Competitiveness fund awaits borrowers

Something good came out of the skepticism towards the Philippines' entry into the World Trade Organization (WTO) way back in 1995. It was feared then that the country and most of the developing countries of the world could not compete effectively with big economies like the Group of 7 led by the United States, Japan, France and Germany in a liberalized trade without boundaries.

Among the safety nets that the Philippines put in place — to appease the doubting Juan de la Cruzes — is Republic Act 8178, "An Act Replacing Quantitative Restrictions on Agricultural Products, except Rice, with Tariffs, Creating the ACEF and for other Purposes."

Its provisions are part of the country’s commitments to the World Trade Organization (WTO). Specifically Sec. 8 of the Act provides for the creation of ACEF (Agricultural Competitiveness Enhancement Fund) and its use for agricultural financing to accelerate the growth of the sector.

Now the ACEF account (Fund 183), aside from having funded small, medium and big enter-prises, has accumulated tremendous amount of capital on the ready for deserving enterprises across the country. To date, around P1.393 billion have financed 118 projects with loans ranging from a low P1.6 million to a high P36 million. Of these, 28 are projects for regular ACEF and 90 projects are for sugar ACEF.

The agribusiness endeavors cover enterprises in livestock, poultry, aquaculture, fertilizer and farm products, coconut and fruit tree seed gardening, sugar farming and processing, marketing, training centers, among several others. All approved projects were endorsed to the Department of Budget and Management which eventually released the funds.

ACEF, collected from duties imposed on imported agricultural commodities, is one of the called safety nets government put in place to cushion the initial adverse impact of the country’s entry into the WTO on the agricultural sector. Moreover, the fund is intended to enable agricultural stakeholders to seize the prospects trade liberalization will bring.

Accordingly the DA issued a set of operational guidelines to effectively evaluate the project pro-posals for ACEF assistance. The private agricul-tural sector enthusiastically seized the moment and submitted numerous proposals. After a series of clarificatory inquiries to government agencies involved in the release of the fund and reviews, thereto, new revised guidelines were developed. Thereby, all previous proponents were advised to re-submit their project proposals. Consequent-ly, the DA began receiving and processing agri-business applications for ACEF funding assis-tance as early as October 1999.

A total of P1,392,137,706 have been credited by the Bureau of Treasury to Fund 183 (ACEF account) for the financing of approved projects.

To date, the following have collected in full their ACEF financing assistance and are doing well.

Region VII: Mountain Barangays Bongan Banana Productivity Enhancement and Marketing (approved loan: P2,776,900); Region VIII: YES Piggery and Meatshop Expansion (P9,868,636); Region III: Pinatubo Chicken Breeding Expansion Program (P1,603,000); Triple A Abattoir for Cattle and Hogs (P27,570,000); KASAMNE Onion Cold Storage Project (P8,500,000).

Other agricultural projects already operating on initial releases of ACEF financing with collectible balances are, among several others:

Mindanao Rubber Development Industries Corp. in Region XII: Natural raw rubber processing plant (approved loan: P36,000,000); Bali Farms & Crops Research Center/Asian Fruit Crops Depot in Region X: Establishment of a coconut seed garden integrated with longkong/durian clonal gardens and fruit crops nursery (P12,921,117);

Iloilo Hog Farmers & Municipal Government of Leganes, Iloilo in Region VI (P12,000,000); Tulong Pangkabuhayan MPCI in Region III: Integrated swine raising and feeds manufacturing (P11,483,295); PITAD Foundation, Inc. in Region VIII: expansion of coir twines, plant liners, geotextile and cocopeat production (P8,560,000); Iloilo Eco-Farm and Development Center in Region VI (P2,939,600); and First Mindoro Feedmill MPC in Region IV (P2,775,000).

The Department of Agriculture is mandated to tap the potential of the ACEF financing to the hilt and extend further its benefits for agricultural productivity, provide more jobs to the poor and improve the economic life in rural areas as well as of the country.