JBIC ODA Loan Projects: Mid-term Review
Project Title: Philippines “Malitubog – Maridagao Irrigation Project I” (PH-P112)[Outline of Loan Agreement]
Loan Amount/Disbursed Amount: 4,867 million yen/4,561 million yen (as of March 2005)
Loan Agreement: February 1990 (16th year)
Executing Agency: National Irrigation Administration of the Philippines[Project Objective]
This project’s objective was to increase and stabilize agricultural productivity in the central region of Mindanao Island via the construction of irrigation facilities, thereby contributing to the alleviation of poverty by improving the incomes oflocal farmers.
Consultant: Sanyu ConsultantsContractor: Shinsung Corp.(Korea), China Electric Power Technology Import and Export Corp. (China)[Outline of Results] (Field Survey : December 2004)
Item
Ex-ante Evaluation (June 1989)
Mid-term Review[Relevance](1) The development of irrigation infrastructure was one of the priority policies (1) The current Medium-Term Philippine Development Plan (2004-2010) places a strong emphasis on strengthening the nation’soutlined in the five-year Medium-Term Development Plan (1993-1998). (Asagriculture and stipulates that the development of irrigation infrastructure is key to achieving this goal.
of the end of 1986, 1.5 million hectares (49%) of a total nationwide irrigablearea of approximately 3.1 million hectares was developed; however, thegovernment’s goal was to raise this to 1.7 million hectares (55%) by the endof 1992.)(2) The Aquino administration had made increasing agriculture productivity on (2) Under the aforementioned plan, the restoration and development of Mindanao Island are identified as being crucial to ongoing
Mindanao Island an urgent priority from the standpoint of mitigating regional
peace-building initiatives in the region. The development of irrigation infrastructure is also highlighted in the current agriculture
gaps.
plan (Ginituang Masaganang Ani, GMA).
(3) This project was a high priority undertaking that was designed to contribute (3) This project involves the development of irrigation systems in central Mindanao Island and has thus maintained its significance toto poverty alleviation in central regions of Mindanao Island by developing
current policy.
irrigation infrastructure as a means of raising productivity and stabilizing
yields and thereby increasing the incomes of farmers.
* 1986: F/S, Asian Development Bank (ADB)[Effectiveness](1)
Develop (1) Maridagao area
(1) Maridagao area (achievements in 2004)
irrigation
systems ・Beneficiary area: 6,625ha (appraisal target)
・Beneficiary (irrigated) area: 6,526ha 1
and raise agricultural (No other targets or current statistics were set at appraisal.)・ Full-scale cropping began in 2002 in the Maridagao area, and the area under cultivation increased by around 12% from 3,000ha
productivity
to 3,357ha (51% of the planned area) in the three-year period from 2002-2004.
・ There have also been steady increases in crop yields, which increased by approximately 50% in the three years from 2002, from10,887 tons to 16,785 tons. In the Detailed Design, yield of rice per hectare in this area was calculated to be 4 tons per year in
the wet season and 4.75 tons in the dry season, while the average yield was 5.0 tons per hectare, thus exceeds the projection.
・ The number of farmers benefiting from the project has also increased from 1,572 to 1,737, or by 10%.
・ However, the water use fee collection rate2 had reached just 36.8% in 2004. Available data show that the distribution of water
for agricultural irrigation is also affected by political factors, and that it is not necessarily rational.
(2) Upper Malitubog area
・Beneficiary area: 4,215ha (appraisal target)(2) Upper Malitubog area (achievements in 2004)(No other targets or current statistics were set at appraisal.)・ Beneficiary (irrigated) area: 1,155ha 1
・ As of 2004, the area served by irrigation in Malitubog was around 27% of the planned level (mainly in consequence of holdups
in the construction work caused by problems with land acquisition and counterpart fund shortages). The work is currently
moving ahead under Philippine government funding, but irrigated agriculture has yet to get off the ground. Activities at the pilot
farm also had to be suspended in 2001 because the executing agency was strapped for cash.
・ Of the 4,278ha-area targeted for development, construction work on 1,728ha is scheduled for completion in fiscal 2005, butsince it is not clear when the work on the other areas will be finished, it is impossible to calculate cropping targets for the entirearea.
* The agency has confirmed that in both areas there are farmers to whom farming (agriculture) is new, and who are too poor topurchase rice seeds. In response, the province of North Cotabato has received a social component budget from the Office of thePresident. The provincial government has used 8 million pesos. Hand tractors, tillers and sprayers have been extended to 6
Irrigation Associations and seedlings, fertilizers and agricultural chemicals will be extended in the future.
Reference Information

1The executing agency is scheduled to conduct the final review of the irrigated area at the end of 2005. In addition, Upper Malitbog area may be further developed. Therefore the above mentioned estimate width may change.

2Water use fee collection rate: the amount collected/the amount billed1[Efficiency](1) Outputs(1) Outputs (as detailed below)
Development of irrigation systems in the Maridagao and Malitubog areas ofNorth Cotabato and Maguindanao provinces in central Mindanao.
・ Construction of head works/intake gates・ Construction of water channels (144km) and drainage canals (157km) in theMaridagao and Upper Malitubog areas(Areas targeted for construction: Maridagao 6,625ha, Upper Malitubog area:4,215ha)
・ Consulting services: 331M/M (man-months)(1)(2) Project period(2) Feb. 1990 – Dec. 1996 (83 months)(2) Feb. 1990 – Nov. 2001 (Maridagao area)3
Feb. 1990 – Dec. 2005 (Upper Malitubog area)(Reasons for delays): construction has been held up by security problems, land acquisition procedures, funding shortages and badweather(3) Project cost[Lessons LearnedandRecommendations][Indicators set fortheex-post
evaluation](3) 7,996 million yen(3) 6,489 million yen[Recommendations] Original plans for the project envisaged that project effects would start to be generated across the entire area with the completion of Phase 2, thus thought needs to be given to the execution of thesecond phase, taking priority issues with other projects and political stability in the area into consideration. In the event that the Phase 2 project goes ahead, the matter of incorporating the presidential social components
into the project needs to be discussed with the provincial governments.
n.a.
1. Area irrigated by the project (ha)2. Benefited area (ha)3. Cropping intensity
4. Cultivated area by crops (ha)5. ISF collection efficiency
6. Production volume of major crops (t/year)
7. Yield of major crops per hectare : rainy season/dry season (t/ha)
8. Gross annual average farm income

・・Changes were made to both construction areas: Maridagao to 6,562ha; Upper Malitubog area to 4,278ha.
Initially, the work in both Maridagao and Upper Malitubog area was to be executed using Japanese ODA loan funds, but due toconstraints on the loan amount, the decision was made to execute the works in the Upper Malitubog area using funds provided
by the executing agency. The executing agency subsequently submitted a request for funding assistance for the outputs in theUpper Malitubog area, thus some of the Japanese ODA loan funds were redirected to cover part of the work (main canals andlaterals) in the area (1,728ha) (the outstanding work is to be covered by funds put up by the executing agency).

・ Consulting services: 336M/M(Consultation between JBIC and implementing agency is needed regarding target value.)

3The construction of siphons and bridges was excluded from the contract with the contractor (C-1) due to security problems at the sites and difficulties encountered in negotiations over land, and the work came under direct NIA supervision. Siphon and bridge construction work was completed in November 2003. Theproject period cited above does not include the construction of siphons and bridges.

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