DA rolls out $1 billion World Bank-funded project

MANILA, Philippines — The Department of Agriculture (DA) has begun the rollout of a $1 billion World Bank-funded project to support the country’s  farm modernization efforts.

The Philippine Sustainable Agriculture Transformation (PSAT) Program aims to improve agricultural productivity, promote crop diversification, reduce post-harvest losses and boost climate resilience.

In a press conference, Agriculture Assistant Secretary and Spokesperson Arnel de Mesa said that about $300 million is expected to be released by late-June or early-July, representing the first tranche of funding. 

He added that the government is set to receive $248 million for subsidies amid the ongoing fuel and fertilizer crisis, while an additional $50 million was requested by the DA for its other projects.

The program is funded under the World Bank’s Program-for-Results model, which bases the release of funds on set indicators rather than upfront disbursement.

“This financing allows us to raise farm productivity, stabilize food supply and protect millions of livelihoods dependent on agriculture,” Agriculture Secretary Francisco Tiu Laurel Jr., said.

“By strengthening value chains and building climate resilience, we are supporting rural incomes and reinforcing a key pillar of the economy,” Tiu Laurel added. 

Targets include the increase in rice output, enhancement of efficiency and climate resilience in value chains and improvement in institutional performance. 

De Mesa said that the agency is targeting to support about five million farmers nationwide in the span of five years. 

The DA also launched another World Banks-funded project worth $24.5 million. The Technical Assistance for Sustainable Agriculture Transformation grant complements the PSAT program.

The grant also includes a $14.5 million contribution from the United Kingdom through its Just Rural Transition Support Programme, a multi-stakeholder initiative that supports developing countries to shift toward sustainable agriculture. 

“The UK, together with the World Bank, is investing in TASAT to raise incomes, stabilize food supplies and strengthen climate resilience while protecting land and nature,” said British Ambassador to the Philippines Sarah Hulton.