German government will give grants and soft loan for environmental projects
The project proposal of the Department of Environment and Natural Resources for possible funding of environmental projects in Western Visayas is now on its inception period, which is very crucial for the preparation of the Feasibility Study made by the KFW, a German funding agency.
A recent briefing was made by Dr. Juergen Schade, German KFW consultant to the PENROs wherein he emphasized that the inception report is an activity preliminary to the actual Feasibility Study to be made by another team. The Inception Report will include only date gathered from anterviews of proposed stakeholders like the People's Organizations, Cooperative , and the local government.
According to Dr. Schade, the KFW will give a total amount of 7 million Euro dollars, 3 million Euro of which will be in a form of grant and 4 million through loans that will pass through the Land Bank of the Philippines. He also explained that the KFW is now negotiating with Land Bank on the different loan schemes and the possible interest rates that should be shouldered by the borrower. The inception study includes this kind of negotiation and gathering of suggestions from the stakeholders on the affordable rates of interests that will motivate the would-be beneficiaries to avail of the loan.
Together with Dr. Schade were Forester Bernardo Agaloos, Jr., Executive Vice President of SUSTEC consultancy and Mr. Jeremias Canonizado, SUSTEC Consultant. They were also accompanied by Mr. Conrado Bravante and Miss Isabel Salas both from Foreign Assisted Project Office (FASPO). Mr. Bravante briefed the group about the tedious procedure before a foreign funded project will be approved not discounting the raising of funds for the Philippine government counterpart. That is why, most of the foreign funded projects especially grants takes a long time before it will be implemented.
The group proceeded to Dumarao and Sapi-an Capiz then to Batan, Aklan to confer with the municipal mayors and get their consent of the proposed projects. Dr. Schade explained that the grant will be more on mangrove rehabilitation, upland forest rehabilitation/development and other upland development like soil and water conservations. Grants may include purchase of equipment and other tools that will help sustain the project. He also emphasized that grants can only be given to a duly registered organization that had a land use right over an upland or mangrove area citing that Community Based Forest Management Agreement (CBFMA) is one example.
The loan/grant will be for Income Generating Projects of the association or the local government. Tree Farm is one example, and the soft loan will be payable within 15 years. There will be some arrangements to be made on the payment scheme considering that trees will have a long gestation period before it can be productive. Dr. Schade also informed that those areas that were proposed might not be approved depending on the Feasibility study that is expected to start on May and ends on December 31, 2006. Eventually, the project will be implemented on 2007.
The inception study will be for two weeks and on May 9, there will be an operational workshop where KFW will present its report and on May 25-26, 2006 a Planning Workshop shall be conducted to finalize the report. By middle of June 2006, it is assumed that a Memorandum of Understanding shall now become viable for the start of the Feasibility study.
Regional Technical Director for Forestry Management Services, Rainer M. Ecang reported to Executive Director Julian D. Amador the updates of the visit and said that while the project may not be implemented this year, at least there is something to hope for in the next five years. The grant may be a great help to alleviate our dwindling forests and the loan package may motivate upland dwellers to become business entrepreneurs through livelihood projects that may enhance the conservation of forest flora and fauna.
(rac/RPAO)