📋 Tender Overview
Project Name
Promoting Sustainability and Productivity for Enterprise Resilience and Upscaling in the Philippines (ProSPER) Project (formerly Mindanao Agro-Enterprise Development Project)
Project Number
53273-001
Country / Economy
Philippines
Project Status
Proposed
Project Type / Modality of Assistance
Loan
Source of Funding / Amount
Loan: Promoting Sustainability and Productivity for Enterprises Resilient Upscaling in the Philippines (ProsPER) Project
Ordinary capital resources US$ 61.00 million
Sector / Subsector
Agriculture, natural resources and rural development / Agro-industry, marketing, and trade - Rural market infrastructure
Finance / Small and medium enterprise finance and leasing
Gender
Effective gender mainstreaming
Description
The project will support the Government of the Philippines to enhance agricultural diversification and food value chain development in Mindanao through (i) promoting private investments in agro-industry; (ii) improving agricultural logistics and services; and (iii) enhancing product quality and competitiveness.
Project Rationale and Linkage to Country/Regional Strategy
Mindanao's economy is largely based on capital-intensive businesses of plantation crops, forestry, mining, and heavy manufacturing, which have limited multiplier effects on the local economy without decent job creation, technology and skills transfer, and involvement of local processing. Mindanao supplies over 40% of the country's total agricultural outputs and accounts for 60% of its agricultural exports. Agricultural value chains, including related services and industries, account for 60% of Mindanao's gross regional domestic product and 57% of its employment; however, over 80% of Mindanao farmers are subsistence or near-subsistence, and only 16% of farmers produce a marketable surplus. While women are involved in different segments of agricultural value chains from farming to trading, they often have limited access to credit, services, and technology. Mindanao produces several key commodities such as rice, corn, coconut, banana, rubber, coffee, mango, sugarcane, pineapple, and cacao, but crop diversification is limited. Many exports are produced by multinational corporations and local conglomerates. Local agribusinesses are still small and less productive, and focus on primary processing for the domestic market. COVID-19 also disrupted regional major economic drivers such as infrastructure, agribusiness and agri-manufacturing, industries, tourism, and services. The project aligns with the (i) Philippine Development Plan, 2017-2022; (ii) Micro, Small, and Medium Enterprises Development Plan, 2017-2022; and (iii) Mindanao 2020 Peace and Development Framework Plan, 2011-2030. It also supports the regional development strategies of the Mindanao Development Authority to promote agro-processing and agro-industrialization.
Impact
Economic opportunities in agriculture expanded in Mindanao
Outcome
Diversification and val
