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BRIEFER/UPDATES ON THE UTILIZATION OF THE
AGRICULTURAL COMPETITIVENESS
ENHANCEMENT FUND(ACEF)
Department of AgricultureOffice of the Secretary
The Agricultural Competitiveness Enhancement Fund
Part I
The Agricultural Competitiveness Enhancement Fund • A Special Fund (Fund 183) created under RA 8178
out of the proceeds of MAV in-quota importation;
• Intended to support projects that will make the agri/fisheries sectors globally competitive;
• RA 8178 of 1996 expired last Dec. 2007;
• RA 9496, or the law extending ACEF up to 2015 was enacted last 28 Feb. 2008.
Source of ACEF
• The in-quota tariff revenues from the importation of agricultural products within the MAV; and
• Collections from repayments from loan beneficiaries. (started in 2nd qtr of 2008)
The ACEF as extended, is programmed to start 2008 and will end in 2015.
Effectivity period of the ACEF
Up to 2015, after which the collection of duties from the MAV and the setting aside of the amount collected for the purposes shall terminate;
Any remaining balance(s) at the date of expiration of the Fund shall not revert to the General Fund but shall continue to be used for the purpose for which it was collected and set aside.
Intended Beneficiaries of ACEFEligible project proponents for ACEF assistance would include any of the following:
• Filipino farmers and fisherfolk;• Micro, small and medium scale enterprises (MSMEs)
engaged in agriculture, aquaculture, and fisheries sectors;
• Agriculture and fishery cooperatives and other entrepreneurs engaged in economic enterprises related to agriculture and fisheries;
• Local Government Units (LGUs) and other implementing bureaus and attached agencies and corporations under DA; and
• State Universities and Colleges (SUCs).
Fund AllocationThe Fund shall be set aside and earmarked as follows:
•Seventy percent (70%) • for agri-based production and post-production and processing
activities (including, but not limited to, new export industries and agri-related infrastructure and equipment to achieve modern agricultural practices);
• for public information and promotion activities• for technical assistance and feasibility studies grant. • Maximum of ten percent (10%) of this will be earmarked for the
administrative expenses of the ACEF enabling committees/secretariat;
•Twenty percent (20%) • for research and development and commercialization of such,
including the upgrading of research facilities of qualified state universities and colleges; and
•Ten percent (10%) • for the funding of a comprehensive scholarship program for
agriculture, forestry, fisheries, and veterinary medicine education.
Activities that can be funded under ACEFThe ACEF shall be set aside and earmarked: (a)for the protection of farmers against unfair trade
practices such as:• Smuggling;• dumping of agricultural products; or • other similar acts of unfair trade practices
(b)for the increased productivity of farmers by providing the necessary support services such as but not limited to:• post-harvest equipment and facilities• research and development• other marketing infrastructure• provision of market information• retraining, extension services, scholarships• reduction of input cost and quality improvement• supply chain efficiency and • other infrastructure including access as well as an established
transportation mechanism towards speedy delivery of products
Criteria that tell how a project relates to competitiveness
Projects eligible for ACEF assistance should respond to the following competitiveness aspects:
• instill competitiveness in prices;
• instill competitiveness in quality;
• gives the product export potential; and
• import substitution.
• extended as an interest-free and collateral-free loan* to eligible proponents;
• shall be extended in the form of grant to finance public investments that will increase the productivity of farmers;
• Loan proponents shall be required to put up an equity to their projects.
*(except for those which the ExeCom may require to put up collaterals as loan security)
Mode of which ACEF is extended
1. Market Viability2. Technical Viability3. Organizational4. Socio-Economic5. Financial Viability
CRITERIA FOR EVALUATING PROJECTS
PROCESS FLOW
Part II
FLOW OF REPORTING/PROTOCOL
ACEF EXECOMCo Chairs –
DA Secretary;
Chair of Agri and Food Committee HOR ; Chair, Committee on Agriculture, Senate Members from Government Financing Institutions and Private Sector rganizations
DA Secretary/Co-Chair, ACEF Executive Committee
Chair, ACEF Natl Techl Committee
Policy Directions and Prioritization and Approval of projects below P15M; Loan Agreement
In consultation with the Secretary, prioritization of projects prior to NTC deliberation; Techl Evaluation prior to endorsement to the Secretary/Execom; Techl & Admin supervision of the ACEF NTS; Loan Releasing in tranches
DA Regional Field Units/ ACEF Regional Technical Committee
Techl Evaluation/endorsement to the ACEF Natl Techl Committee; Monitoring and Evaluation
COCAFM Oversight Functions
Approval of projects P15M and above
Proponent DA RFU DA-CO
ACEF NTC/NTS
DA Secretary/ACEF EXECOM
Feasibility study;Documentary requirements
Initial evaluation;Site validation;Regional prioritization;Endorsement to the ACEF NTC
ACEF RTC/RTS
Evaluation/ Validation;National prioritization;Evaluation by Technical Agencies;Background & Credit Investigation
Prioritization Approval
PROCESS FLOW OF LOAN APPLICATION
Request for SARO/NCA
DEPARTMENT OF BUDGET and MANAGEMENT
DEPARTMENT OF AGRICULTURE
LANDBANK OF THE PHILIPPINES*
DEPARTMENT OF AGRICULTURE
Issuance of SARO/NCA
Fund Transfer after Pre-Audit
PROCESS FLOW OF FUND TRANSFER (after approval by the Secretary/ACEF EXECOM)
*Land Bank of the Philippines provides the cashiering services for the releases of ACEF loan proceeds to the proponents and acceptance of payments per MOA by and between DA and LBP
PROPONENTS
Upon endorsement of DA RFU releases In tranches per Loan
Agreement
Updates on the Utilization of the
Agricultural Competitiveness Enhancement Fund (ACEF)
As of June 2010
Part III
Source of Funds AMOUNT (PESOS)MAV In-Quota Tariffs (RA 8178, 1996)/ (1999 to 2007 collections) The BTr has not yet reported the duties on MAV
utilization for 2008, 2009, 2010
9,441,114,688.80
Sugar Conversion Fees -- (EO 87, 1999)
1,141,345,966.40
Total Payment Collection (2002 -1st qtr 2010) – P206,719,560.65
• Collection from 2002 to 1st qtr of 2008 (Reverted to Treasury per RA 8178 of 1996) -- P102,819,977.81
• Added to the ACEF (Special Fund) per RA 9496 of 2008 (collection from 2nd qtr of 2008 to 1st qtr of 2010) -- P103,899,582.84
103,899,582.84
TOTAL ACEF10,686,360,238.0
0
Source of Funds
Fund UtilizationACEF-(EXECOM) Approved Projects/ActivitiesAVAILMENTS/DISBURSEMENTS• Grant (DA AO 23,s 2007 & DA AO 14, s 2009)
• Loans• Unreleased Loans• Scholarship (P372,788,527.92 -- allocation per
IRR)
• Admin Fund (2003)• FS Fund (Reverted/2003)
2,576,020,918.005,887,558,883.00
79,968,663.00120,397,356.44
5,033,400.0010,000,000.00
TOTAL AMOUNT OF ACEF-EXECOM APPROVED ACTIVITIES/PROJECTS
8,678,979,220.44
Funds Available/Balance
FUNDS AVAILABLE /ACEF BALANCE =
2,007,381,017.60
Total Amount Available in Fund 183
P2,007,381,017.60
Cold Chain Program* 1,500,000,000.00 Scholarship (balance of
the scholarship allocation per June 2009 available fund)
252,391,171.55
FUNDS ALLOCATION
* approved by the ACEF EXECOM but no SARO has been issued and can be referred back to ACEF Execom to align with the priority program of the Department of Agriculture/DA Secretary
Summary of Activities Funded by ACEFActivities Amount
(Pesos)%
Machineries and Equipment
3,891,079,501.00
44.80
Infrastructures & Buildings
2,473,583,419.00
28.50
Research and Development Activities
129,318,772.00 1.50
Sugar-ACEF 599,543,000.00 6.90
Scholarship 120,397,356.44 1.40
Farm Inputs and Other activities
1,465,023,773.00
17.00
TOTAL8,678,979,220.
44100
Project Distribution by Category(Loans and Grant)
CATEGORY
NO. OF
PROJ.%
ACEF ASSISTANCE (PESOS)
%
Loan 307 96.24 5,908,514,252.00 69.64
Grant 12 3.76 2,576,020,918.00 30.36
TOTAL 319 100.0
08,484,535,170.0
0 100.0
0
Regional Distribution of Projects (loans and grant)
REGIONNO. OF
PROJ.% ACEF ASSISTANCE (PESOS) %
Nationwide7
(grant -4) 2.19%
2,553,181,210.00(1,525,219,856.00)
30.09%
Sugar ACEF 1
(grant) 0.31% 599,543,000.00 7.07%
CAR 5 1.57% 99,161,110.00 1.17%I 20 6.27% 383,789,646.00 4.52%II 13 4.08% 162,780,139.00 1.92%
III 68
(grant-2) 21.32%
1,480,462,982.00(155,888,477.00)
17.45%
IV-A 51 15.99% 789,864,795.00 9.31%
IV-B7
(grant -2) 2.19%
151,596,142.00(110,255,662)
1.79%
V 14 4.39% 155,992,014.00 1.84%
VI 34
(grant -2) 10.66%
551,803,620.00(46,487,600)
6.50%
VII 11 3.45% 145,453,196.00 1.71%VIII 7 2.19% 100,292,103.00 1.18% IX 13 4.08% 293,535,116.00 3.46%X 8 2.51% 135,043,736.00 1.59%XI 25 7.84% 320,843,479.00 3.78%XII 23 7.21% 400,800,219.00 4.72%XIII 2 0.63% 20,899,772.00 0.25%
ARMM 10 3.13% 139,492,891.00 1.64%
TOTAL 319 100.00% 8,484,535,170.00 100.00%
Distribution of Projects by Sector/Commodity SECTOR / COMMODITY
NO. OF PROJ.
%ACEF ASSISTANCE
(PESOS)%
FISHERIES & AQUACULTURE 49 15.36% 950,905,073.00 11.21%GRAINS 28 8.78% 943,552,875.00 11.12%
CORN 8 2.51% 133,755,960.00 1.58%RICE 20
(Grant – 1)6.27%
809,796,915.00(500,000,000.00)
9.54%
HVCC 58 18.18% 1,001,653,267.00 11.81%FRUITS, VEGETABLES, FOODS
(AND RELATED PRODUCTS)40
(Grant – 1)12.54%
657,361,595.00(100,000,000.00)
8.02%
INDUSTRIAL 18(Grant – 1)
5.64%320,794,772.00(10,255,662.00)
3.78%
Sugar ACEF Grant - 1 0.31% 599,543,000.00 7.07%LIVESTOCK & POULTRY 136 42.63% 2,221,049,783.00 25.93%
ABATTOIR5
(Grant – 2)1.57%
79,370,000.00(26,000,000.00)
0.94%
DAIRY 4 1.25% 33,586,267.00 0.40%FEEDMILL 13 4.08% 207,137,144.00 2.44%GOAT 3 0.94% 30,449,054.00 0.36%MEAT PROCESSING 4 1.25% 88,000,853.00 1.04%POULTRY 64 20.06% 1,096,090,687.00 12.92%SWINE/HOGS 45 13.48% 686,415,778.00 7.84%
MULTI - SECTOR 47 14.73% 2,826,844,467.00 32.87%FERTILIZERS 7 1.88% 107,410,543.00 1.03%ACTIVITY/TRAINING CENTERS 3 0.94% 46,031,335.00 0.54%TRACTOR / FARM MECH. 12 3.76% 74,951,045.00 0.88%
MULTI-SECTOR / COMMODITY (LIVESTOCK, FISHERY, HVCC, etc.)
28(Grant – 6)
8.15%4,098,451,544.00
(1,340,222,256.00)30.42%
TOTAL 319 100.00% 8,484,535,170.00 100.00%
Project Distribution by Type of Proponent
TYPE OF PROPONENT
NO. OF PROJ.
%ACEF ASSISTANCE
(PESOS)%
AGRI CORP 94 29.47% 1,736,151,100.0020.46
%COOP 46 14.42% 530,727,878.00 6.26%
LGU 12
Grant - 3
3.76% 320,933,920.00
(226,000,000.00) 3.78%
NGA / GOV’T CORP
8Grant -
5 2.51%
2,653,181,210.00(1,625,219,856.00
)
31.27%
SRA / Sugar ACEF)
Grant 1 0.31% 599,543,000.00 7.07%
SINGLE PROP 151 47.34% 2,456,301,432.0028.95
%
SUC 7
Grant - 3
2.19% 187,696,631.00
(125,258,062.00) 2.21%
TOTAL 319100.00
%8,484,535,170.0
0 100.0
0
LOAN STATUS# Of
Projects
Amount (Pesos)
%
Not Due for Payment
2265,143,865,518.0
088
Fully paid with partial
payment (69 projects)
343,208,000.00
163,511,460.004
Arrears/Undergoing Restructuring
78 557,929,272.00 8
TOTAL 3075,908,514,251.0
0100
Loan Status
YEARACTUAL REPAYMENT
COLLECTION
EXPECTED COLLECTION
PER MOA SCHEDULE
YEARLY RE-
PAYMENT RATE
2002 320,100.00 620,100.00 52%2003 10,948,440.00 16,697,202.00 66%
2004 11,936,391.70 30,321,391.70 39%2005 11,667,365.50 49,296,676.17 39%2006 22,911,278.67 94,612,463.25 24%
2007 31,565,129.74130,709,173.1
0 24%
2008 (1st qtr) 13,471,272.20 158,996,147.90
22%2008 (2nd qtr - 4th qtr)
21,185,200.19
2009 58,098,629.20236,774,061.6
125%
20101 24,615,753.45 69,221,255.96 36%
TOTAL 206,719,561.00764,648,732.
651. 2010 Collection (as of 31 March 2010 only)
Repayment & Collection Status
ACEF Scholarship Program
Total Number of Scholars
1,498
Total Number of SUCs/Institutions
36
TOTAL ALLOCATION (Duration of the Program, P)
120,397,356.00
1. Insurance coverage to ensure recovery after natural calamities;
2.Further strengthen the capability of the DA RFUs in evaluating projects for funding under ACEF;
3. Further intensify monitoring of on-going projects by the ACEF NTS and DA RFUs; and
4. Strengthen the feedback mechanism/reporting of project status between the DA RFUs and the ACEF NTC/NTS
Actions Taken/Plan of Action by the ACEF NTC
Thank You