PROJECT PROGRESS REPORT As of EO May 2012

Project Title: Second Cordillera Highland Agricultural Resource Management Project (CHARMP 2)

Implementing Agency: Department of Agriculture

Fund Sources: GOP Department of Agriculture Loan: IFAD, OFID, ADB Grant: IFAD LGUs: Beneficiaries:

Total Project Cost: P 3,081,862

Location/Area Coverage:

6 provinces, 37 municipalities, 170 barangays Abra: Lacub, Licuan-baay, Malibcong, Luba, Tubo, Sallapadan, Bucloc, Boliney Apayao: Calanasan, Kabugao, Conner Benguet: Bokod, Kabayan, Bakun, Kibungan,Buguias,Kapangan, Atok, Sablan, Mountain Province: Barlig, Besao, Sadanga, Sagada, Bontoc, Tadian, Bauko, Sabangan Kalinga: Balbalan, Pasil, Lubuagan, Tanudan, Tinglayan Ifugao: Hingyon, Hungduan, Tinoc, Asipulo, Mayoyao

Description: * Project Goal: Poverty reduction and livelihoods improvement of poor rural indigenous communities in the upland areas of CAR * Objectives: 1. Increased farm family income of the rural poor through sustainable agricultural development; and 2. Enhance the quality of life of the rural poor by improving land tenure security, food security and watershed conservation. The project has five components:

(1) Community mobilization, participatory planning of investments, and land titling; (2) community watershed conservation (including forest management and agro forestry development); (3) agricultural and agribusiness development, and promotion of income-generating activities; (4) rural infrastructure development; and (5) project management and coordination.

Project Duration: CY2009- CY2015

Start: January 1, 2009 End: December 31, 2015

PROJECT PROGRESS

For CY 2012 AO 1st Quarter

AO 2nd Quarter

AO 3rd Quarter

AO 4th Quarter

Target 7.8

Actual 2

Slippage 5.8

Cumulative Status: (Since start of project)

Status Physical Financial

Target For recalibration based on MTR

FOA+ Grant: Php 2,417.48

Actual (slippage)

18 % Obligation: Php 428.17 (18%)

Current Implementation Issues and/or Problems Encountered (if any):

Low availment of project funds, especially for infrastructure development due to difficulty of LGUs in providing cash counterpart as required in the existing NG-LGU cost sharing policy

Actions Taken/ Recommendations: The credit subcomponent is not feasible for poor target beneficiaries in the Project areas

With the suspension of the prevailing cost sharing policy arrangement, a NG-LGU cost sharing mix of 60%-40% for 1st-2nd class LGUs, 70%-30% for 3rd-4th class LGUs is being proposed to the NEDA Investment Coordinating Committee. Pending the approval of the proposal, the LGUs regardless of their classification were recommended to opt for the cost-sharing arrangement included in the Project Financing Agreement, where the CHARMP2 shoulders 60% and the LGUs provide 40% equity to proceed with the implementation of proposed subprojects.

The Project sought RDC-CAR endorsement requesting the DBM to allow the utilization of its savings amounting to Php 50 million from the Infrastructure for Rural Productivity Enhancement Sector Project for the CHARMP2 to hasten implementation of 47 subproject proposals of LGUs which were submitted to DA-OSEC for funding assistance. DA for its part is closely coordinating with the DBM on this matter. The Project has proposed during the Midterm Review Mission for the revision of the micro-credit subcomponent to a rural finance scheme aiming to support income generating and livelihood activities of beneficiaries. The proposed Livelihood Assistance Fund (LAF) will replace the microcredit to be managed by POs in the 170 barangays and aimed to benefit Livelihood Interest Groups (LIGs).

Remarks: A Project Mid-Term Review Mission composed of IFAD Consultants and NEDA Staff was fielded from January

16-February 6, 2012. The mission recommended revisions in the project design to improve performance. The Project is now seeking NEDA-ICC approval of the revised project design.

Agency Contact Person:

Address:

Telefax:

Email:

DIR. MARILYN V. STA. CATALINA, CESO IV Regional Executive Director, DA-RFU-CAR & Project Director, CHARMP2

CAMERON P. ODSEY Project Manager, CHARMP2

SECOND CORDILLERA HIGHLAND AGRICULTURAL RESOURCE MANAGEMENT PROJECT PROJECT SUPPORT OFFICE Baguio Stock Farm Compound, Marcos Highway corner Sto. Tomas Road, 2600 Baguio City

+63 74 444 8329/ Tel No. +63 74 444 7991

charm@mozcom.com

Second Cordillera Highland Agricultural Resource Management

Project (CHARMP 2)

Meat Processing

Meeting with the beneficiaries

Project field assessment