40

th,50

th,60

th,70

th,80

th,90

th,and100

thin

themasterlistofmembers.

3. QualityCheck(Validation).Thecontentor

responsestothesurveyquestionnairesneedtobe

assessedbeforecapturingthemtobepartofthe

PGProfileForm.

RPCOM&E/I-REAPstaff


I-REAPComponent

83

9.4.2 Registry of the SP Profile Including the Subproject Baseline to

the Web-based M&E System

Theentryofthesubprojectprofileincludingthebaselinedataarethesubjectsof

the registry of the subproject in the system after the proponent LGU and

enterprise group attended theWorkshop on Business Planning as explained in

Section 3.1.3a. The system allows registry of the contents profile in batches

includingthedataonincome,andothersrequiredtobeuploadedinthesystem

usingthesystemgeneratedMS-Excelspreadsheets.Theregistryofinformation

shouldbecompletedwhilethepreparationoftheBusinessPlanofthesubproject

isunderway.Thus,subprojectprofileshouldbecompletedanduploadedtothe

PRDPWeb-sitebeforeendorsementofthesubprojectforapprovalbytheRPAB.

9.4.3 Conduct of Rapid Appraisal of Emerging Benefits (RAEB)

Atleastsix(6)monthsafterthecompletionofthesubproject,theRPCOM&EUnit,

EconGroupand I-REAPComponentwithsupport fromthePSOandNPCOshall

conductaRAEBthatwillseektogaugeandunderstandtheemergingbenefitsor

success of the enterprise subprojects that have improved operation through

investmentsprovidedbythePRDPI-REAPComponent. Inparticular,changesin

income,increasenumberofmembersespeciallywomen,employmentgenerated

andothersocio-economicbenefitsshallbeassessed.Thedetailsoftheprocess

andinstrumentsfortheconductoftheRAEBareprovidedintheFrameworkfor

theConductofRAEBdiscussedintheRBMEGuidelines.

84

9.5 Results M&E

AswithI-BUILD,monitoringandevaluationofintermediateoutcomesexpectedfromI-REAP

ComponentwillbepartoftheProjectMid-TermandEnd-of-ProjectEvaluationStudiestobe

conducted by end of Year 3 and Year 6 respectively as specified in the PRDP Results

Framework.TheDAmayengagethesamefirmorexternalgroupthatconductedthebaseline

study or other firm / group asmay be deemed necessary. The specific result indicators

expected to be achieved in implementing the I-REAP Component contributing the

developmentobjectivesoftheprojectareshowninTable9-5below.

Table9-1.IntermediateOutcomestoBeAchievedUnderI-REAPComponent

RESULT

INDICATORS

UNITOF

MEASUREMENT

DATACOLLECTIONMECHANISMRESPONSIBILITY

FORDATA

COLLECTION

DESCRIPTION

(INDICATOR)INSTRUMENTS FREQUENCY/

SCHEDULE

IncreasedProducerGroups(includingsmall

holders)

participatingin

verticallylinked

commodityvalue

chainclusters

%increasein

numberofgroups

operatingviable

enterprises

SamplingSurvey Year3toYear6

RFUsincoordinationwithP/C/MPMIUs

Viable

Smallholder

enterprises

following good

business

practices e.g.,

institutionalized

financial and

auditing system

and enterprises

operating

beyond

breakevent

point

%increasein

numberofwomendirectlybenefiting

fromenterprise

development


Producer

productivity

enhancedthrough

formalized

arrangementsfor

marketingand/or

technicalservices

Numberof

formalized

arrangements

between

enterpriseswithin

commodityvalue

chains


Contractualand

formalized

arrangements

formarketingof

produceand/or

provisionof

technical

services

Increasedproducer

groupsandfishers’

resilienceto

climatechangeand

adverseweather

conditions

%usingclimate

smart

technologies


Producergroups

&fishershave

awareness,

accessanduse

ofclimate-smart

technologies

85

Table9-1.IntermediateOutcomestoBeAchievedUnderI-REAPComponent

RESULTINDICATORSUNITOF

MEASUREMENT

DATACOLLECTION

MECHANISM RESPONSIBILITY

FORDATA

COLLECTION

DESCRIPTION

(INDICATOR)INSTRUMENTS FREQUENCY

/SCHEDULE

Productivityinglobally

significantbiodiversity

sitesenhancedthrough

improvedresourcemanagement,biodiversityconservation,

co-management

arrangements,and

knowledgesharing

%increasein

fishstocksin

targetareas

PSOto

contract

resource

inventory

assessment

surveyin

collaboration

withRFUs

Year3to

Year6 Fishdensity,

diversity,and

biomass

increaseddueto

improvedmanagementandprotectionin

targetareas

In the event DA as executing agency desires to track I-REAP results (along with I-BUILD

results)inYears4and5orapartfromtheMid-TermandEnd-of-Project,asamplingsurvey

maybe conducted following the same techniqueused inbaseline andmid-term studies.

Thus, field interviewersneedtobehired inOctoberoftheyeartodosurveyfortracking

IREAPresultsinprojecttargetedareas.SeealsoTable9-9-6forthestepstodetermineand

evaluate status of achieving intermediate outcomes from the I-REAP Component. The

informationwillformpartofRF10(ResultsTrackingMatrix)attachedintheRBMEGuideline

asAnnex39.FurtherdiscussionsareprovidedintheRBMEGuideline.

Table9-2.ProceduresforMonitoringandEvaluationofI-REAPIntermediateOutcomes

ACTORS ACTIVITIES SCHEDULE/FREQUENCY

RPCOsin

coordinationwith

P/C/MPMIUs.

Step1:Conductsurveyamongprojectareasusing

thesamemethodologyappliedinBaselineStudy

(e.g.,stratifiedrandomsamplingwithpercentof

universetobecoveredbythesurvey;usinga

questionnaire).Thefieldinterviewerscitedin

Table9(tobeengagedinOctober)willalsodo

surveyfor–REAPresults.

November(everyyear)

RPCOMISand

M&EOfficer

Step2:Dataprocessing(tabulation),andanalysis. 1stwk.OfDecember(annual,

fromY3toY6

PSO Step2:Reportingofresults(regionalbycluster)

duringProject-wideAssessment.

PartofDay1oftheTwo-day

Workshoptobeconducted

every3rdweekofDecember

fromY3toY6.

SPCMADMIS

Officerassigned

inPRDP

Step 3: Register I-REAP results in PRDP Results

Database.

1stworkingdayaftertheYear-

EndAssessment.

SPCMADM&E

Specialistfor

PRDP

Step4:IntegrateI-REAPresultsinthePRDPAnnual

PerformanceReport.

Preparation/Finalizationof

AnnualPerformanceReport

untilendofJanuaryofthe

succeedingyear

86

PhilippineRuralDevelopmentProjectI-REAPOperationsManualAnnexes

85

Annex1.A-SampleMenuofEnterprisestobeSupportedbyI-REAPSub-Component

3.1:RuralAgri-fisheryEnterpriseandProductivityEnhancement

ProductionandProductivityEnhancement

• Cropssubsector

o vermicastproduction

o organicfertilizerproduction

o establishmentofnurseries

o operationofacommonservicefacilityforproductionlikethreshers,tractors,

farmimplements,etc

• Livestocksubsector

O livestockimprovement(throughartificialinseminationfacilitydevelopment)

o establishmentsofmultiplierfarms

o community-basedfeedmixingfacility

• Fisherysubsector

O community–based planting materials production facility development for

seaweeds

o community-basedfingerlingproductionfacilitydevelopment

o fishcagesfacilitydevelopment

o aquaculturefacilitydevelopment

PostharvestandProcessingFacilities

• Crops

O establishmentofriceandcornmillswiththeattendantdryingandwarehouse

facilityforcereals

o establishment of Cassava drying, chipping and granulizing facility with

marketingservice(securedsupplycontracts)

o Vapor heat Treatment and hotwater treatment facilitywith the attendant

packing/packaginghouses)

o establishment of common service facilities for drying (both solar and

mechanical)forpalay,corn,coffee,cacao,copra,etc.

o Developmentofcommonservicepostharvestfacilities(thresher,cornsheller,

communitywarehouseforcereals,etc.)

o Establishmentofprocessingfacilitiesinpartnershipwithacollege/university

thatoffersfoodtechnologycourses

o Establishmentofconsolidationandpacking/packaginghouses


86

MarketingFacilities

o establishmentofauctionmarketfacilitywiththeattendantweighingscalesand

theholdingpensforlargeanimalsincludingtheauctionmarketsystem

o establishmentofslaughterhousesanddressingplants

o establishmentoftradingposts/centerswithancillaryfacilitiesandequipmentsuch

as minimal processing facility, cold storage facility, transport facility, weighing

scales,plasticcrates,etc

NRMOn-the-GroundInvestments(OGIs)asaProductivityEnhancementMeasure

toidentifiedprioritycommodities

• OGIs includeactual establishmentand/orenhancementof fish sanctuaries and

Marine Protected Areas (MPAs) and artificial coral reef systems, mangrove

reforestation/rehabilitation,andaqua-silvicultureforcoastalareas

• agro-forestrytosupportsustainablefarmingonslopingland,andreforestationto

rehabilitatedegradedlandsinuplandareas

• stream bank stabilization/ rehabilitation using structural, vegetative, bio-

engineeringdesigns,oracombinationofallthreetypestoreducesoilerosionand

excessiverunoff


87

Annex1.B-SampleofActivities/Sub-ProjectstobeSupportedbyI-REAPSubcomponent

3.2:TechnologyandInformationforEnterpriseandMarketDevelopmentSupport

ResearchandDevelopmentandExtensionSystem

• Varietalimprovementthroughtissueculture

• Technology enhancement through breeder stocks production and distribution

facility

• Developmentofclimate-smarttechnologies

• Establishmentofextensionnetworkattheprovincial leveltoprovideextension

deliverysystemtoenterprises(e.g.,SUCs,ATI,NGOs,privatesector)

• Establishmentofclimate-smartfieldschools

• Selectionanddevelopmentoffarmer-scientists(oneforeachprioritycommodity)

tobepartnersoftheacademeinappliedResearchandDevelopment

• Development of information tools that producers’ groups and farmer

entrepreneurscanusetopreserveandenhancetheiroperations(e.g.matrixof

commodityandsupportingprogramsandfinancialresources,FarmerInformation

andTechnologySystem,etc.)

• Establishmentofresearchanddevelopmentcenterandtechnologyincubation

CapacityBuildingorTraining

• TrainingonGAP,GMP,HACCP,bio-control

• Trainingonproductstandards

• Useofexistingagro-meteorologicalweatherstations(AWS)forcropschedulingof

cropcycles,etc.

• Climate-smarttechnology

• Facilitatingaccesstocredit,guaranteeandinsurancefacilities

• BusinessPlanning,enterprisedevelopmentandmanagement

• Establishment of Business Development Service (e.g., training on enterprise

management,bookkeeping,internalcontrol,costanalysis,financialmanagement,

etc.)

MarketDevelopmentServices

• Promotionofclusteringapproachthroughpartnershipandnetworkbuilding

• Establishment of an LGU-based one-stop action center or Agri-fishery Business

ProcessingandLicensingCenter(ABPLC)

• Trialshipmentofpriorityproductsfromspecificsourcestoidentifiedmarkets

• Marketpromotionthroughtradefairs,caravans,crossvisits,studytours

• Tradefacilitationthroughconductofmarketmatchingorlinkageactivities

• Shelf-lifetestingofprioritycommodities/products

• Enhancementofpackagingandlabelingofpriorityproducts


88

• Support towardsproductaccreditation toenhancemarketaccess (e.g.,organic

certification,halalcertification,etc)

• Operationalization of national and regional marketing umbrella to assist the

enterprises in facilitating linkages with other agri-fishery stakeholders in the

prioritycommodityvaluechains


89

Annex2.A-MenuofPossibleNRMOGIsPerCommodityValueChain

Below is the tablepresenting the indicative listofNRM interventionsbasedon the resultsof

eithertheFullorRapidPRA-RSA.Thelistalsopresentsthetechnicaljustificationsforthepotential

investments.

Value

Chain

Commodity

On-the-Ground

Investments

(OGI)

TechnicalJustificationofOGI

COASTAL

Fishand

other

fishery

species

1.Fish

Sanctuary/

Marine

ProtectedArea

(i)Alldestructivepracticessuchasuseoffinenets,dynamite/cyanide

fishing,etc.areprohibited/controlledespeciallyinstrictprotection

zonesandallowscontrolofotherhumanactivities,includingaccess,in

ordertoprotecttheecosystemwithinthespecificsitethereby

increasingfishproduction.

(ii)Coralreefsprovidefood,livelihood,recreation,protectionfrom

erosion,andextremelyhighlevelsofbiodiversity.Damagedcoralreef

areaswhenrehabilitatedincreasesfishspeciesandfishcatch,

improvesturtlebreedinggroundsanddivingspotsforecotourism.

(iii)Seagrassbedslikewiserehabilitatedandtheseareimportant

habitatsforunderwaterlifesuchasjuvenilefishes,adultrabbitfish,

andcommerciallyimportantspeciesofshrimps,prawns,crabs,sea

urchinsandseacucumbers.Theseprovidetheintermediatebuffer

necessaryforcoralreefstoprotectcoastsfromstrongwavesand

surges.Seagrasshabitatsalsoserveasthefeedinggroundforthe

highlyendangereddugongandmarineturtles.

TheestablishmentofFishSanctuaries/MPAshavebeenknowntobe

aneffectivetoolforconservingfishstock,preservingbiodiversityand

increasingfishproduction.

2.Mangrove

Rehabilitation/

Reforestation

(i)Carbondensityvaluesarecomparablyhighinuplandcarbonsinks

thaninmangrovecarbonsinks.Nevertheless,bothcarbonsinks,

assumingtheirfullyrestoredcondition,cansequesterrelativelyvast

amountsofcarbon.

(ii)Mangroveforests,asadistinctecosysteminitself,providethe

transitionbetweenterrestrialandcoastal/marineecosystems.

Mangrovesprotectthecoastsfromstorms,erosionandfloodsand

likewisescreenoutdebrisfrominlandareas.Theyareimportant

spawninggroundsandfeedingsitesformanycommerciallyimportant

fishspecies.

(SEEMOREUNDERREFORESTATIONINGENERAL)

3.Artificial

CoralReefs

Coralreefssupportassemblagesoflivingcoralsandothermarine

organisms,includingfish,mollusks,marineworms,crustaceans,algae

andsponges.However,climatechange,destructiveandunsustainable


90

Value

Chain

Commodity

On-the-Ground

Investments

(OGI)


fishingandrecreationalpractices,unwarrantedcoastaldevelopment

andpollutionhaveseverelydegradedcoralreefsystems.Asaremedy,

artificialcoralreefsareplacedinareasawayfromnaturalreefs,

providingaframeworkfornewhardbottomcommunitiestodevelop.

Artificialreefsusematerialsthatmimicnaturalreefsystemssuchas

concreteandlimestone.Itsbenefitsincludeprovidingfood,shelter,

protection,andspawningareasforfishandmarinelife,andrelieving

userpressurefromnaturalreefsbyprovidingalternativerecreational

areas.

4.

Aquasilviculture

(forfishpens,

shrimpand

crabpens)

Aqua-silvicultureisacoastalmanagementstrategythatallowslow-

densitycultureoffish,shrimpsandcrabsinintertidalforestsor

swampswithoutclearingthemangroves,andwhennecessary,even

rehabilitatesdenudedareas.Thisensuresthelong-termcontinuityof

essentialecologicfunctions,andthehealthandproductivityof

forestedecosystems,insupportoftheagriculturalproductivityofthe

enterprise.

(Seemangroverehabilitation/reforestationaboveforother

justifications.)

UPLAND

Cereals,

Rootcrops,

Tubers,

Vegetables,

Fruitcrops,

Livestock,

Poultry

5.

Reforestation

(i)Climatechangeisconsideredasoneofthemostpressing

environmentalissuesofourdaybecauseexpertsbelievethatitcarries

alongharmfuleffectsbothontheenvironmentandthehuman

population.Tomitigateclimatechange,degradedareasneedtobe

rehabilitatedsinceforestecosystemscanassimilatecarbondioxidevia

photosynthesisandstorecarboninbiomassandinsoil.

(ii)Carbondensityvaluesarecomparably1highinuplandcarbonsinks

thaninmangrovecarbonsinks.Nevertheless,bothcarbonsinks,

assumingtheirfullyrestoredcondition,cansequesterrelativelyvast

amountsofcarbon.

(iii)Reforestationisanapproachtomitigatingclimatechange2by

capturingcarbondioxide(CO2)fromlargepointsourcessuchaspower

plantsandsubsequentlystoringitawaysafelyinsteadofreleasingit

intotheatmosphere.Theconceptofcarbonsinkthusworksasa“giant

filter”.Carbondioxidemaybeincorporatedintoforestsandforestsoils

bytreesandotherplants.Plantsabsorbandstorecarbondioxidefrom

12006.CollegeofForestryandNaturalResources,UPLBasheadedbyDr.RodelLascoandDr.JohnPulhin.

2BBC:Treesonlycooltheplanetiftheyareplantedin

the tropics. News Release: Models show growing

moreforests intemperateregionscouldcontribute

toglobalwarming.DecCMBC-2er5,2005NR-05-12-

04, Website of Lawrence Livermore National

Laboratory


91

Value

Chain

Commodity

On-the-Ground

Investments

(OGI)


theatmosphereandreleaseoxygenintotheatmosphere.Ayoung

forest,composedofgrowingtrees,absorbscarbondioxideandactsas

asink.Forestsarecarbonstores,andbecomecarbondioxidesinks

whentheirdensityorareaincreases.Tropicalreforestationcan

mitigateglobalwarminguntilallavailablelandhasbeenreforested

withmatureforests.Agriculturalproductionwillbenefitgreatlyif

climatechangeeffectsaremitigated.

(iv)Carbonsinksalsoaidinnaturalwaterfiltering,whichprotectsand

preservesthewaterqualityinthearea,acriticalresourceinmost

agriculturalactivities.Thecarbonsinkabsorbsexcessnitratesand

phosphates,andreducestheleveloforganicpollution.

(v)Theforestvegetationplaysanimportantroleinthecapture,

storageandtransportofprecipitationthatfallsinawatershed.Any

alterationintheseprocesses,bywayofchangesinlanduseswithinthe

forestlands,willalterwaterqualitywhereinareductionofthefiltering

processandincreasedrunoffofwaterandsedimentcanoccur

(Waterlines2001).Thisfilteringprocessiscrucialinensuringthe

correctquantityandqualityofwater,acriticalresourceinagricultural

production.

(vi)BasedonPRDPsafeguards,designshouldtakenoteofthe

following:

- Provisionofprotectionmeasuresagainstforestfires(firelines,fire

breaks,look-outtowers)andattackofpestanddiseases

- Plantingalongcontourlinesspeciallyonerodibleandslopingareas

- Strategiclocationofbunkhouses,permanentnurseriesandsatellite

nurseries.Shouldconsideraccessibilityandadequatewatersupply.

- Availabilityofwatersupply

- Multipletreespeciestominimizeinfestation

- Useofindigenousornativeforesttreespeciestoensure

sustainabilityandconservethecountry’sbiodiversity

- Plantingofspeciesbyblocksforeasyidentification

- Roadsandtrailsystemforaccessibilityespeciallyduringtransportof

seedlingsfromnurserytotheplantingsite

6.Agroforestry


92

Value

Chain

Commodity

On-the-Ground

Investments

(OGI)


reducesoilerosioninslopingareasincludeterracing,vegetative

coverandstrategicallyplantedtrees.

(iii)Increaseslandutilizationofareasundercoconutsthatareusually

unproductivedespiteitshugepotential.

(iv)Rubbermaytakefivetosevenyearsbeforeitcanbetappedofits

latexbutinthelongterm,itcouldbeagoodsourceofincome

especiallythatthebuyingpriceforrubberisnoticeablyhighat

present.

(iv)Multipleperennialandcashcropsplantedinbetweentherowsof

oldcoconutsincreaseslandutilizationofareasundercoconutsthat

areusuallyunproductivedespiteitshugepotential.Italso

showcasesproperagriculturalpractices.

(v)Intercroppingthatleavescropresiduesinthefieldtodecompose

resultstoabeneficialeffectonthesoilthrougheffectsofrun-off

andsoilerosion.Moreplantsresulttomoreoxygeninthe

surroundingsandmorefreshair.

(vi)Othersoilandwaterconservationmeasuresthatallowfarmersto

effectivelymanagesoilfertilityandproductivityinthelong-term.

Theseincludetheuseoflocallyavailableorganicnutrients,suchas

livestockmanure,andhouseholdwaste,andnitrogen-fixingtrees

andshrubs.

(vii)IntegratedPestManagementthatencouragescropprotection

throughcontinuousobservationoffieldconditionsbyfarmers,and

increasedawarenessbyfarmersoftheagri-ecologicallinkages

amonginsects,animals,plantsandhumans.Thisincludesan

assessmentandpracticalapplicationofthefarmers'detailed

knowledgeofthebiologicalandecologicalmake-upofplant

diseases.Inmostcases,pestsarecontrolledthroughthedirect

actionofthepests'naturalenemies.Somemethodsincludeinter-

croppingwithplantsthatarehoststobeneficialinsects,usingplants

withinsecticideproperties,andbacterialandviralpesticides.Also,

theless-toxicchemicalpesticidesasidentifiedbytheFertilizerand

PesticideAuthority(FPA)areused.(CARE2012)

(viii)BasedonPRDPsafeguards,designshould:

- ConformtotheIndigenousKnowledgeSystemsparticularlyofIPsin

caseswherethereareIPs

- Sequentialplantingoftreecropsandshort-rotationcrops


93

Value

Chain

Commodity

On-the-Ground

Investments

(OGI)


- Providesoilandwaterconservationthroughestablishmentof

vegetativestripsalongcontourlinesand/orhedgerows

- Alleycroppinginslopingorerodibleareas

- AvailofAgroforestrysystemthatareeitheragro-silvi-pastoralor

aqua-agro-silvi-pastoral

- Selectspeciesforhedgerows(multi-purposeplantspecies),shrubs

andfast-growingtreespecies,andagriculturalcrops


94

Annex2.B-GlobalEnvironmentFacility(GEF)SupportedActivities

Thetypesofsupportavailabletoeachsitewillinclude:

a) Conservation Implementation Investments. Examples of potential activities

include mangrove and marine habitat restoration; providing enhanced

enforcement capacity; equipment and financing required for enhance MPA

management.

b) CoastalandMarineEcosystemManagementImplementation:Assistingwiththe

implementation of strengthened local policy frameworks for improving local

conservationofvitalresourcesinconjunctionwiththecommodityvaluechain;

c) TechnicalandOperationalCapacitiesofStakeholdersEnhancement:Trainingfor

smallholder farmer and fisher groups on natural resources management and

conservation strategies such as Participatory Resource Assessment (PRA) on

mangrove, sea-grass and coral reef ecosystem that are critical habitats to

endangeredmarineorganisms;

i. Strategic Awareness Campaigns: These campaigns would focus on

biodiversityconservationandcoastalresourcemanagementissues;

ii. Facilitating Stakeholders to Pursue Co-management Arrangements.

Support for facilitating and building partnerships between

community/producer groups, market stakeholders, and local

governments. Consultations and organizational development building

activities will lead to co-management arrangements over key coastal

resources. These co-management arrangements will increase the

likelihood for sustainability and ensure integrative attention on

conservationandproperresourcesmanagement;and

iii. KnowledgeGenerationandSharing:Supportknowledgeandexperience

sharingof goodpracticesamong stakeholders. ThroughGEF’s IW-Learn

Program,attention to factorsaffecting largemarineecosystems (LMEs)

willbestrengthenedthroughstructurallearningandinformationsharing

amongstakeholders.

Specific activities could include agro-forestry; nursery establishment; promotion of

Sloping Agricultural Land Technology (SALT); others. Moreover, Good Aquaculture

Practices(GAP)willbeappliedsuchasenhancementofseedqualityandimprovementof

stockingpractices,andhabitatmanagementandbio-security.

In certain cases, where anMPA does not already exist close to PDRP areas, the GEF

financing could assist with the MPA establishment as long as significant community


95

supportexists.Aswell,theremightalsobecaseswherefisheriesco-managementoutside

oftheMPAboundarieswouldbethemostbeneficialforlocalsmallholderproducersand

therefore,GEFfinancingwouldbeallocatedaccordingly.

GEF financed activitieswould focus on improvedMPAmanagement plans, fishery co-

management plans and incorporating measures to conserve and sustainably use

biodiversityinpolicyandregulatoryframeworksattheregionalandprovinciallevels.As

well in select cases, these activities can finance the planning of newMPAs and their

subsequentmanagementplans.EnhancedMPAandfisheriesco-managementplanning

wouldaidinreversingthemismanagementofmanyofthesekeybiodiversityandcoastal

resources.

Overall,theexpectedimprovementsasadirectresultfromtheGEFfinancingsupportwill

bethefollowing:(a)theinformationbaseresultingfrominnovativetechnicalassessment

tools (VCA-VSA-PRA/RSA); (b) transparency; (c) stakeholder ownership; and (d)

sustainability of gains and benefits. It is expected that through these interventions,

marketablesurplusproductivityinthetargetsiteswillincreaseby20%byprojectend.


96

Annex3-NegativeListofSub-projectsNotEligibleforI-REAPFunding

ThefollowinglistsofsubprojectsareNOTeligibleforI-REAPfunding:

a. Moneymarketplacement,timedepositorotherformsofinvestment

b. Cash advance of any official of the PG unless related to the implementation of

enterprise

c. Paymentofsalaries,honorariaoranyformofallowancesofthepersonnelofthe

LGU

d. Purchaseofsupplies,materials,equipmentandmotorvehiclesoftheLGU

e. AcquisitionofassetsofthePG,unlessnecessaryfortheexecutionoftheenterprise

andspecificallystipulatedintheEPF

f. Purchaseofweapons

g. Financingofpoliticalandreligiousactivities

h. Purchase of fertilizer, pesticides, insecticides and herbicides, asbestos and other

potentiallyanddangerousmaterialsandequipment

i. Chainsawsandexplosives

j. Financingofsawmills

k. Consumptionitemsorevents

l. Financingactivitiesthathaveanalternativepriorsourceofcommittedfunding

m. Financinglaborandothercoststhatcouldbeprovidedin-kindthroughthemembers

oftheenterprise

n. Financing salaries and wages unless the enterprise personnel required is highly

technicalorspecialized

o. Financing administrative expenses such as fuel, utilities, repair and maintenance,

permitsandlicenses

p. Purchaseorrepairofvehiclesforgovernmentoffices

q. Salariedactivitiesthatemploychildrenunder16yearsofage

r. Financingactivitiesthatunfairlyexploitwomenormenatanyage

s. Useofmangroveorcoralreefsasbuildingmaterials

t. Purchase of fishing boats and other related equipment unless directly related or

neededintheenterprise

u. Purchaseofvehicleformonitoringpurposes

v. Constructionofenterprisesupportfacilitiesinprotectedareas

w. Useoffundsforpurchaseorcompensationofland

x. Constructionorrepairandbuyingofequipmentforgovernmentofficesandplacesof

worship

y. Micro-financingactivities

z. Potablewatersystem


97

Annex4-ProspectivePartnerAgenciesbyCommodityGroupandbySupportServices

Commodity

Group

Production/ProductivityFinancing

Researchand

Development

BusinessSupportand

Development

Crops DAAttachedAgencies

(PCA3,BPI4,BSWM5,ATI6,

FIDA7,PHilMech3,and

PhilRice4);DABanner

Programs(Rice,

Corn,HVCDP5)

ACPC6,

AMCFP7,

Quedancor8

Window,

DBP9,ACEF10

DOST-

PCAARRD11,

UPLB12,

SUCs13

BAR14,

PHilMech,

DTI15anditsSmalland

MediumEnterpriseCore

Group[BSMED16,SBGFC17,

PTTC18,PDCC19,CITC20,

BDT]21,PHilMech,ATI,

CDA22

Livestock DAAttachedAgencies

[LDC23,PCC24,BAI25,

NDA26,andNMIS]27,

ATI

MLDLP28,

Quedancor,

DBP,ACEF,

ACPC

DOST-

PCAARRD,

UPLB,SUCs,

BAR,

PHilMech

DTIanditsSMECoreGroup

[BSMED,SBGFC,PTTC,

PDDC,CITC,BDT]

PADCC,PhilMech,ATI

Fishery DAandAttached

Agencies[BFAR29,

PFDA]30

SEAFDEC31

ATI

ACPC,

AMCFP,

Quedancor

Window,

DBP,ACEF

DOST-

PCAARRD,

NFRDI32,

SUCs,

PHilMech,

SEAFDEC

DTIanditsSMECoreGroup

[BSMED,SBGFC,PTTC,

PDDC,CITC,BDT]

PDCC,PHilMech,SEAFDEC,

ATI

3 PCA–PhilippineCoconutAuthority

4 BPI–BureauofPlantIndustry

5 BSWM–BureauofSoilsandWaterManagement

6 ATI–AgriculturalTrainingInstitute

7 FIDA-FiberIndustryDevelopmentAuthority

3PHilMech–PhilippineCenterforPostharvestDevelopmentandMechanization4PhilRice–PhilippineRiceResearchInstitute5HVCDP–HighValueCropsDevelopmentProgram6ACPC-AgriculturalCreditPolicyCouncil7AMCFP-Agro-industryModernizationCreditandFinancingProgram8Quedancor–QuedanandRuralCreditGuaranteeCorporation9DBP–DevelopmentBankofthePhilippines10ACEF–AgricultureCompetitivenessEnhancementFund

11DOST-PCAARRD–DepartmentofScienceandTechnology-PhilippineCouncilforAgriculture,Forestry,Aquaticand

NaturalResourcesResearchandDevelopment12UPLB–UniversityofthePhilippinesLosBaños

13SUCs–StateUniversitiesandColleges

14BAR–BureauofAgriculturalResearch

15DTI–DepartmentofTradeandIndustry

16BSMED-BureauofSMEDevelopment

17SBGFC-SmallBusinessGuaranteeandFinanceCorporation

18PTTC–PhilippineTradeandTrainingCenter

19PDDC–ProductDevelopmentandDesignCenter

20CITC–CottageIndustriesandTechnologicalCenter

21BDT–BureauofDomesticTrade

22CooperativeDevelopmentAuthority

23LDC-LivestockDevelopmentCouncil

24PCC–PhilippineCarabaoCenter

25BAI–BureauofAnimalIndustry

26NDA–NationalDairyAuthority

27NMIS–NationalMeatInspectionService

28MLDLP–Multi-livestockDevelopmentLoanProgram

29BFAR–BureauofFisheriesandAquaticresources,PFDA–PhilippineFishDevelopmentAuthority

30PFDA–PhilippineFishDevelopmentAuthority

31SEAFDEC–SouthEastAsianFisheriesDevelopmentCenter

32NFRDI–NationalFisheriesResearchandDevelopmentInstitute


98

Annex5-SampleTermsofReferencesfortheBusinessDevelopmentStaff

TERMSOFREFERENCE

BusinessDevelopmentStaff(Finance)

Rationale/Background

TheGovernmentofthePhilippines(GOP)hasobtainedaloanfromtheInternationalBankfor

Reconstruction and Development - World Bank (IBRD-WB), amounting to FIVE HUNDRED

MILLION DOLLARS (US$500,000,000) for the purpose of financing the ‘Philippine Rural

DevelopmentProgram(PRDP)tosupporttheGovernment’sefforttoreducepovertyamongthe

ruralcommunitiesinthecountry.

ThePRDPisasix-year(2015-2021)initiativeenvisionedtoincreasefarmandfisheryproductivity

andincomesintargetareasinall16regionsofthecountry.Theprogramseekstoachievethis

objectiveby improvingaccessof farmersandother industryplayerstoastrategicnetworkof

infrastructure,marketinformationandsupportservices.Specificinvestmentsandinterventions

are tobe implementedunder fourcentral componentsof theprogram,namely:1) Localand

National Level Planning (I-PLAN); 2) Infrastructure Development (I-BUILD); 3) Enterprise

Development(I-REAP);and4)ProjectImplementationSupport(I-SUPPORT).

I-REAP activities can be categorized into two sub-components namely; Rural Agri fishery

EnterpriseandProductivityEnhancement;andTechnologyandInformationforEnterpriseand

Market Development. This component will support the development, implementation and

sustainabilityofagricultural,livestockorfishery-basedentrepreneurialactivities,basedonthe

analysis priority commodity value chains being supported under the Regional Agricultural

Fisheries and Modernization Plans (RAFMPs) and as reflected the Provincial Commodity

InvestmentPlans(PCIPs).Itwillengagetheengagebroadsectionsofthesectorintheproduction

ofmarketable surplus throughvertical clustering, jointbusinessplanningand investmentsby

proponentgroupsengagedinruralagri-fisheryenterprises.

Itistargetedthataround1,500proponentgroupsconsistingmostlyofproducergroupsincluding

smallproducersandfisheriesassociationsengagedinenterpriseswillbeassistedoverthesix-

yeardurationoftheproject.Atpresent,thereareonly138enterprisespipelinedforI-REAPof

which 11 has been issued No Objection Letter by World Bank and the National Project

CoordinationOffice(NPCO).

ScopeofServicestobeRendered

Themain role of the BusinessDevelopment Staff on Finance is to take the lead in providing

technicalassistancethroughcoachingandmentoringoftheRPCO(forPSOposition)LGUandthe

Proponent Groups (for RPCO position) in all financial management related concerns of the

enterprise.


99

TasksandResponsibilities

1. IdentifytogetherwiththeLGUandthePGtherequiredinvestmentrequirementsforthe

proposedenterprise

2. Assistinthepreparationoftheenterprisebudget

3. Assistinthepreparationoftheenterprisefinancialstatements

4. Preparetherequiredfinancialanalysisandfinancialratios

5. Set-uptheenterprisefinancialmanagementsystemandcascadethistotheLGUsandthe

PGs

6. Assist the LGU and the PG in complying the comments and recommendations of the

businessplanreviewers

7. Assist the Component Head in the validation and selection of proponent groups and

enterprisebusinessmodel

8. Performotherdutiesthatmayberequiredfromtimetotime

QualificationRequirements

AcademicQualification

At least a Bachelor’s degree in Accountancy, Business Administration major in Finance,

Agribusiness,AgriculturalEconomics,andotherrelatedfields

Experience

Atleasttwo(2)years’experienceinanyorcombinationofthefollowing:financialmanagement,

accounting, bookkeeping, financial audit, business planpreparation, project proposalwriting,

projectdevelopment

Knowledge,SkillsandAbilities

1. Skillinusingfinancialanalysisusingcomputerprograms/softwares;2. Stronganalyticalandoperationalknowledgeofagribusiness3. Considerableknowledgeonagricultureandfisherycommodities4. Understanding of business procedures including business financing, human

resources,IT,operationsandsalesandmarketingfinancingoptionsforbusinessstart-upsandbusinessexpansions;

5. Stronginterpersonalskills;

6. Abilitytocommunicateeffectivelyinoralandinwriting,workindependentlyandaspart

of the team, and work effectively with co-workers, partner agencies and the private

sector;

7. AdvancedproficiencyinMSword,excel,andpowerpoint


100

TERMSOFREFERENCE

BusinessDevelopmentStaff(Marketing)




MILLION DOLLARS__ (US$500,000,000) for the purpose of financing the ‘Philippine Rural

DevelopmentProgram(PRDP)tosupporttheGovernment’sefforttoreducepovertyamongthe
























ThemainroleoftheBusinessDevelopmentStaffonMarketingistotaketheleadinproviding


ProponentGroups(forRPCOposition)indevelopingthemarketingstrategiesandplansofthe

enterprise.


101


1. IdentifytogetherwiththeLGUandthePGthecompetitorsandassistinthepreparation

of the competitors assessment to include buying and selling practices, pricing and

promotionsstrategies

2. Conduct target buyers profiling to include information on total demand and potential

demandfortheenterprise

3. Assistinthepreparationoftheenterprisemarketingplanusingthedifferentmarketing

mix(product,price,place,promotion)andidentifycorrespondingbudget

4. Facilitatemarketlinkageoftheenterprisewithpotentialortargetbuyers

5. Preparepurchaseagreementwith farmersuppliersandmarketingagreementwiththe

buyers








At least a Bachelor’s degree in Agribusiness, Agricultural Economics, Business Administration

majorinMarketing,Agriculture,andotherrelatedfields

Experience

Atleasttwo(2)years’experienceinanyorcombinationofthefollowing:marketdevelopment,

product development, preparation of marketing plan, business plan preparation, project

proposalwriting,projectdevelopment


1. Considerableknowledgeinmarketingagri-fisherybasedcommodities2. Analyticalandoperationalknowledgeofagribusiness3. Understanding of business procedures including business financing, human

resources,IT,operationsandsalesandmarketingfinancingoptionsforbusinessstart-upsandbusinessexpansions

4. Stronginterpersonalskills


oftheteam,andworkeffectivelywithco-workers,partneragenciesandtheprivatesector



102

TERMSOFREFERENCE

BusinessDevelopmentStaff(Operations)





DevelopmentProgram(PRDP)‘tosupporttheGovernment’sefforttoreducepovertyamongthe
























ThemainroleoftheBusinessDevelopmentStaffonOperationsistotaketheleadinproviding


Proponent Groups (for RPCO position) in preparing the operational plan and technical

requirementsoftheenterprise.


103


1. IdentifytogetherwiththeLGUandthePGthetechnologyrequiredfortheenterpriseand

itsadaptionandimplementationaswellasidentificationoflivelihoodoptionsforNRM

andGEFsites

2. Provide guidance in operations planning from identifying the inputs/raw material

ingredients, the process, technology, the output, product or services and the

correspondingbudgetorexpenses

3. Identifyandassessexistingtechnology/iesthatcouldbeadaptedbytheenterprise

4. Assistintheidentificationoftechnologyorequipmentspecificationsappropriateforthe

enterprise

5. Work closely with the I-BUILD in the preparation of the DED and POW for the

infrastructurecomponentoftheenterprise

6. Prepareprocessandoperationalflowoftheenterprise

7. Ensure compliance of enterprise to food safety standards (GAP, GAHP, GAFP, GMP,

HACCP,etc)








At leastaBachelor’sdegree inAgriculture,AgriculturalEngineering,Agribusiness,Agricultural

Economics,FoodScience,FoodTechnology,BusinessAdministration,andotherrelatedfields

Experience

Atleasttwo(2)years’experienceinanyorcombinationofthefollowing:farming,manufacturing,

processing, product development, production planning,business plan preparation, project

proposalwriting,projectdevelopment


1. Considerable knowledge in production and processing of agri-fishery based

commodities2. Analyticalandoperationalknowledgeofagribusiness3. Understanding of business procedures including business financing, human

resources,IT,operationsandsalesandmarketingfinancingoptionsforbusinessstart-upsandbusinessexpansions






104

TERMSOFREFERENCE

BusinessDevelopmentStaff(OrganizationalManagement)

I. Rationale/Background




DevelopmentProgram(PRDP)‘tosupporttheGovernment’sefforttoreducepovertyamongthe
























ThemainroleoftheBusinessDevelopmentStaffonOrganizationalManagementistotakethe

lead in providing technical assistance through coaching andmentoring of the RPCO (for PSO

position)LGUandtheProponentGroups(forRPCOposition)inpreparingtheorganizationaland

managementrequirementsoftheenterprise.


105


1. IdentifytogetherwiththeLGUandthePGtheappropriateorganizationalandbusiness

structurefortheenterprise

2. Assistinpreparingtheorganizationalandmanagementplanfortheenterpriseincluding

the required operations and administrative staff with corresponding job descriptions,

qualificationsandremunerations

3. Identify the business capability requirements of the proponent groups including the

operationsandmanagementstaff

4. ForGEFareas,facilitateorganizationoffarmersandfisherfolk

5. LinkwithconcernedDAagenciesi.e.ATIandothergovernmentagenciesi.e.CDA,DOLE,

DTI for the provision of capability building or training to proponent groups and its

members

6. Ensurecomplianceofenterprisetolaborlawandoccupationalsafety








At least a Bachelor’s degree in Agriculture, Agribusiness, Agricultural Economics, Business

Administration,andotherrelatedfields

Experience

Atleasttwo(2)yearsexperienceinanyorcombinationofthefollowing:organizationaldiagnosis,

strategicplanning,communityorganizing


1. Considerable knowledge in business procedures including business financing,

human resources, IT, operations and sales andmarketing financing options forbusinessstart-upsandbusinessexpansions

2. Analyticalandoperationalknowledgeofagribusiness





:


106

Annex6-SampleProductSegment/EnterprisePrioritizationProcess

andScoringSheet

Theproductsegment/enterprisewillbeassessedandprioritizedbasedonthefollowing

criteriaandscoringsheet:

No. Criteria Indicator RankingGuide Score

1 Importance

oftheproductsegment/

enterpriseinthelocal

economy

(30POINTS)

• No.ofproducers

involvedassuppliersof

rawmaterials(Source:

BASdata,provincial

data)–10POINTS

• No.ofmunicipalities

involvedinproducing

therawmaterials

(Source:provincialdata)

–10POINTS

• No.ofjobs(directand

indirect)tobe

generated(basedon

DTI/NEDAjob

coefficient)–10

POINTS

HIGH–Top3intheprovince(8-

10POINTS)

MEDIUM–Top5intheprovince

(5-7POINTS)

LOW–outsidetheTop5 inthe

province(1-4POINTS)

HIGH-80%-100%ofthe

municipalitiesintheprovinceare

producingtherawmaterials(8-

10POINTS)

MEDIUM-50%-70% ofthe

municipalitiesintheprovinceare

producingtherawmaterials(5-7

POINTS)

LOW- below 50% ofthe

municipalitiesintheprovince

areproducingtherawmaterials

(1-4

POINTS)

HIGH – Top 3 among the

identified enterprises in the

province(8-10POINTS)

MEDIUM – Top 5 among the

identified enterprises in the

province(5-7POINTS)

LOW–belowtheTop5among

theidentifiedenterprisesinthe

province(1-4POINTS)

2 Market

Potential(30

POINTS)

• Potential for value

addition (based on the

no. of product

segments)–10POINTS

• Strongdomesticand/or

internationaldemand

fortheproduct

(Sources:NSOimport

andexportvolume,

marketstudies,

stakeholders’

consultations,I-PLAN

prioritizationinterms

HIGH–5productsandabove

(8-10POINTS)

MEDIUM–3to4products(5-7

POINTS)

LOW–1to2products(1-4

POINTS)

HIGH–Top3(8-10POINTS)

MEDIUM–Top5(5-7POINTS)

LOW–belowtheTop5(1-4

POINTS)


107

ofmarketsize,growth

&potentialandeaseof

entry)–10POINTS

• Identifiedindustrialor

commercialbuyerwith

potentialfor

supply/marketing

contract(basedon

VCA/PCIP)–10POINTS

HIGH–morethantwoknown

localindustrialandcommercial

buyers with potential for

supplyandmarketingcontract

andpresenceofexporttraders

ofthecommodityinthelocality

(8-10POINTS)

MEDIUM –less than two local

and industrial buyers with

potential for supply and

marketing contract and

presence of export traders of

the commodity in the locality

(5-7POINTS)

LOW –No known industrial or

commercialbuyerandexport

traders(1-4POINTS)

3 Resourcebase(20

POINTS)

• Productionarea(10

POINTS)

• Productionvolume(10

POINTS)

HIGH – 40% and above of

agriculture area planted/total

livestock population/ total

aquaculturearea(8-10POINTS)

MEDIUM – 20%-39%

agriculture area planted/ total

livestock population/ total

aquaculturearea(5-7POINTS)

LOW – below 20% agriculture

area planted/ total livestock

population/ total aquaculture

area(1-4POINTS)

HIGH–40%andaboveshareof

agricultural production

volume/totallivestocktraded/

totalfishcatch

(8-10POINTS)

MEDIUM – 20%-39% share of

agricultural production


totalfishcatch

(5-7POINTS)

LOW–below20%belowthe

shareofagriculturalproduction


totalfishcatch(1-4POINTS)

4 EnvironmentalImpact

(10POINTS)

• WithPositiveImpact

• Neutral

• NegativeImpact

10POINTS

5POINTS

0POINT

5 Women’s

participation(10

POINTS)

Percentageofwomen

directly&indirectly

participatinginthe

enterprise

HIGH–40%andaboveofthose

who are engaged in the

enterprise are women (8-10

POINTS)


108

MEDIUM – 20%-39% of those

who are engaged in the

enterprise are women (5-7

POINTS)

LOW–below20%ofthosewho

areengagedintheenterprise

arewomen(1-4POINTS)


109

Annex7-GuideQuestionforBusinessModelFormulation/InformationGathering

No. Questions SourceofData/GuideforInformation

Gathering

1WhatIsthePRODUCT/SERVICESofthe

enterprise?

• Marketing-4P’s

Product , Price, Place,

Promotion

2

WhoaretheUSERs(Farmers/Direct

Beneficiaries)?WhoaretheBUYERS(Identified

Market)?

• VCA/IndustryPlayers/LocalSourcesfor

BaselineData

• ConsiderBackwardand

ForwardIntegration

• ShowconnectionfromSOURCEofRAW

Matstowards

DestinationofFinishProduct

• IdentificationofIndustry

Players

3

Whatisthe“problem”thattheenterprisewill

Address?

Whatisthe“opportunity”thattheenterprisewill

takeadvantageof?

• VCA/PCIP/LocalSourcesforBaselineData

4 WhatistheUniqueSellingProposition(USP)?

• Marketing-convincingtargetclientsto

patronizeyourproductortoswitchbrand

• HowwillyoudelivertheUSP?

• ProductionPlan-identificationofResources

Requirements:Materials,Manpower,

Methods,Machineries,Money

5 WhoaretheBusinessPartners?• IdentificationofHorizontalandVertical

Linkages

6 WhataretheCostsInvolved?

• ProductionCost

• BasisofCostsandAssumptions

7 Whataretherevenues?

• CompareRevenues

• RevenuestobegeneratedwithoutPRDP

investmentvswithPRDPinvestment

8 HowcantheFARMERSearnfromtheenterprise?

• Showhowcandirectbeneficiariesearn

fromtheproposal


110

Annex8-SampleLetterofIntentoftheProponentGroup

DearGovernor_________________:

WewouldliketosignifyourintentiontoparticipateasProponentGroupfortheimplementation

oftheruralenterprisesidentifiedandprioritizedundertheProvincialCommodityInvestmentPlan

tobesupportedbytheDepartmentofAgriculture-PhilippineRuralDevelopmentProgram(PRDP).

The _____________________________________ (name of organization) is registered under

_________________________________(nameofagency)andhasbeeninexistencesince

__________(month/date/year).Wehave___________(numberofproducers)whoareinvolved

in

____________________________, _________________, and__________________

(crops/livestock/fisheries cultivated/grown/catch). Our organization has experience in

implementing various agriculture and fishery based projects namely, __________________,

_____________________,and___________________________(specifyprojects).Wearewilling

toprovide20%counterpart,incashand/orinkind,ontheincrementaltotalprojectcostofthe

enterprise.

Wehaveattachedhereinthedocumentaryrequirementsasaproofofourintention.

Thankyouandwearehopingforyourconsideration.

Trulyyours,

President/Chairperson


111

Annex9-A-SampleProponentGroup(PG)PrioritizationProcessandScoringSheet

forMicro-enterpriseSubprojects

BelowisthescoringsheetorrankingguideforprioritizingthePG.


1 Atleast15ormore

farmers/fisherfolks

currentlyproducing

thecommodity–5

POINTS

• Stakeholdersparticipationat

variousphasesofthe

marketingchain

• Presenceoforganized

producer’sgroupthatsupplies

rawmaterials

HIGH(5POINTS)

MEDIUM(3-4

POINTS)

LOW(1-2POINTS)

2 Opentoinvestments

byenterprises

operatingwithin

prioritycommodity

valuechainsidentified

inthePCIP–5POINTS

• Valueofinvestment/equity

offered

HIGH(5POINTS)

MEDIUM(3-4

POINTS)

LOW(1-2POINTS)

3 Readinesstoworkin

verticalcluster(all

levelsofPG

interventions)–5

POINTS

• No.ofparticipatingfarmersor

producers

HIGH(5POINTS)

MEDIUM(3-4

POINTS)

LOW(1-2POINTS)

4 Performancebased

onpreviousor

existingcontracts

withotherfunding

institutions33–5

POINTS

(NOTE:Appliesonly

toPGwithprevious

existingcontract

withgovernment)

• Performance in previous or

existing contracts with

government

HIGH(5POINTS)

MEDIUM(3-4

POINTS)

LOW(1-2POINTS)

33ForthosePGwithoutpreviousorexistingcontractwithgovernment,ratingforcriteria1to3shouldbe

proratedtoreach20points(e.g.,criteria1=7points,criteria2=6points,criteria3=7points).


112

Annex9-B-SampleProponentGroup(PG)PrioritizationProcessandScoringSheet

forSmallandMediumEnterpriseandUpgradingEnterprises

TheprospectivePGwillbeprioritizedbasedonthefollowingcriteria:

• Readinesstoworkinverticalcluster;

• Open to investments and provide equity (in cash or in kind) by enterprises

operatingwithinprioritycommodityvaluechainsidentifiedinthePCIP;

• Engagesthemostnumberofproducers;and

• Nodisqualificationsbasedonpreviousorexistingcontractswithgovernment

BelowisthescoringsheetorrankingguideforprioritizingthePG.


1 Readinesstoworkin

verticalcluster–5

POINTS

• Stakeholdersparticipation

atvariousphasesofthe

marketingchain

• Presence of organized

producer’sgroupthatsupplies

rawmaterials

HIGH(5POINTS)

MEDIUM(3-4

POINTS)

LOW(1-2POINTS)

2 Open to investment and

provideequity(incashor

inkind)–5POINTS

• Valueofinvestment/equity

offered

HIGH(5POINTS)

MEDIUM(3-4

POINTS)

LOW(1-2POINTS)

3 Engages the most

numberofproducers–5

POINTS

• No.ofparticipatingfarmersor

producers

HIGH(5POINTS)

MEDIUM(3-4

POINTS)

LOW(1-2POINTS)

4 Performanceon

previousorexisting

contractswith

government34–

5POINTS

(NOTE:Appliesonlyto

PGwithprevious

existingcontractwith

government)

• Performanceinpreviousor

existingcontractswith

government

HIGH(5POINTS)

MEDIUM(3-4

POINTS)

LOW(1-2POINTS)

34ForthosePGwithoutpreviousorexistingcontractwithgovernment,ratingforcriteria1to3shouldbe

proratedtoreach20points(e.g.,criteria1=7points,criteria2=6points,criteria3=7points).


113

Annex10-PGValidationProcessandScoringSheet

A. Rationale:

ThevalidationoftheselectedproponentgroupbytheNPCO/PSO/RPCOIREAPisconductedtoverifythe

“strategicfit”betweenprioritizedenterprise/sorproductsegment/sandselectedproponentgroup(PG)or

leadproponentgroup,iffromclusteredproducergroups.Thevalidationisdoneon-sitetoappreciatethe

processundertakenbythePPMIUwiththeassistanceoftheRegionalProjectCoordinatingOffice(RPCO)in

applyingthecriteriainselectingthepriorityenterprisesand(Annex6)andproponentgroup(Annexes7and

8).

B. Requirements:

Tofacilitatethevalidation,theP/C/MPMIU-PLGUisrequestedtopreparethefollowing:

1. Provide in advance the official minutes of meeting in selecting the priority enterprise/s or product

segment/s with completed Annex 6 – Product Segment/ Enterprise Prioritization Process & Scoring

Sheet;Theminutesshouldbedirectandsimpleindicatingthedateofmeeting,attendees,resolutionsor

resultsofmeetingandsummaryofdiscussionsandsignedbythesecretaryandpresidingofficer;

2. MakeavailablethehardcopiesoftheapprovedPCIPincludingVCAandEVSAwhicharethelogicalbases

inidentifyingthepriorityenterprises;

3. Provideinadvancetheofficialminutesofmeetinginselectingtheproponentgrouporleadproponent

group,iffromclusteredproducergroupswithcompletedAnnexes7–LetterofIntentand8–Proponent

GroupPrioritizationProcessandScoringSheet;Theminutesshouldbedirectandsimpleindicatingthe

dateofmeeting,attendees,resolutionsorresultsofmeetingandsummaryofdiscussionsandsignedby

thesecretaryandpresidingofficer;

4. Theon-sitevalidationwillproceedwiththepresenceofbothofficialminutesofmeeting;

5. TheP/C/MPMIUorRPCOor bothwill prepare thenecessary logistical arrangement– transportation

vehicle,boardandlodgingandconferencevenueforintroductoryandclosingmeetings;

6. ThereshallbeatleastonerepresentativefromthePPMIU,RPCO,PSOandNPCOIREAPwhoareprepared

totravelorwalklongdistancesandifneededstayovernightindesignatedaccommodationinthenearby

TownProper,ProvinceorRegion;

C. ValidationProcess/Activity

1. In the introductory meeting, the participants will introduce their name and designation and the

NPCO/PSO IREAPStaff /Representativeexplain the rationaleof theactivity, requirementsandsite

validation;

2. TheP/C/MPMIUorRPCOwillprovideandexplaintheofficialminutesofthemeetingswithcomplete

annexes6,7and8includingthedocuments:PCIP,VCAandEVSAduringorbeforetheintroductory

meeting;


114

3. TheNPCO/PSOIREAPStaff/Representativewillthensuggesttheitineraryofthesitevalidationgiving

importancetotheselectedPGthentothenextrankingPGuntilthelast;

4. Theintroductorymeetingshouldbeheldnotmorethantwohoursandproceedimmediatelytothe

sitesuponagreeingontheitinerary;

5. TheNPCO/PSOIREAPStaff/RepresentativewillfocusitsvalidationorassessmentoftheselectedPG

based on provided information (Annex 7 Letter of Intent with statement of compliance and its

attachments)andmayaskquestionstogathermissingoradditionalinformationwithorwithoutthe

presenceofPPMIUorRPCOorRepresentative;

6. Asmuchaspossible,thesitevalidationperPGshouldnotgobeyondtwohoursexcludingtraveltoand

fromthesiteandthiscanbeachievediftheofficersandmembersofthePGaregatheredintheiroffice

orinpre-agreedmeetingplace;

7. ThePGvalidationisnotadatagatheringactivityandispresumedthatthePPMIUwiththeassistance

ofRPCOandPSOhaddoneenoughpreparation;

8. TheNPCO IREAP Staffwill then thank the visited PG andmay explain the nature of the validation

activitybeforeproceedingtothenextsite;TheP/C/MPMIUorRPCOorPSOStaffwillbetaskedto

answerquestionsrelatedtoPRDPorto

9. Duringorafterthesitevalidation,theNPCOIREAPStaff/Representativewillcompletethevalidation

reportandfinalizeitduringtheclosingmeeting;

10. UponfavorableassessmentoftheselectedPG,NPCOIREAPwillthenissuethe“No

ObjectionLetter”withtheinstructiontoproceedwiththebusinessplanpreparation;Otherwise,thePPMIU

willbeprovidedwithsetofrecommendations


115

D. PGValidationScoringSheet

BasicInformation:

ProponentGroup:

OfficeAddress:

Location(Town/Province/Region):

PriorityCommodity(BasedonEVSA):

TitleofVCAReport

PCIPEndorsedbyPLGUGovernor:

Prioritized Enterprise or

ProductSegment:

Validationconductedby;

Dateconducted:

Accompanyingpersons:

1.NPCOIREAPStaff:

2.PSOIREAPStaff:

3.RPCOIREAPStaff:

4.P/C/MPMIUIREAPStaff:

5.Otherstaff

Recommendation:

o Forapproval

o IssuanceofNoObjectionLetter,seedraftNOL

o IssuanceofNoObjectionLetterafterresolvingthefollowingconditions:

1.

2.

3.

o Fordisapprovalduetothefollowingsummaryofnon-compliances

1.

2.

3.

4.

5.


116

E. Detailsofobservationsduringvalidationactivity

PartI:Annex6:EnterprisePrioritizationProcessandScoreSheet

Arethefollowingrequirementscomplied

basedonAnnex6?

Answer

(Yes,No,NA–

Notapplicable)

Describe answers or explain (If yes, mention

supporting document; if no, provide date on

when it can be complied; If not applicable,

explainwhy?)

A. Are the enterprise subproject

interventions in the PCIP based on the

VCAandEVSAReports?

o Yes o Checked PCIP, VCA &EVSA

consistency;

o NotimetocheckthePCIP,VCA&EVSA

andreliedonfeedback;

o Others:

o No o NoVCAReportforthecommodity;

o NoEVSAdonefortheProvince;

o Others:

o NA o ProvinceisaffectedwithTyphoon

Hainan

o ProvinceisaffectedwithBohol

earthquake

B. Are the enterprise subproject

interventions identified per segment of

thevaluechain?

o Yes Whichsegment

o Input;

o Farming;

o Processing;

o Marketing

o No Whichsegment

o Input;

o Farming;

o Processing;

o Marketing

o NA

C.Istherankingofenterprisesubproject

interventions based on established

criteriaandindicatorsinAnnex6?

o Yes

o No

o NA

D.DidtheP/C/MPMIUidentifyandrank

theenterprisesubprojectinterventions?

o Yes IdentifyPPMIU in-charge and

members

o No

o NA

E.Onthedifferentsetofcriteria,arethe

indicators provided correct and the

scoringconsistent?

1.Importance of product

segment/enterpriseinthelocalo Yes o Indicatorscomplete&correct

o Scoringconsistent


117

economy(#ofproducers;#of

Municipalities;and#ofjobs)o No o Indicatorsincomplete&incorrect

o Scoringinconsistent

o NA

2. Marketpotential(Potential

valueaddition;Strongproduct

demandIdentified buyer/swith

contract;hasidentifiedindustrialor

commercialbuyerwithpotentialfor

supply/marketingcontract

o Yes o Indicatorscomplete&correct

o Scoringconsistent

o No o Indicatorsincomplete&incorrect


o NA

3. Resourcebase(productionarea,hectares;productionvolume)


o Scoringconsistent



o NA

4. Environmentalimpact(positive,

neutral,negative)


o Scoringconsistent



o NA

5. Women’sparticipation

(Percentageofwomendirectly/

indirectlyparticipating)


o Scoringconsistent



o NA

PartII:Annex8:QualificationofSelectedProponentGroup

Arethefollowingrequirementscomplied? Answer

(Yes,No,NA

– Not

applicable)

Describeanswersorexplain

(If yes,mentionsupporting

document; if no, provide

date on when it can be

complied; Ifnotapplicable,

explainwhy?)

A.DidtheP/C/MPMIUnotifythedifferentvaluechainplayers

or stakeholders to submit a letter of intentwith compliance

statementontherequirements?

o Yes Check date of notice by

PPMIU

o No Cannotbecorrected

anymore

o NA When there is no

proponent due to peace

andorder

situation


118

B.Table4-1:DidtherespectivePGsubmittheirletterofintent

withcompliancestatement?

o Yes

o No

o NA

PartII:QualificationofSelectedProponentGroup

Arethefollowingrequirementscomplied(RefertoTable4-2of

I-REAPOperationsManual)?

Answer(Yes,No,

NA-Not

applicable)

Describe answers or

explain (If yes, mention

supporting document; if

no,providedateonwhen

itcanbecomplied;Ifnot

applicable,explainwhy?)

1. Is the selected PG legal registered with SEC, CDA, DTI or

DOLE?

o Yes Provideregistration

detailsanddate.

o No

o NA

AuthenticatedorCertifiedTrueCopyofArticlesof

Incorporation/CooperationandCopyofBy-Laws

o Yes

o No

o NA

CertificateofComplianceGood

StandingforCDAregisteredorCertificateofnoDerogatory

RecordforSECregisteredorCertificateofRegistrationfor

DOLEregistered

o Yes

o No

o NA

2.LatestAuditedFinancialStatement(atleast3years)or

PhotocopyofOfficialReceipt(OR)foritsfinancialtransactions

o Yes

o No

o NA

3.AccomplishmentReportsandphotographsofagri-fisheryor

relatedprojectsundertakenforatleast3years

o Yes

o No

o NA

4.20%equity o Yes

o No

o NA

5.LGUAccountantCertificateofNoUnliquidatedAccountwith

theLGU

o Yes

o No

o NA

7. LGU Certification on the organizational, technical and

financialcapabilityofthePG

o Yes

o No

o NA


119

8.AswornaffidavitoftheSecretaryoftheNGO/POthatnone

ofitsincorporators,organizers,directors,orofficialsisanagent

oforrelatedbyconsanguinityoraffinityuptothefourthcivil

degreetotheofficialsofthegovernmentagencyauthorizedto

processand/orapprovetheproposal,theMOAandtherelease

offunds.,ornoneofitsofficialsormembersareemployeesof

theDAor the implementing LGU.Relationshipof thisnature

shallautomaticallydisqualifytheNGO/POfrombeinggranted

thefund

o Yes

o No

o NA

PartIII:Annex9Aand9B:PGSelectionProcessandRanking

Arethefollowingrequirementscomplied? Answer

(Yes, No, NA –

Notapplicable)

Describeanswersorexplain (If yes,mention

supportingdocument; ifno,providedateon

when it can be complied; If not applicable,

explainwhy?)

1. Readinesstoworkinverticalcluster:

1.1 Stakeholdersparticipationinthe

valuechain

1.2 Presenceoforganizedproducer

groupsthat

suppliesrawmaterials


o Scoringconsistent



o NA

2.Opentoinvestmentandprovideequity o Yes o Indicatorscomplete&correct

o Scoringconsistent



o NA

3.Engagesmostnumberofproducers

3.1#ofparticipatingfarmerso Yes o Indicatorscomplete&correct

o Scoringconsistent



o NA

4. Performance in previous or existing

contractswithgovernment


o Scoringconsistent



o NA


120

Annex11-GuideQuestionforBusinessPlanData/InformationGathering

I. DESCRIPTIONOFTHEBUSINESSENTERPRISE

[Sourcesofdataand info: industrystudies,valuechainstudies, roadmapsof thecommoditywherethe

enterprisewillbeengaged]

ELEMENTS DESCRIPTION

1.Opportunityforthe

enterpriseandit’s

products

• Howtheproposedenterprisewillmakemoney?Whatistheunique

sellingpropositionoftheenterprise?

• What are the potential profit and the important impact of the

enterprise?

2.BusinessOverview • Whatisthehistoryofthebusinessanditsprimarystrength?

• WhatistheprofileoftheProponentGroupintermsof:

-Ownershipandstructure,thenatureofbusiness,general

productsandservices,numberofyearsinthebusiness,customer

channelsandcustomersize,financialperformanceintermsof

salesrevenue,creditratingandfundsources,industrypositionin

termsofrankandmarketshare,valuesandprinciples.

• Whatisthecompositionoftheenterpriseandtheirrolesinthe

business(incasesofclustering).Whataretheprofileofeachof

themembersoftheenterprisecluster?

3.Productandservices • Enumeratetheproductsandservicestobeofferedandbriefly

describeeach.

4. Supportofthe

enterprisetothecommodity

valuechainupgrading

• Whatis/arethespecificsegment/softhevaluechainwhichthe

enterprisebelongs?

• Whatis/aretheconstraint/sorgap/swhichtheenterpriseaims

toaddressaswellastheopportunitiesthatmayhelpin

developingorupgradingthevaluechain?

• Whatis/aretheoverallcontributionoftheenterprisetothe

developmentofthecommodityorindustry?

II.MARKETANALYSIS

a)MarketCharacteristics(Briefindustryprofileandoutlook)

• Whatisthegeneralsituationoftheindustry?Attheinternationallevel?Nationallevel?

Locallevel?

• Whatisitsmarketsizeandpotential?Volumetraded?Demand-supplysituation?

• Whatarethetrendsandoutlookoftheindustry?Isitgrowing/declining/stableovertime?

Whatistheprospectfortheindustry?Isitgrowing/decling/stable?

• What is the state of themarket or industry? Is it new/emerging? Is it competitive or

difficulttopenetrate?Isitmatureorstable?

• Howdoestheindustryormarketstructurelookslike?

• What are the general characteristics and behavior of the players (sellers) and the

customers(buyers)intermsofpurchasingandsellingbehavior,beliefsandopinions?

• What is thepositionof thesesellersandbuyers in themarket?Whataretheirmarket

share?Howmuchofthismarketsharedoyouwanttoobtain?

• What are the factors affecting the market? (social, technological, environmental,

economic,government,regulation.Political,etc.)

• Whenareyourpeaksalesmonths?LowSalesMonths?


121

b)TargetConsumer/CustomerProfile(Thisshouldclearlyhelptheenterpriseanalyzeitsbusiness

directions)

• WhoorwhatisyourtargetMarket?

a. Individuals?

b. Companies(small,medium,large)

c. Institutions?

d. GovernmentAgencies?

e. Exportmarket?

• Whatarecharacteristicsandbehaviorsofyourtargetcostumers?Howdotheynormally

purchasethiskindofproduct?

• Whatbenefitsaretheylookingfor?

• Howwillyouidentifyyourmarket?(Questionnaire?Survey?Others?)

• What is the size of your Market? (Identify indicators of size, Population, per capita

consumption,etc).Wherearethey?

III. COMPETITORASSESSMENT (Competitorsarefirmsthatare inthespaceofyourprimarytarget

segment.Discussionmaybefocusedontop3competitors)

a) KeyCompetitors(Canbeillustratedthroughtable,piechart,graph,etc)

• WhoaretheindustryplayersintheMunicipal?Provincial?Regionallevel?

• Whoarethecompetitors?

• WhatistheirMarketShare

• Whataretheirpricingtrends/system?

• Wherearetheyselling

• Whatistheirdistributionsystem?

• Whatportionofthetargetmarkethavetheycaptured?

• Whatparthavetheymissed?Why?

• Anynewproducts?

• Whereisyourcompetitionlocated?

• Woulditbenefityoutobeinthesamelocation?Why?

b) Relationshipwithcustomers

• Isyourcustomerbuyingfromyourcompetition?Why?

• Whyshouldthecustomerswitchfromyourcompetitiontobuyfromyou?

• Howhaveyoudealtwithcompetition?

• Doyouknowthecompetition’squality,service,andlocation?

• Doyouknowtheirstrengthsandweaknesses?

• What are your strengths and weaknesses (in terms of products, production system,

financial,location,etc)

• Whatisyourcompetition’srelationshipwithitscustomer?


122

IV.MARKETINGPLAN(Discussherethemarketingobjectivesandtargetsintermsofsalesvolume,income

andprofitmargin.Outlinethestrategybydefiningthe4Psofmarketing)

Elements Description Remarks

1.Product a. Whatexactlydoyousell?PhysicalDescriptionofeachproduct.

b. Whatareitscomponentparts?Packaging,andotherparts,etc.

c. What is its purpose- (Staple food? Drinks/ beverage? Food

Supplement?Pasalubongitem/Souvenir,officefurnishing,etc.?)

d. Isitanitemthatisanecessityorisitaluxuryitem?

e. Whydocustomerswantit?

f. What makes your product unique and why is it superior or

unique?

g. Possiblenewusageof theproduct. Trends in themarket.New

products.

Technology - (Any product or servicemust take into account the

technology surrounding it. It is important to note where is it in

today'ssituationandcapabilities,andwhatplanshavebeenmade

forchangestothatsituation)

• Whatistheproduct'stechnologicallife?

• Isitstateoftheart?

• Whatistheplantoadapttochangesintechnologyand

trends?

• Howwillglobalization/freetradeaffectyourproducts

(suppliesandprocessing)

• Howistheproductmade?

• Willanyproductionbesub-contracted?Whatmethodswill

youuse?

• Areyouplanningtoproduceinternally?

• Istheproductaninputtosomeoneelse'sproduct?

• Doyoudependontheothercompanyforyoursurvival?

j.Supplies/Suppliers–

• Whatmaterialsandcomponentsarerequiredfor

production?Namethecriticalparts

• Who/whatarethesourcesofsupplyfortheseparts?

• Doyouhavealternativesuppliers?Whatistheleadtime?

• Areyoursuppliersreliable?

k.NaturalResourceBase

• What istheproduct’snaturalresourcebase?Whatarethe

natural resources needed to develop and produce the

product?

l.ProductDevelopment

• Whendidyoudevelopyourproduct?

• Howwasitdeveloped?

• Wheredidyoudoyourresearch?

• Didyouhaveanyguidance?

• Didyourresearchrequireyoutoutilizeanyinstrumentation,

chemicals,components,etc.?

Get the

descriptionfromwhat

youhavewrittenand

presentedin

PartIIIofthisguide


123

• Hasyourproductundergoneanystresstests,safetytests

andotherreliabilitytests(shelflife)?

• Haveyoutestedtheproductinthemarketplace?(Test

market?)

h. Whathavebeenthemajorproblemsandsetbacks?Howdidyou

resolvethem?

2.Price Whenpricing, yourbestpricewillbe somewhere ina "range"of

possiblepricesratherthanoneexactnumber.Thisrangeofprices

hasanupperlimitandalowerlimitwhichyoucandetermine.

a. Determinetheupperlimitbyusingthefollowingfactors:

• Thepriceconsumersarewillingtopayforyourproduct.

• Yourcapacitytoproduce(productivity)

• Thenumberofcompetitors'goodsavailabletoconsumers

andtheirprices.

b. Determineyourlowerlimitpricebyusingthefollowingfactors:

• Yourcostofproductionorcost-volumerelationship

• Competitivereactions

• Capacitytoproduce

• Ensuringthateverybodyinthedistributionchain(including

oneself)canmaketheirusualmark-uponcost.

c. ProductCosting

• Materials - Get quotes of price of material at different

volume/quantities

• Manufacturing Costs -What is your direct labor cost for

eachproductdesign?Assembling?Packing?Whatareyour

fixedcosts?Machinecosts,designcosts,etc.

• Overhead-Thisincludescoststhatarenotrelatedtosales

or production volume. They include office expense (e.g.

officesupplies)insurance,wagesandsalaries,utilities,rent

andothermiscellaneouscosts.

• Transportation and shipping - Identify your choices- By

jeep, tricycle, bus, plane, ship cargo or combination of

these.

• Sales Expense - How will your product be distributed?

(sales representatives, distributors, wholesaler, or on

commission)

• Otherhiddencosts-Salesreturnandallowances

• Isthecustomerpricesensitive?Whatdiscountsshouldbe

offeredtotradecustomers?

• Howwillyourpricecomparewithyourcompetitors?


124

3.Place a.Locationwhereyourcustomerpurchasetheproduct

• Whoare your customers/consumers andwherewill you

findthem?Describethem(majorityofcustomers)interms

ofbasicdemographicdata:male/female,students,young

professional,sectorstheybelong,incomebracket,etc.

• Wheredoyourcustomersbuytheproduct?Howdothey

normallypurchasethiskindofproduct?Whatbenefitsare

theylookingfor?

• Doyouneedasalesforce?Howwillyoupositionthem?

b. Fromthecustomerprofileanalysis,identifytheplace

whereyouwillsell:

• Province/Town/City

• Wet Market/ Supermarket/ Grocery Stores/ Sari-sari

storesandtherequirementstosellinthatplace.

c. Whydidyouchoosethelocation?

• Factors to consider in Location selection for Trading/

Manufacturing:

-Transportationcosts

-Availability of services(banking,

communication,utilities,etc)

-potentialforexpansion

4.Promotion Again from the customer profile analysis, identify how you will

promoteyourproductintermsofdistributionpolicies(creditpolicy,

delivery policy, pricing policy, policy on returned merchandise,

volumesalesdiscounts,etc.)Advertisingplan.

• When and where can you get across your marketing

messagestoyourtargetmarket?Whatmarketingactivities

doyouneedtodotocommunicateyourvalueproposition?

• Identify the activities, frequency and the budgetary

requirement


125

V.OPERATIONALPLAN

ELEMENTS

DESCRIPTION

1.Ownershipand

management

• Describetheownersoftheenterprise

• Describethemanagementteam

• IllustratetheOrganizationalChart

• Describethepersonnelrequirementorstaffingpatternandtheresponsibilitiesof

eachstaff.Givejobdescriptions.

• Whoistheprincipal/keypeopleinvolvedinthebusiness?

• Whatassetsdotheypossess?

2.Resourcesand

Production

• Whataretheproductionmethods,theprocessandtheinputsrequiredforeach

process,andstaffing?

• Illustratetheprocessflow(majorstepstoperformfromrawmaterialsourcingto

deliveryofproductstoyourtargetcustomers).

• What is theoperationalprocessand inputrequirements.Thiscanbepresented in

tabular format (process steps,descriptionof the step,where itoccurs-geographic

and/or physical location, expected inputs required in terms of materials, tools,

equipment,toperformthestep,expectedoutput/result,whowillperformthisstep?

• WhatisyourcapacityandlevelofProduction?Intermsofunits,inPesos?

• Whataretheproductioncycles?Whatisyourbreak-evenpoint?

• Whataretheactivitiesandcostsneededtoaddressfactorsaffectingthesupplyand

qualityofinputs’naturalresourcebase?

• Whatarethecoststomanagewastesandotherpossiblenegativeenvironmental

impacts?

3.Facilitiesand

Equipment• Describetheneededfacilitiesandequipment(existingandproposed)ofthe

enterprise.Whatistheinputandoutputcapacity?Howmuchwillbethe

estimatedcostsperoperations?

• Whatisyourequipmentset-upandfacilitylay-out?Bothproductionandoffice

equipmentandlay-out.

• Whenwillyourequireyourequipment?

4.Operations • Whataretheoperationalschedulesandproceduresoftheenterprise?

• Whatsystemhaveyoudevelopedforqualitycontrol?Whatareyourprofitsby

product/service

• Whatareyourproductioncontrolprocedures?

• Inventorycontrol

• Howmuchinventoryfinishedandrawmaterialswillyouhavetomaintain?

• Haveyoudevelopedasystemofschedulingproductionusingdatesandnumbers?

• Whatistheshelflifeoftheproduct?

• Indicateorcreateoperationsschedule(plantingandharvesting,production

schedule,deliveryschedule)

5. Complianceto

localandnational

regulations

• Whataretheexistingbusinesspermitsandlicensesneededtooperatethe

enterprise?

• Whataretheaccreditationandcertificationsystemsthattheenterprisewillgo

throughtoproduceandselltheproduct?

VI.SOCIALANDENVIRONMENTALSAFEGUARDS

A. SocialSafeguardAspect


126

1. SubprojectBeneficiaries

Who are the beneficiaries of the subproject? What is their socioeconomic status? Have they been

consulted?Describe theconsultationprocess (indicatedate, locationandattendeesofmeetings).Have

theyaccepted theproposedproject?Whatare their concernsand inputs?Describe theminutesof the

meetings if any?Are thewomen represented in these consultations (describe attendanceofwomen)?

Whataretheirconcerns/inputs(describeanyparticularinputsfromwomen,ifany)?

ProjectBeneficiaries:IncludediscussiononGrievanceRedressMechanismofthesubproject.Pleasereferto

GrievanceRedressMechanismFramework in the IESSF for referenceandmakesure that the subproject

beneficiariesarewellinformedregardingthesubjectmatter.

2. Indigenous CulturalCommunity/Indigenous Peoples (ICC/IP)– Is the project located inside an

ancestraldomain?Iftheprojectisnotsituatedinsideanyancestraldomain,isitgoingtoaffectanyextant

IP/ICCcommunityoraretherebeneficiarieswhoaremembersoftheIP/ICCcommunity?Whatparticular

IP/ICCcommunityisinvolved?Whatistheirsocioeconomicstatusascomparedtothemainstreamgroup?

DidtheIP/ICCcommunitysolicitthesubprojectthemselves?Iftheydidnotsolicittheproject,havethey

beenconsultedandhavetheygiventheirendorsementoftheproject?Describetheconsultationprocess

thus far conducted. Indicate date, location and attendees of meetings. Describe the minutes of the

meetingsifany.Whataretheirconcernsandinputs?

Notethat:IftheProjectisinsideanyancestraldomain,orifthereareanyintactICC/IPcommunitytobe

affectedbytheproject,eitherofthefollowingshouldbesecured:i.Certificatefromthelocaltribalchieftain,

orfromthelocaltribalcouncilorfromNCIPthattheprojectispartoftheICC-IP’sdevelopmentplanoris

partoftheirAncestralDomainSustainableDevelopmentandProtectionPlan(ADSDPP);ii.Certificatefrom

thelocaltribalchieftainthattheprojectissolicitedbytheICC-IPthemselves;or,iii.Anendorsement(e.g.in

a formofaResolution) from ICC/IP community togetherwithevidenceof consultations conducted (e.g.

minutesofmeetingsandlistofattendees,issuesandconcernsraisedandhowtheywereaddressed).

3. Site andRight-of-Way acquisition–What is the ownership status of the proposed site or right-of-way?

Describethesiterequirementintermsofarea(sq.m),landtenure,andexistinglanduse.Describetheright-

of-wayrequirementsintermsofwidth,thetypes,ownershipoflandsandexistinglanduseofthelandsto

betraversedbythesubprojects.

Notethat:IfanylandsorROWneedtobeacquiredbytheLGUorthebeneficiarycommunity,thefollowing

arethedocumentaryshouldbesecured:

• Ifthelandispublicland,aSpecialLandUsePermit(SLUP)orleasefromDENRii.IfthelandisownedbyLGU,

evidenceofLGUownershipsuchasTitleiii.IfthelandistobepurchasedbytheLGUfromprivateowner(s),

evidenceofpurchasebytheLGUsuchasDeedsofSaleorTCTsiv.Iflandisdonatedbyprivateowners,

DeedofDonationandannotationofthepropertyattheRegistryofDeeds

• IfthesubprojectisinsideAncestralDomainorifnotinside,itadverselyaffectsanextantIP/ICCcommunity

who are not themselves beneficiaries of the subprojects, then an FPIC/CP should be secured under the

auspicesoftheNCIP.

4. Damagetostandingcrops,housesand/orproperties–Willtheconstructionoftheprojectresulttoany

cropand/orproperties?Describeandtrytoquantifythepotentialdamage.

Note that (potential) damage to cropsand/orproperties/assets shouldbe inventoriedand suitable

compensationschemesshouldbeworkedoutthroughconsultationwiththeownersofthecropsand

properties(e.g.throughaMOAortheEntitlementSurveyForm).Compensationofdamagesfollowing

theagreedschemesshouldbebasedonactualdamageorloss.


127

5. Physicaldisplacementofpersons–Willtheproposedsubprojectresultintherelocationofhouses?How

manyhouseswillberelocated?Describetheconditionsoftheaffectedhousesandproperties.Whatarethe

socioeconomicconditionsoftheaffectedhouseholds?

6. Economicdisplacementofpersons–Willtheproposedsubprojectresultinthelossoflivelihoodorreduced

accessoffamiliestotheirtraditionallivelihoodsources?Notethatlossoflivelihoodmayresultfrom:lossof

asignificantportionofthehousehold’sfarmland,lossofbusinesssuchasduetolossofvendingstalls,etc.

Describethenatureoflossifany.

Notethatifthereisphysicaloreconomicdisplacementofpersons,aResettlementPlanshallbeprepared

B. EnvironmentalAssessment

1. Naturalhabitat–Describetheprojectsite(i.e.,thelandstobetraversedbytheproposedroad,theactual

siteofthePWSorstructure,etc.)intermsoflanduse,vegetation,wildlife,presenceofwaterecosystems,

endangeredandotherimportantspecies.Howaretheygoingtobeimpactedbytheproject?Istheproject

sitewithinanofficiallydeclaredorproposedprotectedareaofnaturalhabitat?

Note that: PRDP loan should not be used to fund subprojects involving civil works that encroach into

ProtectedAreasofnaturalhabitatsuchasareasdeclaredasNaturalParksunderNIPAS,exceptforNRM

subprojectsthatareallowedasperprovisionsoftheNIPASlawofBufferZone,orMultipleUseZone,and

thelawcreatingtheNaturalPark.

2. PhysicalCulturalResources–Arethereanystructure,monumentsorPhysicalCulturalResources(as

definedbelow)onsitethatwillbeaffectedbythesubproject?Describetheculturalandhistorical

significanceofthestructure/s,ifany.Describetheimpactoftheprojecttothestructure/s.Istheproject

sitepartofanimportantnaturalfeatureorlandscape?Howwilltheprojectchangeorimpactthe

landscape?Istheprojectareaapotentialarchaeologicalsite?Iftherearenosuchstructuresor

monumentsorPhysicalCulturalResourcestobeaffected,theassessmentshouldclearlysayso.

Notethat:TheWorldBankPolicyonPhysicalCulturalResourcesrequiresthatphysicalculturalresources

likelytobeaffectedbytheprojectshouldbeidentifiedandtheproject’spotentialimpactsontheseresources

beassessedasanintegralpartoftheEA.Culturalresourcesaredefinedasmovableorimmovableobjects,

sites, structures, groups of structures, and natural features and landscapes that have archaeological,

paleontological,historical,architectural,religious,aesthetic,orotherculturalsignificance.

Whentheprojectislikelytohaveadverseimpactsonphysicalculturalresources,appropriatemeasuresfor

avoidingormitigatingtheseimpactsshallbeidentifiedintheEA.Thesemeasuresmayrangefromfullsite

protectiontoselectivemitigation,includingsalvageanddocumentation,incaseswhereaportionorallof

thephysicalculturalresourcesmaybelost.

Physical/CulturalResources:IncludediscussiononArchaeologicalandPaleontologicalchancefindsduring

implementationoftheproject.PleaseseeAnnexH-2ofChanceFindsProcedureintheIESSFforreference.

3. HazardsandRiskAssessment (DrainageSituations,ErosionandFloodingPotential) - For theBusiness

Plan,includebriefdiscussiononthestatusoftheIPMprogramontheproductionsite.Additionally,include

discussion on solid and liquid waste management of the production and enterprise of the proposed

subproject.IncludeabriefdiscussiononthestatusoftheDAIPMProgram(KASAKALIKASAN)intheroad’s

influencearea.ThediscussionshouldincludeaquickassessmentofadequacyoftheeffortbyDAandrate

ofadoptionamongfarmersoftheIPMintheareaandbasedontheassessment,anactionplantointroduce

and/orfurthersupportKASAKALIKASANeffortsinthearea.Makesuretoreflectthemitigationmeasures

intheESMP.


128

VII. FINANCIALPLAN


1. SourcesofFunds • Describeandhowmuchistheinvestmentrequirementforthe

enterprise

• Whereandhowwillthefundstosupporttheinvestmentrequirement

besourced?

2. FinancialProjections • Indicatefinancialassumptionstocomputerevenueandcoststreamsof

theenterprise

• Presentfinancialschedules(costschedule,salesschedule,etc)

• Presentfinancialforecasts

- Monthlyincomestatement(Year1)

- Monthlycashflow(Year1)

- Monthlybalancesheet(Year1)

- Incomestatement,cashflowandbalancesheetannualprojections

fromYear2toYear10

- Others,asnecessary

3. FinancialAnalysis Computethefinancialratios:NPV,FIRR,BCR,Paybackperiod,Breakeven

analysisperproduct

4. SensitivityAnalysis Computeanddiscusstheresultsofsubjectingtheenterpriseintodifferent

financialrisksandcases:

- 10%increaseincosts

- 10%decreaseinrevenue

- 10%increaseincostsand10%decreaseinrevenue

- 15%increaseincosts

- 15%decreaseinrevenue

5. Recordingsystem Howarefinancialtransactionsgoingtoberecordedandkept?

Whataretheinternalcontrolmechanismsthatwillbeemployedbythe

enterprise?

VIII. ECONOMICIMPACT(Describetheeconomicimpactofbenefitsthatthecommunitywillgenerateasa

resultoftheenterprise)


1. IncreaseFarmers

Income

• Describehowtheincomeoffarmerswillbeaffected?Comparethe

incomeoffarmersbeforeandaftertheProject.

•

2. Employment

Generation

• Istheenterprisegoingtoprovideemploymentopportunitiestothe

community?

• Howmaywillbeemployed?

• Providecomparisononthenumberofpeopleemployedbeforeand

aftertheProject

3. OtherEconomic

Impact

• DiscussothertargetedorpotentialimpactoftheProject


129

IX. SUSTAINABILITYMECHANISM

• Howistheenterprisegoingtosustainitsoperation?Describethesustainabilityplanfortheenterprisein

termsofthefollowing:

- Expandingoperation(couldeitherbeintermsofexpandingsourceofrawmaterialsand/or

increasingenterpriseoutput/capacity,upgradingfacilitiesandequipment,etc)

- Expandingmembership

- Utilizationofnetincomeorprofit(howwilltheincomebeused?)

• Whataretherequiredtechnicalassistancetoensurecontinuousoperation.Thetechnicalassistancecould

beforthefarmersand/ortheenterpriseitself.Whowillprovidethetechnicalassistance?Whatisthenature

oftheassistanceandthecostsinvolved?(Thiscouldbeprovidedintabularformat)


130

Annex12-A–I-REAPBusinessPlanOutline

SECTION DESCRIPTION

EnterpriseGeneral

Profile(SEEANNEX

12C)

Onepage‘CoverSheet’thatpresentsthefollowing:(i)titleofthesubproject/enterprise;(ii)

locationofthesubproject;(iii)ProponentGroup/LeadProponent;iv)nameandtelephone

numberofthecontactpersonorleadfirmthatwillrepresenttheclusterofbusiness

enterprises;(v)thecompositionoftheclusterofenterprises;targetmarketswith

correspondingvolume;(vi)summarytableofsubproject’sinvestmentrequirementby

componentandbysourceoffund(vii)roleoftheenterpriseinvaluechainupgrading;(viii)

enterpriseobjectivesbriefdescriptionofthesubproject;(ix)economicbenefits;(x)financial

indicators;and(xi)SummaryDataSheetwhichcontainstheMandEparameters

ExecutiveSummary Amaximumoftwo-pagebriefpresentingthefollowingkeypoints:(i)rationaleforthe

proposedsubproject,itscontributiontovaluechainupgradingandtofarmers/fishers

income;(ii)descriptionofthebusinessenterprise(missionstatement/goals/objectives;(iii),

experiencesandcurrentstateoftheenterprise;(iv)operationalplan;(v)economicbenefits;

and(v)resultsofthefinancialanalysis

1.Descriptionof

theBusiness

Enterprise

Discussiononthefollowing:(i)opportunityfortheenterprise/PGanditsproducts(howthe

proposedenterprisewillmakemoney,theproductanditsvalue),shouldrelatetothevalue

chainupgrading;(ii)objectivesoftheenterprise;(iii)businessoverview(summaryofthe

currentstateorexistingprojects/accomplishmentsoftheenterprise/PG,typeofbusiness

enterprise(registration),compositionoftheclusterofenterprises,expansionorstart-up,and

historyofthebusinessanditsprimarystrengths);(ivproductandservices(general

descriptionoftheproductsandservices)offered/undertaken;and(v)roleoftheenterprise

invaluechainupgrading/supporttocommodityvaluechainupgrading(constraints/

opportunitiesidentifiedintheVCA,prioritizationinthePCIP(discussthespecificsegment(s)

ofthevaluechaininwhichtheenterprisebelong;constraint(s)orgap(s)whichtheenterprise

aimstoaddressaswellastheopportunitiesthatmayhelpindevelopingorupgradingthe

valuechain,ifany;over-allcontributionoftheenterprisetothedevelopmentofthe

commodity)

2.MarketAnalysis Topicsinclude(i)marketcharacteristics(briefindustryprofile,industryoutlook,newproduct

development,markettrendsandcompetition);(ii)marketstructure(numberofsellersand

itsgeneralcharacteristicsandbehavior,numberofbuyersanditsgeneralcharacteristicsand

behavior,horizontalandverticalrelationships,priceandcoststructure);(iii)customer

analysis(description,characteristicsandbehaviorofcustomers,location,channelsof

distribution,operationsandpractices,volumerequirementsandspecifications,horizontal

andverticalrelationships;and(iii)supplyanddemandanalysis(supplyanddemandgap).

3.Competitor

Assessment

Discusstheprofileofthecompetitorsfocusingonthefollowingindicators:(i)descriptionand

product/servicefeaturesofidentifiedcompetitor;(ii)geographiclocationandareaof

influence;(iii)channelsofdistribution;(v)relationshipwithsuppliers/buyers;(v)marketing

strategies(price,product,place,positioning,promotion);(vi)marketshare;and(vii)financial

strength/costposition

4.MarketingPlan Discussthe4PsofMarketingfocusingonthefollowing:(i)product(productuses,attributes

andfunctionalbenefits,qualitycontrols/services,standards,developmentandtechnological

trends);(ii)pricingstrategies(basisforpricing,howisthepricegoingtobeestablished;what

isthedifferencefromcompetitors);(iii)place(describehowtheproduct/servicewillbe

distributedandwhatgeographicalarea);and(iv)promotion.

5.OperationalPlan Describesthefollowing:(i)ownershipandmanagement(includingorganizationalstructure);

(ii)resourcesandproduction(productionmethods-theprocessandtheinputsrequiredfor

eachprocess,andstaffing);(iii)facilitiesandequipment,fulldescriptionandspecificationsof

thefacilitiesandequipmentneededintheoperationoftheenterpriseandthelocation,esp

ofthecivilworks(includingsourcesandestimatedcosts);(iv)operations(operational

schedulesandprocedures);(v)implementationplan(ganttchartofactivities);and

compliancetolocalandnationalregulations(businesspermits,license,etc.)

6.Socialand

Environmental

Assessment

Discussthefollowing:(i)SocialSafeguards–subprojectbeneficiaries,indigienous

community,siteandrightofwayacquisition,damagetostandingcrops/house/properties,


131

SECTION DESCRIPTION

physicaldisplacementofpersons,economicdisplacementofpersons(ii)Environmental

Assessment–naturalhabitat,physical-culturalresources,hazardandriskassessment

7.FinancialPlan Coversthefollowing:(i)Investmentrequirementbycomponentandbyfundsource(identify

and discuss the detailed investment requirement by subproject component, identify fund

source–fixedassetsandoperatingexpenses(variableandfixedcosts));(ii)financialanalysis

(settingofassumptions–productionschedule,salesschedule,costsschedule,etc,compute

formonthlyincomestatementandmonthlycashflowforthe1stYearofoperation,financial

projectionsfor10years(incomestatement,cashflow,balancesheet,computeanddiscuss

financialindicators–NPV,FIRR,BCR,ROI,Paybackperiod,break-evenanalysis);(iii)risksand

Sensitivity Analysis (discuss the risks and uncertainties that may be experienced by the

enterpriseincludingthemitigatingmeasures–environmental,organization,operationaland

social, compute sensitivity scenarios: a)10% increase in cost; b)10% decrease in revenue;

c)10% increase in cost and10%decrease in revenue; d) 15% increase in cost; ande) 15%

decreaseinrevenue);and(iv)financial

recordingandmanagementsystem(discussrecordkeepingandfinancialmanagement

systemthatwillbeadoptedbytheenterprise)

8.Socio-Economic

Benefits

Discussiononthefutureplansoftheenterprise,howistheincomegoingtoutilize(i)

Increaseinfarmersincome(comparisonbeforeandafterPRDPcomputedforthe10-year

period,numberoffarmersinvolved;(ii)employmentgeneration(comparisonbeforeand

afterPRDP;(iii)Otherpotentialbenefits

9.Sustainability

Mechanism

Discussiononthefollowing:(i)futureplansofthePGontheoperationsoftheenterprise

(howwilltheincomegeneratedfromthesubprojectbegoingtobeutilized,anyplanson

expansion;and(ii)provisionoftechnicalassistance/support(whenwillthePGanditscluster

membersincludingthefarmersmembersgettheneededtechnicalsupport,howwillitbe

availed;whowillprovideit;whatmechanism,sourceoffundforthetechnicalsupport.

10.Annexes AnnexA–WorkandFinancialPlan

AnnexB-ProcurementPlan

AnnexC–PRA-RSA(forGEFsitesandNRMrelatedenterprisesonly)

AnnexD–DetailedEngineeringDesign(DED)(inc.facilitiesandequipmenttechnicalplan)

AnnexE–ProgramofWorks(POW)(inc.constructionSchedule(barchart/s-curve)forthe

facilitiesandequipment)

11Attachments Seechecklistofrequirementsfortheattachments(Annex13-A)


132

Annex12-B–SUBPROJECTPROPOSALOUTLINEFORMICRO-ENTERPRISESUBPROJECTS

SECTION DESCRIPTION

EnterpriseGeneral

Profile(SEEANNEX

12C)

Onepage‘CoverSheet’thatpresentsthefollowing:(i)titleofthesubproject/enterprise;(ii)locationof

thesubproject;(iii)ProponentGroup/LeadProponent;iv)nameandtelephonenumberofthecontact

personorleadfirmthatwillrepresenttheclusterofbusinessenterprises;(v)thecompositionofthe

clusterofenterprises;targetmarketswithcorrespondingvolume;(vi)summarytableofsubproject’s

investmentrequirementbycomponentandbysourceoffund(vii)roleoftheenterpriseinvaluechain

upgrading;(viii)enterpriseobjectivesbriefdescriptionofthesubproject;(ix)economicbenefits;(x)

financialindicators;and(xi)SummaryDataSheetwhichcontainstheMandEparameters

ExecutiveSummary Amaximumoftwo-pagebriefpresentingthefollowingkeypoints:(i)rationalefortheproposed

subproject,itscontributiontovaluechainupgradingandtofarmers/fishersincomeordamagecaused

bythecalamityorconflictandobjectivesoftheenterprise;(ii)briefdescriptionoftheproponent,

targetmarket,managementandownershipoftheenterprise,operationalplan;(iii),resultoffinancial

analysis;(iv)economicbenefits;and(v)sustainabilitymechanism

1.ProjectRationale Discussiononthefollowing:(i)backgroundorjustificationfortheproposal;(ii)objectivesofthe

enterprise;(iii)businessoverview(summaryofthecurrentstateorexistingprojects/accomplishments

oftheenterprise/PG,typeofbusinessenterprise(registration),compositionoftheclusterof

enterprises(ifany),expansionorstart-up,andhistoryofthebusinessanditsprimarystrengths);and(v)

roleoftheenterpriseinvaluechainupgrading/supporttocommodityvaluechainupgrading(discuss

thespecificsegment(s)ofthevaluechaininwhichtheenterprisebelong;constraint(s)orgap(s)which

theenterpriseaimstoaddressaswellastheopportunitiesthatmayhelpindevelopingorupgrading

thevaluechain,ifany;over-allcontributionoftheenterprisetothedevelopmentofthecommodity)

MarketStudy Discussiononthefollowing:(i)productdescription-discussthekindofproducttobeproducedbythe

projectincludingquantitytobesold,qualitystandards/specifications;(ii)targetmarket/buyerincluding

volume requirement and marketing arrangements; (iii) supply and demand situation discuss the

availability of supply, major producing municipalities, volume and hectarage, discuss the market

demand,majorbuyers,andvolumerequirements;(iv)Marketingstrategies-discusshowthePGintend

tomarketitsproductincludingtheformofproducttobesold,thepackagingtobeused,brand(ifany),

pricingstrategy for theproduct,placeofdistributionandhowwill theproductarriveat theplaceof

distribution (mode of transportation used), picked-up or delivered, frequency of selling, and the

promotionalactivitiesthatwillbeundertakentomaketheproductknowntothetargetconsumers

OperationalPlan 2. Discussthefollowing:(i)OwnershipandManagement-howthesubprojectwillbemanagedincluding

organizationalstructure,projectmanagementanditsrolesandfunctions;capabilityofthePOtohandle

theproject;doesthestaffhavethenecessaryskills;trainingneeds;numberofpersonnelneededforthe

projectimplementationandoperation;includewhentheorganizationwillberegisteredtoCDAorSEC,

if not yet registered); (ii) production and operational process - (discuss how the project will be

operationalized, provide process flow, resources needed); (iii) facilities and equipment - discuss the

facilitiesandequipmentrequiredincludingspecificationsandcapacity;forcivilworksorinfrastructure

describewhere itwill be located, access to road network, technical design or specifications; include

wheretosourcethefacilitiesandequipmentandestimatedcostsbyfundsource)

4.Socialand

Environmental

Assessment

3. Discussthefollowing:(i)SocialSafeguards–subprojectbeneficiaries,indigienouscommunity,siteand

rightofwayacquisition,damagetostandingcrops/house/properties,physicaldisplacementofpersons,

economic displacement of persons (ii) Environmental Assessment – natural habitat, physical-cultural

resources,hazardandriskassessment

FinancialPlan Presentanddiscussthefollowing:(i)financialassumptionsusedincomputingtheinvestment/project

cost,salesandexpenses;(ii)Investment/ProjectCost(indetailsincludingfixedcapital,workingcapital

andpre-operatingexpenses);(iii)Financialassumptions-productionScheduleandsalesschedule(at

leastone-yearperiodforrestoration/rehabilitationsubprojectoratleast3-yearperiodforothermicro-

enterprisesubprojects);(iv)FinancialProjections-monthlyincomestatementandcashflowforYear1,

atleastoneyearIncomeStatement(forrestoration/rehabilitationsubprojectofatleast3yearsannual

income statement, balance sheet and cash flow; (v) Financial ratio– compute for ROI (for one year

projectiononly);FIRR;NPV;BCR;PaybackPeriod

6. Socio-Economic

Benefits

Discussiononthefutureplansoftheenterprise,howistheincomegoingtoutilize(i)Increaseinfarmers

income (comparison before and after PRDP computed for the 10-year period, number of farmers

involved;(ii)employmentgeneration(comparisonbeforeandafterPRDP;(iii)Otherpotentialbenefits

7. SustainabilityMechanism

Discussiononthefollowing:(i)futureplansofthePGontheoperationsoftheenterprise(howwillthe

incomegeneratedfromthesubprojectbegoingtobeutilized,anyplansonexpansion;and(ii)provision

of technical assistance/support (when will the PG and its cluster members including the farmers


133

SECTION DESCRIPTION

membersgettheneededtechnicalsupport,howwillitbeavailed;whowillprovideit;whatmechanism,

sourceoffundforthetechnicalsupport.

8. Annexes AnnexA–WorkandFinancialPlan

AnnexB-ProcurementPlan

AnnexC–PRA-RSA(forGEFsitesandNRMrelatedenterprisesonly)

AnnexD–DetailedEngineeringDesign(DED)(inc.facilitiesandequipmenttechnicalplan)

AnnexE–ProgramofWorks (POW) (inc.constructionSchedule (barchart/s-curve) for the

facilitiesandequipment)

9. Attachments Seechecklistofrequirementsfortheattachments(Annex13-B)


134

Annex12C–TEMPLATEOFTHEENTERPRISEGENERALPROFILE

SubprojectTitle

SubprojectIDNo.

Location

LeadProponentGroup

ClusterMembers Listdownallcoops/associationsthatareincludedinthesubproject

FinancingModalityBasedonthe

AmountofSubproject

Indicateifmicro,small,mediumsubproject

TypeofPGUndertaking Indicateifstart-up,upgradingorexpansion,GEFarea,rehabilitation/

restoration

NatureofExpansion/Upgrading(for

SPsundertheexpansion/upgrading

Category)

Increasehectarage

Acquisitionofnewequipment

Renovationofexistingbuilding

etc

Commodity/Product(s)/Service(s)

VolumeofProduction

(totalproductionoftheenterprise)

ExistingVolume(Unit):

TargetVolume(Unit):

Product VolumeofProduction(Unit)

Existing(Y0) Y1 Y10

TargetMarket/s Indicatenameofbuyer,volumetobesold(existingand/ortarget

volume)andarrangements

Target

Buyer

(Specify)

Existing

Volsold

(Unit)

Target

Vol

sold

(Unit)

Frequency

ofdelivery

Payment

Terms

Marketing

Arrangements

TotalInvestmentCost/Amountofthe

BusinessPlan

InTabularFormbrokendownbyfundsourceandspecificinvestment

requirements

Detailed

Items

LP GOP LGU PGEquity

Cash Kind

Enterprise

Operation

(specify)

CivilWorks

(specify)

Total

Investment

Cost


135

SupporttoCommodityValueChain

Upgrading

BriefdescriptionoftheVCAsegmentbeingsupportedorstrengthenedby

theproposedenterprisecitingVCAfindingsonconstraints/gapsand

opportunities

BriefDescriptionoftheSubproject Brieflydiscusswhatthesubprojectintendstodo(descriptionofthe

businessmodel)

EnterpriseorSubprojectObjectives:

Enumeratethegeneraland/orspecificobjectivesofthesubproject

1.

2.

3.

NewWaysofDoingThings/

Innovations

DescribehowthePRDPinterventionwillimprovethewayofdoingthings

ofthePGanditsmembersintermsoftechnology,practices,processes,

etc

Socio-EconomicBenefits:

A. No.ofDirectIndividual

Beneficiaries(specifynumberper

PG)

Note:PGmeanstheaffiliate

coop/association.Applicableonlyfor

clusteringofproponents

B. No.ofHouseholdBeneficiaries

EmploymentGeneration

PG

Cluster

Member

No.ofIP No.ofNon-

IP

TotalNo.of

Individual

Beneficiaries

Male F M F

(Nameof

PG)

(Nameof

PG)

Total

PGCluster

Member

No.of

IP

No.of

Non-

IP

TotalNo.of

HH

Beneficiaries

(Nameof

PG)

(Nameof

PG)

Total

JobTitle/

Position

NumberofEmployees

Existing New/Additional Increment


136

InvestmentCostperBeneficiary (Computedasthetotalcostofinvestmentdividedbythetotalnumberof

directindividualbeneficiaries)

TargetIncreaseinFarmersIncome

Numberof

Farmers

Involved

AverageAnnualFarmers

Income(PhP)

Total

Incremental

Income(PhP)

BeforePRDP AfterPRDP

FinancialAnalysis

NetIncomeoftheEnterprise:

FinancialRatios:

Break-evenAnalysis(foreach

product):

ExistingNetIncome(Baseline):

ProjectedAverageNetIncome:

FIRR:PaybackPeriod:

ROI:Benefit-CostRatio:

BEVolume(unit):BEPrice(PhP):BESales(PhP):

TechnicalSupportAgencies

Indicateagenciesthatwillprovidetechnicalsupport/assistance,natureof

assistance,costsinvolvedandarrangements

Agency Natureof

Technical

Assistance

Estimated

Cost

SourceofFunding

DurationofProjectImplementation:

TargetStartDate:(targetdateforthefirstNOL2)

TargetCompletionDate:


137

SubprojectSummaryData/MonitoringSheet(Thissummarydatasheetshouldshowtheindicatorsthatwouldbe

usefulinmeasuringtheimpactofthesubprojectorPRDPinterventions.TheimpactshouldindicatetheProject

DevelopmentObjectivesandthesub-projectspecificobjectives)

Parameters Baseline Year1 Year2 Year3 Year4 Year5 Year6 Year7 Year8 Year9 Year10

Farmers

income

HHincome

Marketable

surplus

Incomeof

enterprise

No.of

women

engaged

Employment

generated

Coopor

Association

membership

(indicate

otherSP

indicators)


138

Annex13-A–CHECKLISTOFREQUIREMENTSFOR

SMALLANDMEDIUMENTERPRISESUBPROJECT

SUB-PROJECTTITLE:

LOCATION:

PROPONENTGROUP:

TOTALINVESTMENTREQUIREMENT:

ENTERPRISEPROJECTFUND:

INFRASTRUCTURECOST:

PGEQUITY:

CHECKEDBY:

DATECHECKED:

I.EligibilityRequirementsoftheProponentGroupATTACHED

REMARKSYES NO

1.LetterofIntent

2.CertificateofRegistration

3.CertificateofGoodStanding

4. Latest Audited Financial Report in the last 3 years (for medium

enterprisesubproject)orPhotocopyoftheOfficialReceipt(OR)(For

SmallEnterprisesubprojects

5.PLGUEvaluationon theFinancialandOrganizationalCapabilityof

theProponent

6. Accomplishment Reports and Photographs of the Projects

UndertakenintheLast3yearsonAgri-FisheryorSimilarProjects(for

medium enterprise subproject) or Accomplishment reports and

photographsofagri-fisheryorrelatedprojectsundertakenforatleast

oneyearofoperation(ForSmallEnterprisesubproject)

7.ProofofEquity(Cash-BankCertificate);LandTitle/LeaseContract/

DeedofDonation,etc(asapplicable)

8.CertificateofNoUnliquidatedAccountwithPLGU

9.CertifiedtruecopyoftheArticlesofIncorporation/Cooperationand

bylaws

10.AswornaffidavitoftheSecretaryoftheNGO/POthatnoneofits

incorporators,organizers,directors,orofficialsisanagentoforrelated

byconsanguinityoraffinityuptothefourthcivildegreetotheofficials

ofthegovernmentagencyauthorizedtoprocessand/orapprovethe

proposal,theMOAandthereleaseoffunds.

11.SwornAffidavitof theSecretaryof theNGO/PO thatnoneof its

officialsareemployeesoftheDAortheimplementingLGU.

Republic of the Philippines Department of Agriculture PHILIPPINE RURAL DEVELOPMENT PROJECT

National Project Coordination Office 4

th Floor, DA Building, Elliptical Road, Diliman

Quezon City 1100, Philippines

FORM1


139

II.BusinessPlanRequirementsATTACHED

REMARKSYES NO

1.ValueChainAnalysis(VCA)

2.ApprovedPCIP

3.Form2A–BusinessPlanTrackingForm

4.Annex6-EnterprisePrioritizationresult(DulysignedbyPPMIUI-

REAPHead)

5.Annex9-ProponentGroupSelectionresult(DulysignedbyPPMIU

I-REAPHead)

6.Annex15-I-REAPInitialEvaluationForm(EvaluatedbyRPCOI-

REAPStaff,verifiedbyRPCOI-REAPHead,endorsedbyRPCO

AlternateFocalandnotedbyRPCOProjectDirector)

7.Annex16-BusinessPlanAppraisalorEvaluationForm(usingI-REAP

Scoresheet)–signed

8.TechnicalandEvaluationReviewReportdulysignedbythe

TechnicalReviewTeam

9.ProponentGroupProfile

10.FarmersProfile

11.PRA-RSA(forGEFsitesandNRMrelatedenterprisesonly)

12.SupplyContractwithparticipatingfarmers

13.MarketingContractwithbuyers

III.ForInfrastructureComponent(PleasecheckAnnexB:Review

ChecklistforBuildingsoftheI-REAPTechnicalGuidelinesfordetails

perrequirement)

ATTACHED REMARKS

YES NO

1.DetailedEngineeringDesign–signedbytheGovernor

a.Coversheet

b.IndexofDrawings

c.DetailsofArchitecturalDrawings

i.Title/SignatoryBlock

ii.VicinityMap/LocationPlan

iii.SiteDevelopmentPlan

iv.Perspective,drawnatanyconvenientscale

v.FloorPlan(s)

vi.Elevations,atleastfour(4)

vii.Sections,atleasttwo(2)

viii.CeilingPlan(s)

ix.RoofPlan

x.Details,intheformofplans,elevations/sections(min.

scaleof1:50)

xi.ScheduleofDoorsandWindows

xii.ScheduleofFinishes(ingraphicform)

d.DetailsofStructuralDrawings

i.FoundationPlan

ii.FloorFramingPlan(s)

iii.RoofFramingPlan


140

iv.Schedule/DetailsofFootings/Columns/Girders/

Beams/Slabs

v.DetailsofTrusses/ConnectionsorDetailsofShear

Walls/ElevatorShaft

vi.DetailsofStair(s)

vii.StructuralDesignAnalysis/Computations

e.DetailsofPlumbingDrawings

i.LocationPlanandSiteDevelopmentPlan

ii.PlumbingPlans

iii.IsometricDrawings

iv.DetailofSepticTank,SedimentationTank,ifany

v.DetailofCatchBasins

vi.DetailofElevatedWaterTank,ifany

vii.LegendandGeneralNotes

f.DetailsofElectricalDrawings


ii.LegendofSymbols

iii.GeneralNotesand/orSpecifications

iv.PlanforPower

v.PlansforLightingandReceptacleOutlets

vi.PlansforFireDetectionandAlarmCircuits

vii.FireAlarmRiserDiagram

viii.ScheduleofLoads

ix.OneLineDiagram

x.OtherDetails

xi.PlansforLightningProtection

xii.PlansandSpecificationsforIndoororOutdoor

Substation

xiii.Title/SignatoryBlock

xiv.DesignAnalysis

xv.TechnicalSpecifications

xvi.DetailedQuantityEstimates

g.DetailsofMechanicalDrawings

i.LegendofSymbols

ii.GeneralNotesand/orSpecifications

iii.PlansforAirConditioningandVentilationSystems

iv.PlansforWaterPumpingSystem

v.PlansforFireSuppressionSystem

vi.PlansforElevator

vii.PlansforGeneratingSets

viii.OtherDetails

ix.OtherPlans

x.Title/SignatoryBlock

xi.DesignAnalysis

xii.TechnicalSpecifications

xiii.DetailedQuantityEstimates

h.DetailsofElectronicsDrawings



141

ii.LegendorSymbols

iii.GeneralNotesorSpecifications

iv.PlansforAuxiliary/CommunicationSystems

v.AuxiliaryCommunicationRiserDiagrams

vi.OtherDetails

vii.Title/SignatoryBlock

viii.DesignAnalysis

ix.TechnicalSpecifications

x.DetailedQuantityEstimates

2.ProgramofWorks(POW)–signedbytheGovernor

IV.SocialEnvironmentalSafeguard(SES)Requirements(LargeScale

Enterprise)

ATTACHED REMARKS

YES NO

1.Dulysigned(byPPMIU,PSO,andRPCO)AnnexA-2SESScreening

Form

2.SA/EAoftheBusinessPlan

a. Consultation/s: Minutes, attendance and photos during all

consultations (project beneficiaries meeting, PAPs consultation,

FPICorbroadbasedconsultation,TribalChieftainCertification)

b. Executive Order with Grievance Redress Mechanism Point

PersonorCommitteeanddiscussionintheBP(2015andbeyond)

for the LGUs. For PGs, a Grievance Point person should be

identified.

c.LetterofRequests:DENRforECCandcuttingpermit;PCAfor

cuttingpermit;NCIPforCertificateofPre-Condition;ElectricCoop

for transferof electricposts (whatever is applicable) ForNOL2,

permits/certifications should already be secured and attached

accordingly.

d.AnnexH-1IP/ICCPlan(refertoPRDP’sIESSFforguidanceon

whentheIPPlanisrequired)

3. Duly signed ESMP attachedwithAnnexH-2Archaeological and

Paleontological Chance Finds (Templates have been provided

dependingontheCategoryoftheEnterprise)

4.SiteAcquisitionDocumentssuchas:

a.Form1–EntitlementSurveyofAffectedPersons

b.Form2–InventoryofEntitlementSurveyofAffectedPersons

c.Proofofownership(TitleorDeedofSaleofthesite,Deedof

SaleorTransferCertificateTitle/TCT)

d. Notarized Waiver/Quit Claims and/or Notarized Deed of

Donations

e. Contract of Lease for 50 years and subject for renewal or

option tobuy.ContractofUsufruct for25yearsand subject for

renewal.

f. Rehabilitation/Relocation/Resettlement Action Plan and

Agreement between Proponent LGU and PAPs if with

Resettlement

g.AgreementbetweenthePAPsandLGUforthecompensation

oftheirproperties

5.DisclosureofSESDocumentsbythePSO–SESUnit(SA/EAofthe

BP;IEE/EIA;ECC;DulysignedESMP)


142

6.SocialInclusivenessScoringSheetforPGSeekingI-REAPFunding

V.GeomappingandGovernanceUnit(GGU)RequirementsATTACHED

REMARKSYES NO

CommunityLivelihood/EnterpriseSubproject

1.PlacemarkofLocalGovernmentOffice(i.e.Capitol,Municipal

Hall,Barangayhall)wherethesubprojectisunderitsjurisdiction

2.DigitizedtrackofthenearestroutefromLocalGovernment

Officetotheproposedsubprojectsite

3.Officelocationoftheproponentgroup

4.OfficelocationofClusterGroup/Coop/organizationoffice

5.Placemarkwhereitisapplicable,dependingonthebusiness

plan:

a.Locationoflocalmajortargetmarkets(withintheprovince);

b.Locationofnon-localmajortargetmarkets(excluding

overseas);

c.Locationofmajorcompetitors;

d.Locationof(existing&proposed)garage(haulingtruck,farm

tractor,deliveryvan);

e.Locationofexisting&proposedDock(motorizedbanca,

module,fishcage);

f.OtherRelated/SimilarStructurewiththesamelineof

business(existing&proposed);

6.ProposedConstructionsiteofPermanentStructures(i.e

processingplant,warehouse,dryeretc.)

a)Geotaggedphotos(atleastfourgeotaggedphotoofsiteand

existingpermanentstructure)oftheproposedsite;

b)Digitizedpolygonofthevicinityorsitedevelopment;

7.SourceLocationofRawMaterial

Raw material source location determines the availability and

sufficiency of raw material to supplied/processed in the propose

business enterprise. The following are the classificationwhere it is

applicabletobusinessplan;

a.1)CommodityPolygon(digitized;atleast50%ofthetotal

commodityareaasstatedinthebusinessplan)or100%ifthe

proposalincludeproductionsupport

a.2)Minimumoffour(4)geotaggedphoto(commodity)isrequired

perparticipatingcluster.

b. Farm Animal (carabaos, cows, goat, hog, chicken)

Placemark/marker;

c. Farmmachinery target user (ie. Tractor rental/services for

landpreparation);(polygon)

7.Placemark&geotaggedphotos(KMZ)submittedtoRPCO-GGU


143

VI.ProcurementRequirementsATTACHED REMARKS

YES NO

1. Procurement Plan – at least signed by the PG, and PPMIU BAC,

however,onthefinalsubmissionthedocumentmustbesignedbythe

Governor

2.Completespecifications–goods

3.PhilippineBiddingDocumentsforworks/infrastructure(electronic

ordigitalcopy)

4.PhilippineBiddingDocumentsforgoodsusingNCBasmodeof

Procurement(electronicordigitalcopy)

VII.FinanceRequirementsATTACHED REMARKS

YES NO

1.MemorandumofAgreement(MOA)betweenDAandLGU

2.RPABResolution

3. SP Resolution Authorizing the LCE to sign IMA, Appropriation

Ordinance,Contracttoprovidefundsandothers.

4. Local Finance Committee (LFC) certificate of the LGU equity/

AppropriationOrdinance

5.WorkandFinancialPlan(WFP)–signedbyPG,PPMIUandGovernor

VIII.M&ERequirementsATTACHED REMARKS

YES NO

1.SubprojectProfile–signed

2.DataCaptureForm–signed

FinalBusinessPlanshouldbesubmittedinsoftbindwithattachmentsinringbindwithe-copyinCD

format.Finalbusinessplanwithcompleteattachmentsshouldbepreparedin5copiestobe

distributedasfollows:1)PGcopy;2)LGUcopy;3)1RPCOcopy;4)PSOcopy;5)NPCOcopy;6)WB

copy(onlyifWBwillissuetheNOL)


144

Annex13-B–CHECKLISTOFREQUIREMENTSFORMICRO-ENTERPRISESUBPROJECT

SUB-PROJECTTITLE:LOCATION:

PROPONENTGROUP:



INFRASTRUCTURECOST:

PGEQUITY:

CHECKEDBY:

DATECHECKED:

I.EligibilityRequirementsoftheProponentGroupATTACHED

REMARKSYES NO

1.LetterofIntent

2.CertificateofRegistration

3.CertificateofGoodStanding

4. PhotocopyofOfficialReceipt

5. Certified true copy of the policies, systems and procedures/

CertifiedtruecopyoftheArticlesofIncorporation/Cooperationandby

laws

6.ProofofEquity(Cash-BankCertificate);LandTitle/LeaseContract/

DeedofDonation,etc(asapplicable)

7.CertificateofNoUnliquidatedAccountwithPLGU

8.AswornaffidavitoftheSecretaryoftheNGO/POthatnoneof its

incorporators,organizers,directors,orofficialsisanagentoforrelated

byconsanguinityoraffinityuptothefourthcivildegreetotheofficials

ofthegovernmentagencyauthorizedtoprocessand/orapprovethe

proposal,theMOAandthereleaseoffunds

9. Sworn Affidavit of the Secretary of the NGO/PO that none of its

officialsareemployeesoftheDAortheimplementingLGU.

II.BusinessPlanRequirementsATTACHED

REMARKSYES NO

1.ValueChainAnalysis(VCA)

2.ApprovedPCIP

3.Form2A–BusinessPlanTrackingForm

4.Annex6-EnterprisePrioritizationresult(DulysignedbyPPMIUI-

REAPHead)

5.Annex9-ProponentGroupSelectionresult(DulysignedbyPPMIU

I-REAPHead)

Republic of the Philippines Department of Agriculture

PHILIPPINE RURAL DEVELOPMENT PROJECT National Project Coordination Office 4

th Floor, DA Building, Elliptical Road, Diliman

Quezon City 1100, Philippines

FORM1


145

6.Annex15-I-REAPInitialEvaluationForm(EvaluatedbyRPCOI-

REAPStaff,verifiedbyRPCOI-REAPHead,endorsedbyRPCO

AlternateFocalandnotedbyRPCOProjectDirector)

7.Annex16-BusinessPlanAppraisalorEvaluationForm(usingI-REAP

Scoresheet)–signed

8.TechnicalandEvaluationReviewReportdulysignedbythe

TechnicalReviewTeam

9.ProponentGroupProfile

10.FarmersProfile

11.PRA-RSA(forGEFsitesandNRMrelatedenterprisesonly)

12.SupplyContractwithparticipatingfarmers

13.MarketingContractwithbuyers

III.ForInfrastructureComponent(PleasecheckAnnexB:Review

ChecklistforBuildingsoftheI-REAPTechnicalGuidelinesfordetails

perrequirement)

ATTACHED REMARKS

YES NO

1.DetailedEngineeringDesign–signedbytheGovernor

a.Coversheet

b.IndexofDrawings

c.DetailsofArchitecturalDrawings

i.Title/SignatoryBlock

ii.VicinityMap/LocationPlan

iii.SiteDevelopmentPlan

iv.Perspective,drawnatanyconvenientscale

v.FloorPlan(s)

vi.Elevations,atleastfour(4)

vii.Sections,atleasttwo(2)

viii.CeilingPlan(s)

ix.RoofPlan

x.Details,intheformofplans,elevations/sections(min.

scaleof1:50)

xi.ScheduleofDoorsandWindows

xii.ScheduleofFinishes(ingraphicform)

d.DetailsofStructuralDrawings

i.FoundationPlan

ii.FloorFramingPlan(s)

iii.RoofFramingPlan

iv.Schedule/DetailsofFootings/Columns/Girders/

Beams/Slabs

v.DetailsofTrusses/ConnectionsorDetailsofShear

Walls/ElevatorShaft

vi.DetailsofStair(s)

vii.StructuralDesignAnalysis/Computations

e.DetailsofPlumbingDrawings


ii.PlumbingPlans

iii.IsometricDrawings


146

iv.DetailofSepticTank,SedimentationTank,ifany

v.DetailofCatchBasins

vi.DetailofElevatedWaterTank,ifany

vii.LegendandGeneralNotes

f.DetailsofElectricalDrawings


ii.LegendofSymbols

iii.GeneralNotesand/orSpecifications

iv.PlanforPower

v.PlansforLightingandReceptacleOutlets

vi.PlansforFireDetectionandAlarmCircuits

vii.FireAlarmRiserDiagram

viii.ScheduleofLoads

ix.OneLineDiagram

x.OtherDetails

xi.PlansforLightningProtection

xii.PlansandSpecificationsforIndoororOutdoor

Substation

xiii.Title/SignatoryBlock

xiv.DesignAnalysis

xv.TechnicalSpecifications

xvi.DetailedQuantityEstimates

g.DetailsofMechanicalDrawings

i.LegendofSymbols

ii.GeneralNotesand/orSpecifications

iii.PlansforAirConditioningandVentilationSystems

iv.PlansforWaterPumpingSystem

v.PlansforFireSuppressionSystem

vi.PlansforElevator

vii.PlansforGeneratingSets

viii.OtherDetails

ix.OtherPlans

x.Title/SignatoryBlock

xi.DesignAnalysis

xii.TechnicalSpecifications

xiii.DetailedQuantityEstimates

h.DetailsofElectronicsDrawings


ii.LegendorSymbols

iii.GeneralNotesorSpecifications

iv.PlansforAuxiliary/CommunicationSystems

v.AuxiliaryCommunicationRiserDiagrams

vi.OtherDetails

vii.Title/SignatoryBlock

viii.DesignAnalysis


147

ix.TechnicalSpecifications

x.DetailedQuantityEstimates

2.ProgramofWorks(POW)–signedbytheGovernor

IV.SocialEnvironmentalSafeguard(SES)Requirements(Large

ScaleEnterprise)

ATTACHED REMARKS

YES NO

1.Dulysigned(byPPMIU,PSO,andRPCO)AnnexA-2SESScreening

Form

2.SA/EAoftheBusinessPlan

a. Consultation/s:Minutes, attendance andphotos during all

consultations (project beneficiariesmeeting, PAPs consultation,

FPICorbroadbasedconsultation,TribalChieftainCertification)

b. ExecutiveOrderwith Grievance RedressMechanism Point

PersonorCommitteeanddiscussionintheBP(2015andbeyond)

for the LGUs. For PGs, a Grievance Point person should be

identified.

c.LetterofRequests:DENRforECCandcuttingpermit;PCAfor

cuttingpermit;NCIPforCertificateofPre-Condition;ElectricCoop

fortransferofelectricposts(whateverisapplicable)ForNOL2,

permits/certifications should already be secured and attached

accordingly.

d.AnnexH-1IP/ICCPlan(refertoPRDP’sIESSFforguidanceon

whentheIPPlanisrequired)

3.DulysignedESMPattachedwithAnnexH-2Archaeologicaland

Paleontological Chance Finds (Templates have been provided

dependingontheCategoryoftheEnterprise)

4.SiteAcquisitionDocumentssuchas:

a.Form1–EntitlementSurveyofAffectedPersons

b.Form2–InventoryofEntitlementSurveyofAffectedPersons

c.Proofofownership(TitleorDeedofSaleofthesite,Deedof

SaleorTransferCertificateTitle/TCT)

d. Notarized Waiver/Quit Claims and/or Notarized Deed of

Donations

e. Contract of Lease for 50 years and subject for renewal or

optiontobuy.ContractofUsufructfor25yearsandsubjectfor

renewal.

f. Rehabilitation/Relocation/Resettlement Action Plan and

Agreement between Proponent LGU and PAPs if with

Resettlement

g.AgreementbetweenthePAPsandLGUforthecompensation

oftheirproperties

5.DisclosureofSESDocumentsbythePSO–SESUnit(SA/EAofthe

BP;IEE/EIA;ECC;DulysignedESMP)

6.SocialInclusivenessScoringSheetforPGSeekingI-REAPFunding

V.GeomappingandGovernanceUnit(GGU)RequirementsATTACHED REMARKS

YES NO

CommunityLivelihood/EnterpriseSubproject

1.PlacemarkofLocalGovernmentOffice(i.e.Capitol,Municipal

Hall,Barangayhall)wherethesubprojectisunderitsjurisdiction


148

2.DigitizedtrackofthenearestroutefromLocalGovernment

Officetotheproposedsubprojectsite

3.Officelocationoftheproponentgroup

4.OfficelocationofClusterGroup/Coop/organizationoffice

5.Placemarkwhereitisapplicable,dependingonthebusiness

plan:

a.Locationoflocalmajortargetmarkets(withintheprovince);

b.Locationofnon-localmajortargetmarkets(excluding

overseas);

c.Locationofmajorcompetitors;

d.Locationof(existing&proposed)garage(haulingtruck,farm

tractor,deliveryvan);

e.Locationofexisting&proposedDock(motorizedbanca,

module,fishcage);

f.OtherRelated/SimilarStructurewiththesamelineof

business(existing&proposed);

6.ProposedConstructionsiteofPermanentStructures(i.e

processingplant,warehouse,dryeretc.)

a)Geotaggedphotos(atleastfourgeotaggedphotoofsiteand

existingpermanentstructure)oftheproposedsite;

b)Digitizedpolygonofthevicinityorsitedevelopment;

7.SourceLocationofRawMaterial

Raw material source location determines the availability and

sufficiency of raw material to supplied/processed in the propose

business enterprise. The following are the classificationwhere it is

applicabletobusinessplan;

a.1)CommodityPolygon(digitized;atleast50%ofthetotal

commodityareaasstatedinthebusinessplan)or100%ifthe

proposalincludeproductionsupport

a.2) Minimum of four (4) geotagged photo (commodity) is

requiredperparticipatingcluster.

b. Farm Animal (carabaos, cows, goat, hog, chicken)

Placemark/marker;

c. Farmmachinery target user (ie. Tractor rental/services for

landpreparation);(polygon)

7.Placemark&geotaggedphotos(KMZ)submittedtoRPCO-GGU

VI.ProcurementRequirementsATTACHED REMARKS

YES NO

1. Procurement Plan – at least signed by the PG, and PPMIU BAC,

however,onthefinalsubmissionthedocumentmustbesignedbythe

Governor

2.Completespecifications-goods

3.PhilippineBiddingDocumentsforworks/infrastructure(electronic

ordigitalcopy)

4.PhilippineBiddingDocumentsforgoodsusingNCBasmodeof

Procurement(electronicordigitalcopy)


149

VII.FinanceRequirementsATTACHED REMARKS

YES NO

1.MemorandumofAgreement(MOA)betweenDAandLGU

2.RPABResolution

3. SP Resolution Authorizing the LCE to sign IMA, Appropriation

Ordinance,Contracttoprovidefundsandothers.

4. Local Finance Committee (LFC) certificate of the LGU equity/

AppropriationOrdinance

5.WorkandFinancialPlan(WFP)–signedbyPG,PPMIUandGovernor

VIII.M&ERequirementsATTACHED REMARKS

YES NO

1.SubprojectProfile–signed

2.DataCaptureForm–signed

FinalSubprojectProposalshouldbesubmittedinsoftbindwithattachmentsinringbindwithe-copy

inCDformat.Finalbusinessplanwithcompleteattachmentsshouldbepreparedin5copiestobe

distributedasfollows:1)PGcopy;2)LGUcopy;3)1RPCOcopy;4)PSOcopy;5)NPCOcopy


150

Annex14.GUIDEINTHECONDUCTOFTHEPARTICIPATORYRESOURCEASSESSMENT–

RESOURCESANDSOCIALASSESSMENT(PRA-RSA)

Background

ThePhilippineruraleconomyhasbeencharacterizedformanyyearsbythelowincomelevelsofprimary

producers,lowlevelsofruralemployment,lackoffoodsecurity,weakagriculturalcompetitivenessandan

overallhighlevelofruralpoverty.Theunderlyingreasonsfortherelativelypoorperformanceofthesector

havebeenextensivelystudied35.Amongthefactorsaffectingthesectorarepoorlydevelopedinfrastructure

andlimitedproductionareas.

Beyondtheseinstitutionalissues,thePhilippinesmustalsocontendwiththecontinuingdegradationofits

naturalresourcesandlossofbiodiversity.Ithasexperiencedoneofthehighestbiodiversitylossratesinthe

worldwith 284 species considered endangered. Likewise, coastal andmarine resources continue to be

degraded,withlessthan3%ofthecoralreefsstillinexcellentconditionandonly5%ofmangrovecover

considered to be “old growth”. Although the Philippines has established approximately 1,300 marine

protectedareas(MPAs),unfortunatelyonly10to15%aremanagedproperly.Around50%oftheseMPAs

arelessthan10hectaresintotalarea;hence,only2%ofthecountry’smarineareaisunderanyformof

protection.Theinadequacyoftechnicalandhumanresourcecapabilitiesalongwiththelackofsustainable

managementofcoastalandmarineareashasgreatlyreducedthehealthoflocalfisheriesandecosystem

services.

Compounding the environmental degradation is the damage caused by frequent destructive weather

conditions,whichoverthepastdecadehaveresultedinlossesaveragingUS$500millionannually.Losses

havebeenmostsevereintheagriculturesectorandonthelivesofthoseaffected,forwhomitcantake

severalyearstorecover.WiththePhilippinesbeingrankedhighamongthemajorglobalclimatehotspots,

sealevelrise,temperatureincrease,changesinrainfallpatternsandincreasingfrequencyandintensityof

extremeweathereventscanalsobeexpected.

ResultsfromtheCoastalandMarineBiodiversityConservation(CMBC)component,implementedunderthe

first phaseof theMindanaoRuralDevelopmentProgram (MRDP-1), provided valuable experiences and

lessons,suchastheneedtoundertakealandscape/ecosystemapproachtoensuresustainableconservation

andmanagementofthecoastalresources.ExperiencesinCMBC1showthatsiltationandsedimentation,

brought about by destructive agricultural land utilization in the upland and forest areas, threaten the

conditionandrecoveryofcoralreefs,mangrovesandseagrassbeds.

Byintegratinguplanddevelopmentwithcoastalresourcesmanagementasanoverallapproachofnatural

resources management, there is potential for broader and sustainable impact on the income of

communitiesandoverallimprovementintheirqualityoflives.

ForthesecondphaseofMRDP2,interventionsincoastalresourcesmanagementincorporatedthelessons

from CMBC1 and was scaled up to include sustainable land management in the uplands, where land

degradationaffectsthebiodiversityandproductivityofcoastalareas,andexpandedtoothersiteswhere

such upland-lowland coastal linkages are evident. An integrative ecosystem/watershed management

approachwasutilizedandimplementedin35municipalitieswherelocalNRMbenefitsandmultipleglobal

environmental benefits could be generated from sustainable landmanagement and in selected critical

biodiversity-richsites’municipalities.

The NRM and GEF activities underMRDP2 also featured key institutional partnerships at the regional,

provincial,municipalandbarangaylevels.Theseincludedseveralnationalgovernmentagenciesandthe

35WorldBankAnalyticalandAdvisoryAssistanceforAgricultureandRuralDevelopmentinthePhilippines(Agriculturalproductivity

andAgribusiness);aSynthesisPaper(2011).


151

entire LGU communities, households, people’s organizations, non-government organizations, academic

institutionsandothercivilsocietysectorsinMindanao.

ToensurethatNRMisfullyandsuccessfullyintegratedinthebroadervaluechainoftheprioritycommodity

underPRDPitisimportantthatthestakeholders,mostspeciallytheprojectimplementers,gainashared

understanding of its operating mechanisms through participatory and demand-driven approaches and

strategies.

Rationale

The implementation of the NRM interventions within the commodity value-chain, a fundamental

operational and strategic feature of the Philippine Rural Development Program (PRDP) requires the

understandingof the current statusof theproducts’natural resourcebaseand the factorsaffecting its

conditionandsustainability.

Communities settled within and around the target coastal and watershed areas are the immediate

beneficiariesorusersofthenaturalresources.However,theyandtheirpracticesarealsothemajorcauses

thatresultinthedegradationanddestructionoftheuplandandcoastalecosystems,theresourcebasefrom

whichtheprioritycommoditiesrelyupon.Itisthereforeimportanttoinvolvethecommunitiesorresource

usersintheidentificationofproblems,formulation,implementationandmonitoringofanydevelopmental

effortthatwilladdressenhancementandsustainingtheintegrityofthecriticalandrelevantecosystems.

It isthus importanttoconducta landscapecharacterizationbothforthecoastalanduplandecosystems

throughaParticipatoryResourceAppraisal-ResourceandSocialAssessment(PRA-RSA)thatwouldfocuson

thecurrentsituationoftheenvironmentandnaturalresources.Theprocessshouldbeconsultative,multi-

sectoral and multidisciplinary that would ensure participation and cooperation among the different

stakeholdersthat includeNGOs,POsandcommunities,LGU,RPCO,andsupportfromlocalandnational

agencies.Theapproachwouldalsominimizeorganizationalproblemsbecausestakeholdersareinvolvedin

allstagesofproblemidentificationandproject identificationandplanning.Theprocessalsoemphasizes

thatthedifferentcommunitiesarenotonlyresourceusersbutkeydecisionmakersasfarasthehealthand

well-beingoftheirimmediateenvironmentandsustainableuseofthenaturalresourcesareconcerned.

The conduct of PRA-RSA activities therefore would generate appropriate data and information on

biophysicalfeatures,demography,socio-economicandpoliticalcharacteristicsandthecurrentstatusofthe

environmentandnaturalresourceswithemphasisonthewatershedarea.Theactivityalsowouldgenerate

appropriateinterventionstrategiesforlandscapeenhancementandrehabilitationandlivelihoodactivities

that would be sustainable and which will either support sustainable resource utilization or draw the

communitiesawayfrompracticesthataredestructivetotheenvironment.

Objectives

TheprimaryobjectiveofPRA-RSAistoassessthestatusoftheprioritycommodities’naturalresourcesbase

throughaparticipative,consultative,multi-sectoralandmultidisciplinaryprocess.

Specifically,thePRA-RSAwillseektoachievethefollowing:

• Measure,analyzeandestablishrelevantinformationonforestland,upland,lowland,settlements/

built-up,freshwaterandcoastalecosystemsbothqualitativelyandquantitativelywithinthemajor

watershedarea(s).

• Identifyandestablishthecurrentandpotentialenvironmentandnaturalresourcesmanagement

issues,problems,concernsthatneedtobeaddressed.

• Identify strength,weaknesses,opportunitiesand threats thatpertain to the current statusand

sustainabilityofthenaturalresources;


152

• Identifypractices,sourcesoflivelihoodsandothereconomicactivitiesandexaminetheextentto

whichcommunitiesdependonnaturalresourcesfortheirsustenanceandday-to-dayhousehold

requirements.

• IdentifyandassesspastandcurrentNRMefforts.

• AssessthecapacityofthestakeholdersandbeneficiariestoundertakeNRMinterventionactivities.

• Providerecommendationspertainingtotheconservation,protectionandenhancementofnatural

criticaltotheprioritycommodity.

Modalities

UnderPRDP,PRA-RSAwillbedoneintwomodalities.Thefirstmodalityisacomprehensiveandtechnically

detailedPRA-RSAdesignadaptingfromtheMRDP2’sPRA-RSAframework. Inthismodality,thePRA-RSA

will coverboth thebroadanddetailedassessmentof theecosystemsdirectly relevant to the identified

marineprotectedareas(MPAs)withintheselectedGEFsites.Bothterrestrialandcoastalresourceswillbe

surveyedandanalyzedwithrespecttotheircondition,management,andutilization.Therewillbespecial

emphasisonthefactorsaffectingbiodiversityconservationandimprovingmanagementeffectiveness.The

PRA-RSAwillprovidethekeytechnicalbaselineinformationcomplementingtheresultsoftheMETTand

MEAT for each of the GEF sites. This modality will be coordinated and facilitated through the I-PLAN

component.

Thesecondmodalityistherapidandpurposiveapproach.Thismodalityisenterprise-based,asopposedto

theecosystems-basedorientationofthefirstmodality.Thepurposeofthisapproachistodeterminethe

relationshipbetweentheprioritizedcommodityandthenaturalresourcebase.Thedeterminationofthis

relationship,alongwithunderstandingthethreatsandopportunities thatrelatetothenatural resource

base,willaidinassessingtheneededNRMinterventionsthatareexpectedtocontributetoensuringquality

and sustained inputs within the commodity value-chain. This modality will mainly employ simple

participatory rural assessment methods such as community mapping, focus group discussions, ocular

inspections,andkeyinformantinterviews,amongothers.ThismodalitywillmainlybedoneintheI-REAP

component.TherapidPRA-RSAwillbepartoftheformulationoftheBusinessPlan.

ProceduresandProcesses

FortheFullPRA-RSAmodality,activitieswillbemainlyconductedbyqualifiedspecialists(entitiescantake

theformofaconsultancyfirm,academicinstitution,orcivilsocietyorganization).Throughacontract,the

servicesoftheentityarespecifiedaswellasthelevelsofsupervisionandexpecteddeliverables.TheFull

PRA-RSAfortheGEFsitesisexpectedtocovernotmorethan90days,inclusiveofstakeholderconsultation,

mapgeneration,andreportwriting.

TheRapidPRA-RSA for identifiedpriority commoditieswillbeundertakenby thedesignatedNRMfocal

personintheRPCOassistedbylocaltechniciansfromDA,BFAR,DENR,andBSWM.Thismodalityshould

not takemore than10days. The tablebelow shows, in a summary and indicative format, the relevant

featuresofeachofthePRA-RSAmodality.


Rapid

PRA-RSA

I-REAP Toassessthecondition

ofthenaturalresource

base of the priority

commodityand

provide

recommendationsfor

addressing

threats andconcerns

regardingthe

management

of the

resource

base

Depending on the priority commodity,

theactivitiesfortherapidPRA-RSAareasfollows.

Coastal

• MeetingwiththeLGUandtheMPAmanagersto

reviewofMPAplansandbudget

• Conductassessmentofrelevantecosystemand

habitat(e.g.,mangroves,coralreefs,etc.)

• Inventoryofrelevantresourcebase

• Identifyandagreeonproposedinterventions

Terrestrial

• MeetingwiththeLGUandthePOtoreviewofCLUP

andFLUPandbudget

• Conductofsitevisitsurveyandassessment(e.g.,

forests,riverbanks,watersourcesandsystems,etc.)

• Identifyandagreeonproposedinterventions

FGD, KII, secondary

datareview,

community

mapping, SWOT

analysis,Institutions

Mapping, Issues

Tree/Web

Mapping, GIS

(Geo-mappingand

Geo-tagging)

RPCO in

coordination

and with assistance

from

BFAR, BSWM,and

DENR


GuideQuestionsforFocusGroupDiscussionsandKeyInformantInterviewsinRapidPRA-RSA36

MAJORAREAS TERRESTRIAL COASTAL

Institutional • Whatorganizationorgroupisdirectlyandactivelyinvolvedinthemanagementoftheresources?

• Howmanymembersarethereintheorganization?Wherearetheyfrom?Whoarethemembers?Whereisthis

organizationlocated?

• Istheorganizationregisteredoraccredited?

• Ifso,whenwasitaccreditedorregistered?

• Ifnot,whyisitnotregisteredoraccredited?

• Whoassistedintheestablishmentanddevelopmentoftheorganization?

• Doestheorganizationhavefinancialresources?

• Ifso,howmuchofitsbudgetisallocatedforthemanagementoftheresources?

• Whatactivitiesarebeingsupportedbythisbudget?

• Ifthereisnofinancialresourceorbudget,wheredoestheorganizationgetfinancialsupport?

• Doestheorganizationhavepoliciesandprogramsrelevanttothemanagementoftheresources?Whatarethey?

• Hastheorganizationbeenarecipientofaprojectoriscurrentlyundertakingaprojectdirectlyrelevanttothe

managementoftheresources?

• Arethereotherorganizationsassistingthemanagersoftheresources?

Governance • Isthemunicipalorprovinciallocalgovernmentactivelyinvolvedinthemanagementoftheresources?

• Doesthemunicipalorprovinciallocalgovernmenthaveanypolicies,programsorprojectsdirectlyrelevanttothe

managementoftheresources?

• Ifso,howmuchisbeingallocatedfortheproject/program?WhointheLGUisdirectlyresponsible?Whatactivities

weredone?

• Ifnot,why?

• DoestheLGUhaveaMunicipalorprovincialENRO?

• Ifnone,whointheLGUisresponsibleforaddressingenvironmentalornaturalresourcesmanagement

• HastheLGUbeenarecipientorbeneficiaryofaprojectthatrelatestothemanagementoftheresources?

36Theprimaryrespondentsaremembersorrepresentativesoftheorganizationoftheresourcemanagersandthelocalgovernmentunit.Thisinstrumentshould

becomplementedbyotherParticipatoryRuralAppraisal tools suchas secondarydata review,communitymapping, issues tree,SWOTanalysis, institutions

mapping,amongothers.Moreimportantly,thisapproachisintendedtobuildontheValueChainAnalysis.


• Ifso,whenwasthis?Whatactivitiesweredone?Howmuchwasprovided?Howlongwastheproject?Whatwerethe

outputsandoutcomes?

• Havetherebeenanyapprehensionsandsanctionsagainstpeopleorgroupsdoingillegalresourceextractionactivities?

Ifso,howmanyinthelastyear?Wherearetheyfrom?Whatspecificillegalactivitiesweredone?

Technical • Hasanyassessment,surveyorinventorydoneontheresources?

• Ifyes,whodidthis?Whenwasthisdone?Whatweretheresults?Whatactivitiesweredoneasfollow-up?

• DotheresourcemanagementorganizationandLGUhavetheappropriatetechnicalcapacityandmanpowerto

properlymanagetheresources?

• Ifno,why?

• Ifyes,whattechnicalcapacitiesarepresent?

• DotheLGUandresourcemanagersundertakeregularmonitoringoftheresources?

• Ifyes,how?Ifno,why?

Biophysical • Whatarethevariouslanduseandvegetationcover

ofthearea?

• Whataretheapproximatesizes(inhectares)ofthese

features?

• Whatcropsarebeingplantedinagriculturalareas?

• Whatarethetreespeciesandplantcomposition

foundintheforest?

• Whatanimalscanbefoundintheforest?

• Whatmajorwatersystemsarefoundintheforest

(springs,waterfalls,rivers,etc.)?Whatfloraand

faunaarefoundinthesewatersystems?Arethese

watersystemsbeingfordomesticandagricultural

purposes?How?

• Whattenureinstrumentshavebeenprovidedforthe

useoftheareas(e.g.,PLAs,SIFMAs,CBFMAs,etc)?

• Whatresourceextractionactivitiesarebeingdonein

theforestareas?

• Arethereillegalresourceextractionactivitiesinthe

forestareas?

• Ifyes,whendidthesestarted?Whoaredoingthese?

Wherearetheyfrom?Whatarebeingextracted?

• Whatarethevariousmarineandcoastalfloraand

faunafoundinthearea?

• Wherearetheselocatedandfound?

• Whatistheapproximatesizeofthevariouscoastal

ecosystems(e.g.,coralreefs,seagrass,sandy,etc.)?

• Arethereanyareasdesignatedforprotection,

conservationandmanagement?

• Ifyes,howbigaretheseareas?Whoismanaging?

Doesithaveatenureinstrument(e.g.,municipal

ordinance,barangayresolution,etc.)?Doesithavea

managementplan?Isitdelineated?Aretherezones

(e.g.,buffer,protection,etc.)?Whatactivitiesare

beingdomeinthearea(e.g.,enforcement,

monitoring,etc.)?Howmuchisbeingprovidedtodothese

activities?Ifnone,why?

• Whatextractionactivitiesarebeingdoneinthe

area?

• Whattypesofresourcesarebeingextracted?

• Whattypesofgearsarebeingused?

• Howbigaretheboats?


• Hastherebeenanypresenceofconflictwithregards

totheuseandmanagementoftheforestresources?

• If,yes,howwasthismanaged/resolved?

• Arethereanyproduction,recreation,andprotection

zonesintheforests?

• Ifyes,whodesignatedthese?Why?Whatarethe

sizesoftheseareas?Whatactivitiesarebeingdone

intheseareas?Howmuchisbeingprovidedtodo

theseactivities?

• Whatareasareproneorvulnerabletofloods,

erosion,landslides,andothergeophysicalevents?

Whathavebeenthedamages?

• Whatothernaturalrisksarepresent(e.g.,soilloss,

pest,watershortage,draught,etc.)?Whatactions

havebeendonetominimizetheserisks?

• Aretheseman-maderiskspresent(e.g.,industrial

waste,domesticpollution,landconversion,etc.)?

Whatarethesourcesoftheserisks?Whatisbeing

donetoaddressthese?

• Howmanyaretotallydependentontheextraction

oftheresources?

• Whatisthefrequencyofextraction?Howmuchis

beingextractedperoperation(e.g.,fishcatch)?

• Whatotherresourceuseispresent(e.g.,tourism,

research,etc.)?Whoaredoingthese?

• Whatarethenaturalandman-madethreatsto

theseresources(e.g.,illegalfishingpractices,

siltation,domesticpollution,overfishing,etc.)?

Whatactivitieshavebeenorbeingdonetoaddress

thesethreatsandrisks?Whoaredoingthese

activities?Whendidthesestart?Whatarethe

results?

Socio-Economic • Whatarethemainlivelihoodactivitiesofthepeople?

• Whataretheotherlivelihoodactivitiesthataugmentfamilyincome?

• WhataretheprogramsandprojectsoftheLGUtoassistcommunitiesintheirlivelihoodandincome?

Whendidthesehappen/start?Whatweretheresults?

• Aretheregroupsandnon-governmentorganizationsthatprovidelivelihoodassistance?Whatarethese?Whoare

thesegroups?Whatactivitiesweredone?Whendidthisstart?Whatweretheresults?

Cultural • ArethereanyIPcommunitieslivingadjacentorwithintheforestareas?

• Ifso,whatethno-linguisticgroupdotheybelongto?Howmanyarethey?Whatactivitiesdotheydorelevantto

resourcemanagementanduse?Dotheypracticetheirindigenoussystemsinusingandconservingtheresources?If

yes,how?Havethesesystemsbeensuccessful?

• Arethesegroupsassimilatedwiththemigrantcommunities?

• Ifso,towhatextentaretheyassimilated?

• Ifnot,aretheIPcommunitiesreceivingspecificassistanceintermsoflivelihoodsupportandprovisionofbasic

services?


157

SiteVisitandFieldObservationActivitiesforRapidPRA-RSA

Theocularobservationsandsitevisitsaremeanstovalidateandputintospatialcontexttheinformationgathered

fromthefocusgroupdiscussions(FGDs)andkeyinformantinterviews(KIIs).Theactivitiesareconsistentwith

ParticipatoryRuralAppraisalmethodologies.Thecoastalassessmentactivitiesaresimplifiedandadaptedfrom

the Participatory Coastal Resources Assessment (PCRA) Handbook. For both observations and coastal areas,

common activities are locating specific key points on amap and visits to themarket to determine types of

productsbeingextractedfromthelocality(cropsandfish).Theactivitiespresentedarebynomeanscomplete

and shouldonly serve as a guide and startingpoint for practitioners to explore andapplymore appropriate

approachestoachievetheexpectedanddesiredresult.

Coastal

1. Locatethefollowingkeystructuresandbiophysicalfeaturesonamap

a. Marineprotectedareas

b. Coralreefs

c. Mangroves

d. Seagrass

e. Hatchingareas

f. Portsandfishlandings

g. Publicmarket

h. Wastesources

2. Byboattravelandsitevisit

a. Assesstheconditionofthemangrovesfollowingusingvegetationtype,vegetativehealthand

densityasindicators(poor,fair,good,excellent);asimpleandshortline-transectmethodmay

beused

b. Identifyvarietyofanimalslocatedinthemangrovenotingitssize,specie,anddistribution

c. Noteareaswhereextractionactivitiesordestructionfromnaturalforcesarehappening

d. Notewheremanagementactivitiesarebeingdone(e.g.,rehabilitation,protection,etc.)

e. Notethesourcesofwaste,sedimentationandsiltationandtheits level/degree(none, light,

heavy,severe)

3. Bydivingorsnorkelling

a. AssesstheconditionofthecoralreeforidentifiedMPA/FSusingcoralspecies/coraldiversity,

coralcover/density,distribution,andphysicalcondition(damagedfrodynamiteandcyanide

fishing, bleaching, crown of thorns infestation, etc.) as indicators (bad, fair, good, and

excellent);linetransectorquadranttechniquescanbeusedforthispurpose

b. IdentifythemarinelifefoundinthecoralreefsoridentifiedMPA/FSnotingspecietypes,size,

andnumber/population(density),onecanemployfishvisualcensustechnique.

Terrestrial

1. Locatethefollowingkeystructuresandbiophysicalfeaturesonamap

a. Majorandmicrowatersheds

b. Vegetationtypesandlanduse

c. Residentialandbuilt-upareas

d. Extractionareas(timberandNTFP)

e. Watersourcesandsprings


158

f. Riversandtributaries

g. Irrigationcanals

h. Agriculturalareas

i. Industrialandcommercialinfrastructures

j. Roads

2. Bysitevisit(inagriculturalareas,forests,watersources,etc.)

a. Assesstheconditionoftheforestsusingvegetationtype,size,anddistributionas indicators

(poor,fair,good,excellent);simplelinetransectsmethodcanbedone

b. Locate areas under stress (fromman-made and natural activities) and determine extent of

damage(typeandmethodofextraction,forcescausingdamage,extentofdamage,etc.)

c. Identifyanimalsfoundintheareanotingspecie,size,location,andpopulation

d. Identifycropslocatedintheareaanddetermineextentandfrequencyofplantingactivities

e. Determinethesoiltypeandslopeofthearea,especiallyintheuplandareas


159

Annex15-BUSINESSPLANREVIEWTRACKINGFORM

SUB-PROJECTTITLE:LOCATION:

PROPONENTGROUP:



INFRASTRUCTURECOST:

PGEQUITY:

REVIEWEDBY:

DATEREVIEWED:

UNIT COMMENTS/FINDINGS RECOMMENDATIONS

Republic of the Philippines Department of Agriculture PHILIPPINE RURAL DEVELOPMENT PROJECT National Project Coordination Office

4th

Floor, DA Building, Elliptical Road, Diliman Quezon City 1100, Philippines


160

Annex16-I-REAPINITIALEVALUATIONFORM

I. Proponent’sProfile

NameofProponent:_____________________________________________________________

Commodityline:_____________________Productform:_____________________________

Natureofbusiness:[]1stlevelproduction[]processing[]trading[]others_____________

OfficeAddress:_________________________________________________________________

ContactPerson:_________________________________Designation:_____________________

ContactNumber:_______________________Email:___________________________________

Registrations:[]SEC []CDA[]DOLE[]Mayor‘sPermit[]FDA

[]Others(listall)_________________________________________________

NetAssets(asof201_)_______________TotalEnterpriseProjectCost:___________________

FinancingMode:[]Micro-enterprise []Smallenterprise []Mediumenterprise

[]Restoration/Rehabilitation(calamityorconflictarea)

[]GEFarea[]Start-upEnterprise[]Upgrading/ExpansionofEnterprises

II.EvaluatingthePGeligibility

Criteria Yes No Remarks

Completenessofsubmittedeligibilitydocuments (indicate docs

submitted and

lackingdocs)

Actorinthecommodityvaluechain (indicaterole)

Producer group/ Smallholder groups/ MSME processor, consolidator,

exporter

Operational

(indicateexisting

businessactivities)

Willing toadopt clusteringor jointbusinessplanningwithothergroups

and forge contracts or formal marketing agreements with buyers or

privateintermediaries

(indicatewhether

verticalor

horizontal

integration)

III.Evaluatingproposalsagainstnegativelistoffundutilization

Negativelistoffundutilization Yes No

Moneymarketplacement,time-depositorotherformsofinvestment

CashadvanceofanyofficialofthePGunlessrelatedtotheimplementationofenterprise

Paymentofsalaries,honorariaoranyformofallowancesofthepersonnelofLGU

Purchaseofsupplies,materials,equipmentandmotorvehiclesoftheLGU

Acquisition of assets of the PG, unless necessary for the execution of the enterprise and

specificallystipulatedintheEPF

Purchaseofweapons

Financingofpoliticalandreligiousactivities

Purchaseofchemicalfertilizers,pesticides, insecticidesandherbicides,asbestosandother

potentiallydangerousanddangerousmaterialsandequipment

Financingofsawmills

Consumptionitemsorevents

Financingofactivitiesthathaveanalternativepriorsourceofcommittedfunding

Purchaseorrepairofvehiclesforgovernmentoffices


161

Salariedactivitiesthatemploychildrenunder16yearsofage

Financingactivitiesthatunfairlyexploitwomenormenatanyage

Useofmangroveorcoralreefsasbuildingmaterials

Purchaseoffishingboatsandotherrelatedequipmentunlessdirectlyrelatedorneededin

theenterprise

Constructionofenterprisesupportfacilitiesinprotectedareas

Useoffundsforpurchaseorcompensationofland

Constructionorrepairandbuyingofequipmentforgovernmentofficesandplacesofworship

Micro-financingactivities

Financinglaborandfuelexpenses

FinancingothercoststhatcouldbeprovidedbythePGinkind

Financingsalariesandwages,utilities,repairandmaintenance,permitsandlicenses

Potablewatersystem

IV.Evaluatingtheproposal’sobjectivesandimpacts

PRDPObjective Yes No Remarks/Explain

To increase productivity and marketability of agriculture

andfisheryproducts

(indicate target increase

inproductionvolumeand

sales volume of the

enterprise)

Toincreasefarmandfisheryhouseholdincomes

(indicate target increase

in income of farmer-

beneficiaries)

To improve the protection and conservation of the natural

resourcebaseofidentifiedenterprises

(indicate NRM activities

speciallyforGEFsites)

V.Evaluatingtheproposal’sbenefitsandoutcomes

PotentialImpact Remarks(includetargetgroupsandnumbers)

Farmer/Fishersbenefitted

Formalizedmarketingarrangements

FormalizedTechnicalarrangements

Benefitstotheenvironment

Improvedresiliencytoclimatechangeand

adverseweathercondition

Evaluatedby:_____________________ Verifiedby:___________________

(RPCOI-REAPStaff) (RPCOI-REAPHead)

Endorsedby:____________________ Notedby:_______________________

(RPCODeputyProjectDirector) (RPCOProjectDirector)


162

Annex17-SampleBusinessPlanorSubprojectProposalAppraisalorEvaluationForm

BusinessPlanEvaluationForm

PartI.GeneralInformation Tobefilled-upbytheTechnicalReviewTeam

Nameofenterprise:

Address:

Contactperson:

Product/s:

BriefDescriptionoftheEnterprise

EnterpriseProjectFund(EPF):PhP

TotalcounterpartofProponentGroup:PhP

InfrastructureCost:PhP

TargetstartingDateofOperation:

DateBusinessPlanwasReceived:

DateBusinessPlanwasEvaluated:

Name/Position/OfficeofRegionalTechnicalReviewTeam:

1.

2.

3.

4.

5.

PartII.ChecklistofRequirements YesorNo?(specify) IfYes,checkifinfois

correct,ifNo,request

formissingdata

1. Are the eligibility requirementdocuments completely

submitted?

2. Are the required documents and attachments

submitted?(SEECHECKLISTOFREQTS–ANNEX13OF

THEOM)

A. BusinessPlanAttachments

B. I-BUILDRequirements

C. SESDocumentaryRequirements

D. GGURequirements

E. ProcurementRequirements

F. FinanceRequirements

G. MandERequirements


163

Instructions:Ratethecontentofthebusinessplanfrom1-5with1asthelowestand5asthehighest.

COMPONENT/PARAMETERS RATING/SCORE

A. MARKETINGASPECT(20%) 1 2 3 4 5

1. Basisforthesalesprojectionsoundandinformationreliable

2. Buyersidentifiedandhassecuredcommitment(marketingagreement,

PO,etc)

3. Marketingstrategiessoundandwell-defined?

- Product’suniquesellingpropositionwelldefined

- Basisforpricingsoundandreliable

- Subproject location strategically located from themarket (market

accessibility)

- StrategiestocommunicateUSPoftheproducttotargetcustomers

welldefined

- Distributionnetworkorchannelestablished

4. Characteristicsoftargetmarketwelldiscussed

5. Competitorsidentifiedandwell-defined

- Profile,characteristicsandpracticesdiscussed

- Financialstrengthandpositionidentified

ScoreorPoints

B. OPERATIONSASPECT(20%)

1. Production methods and processes well-presented and discussed in

detail

2. Productionschedules

3. Technical assumptions well-presented (procedures, conversions,

recoveries,etc)

4. Required inputs, facilities and equipment are well defined and met

includingspecifications,volumeandcapacity

5. Suppliersofrawmaterialsidentifiedandsecuredcommitmenttosupply

6. Facilityandequipmentlay-outwell-definedandmatchedwiththesize

ofthebusinessoperation

7. Productionqualitycontrolsystemsinplaced

ScoreorPoints

C. ORGANIZATIONANDMANAGEMENTASPECT(20%)

1. Ownership and management of the enterprise clearly defined and

discussed

2. Organization and management plan depicts a level of skill and

experienceforasuccessfuloperationoftheenterprise

- Allmanagersandemployeeshaveexperienceinthebusiness

- Thegroup/entityhasalegalstructure

3. Organizationalchartandstaffingrequirementmatchedtheoperational

planoftheenterprise

4. Job description, duties and responsibilities of themanagers and staff

clearlystated

5. Profitdistributionschemeclearlypresentedanddiscussed

6. Internalcontrolmeasuresdefinedandin-placed

ScoreorPoints

D. FINANCIALASPECT(20%)

1. Financialassumptionsaresoundandrealisticandsourcesofrevenues

andcostsproperlyidentified

2. Presentationoffinancialstatements(BalanceSheet,IncomeStatement)

correct and in order according to general accounting standards and

principles

3. Financialprojectionsreflecttheproductionandmarketingplans

4. Financialratioanalysispresentedandpassedstandardcriteria

- FinancialInternalRateofReturn(FIRR)>15%


164

- Benefit-CostRatio(BCR)>1

5. Financialandnon-financialrisksdefinedandtakenintoaccount

ScoreorPoints

E. STAKEHOLDERPARTICIPATIONANDSOCIALBENEFITS(10%)

1. Contributiontoincreaseinfarmers’income

2. Sustainableemployment/ impactto localemployment(fromseasonal

toregular-salaryisequivalenttominimumwageormore)

3. Participationofsmallholderfarmersorfishers

4. Opportunitiesorparticipationofwomen

5. Opportunitiesorparticipationofindigenouspeople

6. Environmentalimpactandclimateresiliency

ScoreorPoints

F. SUSTAINABILITYMECHANISM(10%)

1. Clearlydefinedfutureplansorsustainabilityplan

2. Definedroleinthecommodityupgradingorvaluechaindevelopment

3. Planforexpansionorupgrading

4. Strategytomitigaterisksanduncertaintieswell-presented

5. Over-allstrategiescancontributetotheviabilityoftheenterprise

ScoreorPoints

COMPUTATION:

1. Get thePercentile Scorebyadding the total scoresper componentdividedby themaximumscore

possibleforthatcomponent.

2. MultiplythePercentilescoretotheAssignedPercentagePoint.

3. GettheActualScorebymultiplyingthePercentileScoreby100.

BUSINESSPLANAPPRAISAL/EVALUATIONSUMMARY:

Components

Assigned

Percentage

Point

Maximum

Scoreor

Points

SampleBPScore

fromtheTechnical

ReviewTeam

Percentile

ScoreSampleActual

score

C B A (A/B) ((A/B)*C)*100

1.Marketing 20% 25 20 0.8 16.00

2.Operations 20% 35 20 0.57 11.43

3. Organizationand

Management 20% 30 15 0.50 10.00

4.Financial 20% 25 20 0.80 16.00

5.Stakeholders

Participation&Social

Benefits10% 30 25 0.83 8.33

6. Sustainability

Mechanism10% 25 18 0.72 7.20

TOTAL

79.75

Minimum

PassingScore

70


165

REVIEWEDBY(TECHNICALREVIEWTEAM):

NAME OFFICE SIGNATURE

RECOMMENDINGAPPROVAL: APPROVEDBY:

_________________________ ______________________

I-REAPComponentHead,RPCO RPCOProjectDirector


166

Annex18-ASampleImplementationManagementAgreementfor

SubprojectswithEnterpriseDevelopmentOnly

IMANumber-PSO__________(RPCO)-2015(Year)-02(Month)-001(Number)

PrescribedFormat(27February2015)

RepublicofthePhilippines

DepartmentofAgriculture

PHILIPPINERURALDEVELOPMENTPROJECT(PRDP)

ProjectSupportOffice–________

IMPLEMENTATIONMANAGEMENTAGREEMENT

EnterpriseDevelopment

This Agreement ismade and entered into this ____ day of _____ 2014, at ___________, Philippines, by and

between:

TheDepartmentofAgriculture,anExecutiveDepartmentoftheRepublicofthePhilippines,withprincipaladdress

at Elliptical Road, Diliman, Quezon City, represented herein byDirector _______________________, Project

Director,ProjectSupportOffice–________________hereinafterreferredtoastheDA;and

TheProvince/City/Municipalityof__________________,apoliticalsubdivisionoftheRepublicofthePhilippines,

with principal address at______________________________, ________________ represented by Hon.

_________________________________Governor/Mayor,hereinafterreferredtoastheLGU;

-WITNESSETH-

WHEREAS,RepublicActNo.8435,otherwiseknownastheAgricultureandFisheriesModernizationAct(AFMA)of

1997 sets out the Government’s policies in the agriculture sector in attaining equitable distribution of

opportunities, incomeandwealth,expandingproductivity,andsustaining increase inproductionofgoodsand

servicestherebyraisingthequalityoflifeofthepeople,especiallytheunderprivileged;

WHEREAS,theDAgivesforemostconsiderationtopovertyalleviationandsocialequitythroughthedevelopment

and implementationofprojectsandprojects thatprovide thepoorsectorsof thecommunityespecially those

engaged insubsistenceagriculturewithequitableaccesstoresources, incomeopportunities,supportservices,

andmost especially rural infrastructures particularly in areas where productivity is low and the incidence of

povertyishigh;

WHEREAS, the Government of the Philippines (GOP) has obtained a loan from the International Bank for

ReconstructionandDevelopment-WorldBank(IBRD-WB)withIBRDLoanNo.8421PHamountingtoU.S.Dollar

FIVEHUNDREDONEMILLION TWOHUNDRED FIFTY THOUSANDONLY (US$501,250,000) for the purpose of

financingthePhilippineRuralDevelopmentProject(PRDP)tosupporttheGovernment’sefforttoreducepoverty

amongtheruralcommunitiesofeightyone(81)provincesinthecountry;

WHEREAS, all fundsconcerning the implementationof Subcomponent3.1: RuralAgri-fisheryEnterpriseand

ProductivityEnhancement(EnterpriseProjectFund)underComponent3:EnterpriseDevelopmentofPRDPwill

becoursedthroughandmaintainedbytheProjectSupportOffice(PSO)andwillbemadeavailabletoparticipating

LocalGovernmentUnits(LGUs);

WHEREAS, theDA’sfunctionsrelativetotheProjectaredonethroughitsNationalProjectCoordinationOffice

(NPCO)andtheconcernedProjectSupportOffice(PSO)andRegionalProjectCoordinationOffice(RPCO);

WHEREAS, the PLGUmanifested its interest to participate in the Project, and forwarded to theDApertinent

documentaryrequirementsforitsproposedsubproject;


167

WHEREAS, the _________________________________ has issued a No Objection Letter (NOL) 1 on

____________________________,whichisthebasisofthisImplementationManagementAgreement(IMA);

WHEREAS, theLGUandtheDAcommittedtoperformactionsassetout inthis ImplementationManagement

Agreement (IMA) hereinafter referred to as the Agreement to ensure the successful implementation of the

subproject,andthusachievetheProject’sdesiredobjectives;

WHEREAS, the LGU through Sangguniang Panlalawigan/Panlungsod/Pambayan Resolution No._______ dated

________authorizedtheGovernor/MayortosignthisAgreementandcommittheLGUtotheprovisionstherein;

NOW,THEREFORE,forandinconsiderationoftheforegoingpremises,thepartiestheretoagreeasfollows:

ARTICLEI–PURPOSEOFTHEAGREEMENT

Sec1.01 TheAgreementsetsoutthecommitmentsoftheDepartmentofAgricultureunderthePhilippine

RuralDevelopmentProject(PRDP)andtheLGUforimplementingtheSubproject.

ARTICLEII-DEFINITIONOFTERMS

Sec2.01 UnlessthisAgreementotherwiserequires,thetermsoracronymusedinthisAgreementshallhave

definitionsandmeaningsassetoutinSchedule1(DefinitionofTerms).

ARTICLEIII-SUBPROJECTDESCRIPTIONANDCOSTESTIMATES

Sec3.01 ThesubprojectcoveredbythisAgreementisthe_________________________________under

Subcomponent3.1:RuralAgri-fishery Enterprise andProductivity Enhancement (Enterprise

Project Funds) of Component 3: Enterprise Development described in detail in Schedule 2

(DescriptionofSubproject)hereof(hereinafterreferredtoasthe“Subproject”).

Sec3.02 TheEnterprisecostisestimatedat__________________________(_____)netofProponent

Groupequityof__________________________________(___)thebreakdownofwhichisset

forthinSchedule3(EstimatedSubprojectCostfortheEnterprise).

Sec3.03 Anyincreaseordecreaseinthecostbutnotbeyondtheapprovedsubprojectcoststatedinthis

AgreementshallfollowtheapprovedfinancingmixanddoesnotrequireamendmenttoIMA.

IncasethesubprojectcostexceedstheamountstatedintheIMA,thePLGU/PGwillprovidethe

additionalcost.

ThecostofBusinessPlanandallothercostofthesubprojectshallalsobefortheaccountofthe

LGU/PG.

Sec3.04 TheDAwillprovidetotheparticipatingLGUsasgrantequivalentto60%fromtheLoanProceeds

and 20% from the Government of the Philippines (GOP) Counterpart Fund or 80% of the

approved Enterprise cost, while the LGU Equity will be 20% as provided under Schedule 3

(EstimatedSubprojectCost).

TheProponentGroupwillcontributeanamountequaltoatleast20%(cashorinkind)tothe

Enterpriseasincrementalenterprisecost.

Sec3.05 The DA shall make available from the Loan Proceeds the amount of

__________________________(Php_________)andGOPCounterpartFundsintheamountof

___________________(Php__________)asfinancialassistancetotheLGUintheformofGrant

subjecttothetermsandconditionsofthisAgreement.


168

Sec3.06 TheLGUequityshallbe_____________________(Php____________)oftheSubprojectcostto

beusedexclusivelyfortheenterprise.

Sec3.07 The Grant shall be allocated in accordance with the provisions of this Agreement, for

expendituresincurredinrespectoftheapprovedcostsoftheSubprojectcomponentsdescribed

andreferredtoinSchedule3and4(TentativeDisbursementSchedule)ofthisAgreement.

ARTICLEIV–SUBPROJECTACCOUNTANDRECORDS

Sec4.01 TheLGUshall:

a) Upon signing of this Agreement, establish and maintain in a bank acceptable to the

GovernmentoneSubprojectTrustAccounteachfor:

(i) fundswithdrawnfromtheDA(Grant)fortheLoanProceedfromIBRD-WBtofinance

partsoftheSubproject;

(ii) fundswithdrawnfromtheDA(Grant)fortheGOPCounterpartFundsfromthe

GOPtofinancepartsofthesubproject;and

(iii) fundsforEquityoftheLGUfortheSubproject.

Asubsidiaryledgershallbemaintainedforeachoftheabovecited trustaccounts

(Grant/Equity) forproperaccounting,record-keepingandmonitoringoftransactions

andtofacilitatethepreparationoffinancialreports.

b) Maintainafinancialmanagementsystemandpreparesfinancialstatementinaccordance

withconsistentlyappliedaccountingstandardsacceptabletotheBank,bothinamanner

adequatetoreflecttheoperationsandfinancialconditionoftheParticipatingPLGU,

includingtheoperations,resourcesandexpendituresrelatedtotheProject,includingthe

recoveryofallcosts,forcarryingouttheSub-projectoranypartthereof;

c) EstablishandmaintainseparateaccountsandbooksfortheSubproject,reflectingall

expendituresandonwithdrawalsrequestedandreceivedfromtheDAonthebasisofthe

StatementofReceiptsandExpenditures(SRE).Maintainrecordsadequatetoreflect,in

accordancewithconsistentlysoundaccountingpractices,theoperations,resources,and

expenditures,includingtherecoveryofallcosts,forcarryingouttheSubprojectoranypart

thereof;

d) DisbursethefundsinaccordancewiththeSubprojectcomponentstowhichtheGrant

wereprovidedaspresentedinSchedule2a,2band3thereof;

e) Retain,untilten(10)yearsaftertheClosingDate,allrecords,pertainingtoormentionedin

Subsections(a)to(c)ofthisSection(includingcontracts,orders,invoices,bills,receiptsand

otherdocuments)evidencingtheexpendituresandpaymentsontheaccountsofthe

Subproject,andenabletheDA’srepresentativestoexaminesuchrecords;

f) HaveitsfinancialstatementsfortheProjectreferredtoaboveauditedbyIndependent

auditors(CommissiononAudit)acceptabletotheBank,inaccordancewithconsistently

appliedauditingstandardsacceptabletotheBank.Eachauditofthesefinancialstatements

shallcovertheperiodofone(1)calendaryearoftheparticipatingPLGU;

g) FurnishtheDAthrutheNPCOand/orPSOassoonasavailable,butnotlaterthantwo

months,anoriginalcopyofthereportsofsuchaudits,ofsuchscopeandinsuchdetailas

theNPCOandPSOshallreasonablyrequest,includingwithoutlimitationstotheforegoing,


169

aseparateopinionbytheauditor“ascontainedinanauditcertificate”inrespecttothe

expendituresandrecordsreferredtoinSubsection(b)ofthisSectionastowhetheronthe

basisoftheSRE,theGrantwithdrawnhavebeenusedforthepurposesforwhichtheywere

provided;and

h) FurnishtheNPCOandPSOsuchotherinformationconcerningthesaidseparateaccounts,

recordsandexpendituresandtheauditthereofasNPCOandPSOmayreasonablyrequest

fromtimetotime.

ARTICLEV–SUBPROJECTEXECUTION

Sec5.01 ThePLGUshallstarttheimplementationoftheSubproject,basedontheschedulepresentedin

Schedule5(ProjectImplementationPlan)hereof,immediatelyfromthedateoftheeffectivity

ofthisAgreement.

Sec5.02 UponapprovalofthisAgreementandincompliancewiththeadditionalconditionsreferredto

inSection9.02ofthisAgreement,theDA-PSOwillreleaseorcausethereleaseofGranttothe

PLGU in accordance with Schedules 6 (Schedule of Release of Funds) and 7 (Schedule of

RequirementsfortheReleaseofFunds)ofthisAgreement.

Sec5.03 ThePLGUshallpassanordinanceappropriatingthePLGUEquityfortheSubproject,anddeposit

theseintheaccountsreferredtoinSection4.01Subsection(a)intheamountofandonsuch

datesspecifiedinSchedule3ofthisAgreement,suchfundsaretobewithdrawnanddisbursed

against theclaimsof thecontractors/creditors inaccordancewith the samescheduleof this

Agreement.

Sec5.04 TheDAthroughtheNPCOand/orPSOand/orRPCOshall:

a) Monitor,supervise,andevaluatethePLGUintheimplementationofitsSubprojectandits

compliancewiththeobligationsunderthisAgreement;

b) Assistinthereviewoftheprocurementofgoods,services,andequipmentaswellasthe

works/outputsofconsultants/contractors/suppliers,and

c) EnsurethattheSubprojectisimplementedinaccordancewiththeprovisionsofthis

Agreement,relevantlaws,rulesandregulations,andprofessionalandtechnicalstandards.

Sec5.05. ThePLGUshallalso:

a) CarryoutanenvironmentalscreeningfortheproposedSubprojectinaccordancewith

theprovisionsoftheEnvironmentalSocialSafeguardsFramework(ESSF)(includingthe

EMFG);

b) Priortothecommencementofanyinstallationofequipment,facilitiesorservicestobe

rendered,prepare,holdconsultationsonanddiscloseanEnvironmentalSocial

managementPlan(ESMP),satisfactorytothebank;

c) CarryouttheSub-projectinaccordancewiththeESMP;

d) Notamend,suspend,orabrogateanyoftheprovisionsoftheESMPwithoutprior

approvalofthebank;

e) IntheeventanenvironmentalcompliancecertificateisrequiredunderthePhilippine

Lawsorregulations,suchcertificatehasbeenobtainedfromDENRoritsinstrumentality

attheregionallevelinrespectoftheactivitiesunderthesaidSub-project.


170

Sec5.06. ThePLGUshall:

a) Maintain,throughouttheperiodofProjectimplementation,theorganization,

managementandresources,satisfactorytotheBank,forcarryingoutSub-projects;

b) Establish,priortothecarryingoutofanySubprojects,andthereaftermaintain,a

ProvincialProjectManagementandImplementationUnit(PPMIU)throughouttheperiod

ofProjectimplementation,withcomposition,termsofreference,staffingandother

resourcesacceptabletotheBank,toberesponsibleforsupportingproject

implementationactivities,preparingannualworkplansandbudgets,undertaking

monitoringandevaluationandoverallaccountingandfinancialmanagement;and

c) CarryouttheSubprojectswithduediligenceandefficiency,andinconformitywith

appropriateeconomic,financial,administrative,technical,andagriculturalpracticesand

soundsocialandenvironmentalstandards,assetforthintheOperationsManuals

preparedandadoptedbytheProject,andacceptabletotheBank,andprovidepromptly

asneeded,thefunds,facilities,servicesandotherresourcesrequiredtherefor.

d) Submitmonthly,quarterlyandannualfinancialandphysicalprogressreportsregularlyto

PSOthroughRPCOonorbeforeduedates;

e) ComplywithalltheprovisionsapplicableinthePRDPOperationsManualsandGuidelines

insubprojectimplementation.

Sec5.07. EachparticipatingPLGUshall:

a) Intheprocurementofgoods,equipmentandservices,thePLGUshallcomplywithPRDP

ProcurementManualandtheWorldBankProcurementGuidelinesandRepublicAct

No.9184,knownasthe“GovernmentProcurementReformAct,theiralliedstatutesand

theirrespectiveImplementingRulesandRegulations,andinaccordancewiththe

relevantprovisionsoftheLoanAgreementshallbesuppletoryincharacter;

b) Ensurethatsaidgoodsareinsuredagainsthazardsincidenttotheacquisition,

transportationanddeliverythereoftotheplaceofuseorinstallation,anyindemnity

thereundertobemadepayableinacurrencyfreelyusablebythepurchaserthereofto

replaceorrepairsuchgoods;and

c) Ensurethatsaidgoods,equipment,facilitiesandservicesincludedintheprojectare

utilizedexclusivelyforthepurposeofcarryingouttheProject.

ARTICLEVI-MONITORING,REPORTINGANDEVALUATION

Sec6.01 The PLGU, through the P/MPMIU, shall comply with the procedures and guidelines for

monitoringandreportingasprescribedbythePRDP.

Sec6.02 TheDAshall,onbehalfofNPCO,PSOandRPCO,undertakeoverallmonitoringandevaluationof

theperformanceofthePLGUincarryingoutthetasks,responsibilitiesandobligationssetforth

inthisAgreement.

Sec6.03 ThePLGUshallenabletheWB,NPCO,PSOandRPCOtomonitor,examineallgoods,facilities,

sitesandequipment included intheProject, theoperationthereof,andanyrelevantrecords

and documents. The findings of themonitoring team shall be forwarded to the NPCO, PSO

and/orRPCODirectors,copiesofwhichshouldbefurnishedtothePLGU.

Sec6.04 StatusreportssuchasStatementofExpenditures(SRE),StatementofSourcesandApplication

of Funds (SSAF), financial statements (Trial Balance, Cash Flow Statement and Bank


171

ReconciliationStatement)attachedasSchedule8(FormatofFinancialReportsandStatements)

andMonthlyProgressReporton theSubproject shallbe forwardedby thePLGU to thePSO

throughRPCOonorbeforethe5thdayoftheensuingmonthinsuchdetailsandfrequencyas

mayreasonablyberequestedsubjecttovalidationbythePSOand/orRPCO.

Sec6.05 ThePLGUshall:

a) Maintainpoliciesandproceduresadequatetoenableittomonitorandevaluateonan

ongoingbasis,inaccordancewiththeperformanceindicatorsintheLoanAgreement,

theircarryingoutoftheSub-projects;and

b) Prepare,underthetermsofreferencesatisfactorytotheBank,asemi-annualreport

summarizingtheresultsofthemonitoringandevaluationactivitiesperformedonprogress

achievedincarryingouttheSub-projectsduringtheprecedingcalendarsemesterand

settingoutthemeasuresrecommendedtoduringthenextsemi-annualperiodfollowing

suchdateandfurnishthesametoRPCO/PSO/NPCOtoenablethemtoconsolidateand

submittheinformationtotheBank.

Sec6.06 ThePLGUshallallowtheWB,NPCO,PSOandRPCOtoconductauditinspectionandreviewof

financialaccountingrecords.

Sec6.07 IntheeventthattheperformanceofthePLGUfallsshortoftheagreedobjectives,targetsor

projects,thePLGUshallnotifytheNPCO,PSOandRPCOinwritingwithinfifteen(15)calendar

days from the receipt of the latest monthly accomplishment report, so that necessary

adjustments,modificationsoramendmentswillbemadeortobemadeinaccordancewiththe

provisionsofthisAgreementwithoutprejudicetotheremediesavailabletotheDA.

ARTICLEVII-OTHERCOVENANTS

Sec7.01 All national and local taxes, duties, fees, levies and other government impositions on the

SubprojectshallbefortheaccountofthePLGU.

Sec7.02 ThePLGUshallberesponsibleforbankchargesandotherexpensesassociatedwithremittances

toandfromtheSubprojectTrustAccountestablishedbythePLGUinaccordancewithSection

4.01,paragraph(a)i–iiiofthisAgreement.

Sec7.03 TheNPCO,PSOandRPCOshallmaintainamonitoringandrecordsystemreflectingallthefunds

releasedandtheexpendituresmadefortheexecutionoftheSubproject.

Sec7.04 ThePLGUwarrantsthattheSangguniangPanlalawiganhaspassedaresolution,asshown in

Schedule9(SangguniangPanlalawiganResolutionNo.___)that:

a) AuthorizetheLocalChiefExecutive(LCE)toenterintocontractswiththewinningbidders

forconsultancy,procurementofgoods/equipmentandotheragreementsrequiredtobe

donetoputthisAgreementIntofulleffect,and

b) Commitsresourcesandlogisticalsupportfortheeffectiveimplementationofthe

Subproject

Sec7.05 ThePLGUshallsubmittheSub-projectCompletionReportnotlaterthansix(6)monthsafterthe

lastpaymentwasmadebythePLGUtothecontractorand/ortotheproponentgroup.

Sec7.06 Upon the issuanceof theCertificateofCompletion, thePLGUshall turn-over the structures,

facilitiesandequipmentprovidedfortheSubprojectandshallcausetheProponentGroupto

operateandmaintain,orcausetobeoperatedandmaintainedproperly,thestructures,systems

andfacilitiesinstalledorestablishedundertheSubprojectandshallpassaResolutionproviding

forthefunds,facilities,servicesandotherresourcesrequiredforthepurposeforthenextten


172

(10)yearsaftersubprojectcompletion.TheDA-RFOshallbecopyfurnishedwiththecopyofthe

Resolutionformonitoringpurposes.

Sec7.07 a) AnynoticeorrequestrequiredorpermittedtobegivenormadeinthisAgreementshall

be inwritingandshallbedeemed tohavebeendulygivenormadewhendelivered to

NPCOorPSO;theOfficeoftheLCE,incaseofthePLGU,orsuchotheraddresswhichthe

Partiesheretomayspecifyinwriting.

b) Anyactionrequiredorpermittedtobetaken,andanydocumentrequiredorpermittedto

beexecutedunderthisAgreement,onbehalfoftheDA,maybetakenorexecutedbythe

PSOProjectDirectororhisauthorizedrepresentative.

c) Anyactionrequiredorpermittedtobetaken,andanydocumentrequiredorpermittedto

beexecutedunderthisAgreement,onbehalfofthePLGU,maybetakenorexecutedby

the LCE except those expressly reserved in this Agreement to be taken by the PLGU’s

SanggunianPanlalawigan.

Sec7.08 Bymutualconsent,thisAgreementoranypartthereofmaybechanged,modified,revisedand

amendedorsupplementedforthepurposeofeffectiveimplementationandmanagementofthe

Subproject. Allotherpartiesconcernedshallbenotified/informedofsuchchanges,revisions

andamendments.

Sec7.09 All disputes or controversies between the parties arising out of or in connection with this

AgreementwhichisnotsettledbetweenthepartiesshallbeelevatedinitiallytotheDA.

Sec7.10 Notarial feesandexpenses incidentaltotheprocessingofthisdocumentshallbechargeable

againstthePLGUfunds.

ARTICLEVIII-REMEDIES

Sec8.01 TheDAshallsuspendthesubsequentreleasesoftheGrantifanyofthefollowingoccurs:

a) ThePLGUhasnoorinsufficientequityfortheSubproject;

b) UnsatisfactoryperformanceofthePLGUintheimplementationandexecutionofthe

Sub-project.(Thereisunsatisfactoryperformanceifthereisdelayinthedelivery,

complianceorinstallationofmorethanseven(7)calendardaysforgoodsorequipment

procuredlocallyorfortyfive(45)calendardaysincaseofgoodsorequipmenttobe

procuredabroad,savetheexistingapprovedextensionorsuspensionofdeliveryor

installationorcompliance,ofgoods,services,equipmentandfacilitiesbythewinning

bidder/contractor/consultant/supplier.)

c) AtanytimetheNPCO,PSOorRPCOdetermines,duringtheconductofreviewand

monitoringactivities,thattheprocurementofanycontracttobefinancedbyGrantis

inconsistentwiththeproceduressetforthorreferredtobytheapplicableManualsand

GuidelinesofthePRDPandinreferencewiththeWBandGOPguidelines;and

d) Extraordinaryconditionssuchasforcemajeure,fortuitousevents,andthelikewhich

shallmakeitnecessarytosuspendtheimplementationoftheSubproject.

Sec8.02 TheDA,atitsownsoleoption,reservestherighttoliftsuchsuspensionfortheresumptionof

releasesofGrantfortheSubprojectofthePLGU.

Sec8.03 Upon the recommendationofNPCOorPSO, the concernedRegional ProjectAdvisoryBoard

(RPAB)shallcanceltheIMAifanyofthefollowingoccur:


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a) Non-complianceorviolationbythePLGUofanyprovisionsofthisAgreement;

b) TheNPCOand/orPSOfoundout,withrespecttoanycontracttobefinancedbythe

Grant,thatcorruptorfraudulentpracticesasprovidedforunderR.A.3019orotherwise

knownasAnti-GraftandCorruptpracticesActwereengagedinbyrepresentativesofthe

PLGUorabeneficiaryoftheGrantduringtheprocurementandexecutionofsuch

contract,withoutthePLGUhavingtakentimelyandappropriateactionsatisfactorytothe

NPCOand/orPSOtoremedythesituation;

c) Atanytime,whentheextentoftheeventsmentionedinSection8.01(d)escalatesthat

shallmakeitimprobablefortheSubprojecttocontinuetobecarriedout;and

d) UpontherequestofthePLGU.

Sec8.04 InsuchcasethattheSubprojectispartiallyorfullycancelledduetothefaultofthePLGUasin

Section8.01Sub-sections(a),(b),and(c)thefollowingprovisionsshallapply:

a) ThePLGUshallbeobligedtoreturntoDAtheunexpendedand/orunliquidatedbalanceof

thereleasedGrantoftheSubprojectwithinonemonthfromthedateofreceiptofthe

noticeofcancellationofIMA,and

b) TheamountofGrantutilizedshallberefundedtoDAwithinthree(3)monthsfromthe

dateofreceiptofcancellationofIMA.

Sec8.05 IncaseofcancellationofIMAduetoforcemajeure,asstatedinSection8.01(d),theamount

disbursed and paid for the actual accomplishment of the subproject may not be returned

however,anyunexpendedand/orunliquidatedbalanceshouldbereturnednotlaterthantwo

(2)monthsfromthereceiptofthenoticeofapprovalofcancellationofIMA.

Sec8.06 IncaseofcancellationupontherequestofPLGUasstatedinSection8.03(d),thetotalamount

ofgrantreleasedshouldbereturnedwithintwo(2)monthsafterreceiptofnoticeofapproval

ofthecancellation.

Sec8.07 ThePLGUswho’sIMAwerecancelledbutdidnotrefundorreturnthegrantfundsinfulltoDA

willnotbeconsideredforon-goingandfutureprojectsandprojectsofthedepartment.

Sec8.08 Failure to complywith theOperationalPlan: Should thePLGU fail toproperlyoperate the

subprojectand/orprovidenecessarybudgetallocationsasperOperationalPlaninSchedule10

(OperationalPlan)andassessmentcriteria,DAshallreviewitsoptiontodeny/withholdsimilar

assistanceinthefutureuntilsuchtimethatitisconvincedthatareconsiderationonthematter

shouldbeeffected.

ARTICLEIX-EFFECTIVITY

Sec9.01 ComplianceofPreconditionsbythePLGUfortheeffectivityofthisAgreement:

a) ASangguniangPanlalawiganResolutionandAppropriationOrdinancehasbeenpassed

committinglogisticalandfundingsupporttothePLGUandtheSubproject,particularly

withrespecttotheequitycontributionandoperationsandmaintenanceofcompletedor

installedstructures,systemsandfacilities.

Sec9.02 ThisAgreementshallbecomeeffectiveuponsigningofthepartiesconcernedandcompliance

bythePLGUoftheadditionalpreconditionsforeffectivenessreferredtoinSection9.01ofthis

Agreement and shall subsist and remain in full force and effect ten (10) years after the

subprojecthasbeenturnedoverandatsuchtimethepartiesheretoshallbemutuallyreleased

fromallobligationshereunder.


174

INWITNESSWHEREOF,theParties,havecausedthisImplementationManagementAgreementtobesignedin

________,Philippinesonthis____dayof_____________.

By:By:

__________________________________________________________________________________

ProjectDirectorGovernor

ProjectSupportOffice(PSO)–_______

By:

____________________________________

Director

RegionalProjectCoordinationOffice(RPCO)________

WITNESSES:

___________________________________ _______________________________

PRDPFocalPerson–RPCO____ProvincialAccountant/Treasurer

_________________________________________________________________________

ProjectAccountant–PSO______SPMember,FinanceCommittee


175

ACKNOWLEDGMENT

REPUBLICOFTHEPHILIPPINES)

_____________________________)S.S.

Before me this __________ day of ___________________ 2014, at _____________________ personally

appeared:

Name CompetentEvidenceofIdentityPlaceandDateIssued

____________________________________________________________________________________________

____________________________________________________________________________________________

Known to me and to me known to be the same persons who executed the foregoing agreement and they

acknowledged to be the same is of their own free and voluntary act and deed and those of the offices they

represent.

WITNESSMYHANDANDSEALonthedateandattheplacefirstwrittenabove.

NOTARYPUBLIC

UntilDecember31,2015

PTRNo.____________

DocNo________

PageNo________

BookNo._______

Seriesof2015_____


176

SCHEDULES

Schedule1 - DefinitionofTerms

Schedule2 - DescriptionofSubproject

Schedule3 - EstimatedSubprojectCostforEnterprise

Schedule4 - TentativeDisbursementSchedule

Schedule5 - ProjectImplementationPlan

Schedule6 - ScheduleofReleaseofFunds

Schedule7 - ScheduleofRequirementsfortheReleaseofFunds

Schedule8 - FormatofFinancialReportsandStatements

a) StatementofReceiptsAndExpenditures(SRE)

b) StatementofSourcesandApplicationofFunds(SSAF)

c) TrialBalance

d) BalanceSheet

e) CashFlowStatement

Schedule9 - SangguniangPanlalawigan(SP)Resolution

– Resolution Authorizing the Provincial Governor to

Execute and Enter into an IMA and Approving the

AppropriationfortheLGUEquityoftheSubprojectCost

Schedule10 - OperationalPlan


177

Annex18-BSampleImplementationManagementAgreementforSubprojectswith

EnterpriseDevelopmentandCivilWorks

IMANumber-PSO___________(RPCO)_________(Year)_______-(Month)-________(Number)

PrescribedFormat(27February2015)


DepartmentofAgriculture

PHILIPPINERURALDEVELOPMENTPROJECT(PRDP)

ProjectSupportOffice–__________

IMPLEMENTATIONMANAGEMENTAGREEMENT

EnterpriseDevelopmentwithCivilWorks

This Agreement ismade and entered into this ____ day of _____ 2014, at ___________, Philippines, by and

between:

TheDepartmentofAgriculture,anExecutiveDepartmentoftheRepublicofthePhilippines,withprincipaladdress

at Elliptical Road, Diliman, Quezon City, represented herein by Director _____________________________,

ProjectDirector,ProjectSupportOffice–________________________________hereinafterreferredtoastheDA;and

TheProvinceof__________________, apolitical subdivisionof theRepublicof thePhilippines,withprincipal

address at Provincial Capitol Building, _______________, ________________ represented by Hon.

_________________________________Governor,hereinafterreferredtoasthePLGU;

-WITNESSETH-

WHEREAS,RepublicActNo.8435,otherwiseknownastheAgricultureandFisheriesModernizationAct(AFMA)of

1997 sets out the Government’s policies in the agriculture sector in attaining equitable distribution of

opportunities, incomeandwealth,expandingproductivity,andsustaining increase inproductionofgoodsand

servicestherebyraisingthequalityoflifeofthepeople,especiallytheunderprivileged;

WHEREAS,theDAgivesforemostconsiderationtopovertyalleviationandsocialequitythroughthedevelopment

and implementationofprojectsandprojects thatprovide thepoorsectorsof thecommunityespecially those

engaged insubsistenceagriculturewithequitableaccesstoresources, incomeopportunities,supportservices,

andmost especially rural infrastructures particularly in areas where productivity is low and the incidence of

povertyishigh;

WHEREAS, the Government of the Philippines (GOP) has obtained a loan from the International Bank for

ReconstructionandDevelopment-WorldBank(IBRD-WB)withIBRDLoanNo.8421PHamountingtoU.S.Dollar

FIVEHUNDREDONEMILLION TWOHUNDRED FIFTY THOUSANDONLY (US$501,250,000) for the purpose of

financingthePhilippineRuralDevelopmentProject(PRDP)tosupporttheGovernment’sefforttoreducepoverty

amongtheruralcommunitiesofeightyone(81)provincesinthecountry;

WHEREAS, all fundsconcerning the implementationof Subcomponent3.1: RuralAgri-fisheryEnterpriseand

ProductivityEnhancement(EnterpriseProjectFund)underComponent3:EnterpriseDevelopment(I-REAP)of

PRDPwillbecoursedthroughandmaintainedbytheProjectSupportOffice(PSO)andwillbemadeavailableto

participatingLocalGovernmentUnits(LGUs);

WHEREAS, theDA’sfunctionsrelativetotheProjectaredonethrough itsNationalProjectCoordinationOffice

(NPCO)andtheconcernedProjectSupportOffice(PSO)andRegionalProjectCoordinationOffice(RPCO);


178

WHEREAS, the PLGUmanifested its interest to participate in the Project, and forwarded to theDApertinent

documentaryrequirementsforitsproposedsubproject;

WHEREAS, the _____________________________ has issued a No Objection Letter (NOL) 1 on

______________________,whichisthebasisofthisImplementationManagementAgreement(IMA);

WHEREAS,thePLGUandtheDAcommittedtoperformactionsassetoutinthisImplementationManagement

Agreement (IMA) hereinafter referred to as the Agreement to ensure the successful implementation of the

subproject,andthusachievetheProject’sdesiredobjectives;

WHEREAS,thePLGUthroughSangguniangPanlalawiganResolutionNo._______dated________authorizedthe

GovernortosignthisAgreementandcommitthePLGUtotheprovisionstherein;

NOW,THEREFORE,forandinconsiderationoftheforegoingpremises,thepartiestheretoagreeasfollows:

ARTICLEI–PURPOSEOFTHEAGREEMENT

Sec1.01 TheAgreementsetsoutthecommitmentsoftheDepartmentofAgricultureunderthePhilippine

RuralDevelopmentProject(PRDP)andthePLGUforimplementingtheSubproject.

ARTICLEII-DEFINITIONOFTERMS

Sec2.01 UnlessthisAgreementotherwiserequires,thetermsoracronymusedinthisAgreementshallhave

definitionsandmeaningsassetoutinSchedule1(DefinitionofTerms).

ARTICLEIII-SUBPROJECTDESCRIPTIONANDCOSTESTIMATES

Sec3.01 ThesubprojectcoveredbythisAgreementisthe_________________________________under

the Enterprise Development Component described in detail in Schedule 2 (Description of

Subproject)hereof(hereinafterreferredtoasthe“Subproject”).

Sec3.02 The Subproject cost is estimated at PESOS ________________________________ (Php

___________)thebreakdownofwhichissetforthinSchedule3(EstimatedSubprojectCost).

Sec3.03 The portion of Civil Works in the subproject is estimated at PESOS

_______________________________(Php___________)thebreakdownofwhichissetforthin

Schedule3A(EstimatedSubprojectCostfortheCivilWorks).

Sec 3.04 a) The DA shall make available from the Loan Proceeds eighty percent (80%) or PESOS

___________________________ (Php_____________) and ten percent (10%) from GOP

Counterpart or PESOS _________________ (Php _________) from the cost of Civil Works

portion in the subproject under the Infrastructure Development Component as financial

assistancetotheLGUintheformofGrantsubjecttothetermsandconditionsofthisAgreement.

b)TheLGUequityshallbetenpercent(10%)orPESOS________________(Php_________)ofthe

CivilWorksportionoftheSubprojecttobeusedexclusivelyforcivilworks.


179

Sec3.05 The portion of the Enterprise cost in the subproject is estimated at PESOS

__________________________(Php_____)thebreakdownofwhichissetforthinSchedule3B

(EstimatedSubprojectCostfortheEnterprise).

Sec 3.06 a) The DA shall make available from the Loan Proceeds sixty percent (60%) or PESOS

___________________________ (Php_____________) and from GOP Counterpart is twenty

percent (20%) or PESOS ______________________________from the cost of the Enterprise

portioninthesubprojectundertheEnterpriseDevelopmentComponentasfinancialassistance

totheLGUintheformofGrantsubjecttothetermsandconditionsofthisAgreement.

b)TheLGUequityshallbetwentypercent(20%)orPESOS________________(Php_________)

oftheEnterpriseportionoftheSubprojecttobeusedexclusivelyfortheenterprise.

c) TheProponentGroupwillcontributeanamountequaltoatleast20%(cashorinkind)tothe

Enterpriseasincrementalenterprisecost.

Sec3.07 Anyincreaseordecreaseinthecostbutnotbeyondtheapprovedsubprojectcoststatedinthis

AgreementshallfollowtheapprovedfinancingmixanddoesnotrequireamendmenttoIMA.In

case the subproject costexceeds theamount stated in the IMA, thePLGU/PGwillprovide the

additionalcost.ThecostofBusinessPlanandallothercostofthesubprojectshallalsobeforthe

accountofthePLGU/PG.

Sec3.08 TheGrantshallbeallocatedinaccordancewiththeprovisionsofthisAgreement,forexpenditures

incurredinrespectoftheapprovedcostsoftheSubprojectcomponentsdescribedandreferredto

inSchedule3and4(TentativeDisbursementSchedule)ofthisAgreement.

ARTICLEIV–SUBPROJECTACCOUNTANDRECORDS


a) Upon signing of this Agreement, establish and maintain in a bank acceptable to the

GovernmentoneSubprojectTrustAccounteachfor:

(i) fundswithdrawnfromtheDA(Grant)fortheLoanProceedfromIBRD-WBtofinance

partsoftheSubproject;

(ii) fundswithdrawnfromtheDA(Grant)fortheGOPCounterpartFundsfromthe

GOPtofinancepartsofthesubproject;and

(iii) fundsforEquityofthePLGUfortheSubproject.

A subsidiary ledger shall bemaintained for each of the above cited trust accounts

(Grant/Equity)forproperaccounting,record-keepingandmonitoringoftransactionsandto

facilitatethepreparationoffinancialreports.

b) Maintainafinancialmanagementsystemandpreparesfinancialstatementinaccordance


adequate to reflect the operations and financial condition of the Participating PLGU,

includingtheoperations,resourcesandexpendituresrelatedtotheProject,includingthe

recoveryofallcosts,forcarryingouttheSub-projectoranypartthereof;

c) Establish and maintain separate accounts and books for the Subproject, reflecting all

expendituresandonwithdrawalsrequestedandreceivedfromtheDAonthebasisofthe

Statement of Receipts and Expenditures (SRE).Maintain records adequate to reflect, in


180

accordancewithconsistently soundaccountingpractices, theoperations, resources,and

expenditures,includingtherecoveryofallcosts,forcarryingouttheSubprojectoranypart

thereof;

d) DisbursethefundsinaccordancewiththeSubprojectcomponentstowhichtheGrantwere

providedaspresentedinSchedule2a,2band3thereof;

e) Retain,untilten(10)yearsaftertheClosingDate,allrecords,pertainingtoormentioned

inSubsections(a)to(c)ofthisSection(includingcontracts,orders,invoices,bills,receipts

andotherdocuments)evidencingtheexpendituresandpaymentsontheaccountsofthe

Subproject,andenabletheDA’srepresentativestoexaminesuchrecords;

f) Have its financial statements for theProject referred to above auditedby Independent

auditors (CommissiononAudit) acceptable to theBank, in accordancewith consistently

appliedauditingstandardsacceptabletotheBank.Eachauditofthesefinancialstatements

shallcovertheperiodofone(1)calendaryearoftheparticipatingPLGU;

g) Furnish theDA thru theNPCOand/or PSOas soon as available, but not later than two

months,anoriginalcopyofthereportsofsuchaudits,ofsuchscopeandinsuchdetailas

theNPCOandPSOshallreasonablyrequest,includingwithoutlimitationstotheforegoing,

aseparateopinionbytheauditor“ascontained inanauditcertificate” inrespecttothe

expendituresandrecordsreferredtoinSubsection(b)ofthisSectionastowhetheronthe

basisoftheSRE,theGrantwithdrawnhavebeenusedforthepurposesforwhichtheywere

provided;and

h) FurnishtheNPCOandPSOsuchotherinformationconcerningthesaidseparateaccounts,

recordsandexpendituresandtheauditthereofasNPCOandPSOmayreasonablyrequest

fromtimetotime.

ARTICLEV–SUBPROJECTEXECUTION

Sec5.01 ThePLGUshallstarttheimplementationoftheSubproject,basedontheschedulepresentedin

Schedule5(ProjectImplementationPlan)hereof,immediatelyfromthedateoftheeffectivity

ofthisAgreement.

Sec5.02 UponapprovalofthisAgreementandincompliancewiththeadditionalconditionsreferredto

inSection9.02ofthisAgreement,theDA-PSOwillreleaseorcausethereleaseofGranttothe

PLGU in accordance with Schedules 6 (Schedule of Release of Funds) and 7 (Schedule of

RequirementsfortheReleaseofFunds)ofthisAgreement.

Sec5.03 ThePLGUshallpassanordinanceappropriatingthePLGUEquityfortheSubproject,anddeposit

theseintheaccountsreferredtoinSection4.01Subsection(a)intheamountofandonsuch

datesspecifiedinSchedule3ofthisAgreement,suchfundsaretobewithdrawnanddisbursed

against theclaimsof thecontractors/creditors inaccordancewith the samescheduleof this

Agreement.

Sec5.04 TheDAthroughtheNPCOand/orPSOand/orRPCOshall:

a) Monitor,supervise,andevaluatethePLGUintheimplementationofitsSubprojectandits



181

b) Assistinthereviewoftheprocurementofgoods,services,andequipmentaswellasthe

works/outputsofconsultants/contractors/suppliers,and

c) Ensure that the Subproject is implemented in accordance with the provisions of this


Sec5.05. ThePLGUshallalso:

a) CarryoutanenvironmentalscreeningfortheproposedSubprojectinaccordancewiththe

provisionsoftheEnvironmentalSocialSafeguardsFramework(ESSF)(includingtheEMFG);

b) Prior tothecommencementofany installationofequipment, facilitiesorservicestobe

rendered, prepare, hold consultations on and disclose an Environmental Social

managementPlan(ESMP),satisfactorytothebank;

c) CarryouttheSub-projectinaccordancewiththeESMP;

d) Notamend,suspend,orabrogateanyoftheprovisionsoftheESMPwithoutpriorapproval

ofthebank;

e) IntheeventanenvironmentalcompliancecertificateisrequiredunderthePhilippineLaws

orregulations,suchcertificatehasbeenobtainedfromDENRoritsinstrumentalityatthe

regionallevelinrespectoftheactivitiesunderthesaidSub-project.

Sec5.06. ThePLGUshall:

a) Maintain, throughout the period of Project implementation, the organization,

managementandresources,satisfactorytotheBank,forcarryingoutSub-projects;

b) Establish,priortothecarryingoutofanySubprojects,andthereaftermaintain,aProvincial

ProjectManagementandImplementationUnit(PPMIU)throughouttheperiodofProject

implementation, with composition, terms of reference, staffing and other resources

acceptabletotheBank,toberesponsibleforsupportingprojectimplementationactivities,

preparing annual work plans and budgets, undertaking monitoring and evaluation and

overallaccountingandfinancialmanagement;and

c) Carry out the Subprojects with due diligence and efficiency, and in conformity with

appropriateeconomic, financial,administrative, technical,andagriculturalpracticesand

sound social and environmental standards, as set forth in the Operations Manuals

preparedandadoptedbytheProject,andacceptabletotheBank,andprovidepromptlyas

needed,thefunds,facilities,servicesandotherresourcesrequiredtherefor.

d) Submitmonthly,quarterlyandannualfinancialandphysicalprogressreportsregularlyto

PSOthroughRPCOonorbeforeduedates;

e) ComplywithalltheprovisionsapplicableinthePRDPOperationsManualsandGuidelines


Sec5.07. EachparticipatingPLGUshall:

a) Intheprocurementofgoods,equipmentandservices,thePLGUshallcomplywithPRDP

Procurement Manual and the World Bank Procurement Guidelines and Republic Act

No.9184, knownas the “GovernmentProcurementReformAct, their allied statutes and

theirrespectiveImplementingRulesandRegulations,andinaccordancewiththerelevant

provisionsoftheLoanAgreementshallbesuppletoryincharacter;


182

b) Ensure that said goods are insured against hazards incident to the acquisition,

transportation and delivery thereof to the place of use or installation, any indemnity

thereunder tobemadepayable in a currency freelyusableby thepurchaser thereof to

replaceorrepairsuchgoods;and

c) Ensurethatsaidgoods,equipment,facilitiesandservicesincludedintheprojectareutilized

exclusivelyforthepurposeofcarryingouttheProject.

ARTICLEVI-MONITORING,REPORTINGANDEVALUATION

Sec6.01 The PLGU, through the P/MPMIU, shall comply with the procedures and guidelines for

monitoringandreportingasprescribedbythePRDP.

Sec6.02 TheDAshall,onbehalfofNPCO,PSOandRPCO,undertakeoverallmonitoringandevaluationof

theperformanceofthePLGUincarryingoutthetasks,responsibilitiesandobligationssetforth

inthisAgreement.

Sec6.03 ThePLGUshallenabletheWB,NPCO,PSOandRPCOtomonitor,examineallgoods,facilities,

sitesandequipment included intheProject, theoperationthereof,andanyrelevantrecords

and documents. The findings of themonitoring team shall be forwarded to the NPCO, PSO

and/orRPCODirectors,copiesofwhichshouldbefurnishedtothePLGU.

Sec6.04 StatusreportssuchasStatementofExpenditures(SRE),StatementofSourcesandApplication

of Funds (SSAF), financial statements (Trial Balance, Cash Flow Statement and Bank

ReconciliationStatement)attachedasSchedule8(FormatofFinancialReportsandStatements)

andMonthlyProgressReporton theSubproject shallbe forwardedby thePLGU to thePSO

throughRPCOonorbeforethe5thdayoftheensuingmonthinsuchdetailsandfrequencyas

mayreasonablyberequestedsubjecttovalidationbythePSOand/orRPCO.


a) Maintainpolicies andproceduresadequate toenable it tomonitor andevaluateon an

ongoingbasis,inaccordancewiththeperformanceindicatorsintheLoanAgreement,their

carryingoutoftheSub-projects;and

b) Prepare, under the terms of reference satisfactory to the Bank, a semi-annual report

summarizingtheresultsofthemonitoringandevaluationactivitiesperformedonprogress

achieved in carrying out the Sub-projects during the preceding calendar semester and

settingoutthemeasuresrecommendedtoduringthenextsemi-annualperiodfollowing

suchdate and furnish the same toRPCO/PSO/NPCO to enable them to consolidate and

submittheinformationtotheBank.

Sec6.06 ThePLGUshallallowtheWB,NPCO,PSOandRPCOtoconductauditinspectionandreviewof

financialaccountingrecords.

Sec6.07 IntheeventthattheperformanceofthePLGUfallsshortoftheagreedobjectives,targetsor

projects,thePLGUshallnotifytheNPCO,PSOandRPCOinwritingwithinfifteen(15)calendar

days from the receipt of the latest monthly accomplishment report, so that necessary

adjustments,modificationsoramendmentswillbemadeortobemadeinaccordancewiththe

provisionsofthisAgreementwithoutprejudicetotheremediesavailabletotheDA.


183

ARTICLEVII-OTHERCOVENANTS

Sec7.01 All national and local taxes, duties, fees, levies and other government impositions on the

SubprojectshallbefortheaccountofthePLGUandtheProponentGroupwhowillconsequently

implementtheSubproject.

Sec7.02 ThePLGUshallberesponsibleforbankchargesandotherexpensesassociatedwithremittances

toandfromtheSubprojectTrustAccountestablishedbythePLGUinaccordancewithSection

4.01,paragraph(a)i–iiiofthisAgreement.

Sec7.03 TheNPCO,PSOandRPCOshallmaintainamonitoringandrecordsystemreflectingallthefunds

releasedandtheexpendituresmadefortheexecutionoftheSubproject.

Sec7.04 ThePLGUwarrantsthattheSangguniangPanlalawiganhaspassedaresolution,asshown in

Schedule9(SangguniangPanlalawiganResolutionNo.___)that:

a) AuthorizetheLocalChiefExecutive(LCE)toenterintocontractswiththewinningbidders

forconsultancy,procurementofgoods/equipmentandotheragreementsrequiredtobe

donetoputthisAgreementintofulleffect,and

b) Commits resources and logistical support for the effective implementation of the

Subproject

Sec7.05 ThePLGUshallsubmittheSub-projectCompletionReportnotlaterthansix(6)monthsafterthe

lastpaymentwasmadebythePLGUtothecontractorand/ortotheproponentgroup.

Sec7.06 Upon the issuanceof theCertificateofCompletion, thePLGU shall turn-over the structures,

facilitiesandequipmentprovidedfortheSubprojectandshallcausetheProponentGroupto

operateandmaintain,orcausetobeoperatedandmaintainedproperly,thestructures,systems

andfacilitiesinstalledorestablishedundertheSubprojectandshallpassaResolutionproviding

forthefunds,facilities,servicesandotherresourcesrequiredforthepurposeforthenextten

(10)yearsaftersubprojectcompletion.TheDA-RFOshallbecopyfurnishedwiththecopyofthe

Resolutionformonitoringpurposes.

Sec7.07 a) AnynoticeorrequestrequiredorpermittedtobegivenormadeinthisAgreementshall

be inwritingandshallbedeemed tohavebeendulygivenormadewhendelivered to

NPCOorPSO;theOfficeoftheLCE,incaseofthePLGU,orsuchotheraddresswhichthe

Partiesheretomayspecifyinwriting.

b) Anyactionrequiredorpermittedtobetaken,andanydocumentrequiredorpermittedto

beexecutedunderthisAgreement,onbehalfoftheDA,maybetakenorexecutedbythe

PSOProjectDirectororhisauthorizedrepresentative.

c) Anyactionrequiredorpermittedtobetaken,andanydocumentrequiredorpermittedto

beexecutedunderthisAgreement,onbehalfofthePLGU,maybetakenorexecutedby

the LCE except those expressly reserved in this Agreement to be taken by the PLGU’s

SanggunianPanlalawigan.




andamendments.


184


AgreementwhichisnotsettledbetweenthepartiesshallbeelevatedinitiallytotheDA.

Sec7.10 Notarial feesandexpenses incidental totheprocessingofthisdocumentshallbechargeable

againstthePLGUfunds.

ARTICLEVIII-REMEDIES

Sec8.01 TheDAshallsuspendthesubsequentreleasesoftheGrantifanyofthefollowingoccurs:

a) ThePLGUhasnoorinsufficientequityfortheSubproject;

b) UnsatisfactoryperformanceofthePLGUintheimplementationandexecutionoftheSub-

project.(Thereisunsatisfactoryperformanceifthereisdelayinthedelivery,complianceor

installationofmorethanseven(7)calendardaysforgoodsorequipmentprocuredlocally

orfortyfive(45)calendardaysincaseofgoodsorequipmenttobeprocuredabroad,save

theexistingapprovedextensionorsuspensionofdeliveryorinstallationorcompliance,of

goods, services, equipment and facilities by the winning

bidder/contractor/consultant/supplier.)

c) At any time theNPCO,PSOorRPCOdetermines, during the conduct of reviewand

monitoring activities, that the procurement of any contract to be financed by Grant is

inconsistentwith theprocedures set forthor referred toby theapplicableManualsand

GuidelinesofthePRDPandinreferencewiththeWBandGOPguidelines;and

d) Extraordinaryconditionssuchasforcemajeure,fortuitousevents,andthelikewhichshall

makeitnecessarytosuspendtheimplementationoftheSubproject.

Sec8.02 TheDA,atitsownsoleoption,reservestherighttoliftsuchsuspensionfortheresumptionof

releasesofGrantfortheSubprojectofthePLGU.

Sec8.03 Upon the recommendationofNPCOorPSO, the concernedRegional ProjectAdvisoryBoard

(RPAB)shallcanceltheIMAifanyofthefollowingoccur:

(i) Non-complianceorviolationbythePLGUofanyprovisionsofthisAgreement;

(ii) TheNPCOand/orPSOfoundout,withrespecttoanycontracttobefinancedbytheGrant,

thatcorruptorfraudulentpracticesasprovidedforunderR.A.3019orotherwiseknownas

Anti-GraftandCorruptpracticesActwereengagedinbyrepresentativesofthePLGUora

beneficiaryoftheGrantduringtheprocurementandexecutionofsuchcontract,without

thePLGUhavingtakentimelyandappropriateactionsatisfactorytotheNPCOand/orPSO

toremedythesituation;

(iii) Atanytime,whentheextentoftheeventsmentionedinSection8.01(d)escalatesthat

shallmakeitimprobablefortheSubprojecttocontinuetobecarriedout;and

(iv) UpontherequestofthePLGU.


185

Sec8.04 InsuchcasethattheSubprojectispartiallyorfullycancelledduetothefaultofthePLGUasin

Section8.01Sub-sections(a),(b),and(c)thefollowingprovisionsshallapply:

a) ThePLGUshallbeobligedtoreturntoDAtheunexpendedand/orunliquidatedbalanceof

thereleasedGrantoftheSubprojectwithinonemonthfromthedateofreceiptofthenotice

ofcancellationofIMA,and

b) TheamountofGrantutilizedshallberefundedtoDAwithinthree(3)monthsfromthe

dateofreceiptofcancellationofIMA.

Sec8.05 IncaseofcancellationofIMAduetoforcemajeure,asstatedinSection8.01(d),theamount



(2)monthsfromthereceiptofthenoticeofapprovalofcancellationofIMA.

Sec8.06 IncaseofcancellationupontherequestofPLGUasstatedinSection8.03(d),thetotalamount

ofgrantreleasedshouldbereturnedwithintwo(2)monthsafterreceiptofnoticeofapproval

ofthecancellation.

Sec8.07 ThePLGUswho’sIMAwerecancelledbutdidnotrefundorreturnthegrantfundsinfulltoDA

willnotbeconsideredforon-goingandfutureprojectsandprojectsofthedepartment.

Sec8.08 FailuretocomplywiththeOperationalPlan:ShouldthePLGUfailtoensurethatthesubproject

isproperlyimplementedbythePGasstatedintheOperationalPlaninSchedule10(Operational

Plan)andassessmentcriteria,DAshallreviewitsoptiontodeny/withholdsimilarassistancein

thefutureuntilsuchtimethatitisconvincedthatareconsiderationonthemattershouldbe

effected.

ARTICLEIX-EFFECTIVITY

Sec9.01 ComplianceofPreconditionsbythePLGUfortheeffectivityofthisAgreement:

ASangguniangPanlalawiganResolutionandAppropriationOrdinancehasbeenpassedcommittinglogisticaland

fundingsupporttothePLGUandtheSubproject,particularlywithrespecttotheequitycontribution

Sec9.02 ThisAgreementshallbecomeeffectiveuponsigningofthepartiesconcernedandcompliance

bythePLGUoftheadditionalpreconditionsforeffectivenessreferredtoinSection9.01ofthis

Agreement and shall subsist and remain in full force and effect ten (10) years after the

subprojecthasbeenturnedoverandatsuchtimethepartiesheretoshallbemutuallyreleased

fromallobligationshereunder.


186

INWITNESSWHEREOF,theParties,havecausedthisImplementationManagementAgreementtobesignedin

________,Philippinesonthis____dayof_____________.

By:By:

__________________________________________________________________________________

ProjectDirectorGovernor

ProjectSupportOffice(PSO)–_______

By:

____________________________________

Director

RegionalProjectCoordinationOffice(RPCO)________

WITNESSES:

___________________________________ ______________________________________

PRDPFocalPerson–RPCO____ProvincialAccountant/Treasurer

_________________________________________________________________________

ProjectAccountant–PSO______SPMember,FinanceCommittee


187

ACKNOWLEDGMENT

REPUBLICOFTHEPHILIPPINES)

_____________________________)S.S.

Beforemethis__________dayof___________________2014,at_____________________personally

appeared:

Name CompetentEvidenceofIdentity PlaceandDateIssued

___________________________________________________________________________________________

____________________________________________________________________________________________

Known to me and to me known to be the same persons who executed the foregoing agreement and they

acknowledged to be the same is of their own free and voluntary act and deed and those of the offices they

represent.

WITNESSMYHANDANDSEALonthedateandattheplacefirstwrittenabove.

NOTARYPUBLIC

UntilDecember31,2014

PTRNo.____________

DocNo________

PageNo________

BookNo._______

Seriesof2014_____


188

SCHEDULES

Schedule1 - DefinitionofTerms

Schedule2 - DescriptionofSubproject

Schedule3 - EstimatedTotalSubprojectCost

Schedule3A - EstimatedSubprojectCostforCivilWorks

Schedule3B - EstimatedSubprojectCostforEnterprise

Schedule4 - TentativeDisbursementSchedule

Schedule5 - ProjectImplementationPlan

Schedule6 - ScheduleofReleaseofFunds–Consolidated

Schedule6A - ScheduleofReleaseofFunds–CivilWorks

Schedule6B - ScheduleofReleaseofFunds–Enterprises

Schedule7 - ScheduleofRequirementsfortheReleaseofFunds

Schedule8 - FormatofFinancialReportsandStatements

a.) StatementofReceiptsAndExpenditures(SRE)

b.) StatementofSourcesandApplicationofFunds(SSAF)

c.) TrialBalance

d.) BalanceSheet

e.) CashFlowStatement

Schedule9 - SangguniangPanlalawigan(SP)Resolution–Resolution

AuthorizingtheProvincialGovernortoExecuteand

Enter into an IMA and Approving the Appropriation for the LGU

EquityoftheSubprojectCost

Schedule10 - OperationalPlan


189

Annex19-SampleEnterpriseInvestmentAgreement(EA)


Provinceof_________________

PHILIPPINERURALDEVELOPMENTPROJECT

ENTERPRISEINVESTMENTAGREEMENT

KNOWALLMENBYTHESEPRESENTS:

THISAGREEMENTismadethis__________dayof___________,201_,byandbetweenthefollowing:

TheProvincialGovernmentof________________,aLocalGovernmentUnitoftheRepublicofthePhilippines,

with principal address at _____________________ represented herein by its Provincial Governor,

___________________,andhereinafterreferredtoasthe“PLGU”

and

The__________________________,adulyregisteredorganizationoftheRepublicofthePhilippines,underthe

_______________________, with office address at _________________________, represented herein by its

President________________,andhereinafterreferredtoasthe“PROPONENTGROUP”;

-WITNESSETH-

WHEREAS,theDAisimplementingthePhilippineRuralDevelopmentProject(PRDP)aimedatincreasingfarm

and fishery productivity and incomes in target areas in all 16 regions of the country by improving access of

farmers andother industry players to a strategic networkof infrastructure,market information and support

services;

WHEREAS,theEnterpriseDevelopmentComponent(I-REAP)ofPRDPintendstostrengthenanddevelopviable

agri-fisherybasedenterprisesthroughthedevelopmentofefficientvaluechainsofkeyagriculturalandfishery

productsintargetedprogramareas;

WHEREAS,allfundsconcerningtheimplementationoftheenterprisewillbecoursedthroughtheProjectSupport

Office(PSO)andwillbemadeavailabletoparticipatingprovincialLGUsandproponentgroups;

WHEREAS,theLocalGovernmentCoderationalizestheneedforupgradinglocalgovernmentcapabilitiesthrough

directprojectimplementationincollaborationwithNationalGovernmentAgencies(NGAs)andtheprivatesector;

WHEREAS,theLocalGovernmentCodeof1991extendsgenuineandmeaningfullocalautonomytotheLGUsto

enable themtoattain their fullestdevelopmentasself-reliantcommunitiesandtomakethemmoreeffective

partnersintheattainmentofnationalgoals;

WHEREAS,theLocalGovernmentCodeof1991devolvestheDAfunction-theprovisionofagriculturalsupport

services,agriculturalextensionandon-siteresearchservicesandfacilitiestotheLGUs;


190

WHEREAS, the Province of _________ identified __________(title of the proposed enterprise) as its priority

subprojectforPRDPasindicatedintheapprovedPCIP;

WHEREAS, theProponentGroup submittedprojectproposal entitled “________________________________”

with all the necessary documents to support the implementation of the subproject under the Enterprise

DevelopmentComponent;

WHEREAS, the proposal of _______________________ (title of the enterprise) was endorsed by PLGU and

approvedbyRegionalProjectAdvisoryBoard(RPAB)perRPABResolutionNo.dated_______________;

WHEREAS, the World Bank/NPCO/PSO has issued a No Objection Letter (NOL 1) on the business plan of

_________________ (title of the enterprise) dated _____________, amounting to Twelve Million Forty Two

Thousandand44/100Pesos(PhP12,042,000.44)netoftheProponentGroup’sequity;

NOWTHEREFORE,thepartiesheretoherebyagreeasfollows.

ARTICLEI

DEFINITIONOFTERMS

Sec.1.01 UnlessthisAgreementotherwiserequires,thetermsofacronymusedinthisAgreementshall

havedefinitionsandmeaningsassetoutinSchedule1(DefinitionofTerms).

ARTICLEII

SCOPEOFAGREEMENT

Sec.2.01 Thisagreementshallcovertheimplementationof________________(titleoftheenterprise),

referredas the“Enterprise” inaccordancewith theapprovedBusinessPlan tobe located in

_________________.

ARTICLEIII

SUBPROJECTDESCRIPTIONANDCOSTESTIMATES

Sec.3.01 Thesubprojectcoveredbythisagreementis_________________(titleoftheEnterprise),with

a total cost of ______________ excluding Proponent Group equity described in detail in

Schedule2(DescriptionofEnterprise).

Sec.3.02 TheEnterprisecostis__________________________(amountinwords)(Php______________)

netofcivilworksthebreakdownofwhichissetforthinSchedule3EstimatedSubprojectCost

for__________________(titleoftheenterprise)).

Sec.3.03 The PLGU shall make available from the Enterprise Fund eighty percent (80%) or

________________________________ (amount inwords) (Php______) under the Enterprise

DevelopmentComponentasfinancialassistancetotheProponentGroupintheformofGrant

subprojecttothetermsandconditionsofthisAgreement.

Sec.3.04 TheProponentGroupequityshallbeatleasttwentypercent(20%)ofthetotalEnterpriseCost

whichconsistsofcashequity intheamountof______________________________________

(amount in words) (Php____________) and equity in kind amounting to

_________________________ (amount inwords) (Php______) tobeusedexclusively for the

enterprise.

Sec.3.05 Anyincreaseinenterprisecostbutnotbeyondtheapprovedcostofbusinessplanshallfollow

theapprovedfinancingmixanddoesnotrequireamendmenttoEA.Incasethesubprojectcost

exceedstheamountstated,thePGwillprovideadditionalamount.


191

Sec.3.06 The Grant shall be allocated in accordance with the provisions of this Agreement, for

expendituresincurredinrespectoftheapprovedcostsoftheEnterprisedescribedandreferred

toinaccordancewithAnnexA(WorkandFinancialPlan)andasprovidedinthesubmittedand

approvedAnnexB(ProcurementPlan)ofthisAgreement.

ARTICLEIV

SUBPROJECTACCOUNTANDRECORDS

Sec.4.01 ThePGshall:

a) UponsigningofthisAgreement,establishandmaintaincurrentaccountinaCommercial

BankacceptabletothePSOandtoPLGU;

b) Maintainafinancialmanagementsystemandpreparefinancialstatementinaccordance


adequatetoreflecttheoperationsandfinancialconditionoftheParticipatingPG;

c) EstablishandmaintainaccountsandbooksfortheEnterprise,reflectingallexpenditures

andonwithdrawalsrequestedandreceivedfromthePLGUonthebasisoftheStatement

ofReceiptsandExpenditures(SRE);

d) DisbursethefundsinaccordancewiththeSubprojectcomponentstowhichtheGrantwere

providedaspresentedinSchedule4(TentativeDisbursementSchedule)thereof;

e) Retain,untilten(10)yearsaftertheClosingDate,allrecords,pertainingtoormentioned

inSubsections(a)to(c)ofthisSection(includingcontracts,orders,invoices,bills,receipts

andotherdocuments)evidencingtheexpendituresandpaymentsontheaccountsofthe

EnterpriseandenabletheDAandPLGUrepresentativestoexaminesuchrecords;

f) Have its financial statements for theProject referred toaboveauditedby independent

auditors acceptable to the Bank, NPCO, PSO and PLGU. Each audit of these financial

statementsshallcovertheperiodofone(1)calendaryearoftheparticipatingPG;

g) FurnishthePLGUthruthePPMIUassoonasavailable,butnotlaterthantwomonths,an

originalcopyofthereportsofsuchaudits,ofsuchscopeandinsuchdetailasthePLGU

shallreasonablyrequest;and

h) FurnishthePLGUsuchotherinformationconcerningthesaidseparateaccounts,records

andexpendituresandtheauditthereofasPLGUmayreasonablyrequestfromtimetotime.

ARTICLEV

DUTIESANDRESPONSIBILITIES

Sec5.01 ThePLGUthroughtheProvincialProgramManagementandImplementingUnit(PPMIU)shall

havethefollowingdutiesandresponsibilities:

a) MakeavailabletotheProponentGrouptheenterprisefundanditstimelyreleasesasper

approvedworkandfinancialplancorrespondingtothedetailedimplementationplanand

and/orprogramofworks;

b) ProvidetechnicalsupporttotheProponentGroupinallaspectsofenterprisedevelopment

includingconductofcapacitybuildinginterventions;


192

c) EnsurethatgoodsandworksareprocuredinaccordancetotheEnterpriseDevelopment

OperationsManualandProcurementGuidelinesofPRDP;

d) AssisttheProponentGroupininstallingfinancialrecordstofacilitateproperdisbursement

offunds,liquidationandrecordskeeping;

e) Assign a focal person to conduct periodic monitoring and evaluation of enterprise

implementationandoperationandprovideregularfeedbacktoProponentGroup;

f) Ensure adherence of the Proponent Group to PRDP processes as provided in the PRDP

EnterpriseDevelopmentOperationsManual;

g) Submit regularly the monitoring and evaluation reports to the RPCO as defined in the

Results-BasedMonitoringandEvaluation(RBME)GuidelinesforPRDP;and

h) Facilitate the turn-over to the Proponent Group of goods and works procured for the

enterpriseuponsubprojectcompletionthruaDeedofDonationandCertificateofTurn-

Over.

Sec5.02 TheProponentGroupshall:

a) Ensuresmoothimplementationoftheenterpriseaccordingtotheapprovedbusinessplan

anddetailedimplementationplanand/orprogramofworksandinadherencetosocialand

environmentalstandards;

b) Ensurebroadparticipationoffarmersandotherkeystakeholdersintheenterpriseactivities;

c) Undertakeoperationsandmaintenanceofthefacilitiesandotherpropertiesrelevanttothe

enterprise;

d) EnablethePLGUandotherentitiestoexaminegoodsandworksprocuredandtheoperation

thereofincludinganyrelevantrecordsanddocuments;

e) Implementcontinuouscapabilitybuildingandcapacityimprovementfortheenterpriseand

otherfarmersstakeholders;

f) All expenses that will be incurred in the enterprise implementation in excess of the

approvedenterprisefundshallbefullyassumedbytheProponentGroup.However,ifthe

actualcostincurredislowerthantheapprovedamount,theProponentGroupmayrequest

thePLGUtoreprogramthefundforsimilarprojectprovideditshallnotrequireadditional

fundsfromtheprovince;

g) Maintainfinancialrecordstoproperlydisburseandliquidateenterprisefunds;and

h) Submitrequiredphysicalandfinancial reportstothePLGU.Thesereportsshallbemade

accessibletoallPRDPimplementingunits.

ARTICLEVI

SUBPROJECTEXECUTION

Sec6.01 ThePGshall start the implementationof theEnterprise,basedon thepresentedSchedule5

(ImplementationPlan)andinaccordancewiththeapprovedbusinessplan,immediatelyfrom

thedateoftheeffectivityofthisAgreement.


193

Sec6.02 UponapprovalofthisAgreement,thePLGUwillreleaseorcausethereleaseofGranttothePG

inaccordancewithSchedule6(ScheduleandRequirementsfortheReleaseofFunds)ofthis

Agreement.

Sec6.03 ThePLGUthroughthePPMIUshall:

(a) Monitor, supervise,andevaluate thePG in the implementationof itsEnterpriseand its


(b) Assist theProponentGroup in the formationof a procurement committee as stated in

articleVIIISec.8.03ofthisAgreement;

(c) Assistinthereviewoftheprocurementofgoods,services,civilworksandequipmentas

wellastheworks/outputsofconsultants/contractors;

(d) IfthePGuponassessmentisnotcapableintheprocurementprocessofPRDP,thePLGU

shall, in behalf of the PG, shall procure the goods, services orworks necessary for the

implementationoftheenterprise;and

(e) Ensure that the Enterprise is implemented in accordance with the provisions of this


Sec6.04 ThePGshall

(a) Submitmonthly,quarterlyandannualfinancialandphysicalprogressreportsregularlyto

PLGUthroughRPCOonorbeforeduedates.

(b) ComplywithalltheprovisionsapplicableinthePRDPOperationsManualsandGuidelines


Sec6.05 Intheprocurementofinfrastructure,goods,suppliesandconsultancyservices,thePLGUshall

complywithWorld Bank ProcurementGuidelines and Republic Act No. 9184, known as the

“GovernmentProcurementReformAct”,theiralliedstatutesandtheirrespectiveImplementing

RulesandRegulations,andtheNEDAGuidelinesontheProcurementofConsultingServicesfor

GovernmentProjects(ImplementingRulesandRegulations)respectively.

ARTICLEVII

MONITORING,REPORTINGANDEVALUATION

Sec7.01 ThePLGU,throughthePPMIU,shallcomplywiththeproceduresandguidelinesformonitoring

andreportingasprescribedbythePRDP.

Sec7.02 ThePLGUshall,onbehalfofNPCO,PSOandRPCO,undertakeoverallmonitoringandevaluation

oftheperformanceofthePGincarryingoutthetasks,responsibilitiesandobligationssetforth

inthisAgreement.

Sec7.03 TheWB,NPCO,PSO,RPCOandPLGUshallaudit,monitorandevaluatetheprogressandstatus

oftheimplementationandmanagementoftheEnterprise.Thefindingsofthemonitoringteam

shallbeforwardedtotheNPCO,PSOand/orRPCODirectors,copiesofwhichshouldbefurnished

tothePLGUandPG.


194

Sec7.04 StatusreportssuchasStatementofReceiptsandExpenditures(SRE),and/orMonthlyprogress

ReportontheSubprojectshallbeforwardedbythePGtothePLGUonorbeforethe5thdayof

theensuingmonth insuchdetailsand frequencyasmayreasonablybe requestedsubject to

validationbythePLGUandRPCO.

Sec7.05 ThePGshallallowtheWB,NPCO,PSO,RPCOandPLGUtoconductauditinspectionandreview

offinancialaccountingrecords.

Sec7.06 In theevent that theperformanceof thePG falls shortof theagreedobjectives, targetsor

programs,thePGshallnotifythePLGUinwritingofthenecessaryadjustments,modifications

or amendmentsmade or to bemade in accordancewith the provisions of this Agreement

withoutprejudicetotheremediesavailabletothePLGU.

ARTICLEVIII

OTHERCOVENANTS

Sec8.01 ThePGshallberesponsibleforbankchargesandotherexpensesassociatedwithremittancesto

andfromtheEnterpriseBankAccountestablishedbythePGinaccordancewiththisAgreement.

Sec8.02 ThePGshallmaintainamonitoringandrecordsystemreflectingallthefundsreleasedandthe

expendituresmadefortheexecutionoftheSubproject.

Sec8.03 The PG may manage procurement of goods, works and services. This will depend on the

established capacity of the PG. The basic requirement/capacity of the PG to manage the

procurementwithintheprescribedthresholdshallincludeformation(ifnoexistingprocurement

committee) of bidding/procurement committee, experience and knowledge on

procurement/purchasingandshouldhaveattendedtheprocurementtrainingunderthePRDP.

Sec8.04 ThePGshallsubmittheSubprojectCompletionReportnotlaterthanthree(3)monthsafterthe

dateofissuanceofCertificateofCompletiontotheLGU.

Sec8.05 UpontheissuanceoftheCertificateofCompletion,thePGshalloperateandmaintain,orcause

to be operated andmaintained properly, the structures, systems and facilities constructed,

installedorestablishedundertheEnterprise

Sec8.06 (a) AnynoticeorrequestrequiredorpermittedtobegivenormadeinthisAgreementshall

beinwritingandshallbedeemedtohavebeendulygivenormadewhendeliveredtoPG;

orsuchotheraddresswhichthePartiesheretomayspecifyinwriting.

(b)Anyactionrequiredorpermittedtobetaken,andanydocumentrequiredorpermittedto

beexecutedunderthisAgreement,onbehalfoftheLGU,maybetakenorexecutedbythe

LocalChiefExecutive(LCE)orhisauthorizedrepresentative.

(c) Anyactionrequiredorpermittedtobetaken,andanydocumentrequiredorpermittedto

beexecutedunderthisAgreement,onbehalfoftheLGU,maybetakenorexecutedbythe

LCEexceptthoseexpresslyreservedinthisAgreementtobetakenbytheLGU’sSanggunian

Panlalawigan.




andamendments.


195


AgreementwhichisnotsettledbetweenthepartiesshallbeelevatedinitiallytotheDA-PRDP

RPCO_.

Sec8.09 Notarial feesandexpenses incidentaltotheprocessingofthisdocumentshallbechargeable

againstthePGfunds.

ARTICLEIX

REMEDIES

Sec9.01 ThePLGU,afteraccordingdueprocesstoPG,shallsuspendthesubsequentreleasesoftheGrant

ifanyofthefollowingoccurs:

(a) ThePGhasnoorinsufficientequityfortheSubproject;

(b) Unsatisfactory performanceof the PG in the implementation and execution of the Sub-

project;

(c) AtanytimetheNPCO,PSO,RPCOandPLGUdetermines,duringtheconductofreviewand

monitoring activities, that the procurement of any contract to be financed by Grant is

inconsistentwiththeproceduressetforthorreferredtobytheWBandGOP;and/or

(d) Extraordinaryconditionssuchasforcemajeure,fortuitousevents,andthelikewhichshall

makeitnecessarytosuspendtheimplementationoftheSubproject.

Sec9.02 TheLGU,atitsownsoleoption,reservestherighttoliftsuchsuspensionfortheresumptionof

releasesofGrantfortheSubprojectofthePG.

Sec9.03 Upon the recommendationof thePPMIU, theLCEshall cancel theEA ifanyof the following

occur:

(a) Non-complianceorviolationbythePGofanyprovisionsofthisAgreement;

(b) TheNPCO,PSO,RPCOand/orPLGUfoundout,withrespecttoanycontracttobefinanced

bytheGrant,thatcorruptorfraudulentpracticeswereengagedinbyrepresentativesofthe

PGorabeneficiaryoftheGrantduringtheprocurementandexecutionofsuchcontract,

withoutthePGhavingtakentimelyandappropriateactionsatisfactorytotheNPCO,PSO,

RPCOand/orPLGUtoremedythesituation;

(c) Atanytime,whentheextentoftheeventsmentionedinSection9.01(d)escalatesthatshall

makeitimprobablefortheSubprojecttocontinuetobecarriedout;and/or

(d) UpontherequestofthePG.

Sec9.04 InsuchcasethattheSubprojectissuspendedorcancelledduetothefaultofthePGasinSection

9.01Sub-sections(a),(b),and(c)thefollowingprovisionsshallapply:

(a) ThePGshallbeobligedtoreturntoPLGUtheunexpendedand/orunliquidatedbalanceof

thereleasedGrantoftheSubprojectwithinonemonthfromthedateofreceiptofthenotice

ofcancellationofEA.

(b) TheamountofGrantutilizedshallberefundedtoLGUwithinthree(3)monthsfromthe

dateofreceiptofcancellationofEA.


196

Sec9.05 In caseof cancellationofEAdue to forcemajeure,as stated inSection9.01(d), theamount



(2)monthsfromthereceiptofthenoticeofapprovalofcancellationofEA.

Sec9.06 IncaseofcancellationupontherequestofPGasstatedinSection9.03(d),thetotalamountof

grantreleasedshouldbereturnedwithintwo(2)monthsafterreceiptofnoticeofapprovalof

thecancellation.

Sec9.07 ThePGswhoseEAwerecancelledbutdidnotrefundorreturnthegrantfundsinfulltoPLGU

will not be considered for on-going and future projects and programs of the DA and PLGU,

withoutprejudicetothefilingofcaseagainsttheresponsibleofficialsofPG.

Sec9.08 FailuretocomplywithOperationalPlan:ShouldthePGfailtoproperlyoperatetheenterprise

in accordancewithSchedule7 (Operational Plan) and assessment criteria for a continuous

periodofone(1)yearwithoutjustifiablecauseandwithintheten(10)yearperiodfromissuance

of Certificate of Completion, the PLGU shall have the right to recover ownership over the

facilitiesand/orequipmentwhicharecoveredbythisAgreementsubjecttoexistinglaws,rules

andregulations.

ARTICLEX

GENERALPROVISIONS

Sec.10.01 AmendmentsandEffectiveness.Thepartiesmay,bymutualagreement,amend,alter,ormodify

thisAgreementanytimeanaddendumsignedbybothparties.ThisAgreementshalltakeeffect

onthedateofsigningofbothparties,unlesssoonerterminatedbyeitherparty,providedfurther

thatsuchterminationwillnotprejudiceanyongoingsubproject

INWITNESSWHEREOF,thepartnershavedulyexecutedthisAgreementonthedayandyearsetforthhereinabove.

TheProvincialGovernment TheProponentGroup

of________________

___________________ ______________________________

Governor Position,(NameofthePG)

WITNESSES:

________________________ ______________________________

________________________ ______________________________


197

ACKNOWLEDGEMENT

RepublicofthePhilippines)

_____________________)S.S.

BEFORE ME, a Notary Public for and in _____________, this day of 201_, personally

appeared:

Name CompetentEvidenceofIdentity Date/PlaceofIssue

________________ __________________________ ________________

________________ __________________________ ________________

knowntomeandtomeknowntobesamepersonswhoexecutedtheforegoinginstrumentandthey

acknowledgedtometobethesamearetheirfreeandvoluntaryactanddeedandthatoftheparties

theyrepresent.

WITNESSMYHANDANDSEALonthedateandtheplacefirstabovewritten.

NOTARYPUBLIC

DocNo._____

PageNo.______

BookNo.______

Seriesof201_


198

LISTOFANNEXES

AnnexA – ApprovedWorkandFinancialPlan

AnnexB – ApprovedProcurementPlan

LISTOFSCHEDULES

Schedule1 – DefinitionofTerms

Schedule2 – DescriptionofEnterprise

Schedule3 – EstimatedSubprojectCostoftheEnterprise

Schedule4 – TentativeDisbursementSchedule

Schedule5 – ImplementationPlan

Schedule6 – ScheduleandRequirementsfortheReleaseofFunds

Schedule7 – OperationalPlan

Schedule8 – DocumentaryRequirementsfortheLiquidationofFundTransfer


199

Annex20-SUPPLEMENTALGUIDELINESFORTHEIMPLEMENTATIONOF

SMALLI-REAPLIVELIHOODSUBPROJECTINYOLANDAANDEARTHQUAKE

AFFECTEDAREAS(REGIONS6,7,8)OFTHEPHILIPPINERURALDEVELOPMENT

PROJECT

I. RATIONALE

ThePhilippineRuralDevelopmentProject(PRDP)isasix-year(2013-2018)initiativeenvisionedtoincreasefarm

andfisheryproductivityandincomesintargetareasinall16regionsofthecountry.Theprojectseekstoachieve

thisobjectivebyimprovingaccessoffarmersandotherindustryplayerstoastrategicnetworkofinfrastructure,

marketinformationandsupportservices.Specificinvestmentsandinterventionsaretobeimplementedunder

four central componentsof theproject,namely: 1) LocalPlanning (IPLAN);2) InfrastructureDevelopment (I-

BUILD);3)EnterpriseDevelopment(I-REAP);and4)ProjectSupport(I-SUPPORT).

AssupportedinWorldBank’sProjectAppraisalDocument,thefirstyearofprojectimplementationwouldpay

specialattentiontothoseareasaffectedbyTyphoonYolanda(Haiyan)andtheBoholearthquake(SeeAnnexA

forthelist).Thetypesofenterprisesandinfrastructuretobesupportedareflexibleintheseaffectedareassuch

that itwill specifically target thegaps.Forexamplesmall-scale farmersand fisherswhohave lostproductive

assets(boats,coconuttrees,etc.,)coconutnurserydevelopmentlinkedwithreplantingbygroupsofsmall-scale

farmersorboatbuildinglinkedtofisheriesorseaweedproduction,amongothers.

II. SCOPEANDCOVERAGE

TheguidelinescontainonlytheguidingprinciplesintheidentificationandapprovalofIREAPYear1subprojects

inareasaffectedbyTyphoonYolanda(Haiyan)andtheearthquakeinBohol.

Procedures and requirements in financing the subproject, downloading of funds, procurement process and

monitoringandevaluationshallfollowtheFinancialGuidelines,ProcurementGuidelinesandRBMEGuidelines,

respectively.

III. OBJECTIVES

Ingeneral,thisaimstoprovidesustainableincomegeneratingactivitiestofarmersandfisherswhoselivelihood

wereaffected.

Specifically,itaimsto:

1. Providefoodsecurityinterventionstoaffectedfarmersandfisherstorespondquicklytotheirbasicneeds;

2. BringbacklivelihoodofthefarmersandfishersdamagedbyTyphoonHaiyanandtheearthquakebygiving

neededinterventions;and

3. Augmentthe incomeofthefarmersandfishers inaffectedareasbyprovidingproductionandmarketing

support

IV. ELIGIBLESUBPROJECTS

Allagri-basedandagribusinesssubprojectsareeligible.However,focuswillbegiventoprojectsorenterprisesof

the farmersandfishers thatweredamagedoraffectedbyTyphoonHaiyanandtheearthquake inBoholand

those thatwillprovide immediate livelihood to farmersand fisherfolk.Subprojects thatwill complement the

livelihoodactivitiesreceivedbytheprojectbeneficiariesthroughtheRAYProgramandfromotherdonorsmay

alsoqualify.


200

V. ELIGIBILITYREQUIREMENTSFORTHEPROPONENTGROUP

AProponentGroup(PG)isdefinedasorganizationoffarmersorfishersintheaffectedareaswhichmayormay

notberegisteredwithDOLE,CDAorSEC.

1. LetterofIntentaddressedtotheLGU

2. LGUEvaluationontheFinancialandOrganizationalCapabilityoftheProponentGroup

3. AswornaffidavitoftheSecretaryoftheNGO/POthatnoneofitsincorporators,organizers,directors,

orofficials is anagentofor relatedby consanguinityor affinityup to the fourth civil degree to the

officialsofthegovernmentimplementingagencyauthorizedtoprocessand/orapprovetheproposal,

theMOAandthereleaseoffunds.RelationshipofthisnatureshallautomaticallydisqualifytheNGO/PO

frombeinggrantedthefund

4. CertificateofNoUnliquidatedAccountwithLGUandDA.

5. Capacitytoprovideanequityorcounterpartofatleast20%incashand/orkindtothetotalenterprise

cost; Proof of Equity (Cash- BankCertificate); Land Title/ LeaseContract/DeedofDonation, etc (as

applicable)

VI. IMPLEMENTATIONPROCEDURES

1. IdentificationofSubproject

Identification of subproject will be based on the immediate need of the farmers and fishers whose

livelihoodhasbeendamagedandaffectedbytyphoonHaiyanandtheearthquake.Thesubprojectmay

also focusonestablishingmarketable surplus,production supportandcommonservice facilities.The

subprojectmayemanatedirectlyfromthepossibleproponentsorfromthelocalgovernmentunits.

2. ConductofSiteValidationandEvaluation

The Regional Project Coordination Office (RPCO) together with the P/M/CPMIU shall conduct site

validationandevaluationoftheproposedproponentgroup(PG).ThecriteriaforselectionofPGstated

inAnnex8oftheI-REAPOperationsManualmaybeusedinidentifyingthePGwhowillimplementthe

subproject.

3. PreparationofSubprojectProposal/BusinessPlan

After identification of subproject and the PG, the P/M/CPMIU will facilitate the preparation of the

subprojectproposalanddocumentaryattachments(SeeAnnexAfortheSubprojectProposalOutline).

TheP/M/CPMIUwill alsoassist thePG in complyingwithall thedocumentary requirementsofPRDP

includingrequirementsforinfrastructure(ifany)andSocialandEnvironmentalSafeguardsasstatedin

theI-BUILDOperationsManualandSESGuidelines,respectively.ThePGandthePPMIU/MPMIU/CPMIU

asthecasemaybeshouldhelpeachotherinthesubprojectproposalpreparation.

The subproject proposal including all its attachments should be approved by the Governor or

City/MunicipalMayor,asthecasemaybeandshallbeendorsedtotheRPCOforTechnicalReview.

4. ReviewandApprovalofSubprojects

a. RPCOTechnicalReview

TheRPCOuponreceiptofthesubprojectproposalandallitsattachmentsshallconveneaTechnical

ReviewCommitteewhichwillbecomposedofmembersfromRPCOI-REAP,commodityexpertfrom


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concernedagencyorDAbannerprogramandexpertsfromothergovernmentagencyandtheprivate

sector.ThetechnicalevaluationwillbedoneusingtheI-REAPAppraisalForm(Annex13oftheI-

REAPOM).A technical reviewreportdulysignedby theRPCO I-REAPHeadandapprovedby the

RegionalExecutiveDirectororRPCOFocalPersonshallbepreparedbytheRPCOhighlightingtheir

findingsonthesubprojectproposal. Ifthereviewisfoundtobesatisfactoryordependingonthe

findingsoftheTechnicalReviewTeam,theRPCOshallendorsethesubprojectproposalincludingall

itsattachmentsandacopyofthesignedAppraisalFormandtechnicalreviewreporttothePSO.

ForinfrastructurecomponentoftheI-REAPsubproject,theDetailedEngineeringDesign(DED),Bill

ofMaterialsandProgramofWorksandothersupportingdocumentsshallbereviewedbyI-BUILD.

b. ComplianceReview

ThePSOshallconductComplianceReviewtothesubmittedsubprojectproposalanditsattachments.

ThePSOshallvalidateandconfirmthetechnicalreviewconductedbytheRPCOandthecompliance

of the subproject to the PRDP requirements. The PSO shall prepare Compliance Review Report

highlightingitsfindings.ItwillendorseitsfindingstotheRPCO.

c. RPABApproval

Subprojectswhichsatisfactorilypassedtechnicalreviewandcompliancereviewwillbeendorsedby

theRPCOtotheRPABforapproval.AnRPABResolutionwillbepreparedbytheRPCOwhichwillbe

the basis of approving the subproject and the preparation of the ImplementationManagement

Agreement(IMA).

5. IssuanceofNoObjection

LivelihoodsubprojectswillbeissuedNoObjectionLetterbythePSO.Proceduresandthresholdssetin

theI-REAPOperationsManualwillbefollowed.

6. SigningoftheImplementationManagementAgreement(IMA)

UponRPABApproval,thePSOshalldrafttheIMAwhichwillserveastheagreementbetweenthePSO,

RPCO and the P/M/C LGU in the implementation of the I-REAP subproject. A separate IMA shall be

preparedfortheenterpriseoperationandtheinfrastructurecomponentofthesubproject.


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Annex21-SUBPROJECTPROPOSALOUTLINE

SUBPROJECTPROFILE(2pagesmax)

Title (Indicateplace,productandenterpriseinterventioninthetitle)

Location (IndicateMunicipalitiescoveredintheenterpriseintervention)

Components (Indicateoneormoreenterprise interventionsbasedonenterpriseprioritization results

and describe briefly how each component will contribute to the development of the

industryandthegoalsofPRDP)

¨ InputProvision; ̈Production; ̈Postharvest; ̈Processing;

¨ Marketing/Trading

Products and/or

Services

(Indicateproduct/sform/commonnameandorservices,annualcapacityandseasonality,

ifapplicable)

Product/s:____________________

Service/s:_____________________

Annualcapacity:______________

Seasonality:___________________

Stageofenterprise/s ̈Start-up; ̈Expansion; ̈Upgrading

Name of the

ProponentGroup

(Indicate official name of proponent group as registered based on proponent group

selectionresults)

Contact Person /

Designation

Address

ContactNumbers Landline:

Fax:

Mobile:

E-mail:

BusinessRegistration ¨ CooperativeDevelopmentAuthority;YearRegistered:__________

¨ SecuritiesandExchangeCommission;YearRegistered:__________

¨ DepartmentofLabor&Employment;YearRegistered:__________

EnterpriseClustersorother

participatinggroups

Producers/Suppliers ( Indicate groups and their correspondingno. of producers, production area, estimated

yield,showseasonalityifapplicable)

TargetBuyers (Indicatebuyersandtheirrespectiveandvolumerequirementperseasonoryearincluding

marketingarrangementse.g.contract,P.O)


203

InvestmentCapitalRequirement

Components/

Line

Items(shouldbe

specific)Amount,PhP

FundSources(PhP)

LP(Cash)GOP

(Cash)

LGU

(Cash)

ProponentGroup

Cash In-Kind

NG–LGUCostSharing

FundSource

EnterpriseCost InfrastructureCost Livelihood

Proposal

Amount

(PhP)Amount(PhP)

Cost

Sharing

(%)

Amount

(PhP)

Cost

Sharing

(%)

LP 60 80

GOP 20 10

LGU 20 10

Total 100

PGEquity 20

TotalwithPG


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EXECUTIVE SUMMARY (1-2-page summary of the sub-project proposal highlighting key points such as:

descriptionofthesubprojectanditscomponents,projectrationale,damagecausedbythetyphoon/earthquake,

briefdescriptionoftheproponent,targetmarket,managementandownershipoftheenterprise,operational

plan,financingrequirementincludingcostsharingandequityandfinancialreturns)

I.PROJECTRATIONALE

1. Focusingontheeffectofthetyphoon/earthquaketotheeconomicsituationofthebeneficiaries,discuss

indetailwhytheproject/enterpriseisbeingproposed.Whatisthepreviousstatusoftheorganization

(economicactivitiesundertaken)andthestatusofthefarmersbeforethecalamity,whatistheircurrent

statusandwhatistheexpectedimpactofthesubprojecttotheireconomicupliftment.

2. Discusstheprofileoftheproponent,theprojectsoractivitiesundertaken,organizationalstatus(newor

existing),reasonforselectingtheproponent,numberandprofileofitsmembers.

3. Statetheprojectobjectives(generalandspecific).

II.MARKETSTUDY

1. ProductDescription(discussthekindofproducttobeproducedbytheprojectincludingquantitytobe

sold,qualitystandards/specifications)

2. Discussthetargetmarket/buyer,thevolumerequirement,marketingarrangements

3. SupplyandDemandSituation(ifdataisavailable)

- discusstheavailabilityofsupply,majorproducingmunicipalities,volumeandhectarage

- discussthemarketdemand,majorbuyers,andvolumerequirements

4. MarketingStrategies(discusshowthePGintendtomarketitsproductincludingtheformofproductto

besold,thepackagingtobeused,brand(ifany),pricingstrategyfortheproduct,placeofdistribution

andhowwilltheproductarriveattheplaceofdistribution(modeoftransportationused),picked-upor

delivered, frequency of selling, and the promotional activities thatwill be undertaken tomake the

productknowntothetargetconsumers).

III.OPERATIONALPLAN

1. Ownership andManagement (discuss how the subproject will bemanaged including organizational

structure,projectmanagementanditsrolesandfunctions;capabilityofthePOtohandletheproject;

doesthestaffhavethenecessaryskills; trainingneeds;numberofpersonnelneededfortheproject

implementationandoperation;includewhentheorganizationwillberegisteredtoCDAorSEC,ifnot

yetregistered)

2. Production andOperationProcess (discusshow theprojectwill beoperationalized, provideprocess

flow,resourcesneeded)

3. Facilities and equipment (discuss the facilities and equipment required including specifications and

capacity; for civilworks or infrastructure describewhere itwill be located, access to roadnetwork,

technicaldesignorspecifications;includewheretosourcethefacilitiesandequipmentandestimated

costsbyfundsource)


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IV. SOCIALANDENVIRONMENTALSAFEGUARDS

1.SocialSafeguardAspect

A.SubprojectBeneficiaries

Whoarethebeneficiariesofthesubproject?Whatistheirsocioeconomicstatus?Havetheybeenconsulted?

Describetheconsultationprocess(indicatedate,locationandattendeesofmeetings).Havetheyaccepted

theproposedproject?Whataretheirconcernsandinputs?Describetheminutesofthemeetingsifany?Are

the women represented in these consultations (describe attendance of women)? What are their

concerns/inputs (describeanyparticular inputs fromwomen, if any)? (Attachminutesof themeeting/s,

attendance,photosduringconsultation/s).

B.IndigenousCultural

Community/IndigenousPeoples(ICC/IP)–Istheprojectlocatedinsideanancestraldomain?Iftheprojectis

not situated insideanyancestral domain, is it going toaffect anyextant IP/ICC communityor are there

beneficiarieswhoaremembersoftheIP/ICCcommunity?WhatparticularIP/ICCcommunityis involved?

Whatistheirsocioeconomicstatusascomparedtothemainstreamgroup?DidtheIP/ICCcommunitysolicit

thesubprojectthemselves?Iftheydidnotsolicittheproject,havetheybeenconsultedandhavetheygiven

their endorsement of the project? Describe the consultation process thus far conducted. Indicate date,

locationandattendeesofmeetings.Describetheminutesofthemeetingsifany.Whataretheirconcerns

andinputs?

Notethat: IftheProject is insideanyancestraldomain,or ifthereareanyintactICC/IPcommunitytobe

affectedbytheproject,eitherofthefollowingshouldbesecured:

Certificatefromthelocaltribalchieftain,orfromthelocaltribalcouncilorfromNCIPthattheprojectispart

of the ICC-IP’s development plan or is part of their Ancestral Domain Sustainable Development and

ProtectionPlan(ADSDPP);

Certificate from the local tribal chieftain that the project is solicited by the ICC-IP themselves; or, An

endorsement(e.g.inaformofaResolution)fromICC/IPcommunitytogetherwithevidenceofconsultations

conducted(e.g.minutesofmeetingsandlistofattendees,issuesandconcernsraisedandhowtheywere

addressed).

C.StatusofLandOwnership

What istheownershipstatusoftheproposedsiteorproductionarea? Describethesiterequirement in

termsofarea(sq.m),landtenure,andexistinglanduse.

IfdocumentsorproofsoflandownershipwerelostintheYolandadisasterandsecuringnewdocumentswill

takealongtime,thensecureacertificatefromtheMunicipalAssessorsortheMayorcertifyingtheidentities

ofthePGmembersandstatusofownershipofthelottheywilluseforthesubproject.

IfthesubprojectisinsideAncestralDomainorifnotinside,itadverselyaffectsanextantIP/ICCcommunity

who are not themselves beneficiaries of the subprojects, then an FPIC/CP should be secured under the

auspicesoftheNCIP.


206

2.EnvironmentalSafeguardAspect

A.Naturalhabitat

Describetheprojectsite(i.e.,thelandstobetraversedbytheproposedroad,theactualsiteofthePWSor

structure,etc.) intermsof landuse,vegetation,wildlife,presenceofwaterecosystems,endangeredand

other importantspecies.Howaretheygoingtobeimpactedbytheproject?Istheprojectsitewithinan

officiallydeclaredorproposedprotectedareaofnaturalhabitat?

B.Hazards/RiskAssessment(DrainageSituations,ErosionandFloodingPotential)–describethedrainage

situations, erosion and flooding potential of the project site. How does it going to be impacted on the

proposedsubproject?

Note that: PRDP loan should not be used to fund subprojects involving civil works that encroach into

ProtectedAreasofnaturalhabitatsuchasareasdeclaredasNaturalParksunderNIPAS,exceptforNRM

subprojectsthatareallowedasperprovisionsoftheNIPASlawofBufferZone,orMultipleUseZone,andthe

lawcreatingtheNaturalPark.

C.SocialandEnvironmentalImpact(-attachtheESMP)

(Template forsubproject typewillbeprovidedtothePG.Wastemanagementanduseofpesticidesand

agrochemicalsorevenIPMwillbediscussedinthissection.Pleaseberemindedthatusageofanypesticide

willbechargedagainstthePGequity,andredlabeledpesticidearenotallowed)

V. FINANCIALASPECT

1.Indicatefinancialassumptionsusedincomputingtheinvestment/projectcost,salesandexpenses

2.Investment/ProjectCost(indetailsincludingfixedcapital,workingcapitalandpreoperatingexpenses)

3.ProductionSchedule(one-yearperiod)

4.ProductionCostsandReturns(one-cycle)

5.ProjectedSales(one-yearperiod)

6.ProjectedIncomeStatement(oneyearperiod)

7. FinancialAnalysis(returnoninvestment)

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