• 2 months ago
Panayam kay ASec. Arnel de Mesa ukol sa aabot na P1.5-B na pondo ng D.A. para sa unprogrammed appropriations

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Transcript
00:00Good afternoon to you, Asec Arnel.
00:02Hi Ninia, good afternoon.
00:04Nice to see you again.
00:05Long time no see, Asec Arnel.
00:07And I'm happy because you have a lot of news and updates for us
00:11from you and the Department of Agriculture.
00:15First of all, Asec, our question is,
00:18what are the projects of the DA
00:20that are under the so-called unprogrammed appropriations?
00:25Ninia, for my year at the moment,
00:28most of the foreign-assisted projects are under the unprogrammed appropriations.
00:34Just recently, there are four projects.
00:38This is the Philippine Rural Development Project,
00:41Second Additional Financing,
00:43which is the scale-up of this project.
00:46The Fish Resiliency Core Project of the Bureau of Fisheries and Aquatic Resources,
00:51also included is the Mindanao Inclusive Agri-Development Project.
00:55This is for the Indigenous Peoples Project.
00:58This is for the whole of Mindanao.
01:00There are a lot of projects.
01:02Yes, Ninia.
01:03And most of them are in Mindanao.
01:06In Mindanao, these are the rural projects
01:10that are being implemented by our government.
01:12So for now, how are these projects?
01:15Ninia, we are thankful to the Department of Finance
01:19for releasing the required GOP requirements
01:22because these projects are ongoing.
01:25For example, the Farm-to-Market Road,
01:28along with the irrigation projects,
01:31our aquaculture enterprises,
01:34livelihoods, and infrastructure.
01:37These are also included in our projects
01:40for our Indigenous Peoples in Mindanao.
01:43And of course, the other projects,
01:46capacity building and training,
01:48are included in the funds that were released
01:51just recently this month.
01:54And this is a big help for us to finish
01:57according to schedule,
01:58our scheduled programs.
02:01Speaking of the funds,
02:02how much is allotted to the DA
02:05for the projects under the Unprogrammed Funds?
02:09In total, for the four projects
02:12that I mentioned earlier,
02:13this amounted to Php 1.25 billion.
02:17We call this the government counterpart.
02:22These projects, since they are foreign-assisted,
02:25these four are World Bank-assisted projects.
02:29So, the loan proceeds also go into the fund
02:33under the general appropriations.
02:35But normally, there is a 10 to 20% equity
02:40of the government of the Philippines
02:42aside from the equity of local governments.
02:45So, for the DA, about 10 to 20% is allocated
02:48to complete the project.
02:50And of course, the local government
02:52and the beneficiaries.
02:54But we have ownership on their part.
02:58Okay. So, what is the effect
03:00on the projects of the DA
03:02if it is under the Unprogrammed Appropriations?
03:04For those who don't know,
03:07please explain the Unprogrammed Appropriations.
03:10Why is it called Unprogrammed?
03:13If it is unprogrammed,
03:15because every year,
03:17we have a line budget item.
03:20So, if it is a line budget item,
03:21it is automatically funded
03:23by the beginning of January.
03:25It is immediately released.
03:27If it is an Unprogrammed Appropriations,
03:29it has conditions before it is released.
03:31And one of the conditions is
03:33that the government should have sufficient funds.
03:36And we are glad that there was a transfer
03:39because the government got additional funds
03:43through the Department of Finance.
03:45So, this is a big thing for us.
03:47We know that the priority of our President
03:49is the agri-sector.
03:52And especially, our projects
03:54for the township, for Mindanao,
03:56and for our IPs,
04:00and especially for the places
04:02where these projects are needed.
04:04So, it is not only the DA
04:06who received these funds
04:08from the Unprogrammed Appropriations?
04:11Correct.
04:13Please give us a background.
04:15I know that you are not DOF.
04:18But where did the DOF get these Unprogrammed Appropriations?
04:22If I am not mistaken,
04:24this is part of the fund
04:26because there was a non-moving fund
04:29in some of our agencies.
04:31So, because there are subsidies
04:33that were given to them,
04:35and it is not moving,
04:37this is what is called a sleeping fund.
04:39So, because the fund is sleeping,
04:41it needs to be moved
04:43because we know how important
04:45it is for our countrymen
04:47to use it on time.
04:49The problem is
04:51the timely usage of the fund.
04:53If it is in an agency,
04:55okay, it is in an agency,
04:57the fund is there,
04:59but if they are not using it,
05:01the problem is the time value of the money.
05:03And those agencies that need it
05:05and they do not have enough funds,
05:07there will be an imbalance.
05:09So, because of this,
05:11the Department of Finance
05:13and our entire economic team
05:15are working together
05:17to make the use of our fund more efficient.
05:19And we are pleased with the work
05:21done by the President and Secretary Chula Aurel Jr.
05:23because they gave
05:25importance and priority
05:27to our projects.
05:29There are many more, right?
05:31They have a lot of Unprogrammed Appropriations.
05:33Maybe this is where
05:35one of the things that was discussed recently
05:37is the subsidy
05:39that was given to PhilHealth
05:41that needs to be returned to the DOF.
05:43So, this is where we can see
05:45where these funds
05:47are going.
05:49Correct.
05:51If there are subsidies that are not being used,
05:53there are other opportunities
05:55that need to be used
05:57in other occasions
05:59for the efficient use
06:01of our fund.
06:03Okay. In other talks,
06:05Secretary, excuse me,
06:07Francisco Chula Aurel,
06:09the movement
06:11of more than 700
06:13container vans
06:15with imported rice.
06:17What are the details and updates here?
06:19How long have these container vans
06:21been in our ports?
06:23First, we would like to thank
06:25the Philippine Ports Authority
06:27led by General Manager
06:29Jey Santiago
06:31for the swift move
06:33based on the information
06:35given by Secretary Chula Aurel
06:37on the PPA
06:39because there are 888
06:41or almost 1,000
06:43container vans that contain
06:45more than 20,000 metric tons
06:47or 20 million kilos
06:49of rice
06:51in our ports,
06:53especially here in Manila,
06:55that will not be exported.
06:57So, we would like to thank them again
06:59because this was prioritized
07:01and hopefully, the export will continue
07:03because it is possible
07:05for this to become a hoarding
07:07because there are some
07:09that have been there for 9 months.
07:11So, that's why
07:13we are thankful so that
07:15more than 800 container vans
07:17can be exported.
07:19They're taking up space
07:21and they're just there.
07:23Shouldn't there be
07:25well, you're not a PPA member,
07:27there's a time frame that you're just here.
07:29How many months are they there?
07:31PPA says that after 5 days,
07:33it should be exported.
07:37Apparently,
07:39these consignees
07:41want to
07:43wait for the price of rice
07:45to increase
07:47so that their income will increase.
07:49So, that's not right and that may constitute
07:51a hoarding or
07:53there are other cases that
07:55they can face because
07:57these are agricultural goods
07:59and perishable and we know
08:01that if this doesn't get exported,
08:03we can also have problems
08:05with our food supply
08:07especially when it comes to rice.
08:09We expect that there should be a timing.
08:11We have a timing for harvest,
08:13we have a timing for import.
08:15If they don't follow
08:17the importation, release, and distribution,
08:19our food balance
08:21will have problems.
08:23Hopefully, it will be exported
08:25in the near future.
08:27When will it start?
08:29Our Bureau of Plant Industry
08:31will go there to open
08:33some container vans
08:35because we are also concerned
08:37about food safety.
08:39There may be problems later
08:41especially those that have been
08:43impacted for a long time.
08:45And hopefully,
08:47it's all rice.
08:49But it's good
08:51so that we can know
08:53what's inside those containers.
08:55Well, good luck
08:57on the part of DA
08:59so that we can avoid
09:01the increase in the price of rice.
09:03Now, let's talk about
09:05Secretary Francisco T. Laurel's
09:07strategies for
09:09modernization of the agri-sector
09:11in the country and to strengthen
09:13food security.
09:15How is our modernization going?
09:17It's going well. Let's start with irrigation.
09:19We have a lot of programs
09:21for irrigation.
09:23What's good about this is
09:25that next year,
09:27we have programs for solar-powered
09:29irrigation. We also have
09:31a new program called
09:33Philippine Pipe
09:35Irrigation Network System
09:37where all of our conveyance
09:39systems are piped.
09:41It's not an open canal anymore
09:43to make it more efficient and modern.
09:45And then, our farmers
09:47have a hydrant
09:49every one or two hectares
09:51so they can easily control
09:53their farms.
09:55Secondly, in our ports,
09:57our plan is to have
09:5917 ports nationwide
10:01to ensure that the distribution
10:03of key agricultural
10:05commodities will be more efficient
10:07and affordable.
10:09For example,
10:11the fertilizer that Mindoro
10:13will bring will go to Bataan.
10:15It will travel to Manila
10:17and Batangas. That's why
10:19Mindoro is very expensive.
10:21These ports in key strategic
10:23areas will be built
10:25to ensure that
10:27our production inputs
10:29from fertilizers
10:31to seeds
10:33and everything in between
10:35so that our farmers
10:37will earn more
10:39and our consumers
10:41will be able to ensure that
10:43our key agricultural products are cheaper.
10:45Our cold storages
10:47and our food terminals
10:49will all be funded.
10:51We also have new projects
10:53like our $1 billion
10:55in the Philippine
10:57Sustainable Agricultural
10:59Transformation
11:01which will focus on
11:03key policies and
11:05infrastructure requirements.
11:07You can expect that in the next
11:09two to four years, there will be
11:11significant change in our
11:13agricultural economy and landscape.
11:15How are the equipment
11:17of our farmers?
11:19Sometimes, they don't have enough equipment.
11:21Sometimes, it's just a geaning machine
11:23for the farmers or machines
11:25when they harvest coffee beans.
11:27Sometimes,
11:29it's expensive.
11:31You're right.
11:33In the Philippines,
11:35the horsepower rating is low.
11:37We average less than 3 horsepower
11:39per hectare.
11:41Other countries, especially Japan and China,
11:43have more than 10.
11:45Thailand has 5 or 6
11:47and Vietnam.
11:49We really need to focus as part of the modernization
11:51to increase our mechanization
11:53level from land preparation
11:55to crop establishment
11:57to processing and harvesting.
11:59For example,
12:01when there's a storm,
12:05our combined harvester
12:07can harvest
12:09one hectare in less than one hour.
12:11If you do it manually,
12:13the harvesters
12:15won't be able to harvest
12:17when there's a storm.
12:21Our mechanization
12:23and installation
12:25of machineries
12:27and facilities is very important
12:29to increase our level of
12:31horsepower rating.
12:33Do you have a specific budget for that?
12:35Right now,
12:37in the rice sector,
12:39we have a rice competitiveness enhancement fund.
12:41We're assured of 10 billion
12:43until this year,
12:45and 5 billion will go to mechanization.
12:47In the amendment of the Rice Tarification Law,
12:49the proposal is to increase
12:51that from 10 to 30 billion
12:53and half of that will go to mechanization.
12:55We're happy that
12:57that's what happened in the amendment.
12:59I hope it's not just for rice,
13:01but for other agricultural products.
13:03You're right, Nina.
13:05There's a new law
13:07passed by our Senate
13:09on corn competitiveness
13:11enhancement fund,
13:13and also on livestock and poultry.
13:15We're following that.
13:17We're following the high-value commercial crops.
13:19Okay.
13:21We'd like to know
13:23the importance of Ferdie
13:25and Habagat storms
13:27in the agriculture sector.
13:29Right now, the combined effects
13:31of the three storms
13:33Ferdie,
13:35Henera, Helen,
13:37and Habagat
13:39have reached 600 million.
13:41Excuse me.
13:43The combined effects
13:45of these storms
13:47mostly affected
13:49Palawan, Mindoro Occidental,
13:51Antique,
13:53Western Visayas,
13:55and Zamboanga Peninsula.
13:57Almost 528 million
13:59of damage is in the rice sector.
14:01Okay.
14:03How can we recover that?
14:05We have a so-called
14:07quick response fund.
14:09The funds are prepositioned
14:11for rice, corn,
14:13and vegetables.
14:15Once they're ready to plant again,
14:17they can plant for quick turnaround.
14:19Okay. Thank you very much,
14:21Asek Arnel, for sharing
14:23our updates with us
14:25from the Department of Agriculture.

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