Finance Secretary Carlos Dominguez III underscored Friday the longstanding support of the European Union (EU) for the Philippine government’s peace and development programs in Mindanao that could serve as a global model for the pursuit of genuine and lasting autonomy in other countries saddled with seemingly intractable internal conflicts.

Two recently signed financing agreements (FAs) that formalizes EU’s grant for boosting farm productivity in the South and another one strengthening institutions in the Bangsamoro Autonomous Region in Mindanao (BARMM) will further enhance the partnership between the Philippines and the EU, Secretary Dominguez said.

Secretary Dominguez, on behalf of the Philippine government, and Chargé d’ affaires ad interim Thomas Wiersing, representing the EU, exchanged the signed FAs for the 35.5 million-euro grant for the Mindanao Peace and Development Program-Rise Mindanao (MINPAD-Rise Mindanao) and the 25-million-euro Support to Bangsamoro Transition Program (SUBATRA) in ceremonies held this morning at the Department of Finance (DOF) office in Manila.

EU’s support for these peace and development initiatives are timely, said Dominguez, given that the impact of the coronavirus disease 2019 (COVID-19) pandemic in Metro Manila and other highly urban communities has highlighted the urgency of promoting economic growth in areas of the country “that have been overlooked and underserved for far too long.”

“This global health emergency has had a way of compounding deep-seated social problems. We can, however, defeat the pandemic and resolve historical disputes in one move with acts of solidarity and bridges of trust,” Secretary Dominguez said during the event.

“These two programs will help demonstrate the power of cooperative action to make lives become better and bring humanity to a more hopeful place,” he added.

Mr Wiersing, for his part, said: “These two programs reflect the synergies between the key policies of the government” in “peace, inclusive growth, and poverty reduction” and “the EU’s policies and commitment to support the objectives of the Philippine development plan through its cooperation initiatives.”

Secretary Dominguez said the two programs financed by the EU grants will help clear the way for Mindanao’s rapid development “and bring us closer to achieving President Duterte’s goal of genuine and meaningful autonomy in the Bangsamoro region.”

He also expressed his appreciation for the EU’s intention to reorient portions of both grants to help the government address the impact of the COVID-19 pandemic in Mindanao.

Mr. Wiersing said the EU intends to reorient up to 15-million euros in financial assistance to the Philippines to the government’s COVID-19 response programs.

“On behalf of the Philippine Government, I thank the people and member-states of the European Union for their continued support of our efforts to achieve inclusive regional growth,” Secretary Dominguez said.

The EU grant for the SUBATRA program will finance capacity-building initiatives for all three branches of the BARMM government as well as the civil society organizations in the autonomous region.

“This program will contribute to the Duterte administration’s efforts to assist the Bangsamoro Autonomous Region in Muslim Mindanao, or BARMM, in building an effective and efficient system of governance,” Secretary Dominguez said.

“The BARMM is a historic initiative that is closely being observed globally. We must do all we can to make this political development successful, and let it serve as a model for other countries burdened with seemingly intractable internal conflicts. With the support of the European Union, we will advance this initiative,” he said.

The MINPAD, on the other hand, aims to unlock the productive capacities of Mindanao’s agriculture sector and expand economic opportunities for its farmers and small entrepreneurs while supporting the government’s priority of promoting growth in agricultural value chains.

Under this program, agricultural cooperatives will be trained in management systems, risk mitigation strategies, smart agriculture and business development to help facilitate their greater access to credit.

The EU grant also aims to improve community-based infrastructure that delivers basic social services, clean water and community sanitation in Mindanao’s agricultural communities.

“Ultimately, these efforts will support job creation, strengthen inclusive and sustainable growth, and promote lasting peace in Mindanao,” Secretary Dominguez said.

The MINPAD-RISE Mindanao project will be implemented by the Mindanao Development Authority (MinDA), and will be co-financed by the EU with the government of Germany for an indicative amount of EUR4 million and the World Bank, for an indicative amount of US$130 million (EUR115.99 million).

The total cost of the entire project is EUR149.5 million (US$167.56 million).

For the five-year SUBATRA, the EU provided 96 percent of the estimated total project cost of EUR26 million with its EUR25 million grant, while the Spanish Agency for International Development Cooperation (AECID or Agencia Española de Cooperación Internacional para el Desarrollo committed to cover the remaining EUR1 million.

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