The Land Bank of the Philippines (LBP) and Japan International Cooperation Agency (JICA) signed an official development assistance (ODA) loan agreement during the two-day state visit of Japanese Prime Minister Shinzo Abe in the Philippines this January 2017. Read on to know more about it.

Three Fast Facts On ODA Loan Agreement For ARMM's Agribusiness:

 

1. The loan agreement is for the HARVEST project.

The  ¥4.928 billion (P1.76 billion) loan agreement is for the Harnessing Agribusiness Opportunities through Robust and Vibrant Entrepreneurship Supportive of Peaceful Transformation (HARVEST) project. Through this, the agricultural enterprises, cooperatives and other such organizations for capital investment and operations in and around the Autonomous Region in Muslim Mindanao (ARMM) will be funded.

“HARVEST presents opportunities to help ordinary Filipino farmers in Mindanao and related institutions grow the agriculture sector. Through the project’s financial inclusion of farmers’ cooperatives, micro, small and medium enterprises (MSMEs), and related organizations, more investments and jobs will be created in Mindanao’s conflict-affected areas,” JICA Chief Representative Susumu Ito stated in an LBP press release.

2. The loan agreement will provide financing facility for ARMM's agribusiness. 

LBP and its financial intermediaries will facilitate the provision of funds to the agricultural enterprises, cooperatives and other organizations. “By providing investment opportunities in agribusiness, we hope to help fuel growth in a region beleaguered by decades-old conflict and ultimately uplift the quality of lives of our fellow Filipinos in these communities,” LBP President and chief executive officer (CEO) Alex Buenaventura said. 

3. JICA will provide human resource training and technical assistance.

In JICA's press release, it stated that the agency will provide human resource training and technical assistance to the LBP, agricultural cooperatives and other related institutions. The agency aims to improve access to financing, strengthen the value chain of agricultural products from production to logistics and sales and to create synergy from the effects of the project. The agency will also provide comprehensive assistance for the formulation and execution of human resource training and regional development plans based on the organizations and systems established by the ARMM.

What do you think of the LBP and JICA's official development assistance (ODA) loan agreement? Let us know in the comments section below.

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