The World Bank and the Philippine government signed on August 7 the first phase of a 15-year $70.36-million loan to help finance the country’s Participatory Irrigation Development Project (PIDP) designed to improve irrigation service delivery, boost agricultural productivity, improve governance within the irrigation sector, and enhance food security.

The entire WB 15-year APL (adaptable program loan)comprises three phases.

The first phase of the program worth US$113.59 million is designed to enhance the National Irrigation Administration’s (NIA) financial viability and its institutional capacity. NIA will also gradually transfer the operation and maintenance responsibilities in about 58 selected national irrigation systems (NISs) to capable Irrigators’ Associations (composed of farmer-water users) as well as raise irrigation efficiency and promote reliable access to irrigation water among farmers in the selected NISs. The government will put up a counterpart fund of US$43.23 while the WB loan is worth $70.36 million. Phase 1 has three components, namely:

1. Irrigation Sector Restructuring and Reform to support the implementation of a rationalization plan for NIA and the strengthening of its institutional capacity to deliver efficient irrigation services;

2. Irrigation Infrastructure Development to improve the delivery of irrigation services in at least 58 selected NISs through rehabilitation with modernization; and

3. Project Management and Coordination to provide support for an efficient coordination, implementation and management of the project, including strengthening the financial management and procurement functions and the establishment and operation of the monitoring and evaluation system for the project.

The second phase will focus on deepening of institutional and policy reforms in the sector, as well as expanding the modernization of the national irrigation systems, including piloting the arrangements for the devolution of the Communal Irrigation Systems to the Local Government Units.