Italy extends debt-to-grant program for Philippines

MANILA, Philippines — The government of Italy has extended for another two years the implementation of a program which converts the Philippines’ debt into grants to support the country’s environmental and poverty reduction programs, the Department of Finance (DOF) said yesterday.

Italian Ambassador Giorgio Guglielmino and Finance Undersecretary Mark Dennis Joven led the exchange of letters, which extends the Philippines-Italy debt for development swap program for two years.

A debt for development swap agreement between the Philippines and Italy was signed on May 29, 2012 through the DOF and the Italian embassy in Manila, allowing the conversion of the Philippines’ debt obligation amounting to 2.92 million euros (about $3.75 million or P160 million) into a grant.

The program aims to support projects on environmental protection and poverty reduction that are implemented by Philippine or Italian non-government organizations, national government agencies, and local government units.

According to the DOF, projects supported by the program have been implemented in provinces and districts in the Philippines with the highest poverty rates and have been carried out in a context of effective participation of the local communities.

The program has supported nine projects--seven of which are still unfinished and being considered to receive continued support with the two-year extension of the debt swap program.

These include Xavier Science Foundation Inc.’s Enhancing Communities’ Capacity for Inclusive Ecosystem Management and Rural Economic Sustainability (ECO-CARES) project, which aims to increase forest cover by at least 200 hectares, and improve economic opportunities within the Cagayan de Oro river basin, particularly in the upland municipalities of Talakag, Libona, and Baungon in the province of Bukidnon.

Meanwhile, the DOF said two projects funded under the program have already finished implementation.

These are the Tabuk Eco-Spirituality Center Project, which aims to reforest 15 hectares, and provide livelihood activities to indigenous communities in Tabuk City, Kalinga; and the Sustainable Eco-Tourism Project in the Puerto Princesa Underground River area, which ensures the preservation of the river, as well as the training members of surrounding barangays in eco-tourism management.