Mindanao projects get P3.38 billion from EU

MANILA, Philippines — The European Union (EU) has extended about 60.5 million euros or approximately P3.38 billion in grants to the Philippines for the implementation of two projects in Mindanao and the Bangsamoro region, the Department of Finance (DOF) said over the weekend.

Finance Secretary Carlos Dominguez signed on June 26 a financing agreement for the 35.5-million-euro grant for the Mindanao Peace and Development Program (MINPAD)-RISE Mindanao project.

Dominguez also signed a separate agreement formalizing the 25-million-euro grant for the Support to Bangsamoro Transition (SUBATRA) program on July 1.

After signing the agreement for the MINPAD-RISE Mindanao, Dominguez thanked the EU for continuously supporting government efforts to achieve regional growth and financial inclusion.

“This EU assistance will certainly help the Duterte administration achieve its goal of a just and lasting peace and development in Minda-nao, and in supporting genuine autonomy in the Bangsamoro region,” he said.

The MINPAD-RISE Mindanao project will be implemented by the Mindanao Development Authority at a total cost of 149.5 million euros or about P8.35 billion.

It will be co-financed by the government of Germany for an indicative amount of four million euros or approximately P223.6 million, and the World Bank for $130 million or P6.4 billion.

The International Finance Group of the DOF said the project aims to “contribute to a peaceful, cohesive, secure and inclusively developed Mindanao” and improve social cohesion and community resilience as well as increase economic opportunities in Mindanao.”

It also seeks to strengthen the capacity of agricultural cooperatives and improve socioeconomic infrastructure that provides basic economic and social services to communities.

Meanwhile, the SUBATRA project costs P1.46 billion, 96 percent of which is funded by the EU.

The Spanish Agency for International Development Cooperation committed to cover the remaining amount.

The program is designed to contribute to a peaceful, cohesive, secure and inclusively developed Bangsamoro and establish an enabling democratic environment for a smooth transition to the Bangsamoro Autonomous Region in Muslim Mindanao [BARMM], the DOF said.

It is expected to boost the capacity of the Bangsamoro executive branch in formulating and implementing transitional policies, and strengthen the BARMM parliament’s ability to exercise its legislative, oversight and representation functions during the transition.

The program is also expected to improve the capacity of the Bangsamoro justice system and enhance the role of civil society in contributing to a peaceful transition of the region.

The EU is also a major contributor to the Mindanao Trust Fund for Reconstruction and Development, a multi-donor grant facility established in 2005 to consolidate international development assistance for the socio-economic recovery of conflict-affected communities in Mindanao, the DOF said.