Rural Agro-Industrial Partnership for Inclusive Development and Growth (RAPID Growth)
A proposed project to the International Fund for Agricultural Development (IFAD), RAPID Growth, which will be implemented in 2017-2022, is a PhP 2.3-billion project that aims to propel agriculture-based processing enterprises and entrepreneurial communities to become innovative, productive, and competitive so that they will be capacitated in meeting the challenges of the global market.
Specifically, this project aims to provide focused, firm-level, value chain-based, and climate-smart assistance and financing program to micro and small businesses, through enabling sectoral and trade policies which are designed to provide enhanced access to institutional, regional, and world markets.
RAPID Growth Conducts Operational Start-up Workshop in Davao
DAVAO CITY, 24-28 June 2019 – The Department of Trade and Industry and the International Fund for Agricultural Development (IFAD) conducted the Rural Agro-enterprise Partnership for Inclusive Development and Growth (RAPID Growth) Project Operational Start-up Workshop with the aim to prepare and familiarize all the organic and contracted DTI staff from DTI Head Office and Regions 8, 9, 10, 11, 12 and Caraga on the project operation and implementation arrangements. Representatives from the Commission on Audit regional office also participated in the activity. The workshop covered learning sessions and discussions on the RAPID Growth Project Logical Framework and Implementation Manual, and the IFAD procedures on Financial Management, Procurement, Planning, Monitoring and Evaluation, and Infrastructure.
At the end of the workshop, the RAPID Growth team became familiar with the implementation arrangements and IFAD procedures and was able to come up with and agree on the specific project indicators and targets.
January
- Conducted consultative meeting with International Fund for Agricultural Development (IFAD) Manila Office to discuss the status of negotiation for financial agreement between Government of the Philippines and IFAD, project staffing, and inclusion of health and other insurance for project staff
- Provided technical support to the RAPID Growth National Project Coordination Office Orientation cum Planning in Davao City.
- Conducted meeting with IFAD on the review of the performance of the Philippine Country Programme, specifically of the loan and grant projects, in relation to achieving the new Philippines Results-based Country Strategic Options Paper (PH RB-COSOP).
February
- Provided technical support and coordinated DTI’s participation in the IFAD 11th Annual Country Program Review in Sagada, Mt. Province on 5-8 February 2019.
- Conducted Project Orientation and Operational Planning Workshop on 27 Feb to 1 March 2019, with following outputs:
- All 6 regions, the National Project Coordinating Office (NPCO) and service offices involved were able to have a common understanding that the Small Grant Agreement (SGA) funds will be utilized for the preparatory activities prior to the actual implementation of project
- All 6 regions validated its priority sectors, those subject to the first 2 Strategic Investment Plans (SIPs), and coverage of the project;
- All 6 regions committed to submit calibrated and synchronized work plan and budget under the SGA.
March
- Conducted meeting with 11 Farmers Organization regarding the participation of their members and inventory of services they may provide to project beneficiaries.
- Conducted meeting with Small Business Corporation (SBCorp), Undersecretary Rafaelita Aldaba and DTI-Bureau of Trade and Industrial Policy Research (BTIPR) on Innovation Fund Component of the project. SBCorp committed to revise procedures on Equity Investment in the Project Implementation Manual. Usec. Aldaba and BTIPR committed to provide more information to SBCorp on Industry 4.0 and I3 program and initiatives of DTI-Trade and Investments Promotion Group (TIPG), for integration with the Innovation Fund Component of the Project.
- Conducted RAPID Growth Project Regional Caravan in Region 10 and CARAGA.
April
- Conducted Regional Strategic Investment Plan (SIP) Meeting in Region 10.
- In preparation for RAPID Growth Project Launching, RGMS met with the Center for International Trade Expositions and Missions (CITEM) regarding making the launching as one of major events of the International Food Exhibition (IFEX) on 25 May 2019.
- Ongoing preparation for the Project Steering Committee meeting. RGMS coordinated with the Office of the Secretary regarding dates, arrangements and briefing papers for the holding of the Project Steering Committee on 16 May 2019 with Secretary Ramon M. Lopez presiding.
May
- Conducted financial management meeting on 7 May 2019 with IFAD, DTI- Financial Service (FS), NPCO and RGMS to discuss the submission of audited SGA financial statement and status of funds and statement of expenditures, among others.
- Conducted coordination meetings regarding possible collaboration with other existing activities/projects, as follows:
o Meeting with Usec. Fita Aldaba on 07 May 2019 regarding the incorporation of Innovation 4.0 program into the RAPID Growth including the integration of the setting up of Regional Inclusive Innovation Center (RIIC) in the regional SIPs of Regions 10 and 11
o Meeting with FAO on 9 May 2019 on possible linkages of the project with their current program (e.g., climate smart agricultural technologies, farmers’ school on cash crop technologies, and farm livelihood starter kits, responsible agri-business investments, and disaster risk management and rehabilitation project). - Coordinated and participated in the IFAD Philippines Gender Network held in Baguio City on 6-9 May 2019.
- Organized the Project Launching Activity during the IFEX 2019 in World Trade Center, Pasay City.
- Facilitated the meeting with the Government Financial Institutions (GFIs), i.e. DBP, LBP, SBC; and BSP regarding the financing component of the project, i.e. approval process, special window for project beneficiaries.
- Commenced contracting process for the design of RAPID Financing Window and Policy Recommendations to facilitate financing of smallholder farmers and MSMEs.
June
- Assisted DTI-Bureau of Trade and Industry Policy Research on the formulation of its concept note on Regional Innovation Centers.
- Provided inputs to the meeting with Kennemer Foods regarding their participation as anchor firm in the project.
- Ongoing monitoring of the submission of draft inception reports and review of harmonized plans by RSIP consultants.
- Prepared and submitted detailed cost of RAPID Growth Grant Proceeds to the Department of Budget and Management.
- Prepared requirements for the procurement of information materials to be used during the July 10-12 Mekong Learning and Knowledge Forum in Bangkok, Thailand.
July
- Provided technical support and inputs to NPCO in the preparation of the 2019 and 2020 Annual Work Plan and Budget (AWPB) including processing of proposals from the following DTI Head Office units: Bureau of Domestic Trade Promotion (BDTP), Export Marketing Bureau (EMB), Center for International Trade Expositions and Missions (CITEM), Small Business Corporation (SB Corp), Philippine Trade Training Center (PTTC), Resource Generation and Management Service (RGMS), Financial Service (FS), Regional Operations Group (ROG) and Planning and Management Service (PMS).
- Coordinated preparation of Regional SIPs as inputs to the Inception Report and Harmonized Regional Value Chain Plans
- Provided technical support to the presentation of the RAPID Growth project to the Monetary Board.
- Conducted RAPID Growth Project National Technical Working Group Meeting on 18 July 2019 at Hotel Jen, Manila.
- Conducted meeting with DTI line agencies (BDTP, BTIPR, PTTC, CITEM, SBC) and the Regional Directors of Regions VIII, IX, X, XI, XII, and CARAGA to gather proposals from the DTI line agencies that will help on the implementation of the RAPID Growth Project; and to discuss and agree on the 2019-2020 RAPID Growth AWPB.
- Represented DTI in the Mekong Hub Knowledge and Learning Fair on 10-12 July 2019 and the IFAD meeting on Agri-micro insurance scoping mission presentation by the Cooperative Development Foundation-Canada.
August
- Coordinated with Knowledge Management and Information Service (KMIS) regarding the beneficiary profile and database being developed for the RAPID Growth Project
- Organized the meeting of Bangsamoro Autonomous Region in Muslim Mindanao- Ministry of Trade, Investment, and Tourism(BARMM-MTIT) with Secretary Ramon M. Lopez. Along this line, provided logistical support for the participation of NPCO, FS, LS, Region XII and Region IX, documented the internal DTI preparatory meeting and commented on the draft MOA between BARMM-MTIT and DTI on project cooperation and transfer of funds.
September
- Prepared technical documents regarding signing authorities and access to financial management system by IFAD
- Coordinated conduct of IFAD Startup and Implementation Mission:
- Conducted IFAD Start-up Implementation Mission Kick-off Meeting
- Facilitated IFAD Meeting with Bangko Sentral ng Pilipinas (BSP), Development Bank of the Philippines (DBP), Land Bank of the Philippines (LBP) and Philippine Crop Insurance Corporation (PCIC) for RAPID Growth Financing Models
- Provided Technical Support for Field Mission in Region XI
- Revision of Project Logical Framework
- Determination of matching grants guidelines
- Discussion on financial management and administrative procedures
- On-site field visits to Chocolate de San Isidro, Malagos, Kennemer and Coffee for Peace
- Discussion on preliminary mission feedback
- Represented DTI in the meeting with IFAD on Mars Grant program for Cacao sector with World Agroforestry (ICRAF) and Kennemer
- Provided technical support on the IFAD Presentation of Mission Report and finalization of draft Aide Memoire
- Provided technical and logistical support to SB Corporation on Pitching Session for Equity financing
- Represented DTI on the RAPID-IFAD discussion with University of the Philippines Los Banos, Incorporated (UPLBFI) regarding Baseline Survey and Project Monitoring and Evaluation.
- Provided technical and coordinative support on the drafting of the Withdrawal Application and requisite documents by IFAD and DOF.
October – December
The Department of Trade and Industry, through Small Grant Agreement (SGA) was provided by the International Fund for Agricultural Development (IFAD) with funding to implement the RAPID Growth Project which focuses in strengthening agricultural value chains through business partnerships among farmers and rural micro, small, and medium enterprises (MSMEs). The general objective of the project is to produce innovative and scalable pathways for rural transformation meant to influence national policies and generate substantial and measurable benefits. Under the SGA, the following outputs were delivered, highlighting the key accomplishments for 2019:
Output 1- Application and institutionalization of systems and design in project management
- Implementing Units (NPCO, RCUs, and PCUs) has been established with
strong support from the designated DTI-personnel - Engagement of Negosyo Centers
- Formation of Project Steering Committee and Regional Technical Working Group
- Sectoral Profiling database
Output 2- Map of value chain related projects and Preparation of Strategic Investment Plans
- Regional Strategic Investment Plans prepared
- Value Chain Maps for the selected/ covered value chain
Output 3 – Value chain maps and diagnostics for selected commodities (coffee, cacao, coconut, processed fruits & nuts)
- Intervention Matrix prepared
- Conduct of training for Value Chain Analysis
Output 4 – Develop rural enterprise and commodity chain monitoring systems, including GIS, MIS
- Project Implementation Manual Prepared
- Initial identification of Anchor Firms, Business Development Services (BDS), and Financial Service Providers
Output 5 – Create MIS
- M&E workshops and learning sessions conducted and M&E Plan drafted
- Terms of Reference for Evaluation studies and development of MIS prepared
Output 6 – Trained personnel in place
- TNA conducted and submitted
- Project Staff capacitated with various technical and finance and administrative mattersThe participatory and collaborative approach to planning and implementing activities is a key attribute on the general success of the project’s implementation in 2019. Likewise, effective communication and transparency across the implementing units should be further bolstered to minimize future setbacks.
- Conduct of Feasibility Studies for 4 priority sectors
- Reviewed and commented on the outputs of four (4) studies submitted initially in December: Coffee (Bukidnon), Cacao (Davao del Norte), Calamansi (Agusan del Sur), and Leyte (Coco Coir)
- Coordinated with Agriculture, National Economic Development Authority – Natural Resources and Environment Staff (NEDA ANRES) for comments and requirements of the Strategic Investment Plan (SIP), all comments were forwarded to consultants for further response.
- Preparation for ICC Cabinet Committee
- Coordinative meetings with Cabinet Secretariat (CabSec) and IFAD representatives on compliance with Investment Coordination Committee (ICC) Cabinet Committee requirement
- Interviewed 4 showcase enterprises assisted by DTI to be replicated by RAPID Growth project
- Revised Small Grants Agreement and other DOF requirements for the Special Authority from the Office of the President.
- Conducted meeting with International Fund for Agricultural Development (IFAD) and Department of Interior and Local Government (DILG) on the Farm-to-Market Road (FMR) subcomponent funds flow and implementation arrangements. Submitted DTI-Legal Service (LS)-Cleared copy of the Memorandum of Agreement (MOA) between DTI and DILG for the implementation of the FMR subcomponent.
- Re-submitted updated project documents required for the issuance of the Forward Obligation Authority (FOA) by DBM. DTI submitted the updated versions of the RAPID growth Project Profile (BP 203), Detailed Costing (by Sub-Category and by Financier), Draft Loan Agreement and Grant Document to DBM for the issuance of the FOA.
- Facilitated roll out of the Small Grants Agreement by submitted the Annual Work Plan and Budget and the Annual Procurement Plan; also, assisted in the opening of trust account
- Facilitated IFAD Courtesy Call for Country Programme Mission Turnover and RAPID Growth Meeting regarding next steps concerning Department of Finance (DoF), DBM, Special Presidential Authority (SPA), among others.
- Conducted Project Implementation Manual (PIM) Workshop in Cagayan de Oro, 29-30 August 2018.
- Conducted RAPID Growth Validation and Planning workshop in Davao City, 1-3 October 2018, participated by 4 Phase 1 Regional and Provincial offices and private sector representatives.
- Drafted the following documents as indicated in the Next Steps of the Validation Workshop:
- Draft Memorandum Order creating the Project Implementation Structure;
- Job Description and Qualification Standards for RAPID Growth project staff at National, regional and provincial levels; and
- Memorandum on the submission of annual workplan and budget and annual procurement plan at the regional level for both year 1 and Phase 1, and indicative for 2020.
- Coordinated with IFAD on the DTI participants to No Objection Tracking System (NOTUS) seminar on 3-5 December.
- Conducted the RAPID Project Implementation Manual (PIM) Workshop on 27-29 November in Davao City.
- Conducted meeting with IFAD and DTI led by Undersecretary Vizmonte regarding unresolved issues during the PIM workshop in Davao. Agreements were:
- Request Office of Solicitor General whether Coops and NGOs can procure machineries, works, planting materials and inputs using project funds downloaded to them
- Partner with NGOs and federation of cooperatives in project capacity building activities for farmer-beneficiaries
- Request for No Obligation (NO) letter from IFAD for project staff already contracted or in the process of being contracted
- Clarified funds flow from IFAD down to the field implementing units
RAPID GROWTH PROJECT TO TRANSFORM AGRI-BASED PH ENTERPRISES FOR GLOBAL MARKETS
DTI, IFAD champions MSMEs, farmers through a P4.7-billion peso, agri-enterprise development project launched at IFEX Philippines NXTFOOD ASIA
Farmers and micro, small, and medium-enterprises (MSMEs) in the Philippines can expect more marketing and business support from the government with the launch of the Rural Agro-enterprise Partnership for Inclusive Development and Growth (RAPID Growth) project. Led by DTI Secretary Ramon Lopez, RAPID Growth project was kicked off in the first day of IFEX Philippines NXTFOOD ASIA on May 24 at the World Trade Center Metro Manila, Pasay City.
RAPID Growth is a 4.7-billion-peso value chain-based and market-driven business development initiative that aims to achieve inclusive and sustainable economic development for rural farming communities in the country. It is spearheaded by the Department of Trade and Industry (DTI) and funded by the International Fund for Agricultural Development (IFAD).
“RAPID Growth project goes to the heart of what we are doing at DTI: linking farmers and businesses,” said Lopez. “And by promoting the microenterprises or those in the bottom of the pyramid, we are empowering the nation.”
“IFEX Philippines NXTFOOD ASIA is an excellent platform to present this momentous project due to the presence of local and international food companies which can be potential partners and forward linkages to the export market in the agricultural value chains to be developed,” said Lopez.
Through RAPID Growth project, Lopez said that DTI is looking to address rural poverty and unemployment by building partnership between MSMEs and farming communities to produce products that are competitive and enjoy a high demand in the global market.
IFAD Country Director Alessandro Marini said poor families from local communities now have a better chance to increase their income level, improve their social status and participate in the global value chain since RAPID Growth makes the agri-enterprise ecosystem “more inclusive and competitive.”
According to Lopez, RAPID Growth project is different from all other agri-based development programs since it focuses on a market-driven approach where the MSMEs are the entry point to develop the value chain from agricultural production side to processing, distribution and marketing.
The country’s trade chief also emphasized that RAPID Growth project will link local farmers, MSMEs and corporations thru Negosyo Centers and other market interventions to ensure their access to raw materials, markets, technology and suitable investment finance.
“Increasing the production of our small farmers will helped them grow alongside our burgeoning manufacturing sector, prepare them for the global market and provide much-needed boost to our MSMEs in the food business,” he explained.
Elevating PH’s agri priority sectors: coffee, cacao, coco coir and processed fruits and nuts
RAPID Growth project is set to target small farmers and micro-entrepreneurs engaged within the selected commodity chains, further targeting unemployed and underemployed rural women and men. Special focus will be on women, youth and indigenous people. According to DTI Secretary Ramon Lopez, RAPID Growth will primarily target four agricultural value chains, namely cocoa, coffee, processed fruits and nuts, and coconut. “These f our commodities have lucrative markets, social features and have the potential to provide sustained economic benefits to small farmers and enterprises,” Lopez said.
It is set to be initially implemented in six regions, which are regions eight to 13 with 20 target provinces. This includes Leyte, Southern Leyte and Northern Samar from Region 8; Zamboanga del Norte, Zamboanga del Sur and Zamboanga Sibugay from Region 9; Bukidnon, Lanao del Norte and Misamis Oriental from Region 10; Compostela Valley, Davao del Sur, Davao del Norte and Davao Oriental from Region 11; North Cotabato, Sarangani, Sultan Kudarat and Maguindanao from Region 12 or ARMM; and Agusan del Norte, Agusan del Sur and Surigao del Sur from Region 13.
Five components in transforming PH agri-enterprises
Under the RAPID Growth project, five levels of interventions will be implemented to ensure the holistic development of farmer and MSME beneficiaries, namely:
- Direct Assistance to Enterprises -To strengthen complementary activities necessary to boost investments along the four commodity value chains. This includes the provision of conditional matching grants and partnership/coordination for the rehabilitation of farm-to-market roads to improve the connectivity of production areas in intended markets.
- Institutional Strengthening – To intensify the promotion of MSMEs and farmer in the four commodity value chains. The interventions include the establishment of provincial networks of Negosyo Centers to also serve as one-stop-shops; development of MEs and cooperatives as service hubs to provide basic services to farmers; facilitation of inclusive and equitable partnerships between farmers and SMEs; and, capacity building of LGUs on the supervision of FMR rehabilitation.
- Technical Assistance to Financial Service Providers (FSPs) – To provide capacity building to companies that provide accessible financial products and services. This includes consultancy for FSPs, capacity building for cooperatives and support to Agricultural Guarantee Fund Pool (AGFP) and Philippine Crop Insurance Corporation (PCIC), among others.
- Innovation Fund – To provide incentives to private equity and venture capital firms to finance SME capital requirements. This will include innovative financial instruments as an alternative to simple loan products and develop non-loan products and services, among others.
- Management, Monitoring and Evaluation – To implement an approach that will feature public-private partnerships, embedding project management in DTI and building capacities of public and private partners, among others.
Held at the launch was the signing of the pledge of commitment by the Project Steering Committee for RAPID Growth project composed of leaders and representatives from the government, agricultural, trade, finance and private sectors.
The RAPID Growth Project was proposed to directly address policy commitments of the Philippine Government aligned with the Sustainable Development Goals (SDGs) that are of high relevance in eliminating poverty and reducing inequality.
Anchored in the government’s ‘Pagbabago’ pillar, this project seeks to address the Philippine Development Plan 2017-2022 target outcomes which are (1) expanding economic opportunities and (2) increasing access to economic opportunities including smallholder farmers and fisherfolks.
Likewise, through this project, the DTI is set to prioritize the micro, small, and medium enterprises (MSMEs) as the key pillar of its economic program. This approach will facilitate collaboration among public agencies in supporting agriculture-based enterprises and synergies among stakeholders. DTI’s capacity to broker cross-sectoral synergies and partnerships will be upgraded at national, regional and provincial levels.
The project is funded by IFAD through a combination of Loan and Grant; Government of the Philippines (GoP); Local Government Units (LGUs); Financial Service Providers (FSP).♦
Date of Release: 31 May 2019
- Met with International Fund for Agricultural Development (IFAD) to discuss the steps in the submission of the Project Proposal to the following agencies: DTI for finalization; National Economic and Development Authority-Investment Coordination Committee (NEDA-ICC) for review of project design; Department of Finance (DOF), Department of Budget and Management (DBM) and Bangko Sentral ng Pilipinas (BSP) for financial negotiations; Office of the President for letter of authority; and the IFAD Board by September.
- Conducted the Final Design Mission with interviews with the Department of the Interior and Local Government (DILG), Land Bank of the Philippines (LBP), Development Bank of the Philippines (DBP), Small Business Corp (SB Corp), Philippine Crop Insurance Corporation (PCIC), Agricultural Guarantee Fund Pool (AGFP), Cooperative Development Authority (CDA), National Commission on Indigenous People (NCIP), National Economic Development Authority (NEDA), and Department of Finance (DOF)—and filed visits to Regions VIII, X, XI and XII on project administration and financial matters.
- Presented RAPID Growth to the Economic Development Councils of Regions VIII, X, XI, XII and Caraga and secured endorsements from their respective Regional Development Councils. Endorsements were issued subject to recommendations and observations by committee members during the presentation.
- Coordinated with IFAD official Mr Tawfiq Al Zabri on visit to Philippine Crop Insurance Corporation on further details of cooperation on the RAPID Growth Project.
- Presented RAPID Growth Proposal to NEDA-ICC. NEDA-ICC cabinet committee (CabCom) deferred the approval of the proposal and instructed DTI to: present a successful SME development program that the project intends to replicate; present detailed project coverage providing information of names of individuals, business entities and institutions, nature and location of business, proposed interventions and resources allotted to them; and, project results that show how the project will contribute to the Philippine Development Plan (PDP) results matrix.
- Convened Cluster Coordinators meeting. The cluster coordinators discussed the requirements by the ICC CabCom and agreed on the information and data to be collected including allocating target product volume/value for the project, target cluster for each project province, and deliverables based on proposed project LogFrame and Cluster plans.
- Prepared and conducted Regional Operations Group (ROG) meeting of representatives from regional offices and provincial offices of RAPID priority projects, with the following outputs:
- Regional and provincial directors and/or representatives were briefed on the proposed RAPID Growth Project which was then being considered and evaluated at the ICC Cabcom;
- Participants were provided information on the Strategic Investment Plan (SIP) and how it will be drafted and validated for each cluster in each covered province; and,
- Regional and provincial directors or representatives validated submissions of enrolled clusters in each region.
- Provided technical inputs to the IFAD Small Grant Agreement in support for the approval of RAPID Growth Project. Draft agreement was endorsed by Undersecretary Maglaya to Secretary Lopez for onward approval of the Department of Finance. Small Grant Agreement is in the amount of US$500,000 to be used in the conduct of VC studies for the identified provinces of RAPID Growth.
- Conducted the following Consultative Meetings for the drafting of Provincial industry cluster Strategic Investment Plans:
- Meeting with stakeholders of calamansi cluster in Agusan del Sur on 11 December 2017
- Meeting with stakeholders of cacao cluster in Davao del Norte on 13 December 2017
- Conducted consultative meeting among stakeholders of coffee cluster in Bukidnon on 11 December 2017
- Meeting with stakeholders of coco coir cluster in Leyte on 21 December 2017
- Received and reviewed the following drafts of Strategic Investment Plans (SIPs):
- Cacao of Davao del Norte. Requested and received endorsement from Region XI’s Regional Director Belenda Q Ambi. SIP was forwarded to NEDA- Agriculture, Natural Resources and Environement Staff (ANRES) for further comments.
- Coffee of Bukidnon. Requested endorsement from Region X, after comments of the Bukidnon provincial office were included in the revised report. SIP was forwarded to NEDA ANRES for further comments.
- Calamansi of Agusan del Sur. Received partially-completed report, and coordinated with consultant, Mr Louie Pacana, on how further data would be collated and included in the report.
- Coco coir of Leyte. Received report and forwarded to appropriate regional offices and to IFAD for comments. SIP for revision.