ARCDP2 PROJECT BACKGROUND
   
The Second Agrarian Reform Community Development Project (ARCDP2) is an area-specific, multi-sectoral development undertaking executed by the Department of Agrarian Reform (DAR) with financing from the Government of the Philippines (GOP), local government units (LGUs) and the World Bank. It builds on the achievements of the first Agrarian Reform Communities Development Project, but focused on a different set of agrarian reform communities (ARCs). The Project aims to provide assistance to ARCs in the areas of rural infrastructure, community development and agriculture and enterprise development, as well as giving support to facilitation of rural finance, and subdivision of collective land titles.

T
he objective of the project is to significantly raise household incomes and the quality of life of targeted agrarian reform beneficiaries (ARBs) by improving their productive assets, rural infrastructure and access to key support services. The project is designed to assist in strengthening farmer organizations in the ARCs to plan and undertake development activities that raise farmers' incomes and provide opportunities for sustainable growth.The project cost is shared between beneficiaries and government. The LGU will share project expenditures with national government in accordance with an agreed formula.

PROJECT AREA

PROJECT COMPONENTS

  • Community Development and Capacity Building
  • Agriculture and Enterprise Development, including support for subdivision of land titles
  • Support toRural Finance
  • Rural Infrastructure

    Supported by: Field Implementation Support and Project Management

Community Development and Capacity Building: Community mobilization and planning activities are the entry points of the Project to determine the scope of interventions required by the beneficiaries. Orientation and training are provided to build the capacities of not only the beneficiaries and local people's organizations but also of the contracted and detailed staff of the DAR, LGU representative and other resource organizations that support the ARCs.

Agriculture and Enterprise Development: For agriculture and enterprise activities, identification of potential activities are facilitated through the "farming systems development approach" as developed in ARCDP I with the FAO-TSARRD program. The Project uses the existing resources and implementation structures of DA,LBP, LGUs, and other resource organizations in delivering agricultural and livelihood support services to the ARCs. it includes a subcomponent for the sub-division of collective land titles and Certificates of Land Ownership Awards (LOAs) to individual CLOAs to improve investment oppurtunities and to support enhanced agricultural productivity in the ARCs.

Support for Rural Finance: This project will include support for strengthening the cooperative's creditworthiness and access to existing credit facilities to improve services for their members and for micro-finance institutions to enhance their capability to extend their services in targeted ARCs.

Rural Infrastructure: This component provides community-based and small-scale infrastructures as identified and prioritized through the community-based process. These include: rural access roads and bridges, communal irrigation, potable water supply (Levels I & II), multi-purpose buildings and solar dryers.

Project funds will be administered by the DAR-FAPsO. Technical agencies and private sector may be tapped as technical advisory resources. Construction may be on contract to government line agencies or private sector or on force account basis.

IMPLEMENTATION PROCESS

Full responsibility of the Project rests with DAR. The LGUs are the direct implementers of the sub-projects with regard to the basic infrastructure and extension services except for some irrigation, which will be executed directly by NIA. Credit shall be extended by the LBP and other rural finance institutions. The CDCB component, through the Comprehensive ARC Planning process will ensure community participation but all investment projects will be subject to a detailed sub-project appraisal process. A significant level of integration and synergy is undertaken between the component at the barangay, ARC, municipal, provincial and central levels.

FINANCING ARRANGEMENTS

Arrangements for the flow of funds adopt the normal government, and World Bank systems for disbursements. Cost-sharing arrangements involve equity participation for sub-projects depending upon the class of the municipality. The flow of funds from DAR follows existing government rules and regulations as well as the provisions of the ARCDP2 implementation manuals. Project funds for the Rural infra component is being managed by MDFO-DOF, while the rest are coursed through DAR

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ARCDP2 Project Background
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