DESIGNATING THE AGRICULTURAL CREDIT POLICY COUNCIL (ACPC) AS THE IMPLEMENTING AGENCY OF THE UPLAND SOUTHERN MINDANAO-CREDIT AND INSTITUTION BUILDING PROGRAM (USM-CIBP)

WHEREAS, a Closure Act for the Upland Development Programme (UDP) was
signed on July 11, 2007 by the Department of Agriculture and the
European Commission to the Philippines (EC);

WHEREAS, Article 6 of the Closure Act states that the Department of
Agriculture has the responsibility to ensure that credit and institution
building (IB) activities under the UDP’s RFS component shall be
continued after the completion of the UDP, utilizing the loan
repayments and recoveries from cooperatives and institutional borrowers
from UDP;

WHEREAS, there is a need to immediately create a successor Program
to the UDP RFS component and this shall now be called as the “Upland
Southern Mindanao-Credit and Institution Building Program (USM-CIBP)”;

WHEREAS, the ACPC, in line with its mandate under the AMCFP of AFMA,
Executive Order No. 113 and the Magna Carta for Small Farmers has the
legal mandate to implement institutional capacity building programs for
the benefit of small farmers organizations and to oversee, manage and
monitor agri-credit funds of the DA;

WHEREAS, DA recognizes the need to appoint an agency to continue the
implementation of IB and credit services of the UDP under the USM-CIBP;

NOW, THEREFORE, for and in consideration of the above, the following are hereby ordered:

1. ACPC shall be the implementing agency of the successor program
of UDP Rural Finance Services component called “Upland Southern Mindanao
– Credit and Institution Building Program (USM-CIBP) reporting directly
to the National Executive Committee (NEC) which shall be composed of
the following:

Chair:           DA-Undersecretary for Operations
Members:      EC representative
                   
Land Bank representative
                   
PCFC representative
                   
ACPC

The National Executive Committees shall have the following functions:

1.1 Review and approval of the general policies and policy directions of the USM-CIBP;
1.2 Review and approval of Annual Work Plans and Budget;
1.3 Review and approval of the monitoring and management reports prepared by the Secretariat;
1.4 Resolution of general policy and policy directions issues.

A simple majority of the members constitute a quorum for decision/resolution.

2. ACPC-IB Group shall be designated as the Secretariat to the NEC

3. ACPC shall engage the services of program partners and service
providers and shall be authorized to enter into the necessary agreements
for the implementation of the credit and institution building
activities under the USM-CIBP.

4. Create the USM-CIBP Trust Fund consisting of the cash balance in
the UDP account, the current Upland Development Trust Fund (UDTF)
managed by the Land Bank and the Upland Microfinance Trust Fund (UMTF)
managed by PCFC. The proceeds of the fund shall be used to fund credit
and institutional building projects of UDP-assisted farmers organization
and other beneficiaries in UDP areas, through the following mechanisms;

4.1 As a fund for the direct funding of institution building
requirements of USM- CIBP accredited cooperatives and micro-finance
institutions (MFIs) through program partners and service providers to
transform them into viable financial institutions serving the UDP areas
and provision of credit;

4.2 As a hold-out fund for credit activities. The earnings of the
hold-out fund shall be utilized to fund the operational requirements of
the program (e.g. program staff, maintenance expenses, etc.) and
institution building projects and activities of accredited program
partners and service providers for IB; and

4.3 The trust fund earnings shall be used to fund credit and
institution building activities benefitting organizations and other
beneficiaries in the UDP areas.

The appropriate mechanism to be utilized shall depend on a thorough
review to be undertaken by ACPC that will prolong the life of the fund,
deliver the most efficient and effective services to the targeted
organizations and beneficiaries and create the greatest improvement in
the lives of the upland farmers and their families.

5. The UDP-Program Office manned by a Core Team, in pursuant to the
Closure Act of UDP, shall immediately effect the transfer, upon
approval of this Order, the outstanding cash in their custody amounting
to more or less EIGHT MILLION NINE HUNDRED THOUSAND PESOS
(P8,900,000.00) in the USM-CIBTF.

6. ACPC shall assume the responsibility of negotiating and entering
into appropriate agreements with financial institutions for the
collection of receivables due from loans extended by the UDP.

7. ACPC shall prepare the Program Framework and craft the Operating
Guidelines for approval of the NEC, following the provisions of the
Closure Act and this Order for the implementation of the USM-CIBP.

8. ACPC shall submit monthly reports to DA and EC on the progress
of the activities for the operationalization of the USM-CIBP within the
first three (3) months after the signing of this A.O. Thereafter, ACPC
shall submit quarterly reports and/or other reports as needed by DA and
EC.

9. ACPC shall perform any and all acts and deeds necessary and
incidental to the efficient and effective implementation and the
attainment of the objectives of the USM-CIBP .

This Administrative Order shall take effect immediately.

Adopted: 01 Sept. 2007

APPROVED:

(SGD.) A RTHUR C. Y AP
Secretary

 

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^[1] A successor program
of the Upland Development Program (UDP)-Rural Finance Services
component which provide both credit and capacity building services.