Australia hikes financial aid to Philippines

from The Manila Times

By Katrice R. Jalbuena, Reporter

Australia has hiked its official assistance funds to the Philippines to P4.4 billion for the 2008 to 2009 fiscal year, the top Australian envoy to Manila said Friday.

Canberra’s new aid package for the Philippines, an increase of nearly 9 percent over the previous year, has helped Australia become the country’s number two aid donor next to Japan, Australian Ambassador to the Philippines Rod Smith said.

The Australian government also granted P444.6 million for two programs that aim to improve the domestic profitability and export competitiveness of selected vegetables and fruits planted in the southern part of the country.

“This is part of a long-standing collaboration of Filipino and Australian researchers in the development and improvement of new and existing technologies for various vegetables and fruits commodities,” Australian Ambassador Rod Smith said, adding the programs can help alleviate poverty in the countryside where most people depend on agriculture.

Australia will also increase its support to the Philippine government’s infrastructure initiatives and provide over P425 million to help upgrade and maintain critical road infrastructure at the national and local levels.

Through the Australian Center for International Agricultural Research, the Australian government signed a Memorandum of Subsidiary Arrangement with the Philippine Government for a P444.6-million for two programs, one focused on vegetable crops and the other on fruits.

About P254 million will be allocated for a four-year vegetable value chain program, to be managed by the New South Wales Department of Primary Industries.

The project aims to develop integrated soil and crop nutrient management in vegetable crops in the southern Philippines and Australia.

The program will look into developing a cost-effective protected vegetable cropping system, in the high rainfall areas of Leyte and Mindanao, to produce high value crops in the wet season when prices are high. These systems will also be modified for use in Australia.

Fruit growing improvement program

The other project is a P190-million fruit value-chain program to be managed by the Queensland Department of Primary Industries and Fisheries.

The program is to be implemented over the next four years in Leyte, Northern Mindanao/Cagayan de Oro, and Southern Mindanao/Davao. This program aims to improve domestic profitability and export competitiveness of the following fruits: mango, papaya, durian and jackfruit.

Smith signed the program agreement with Dr. Patricio Faylon of the Philippine Council for Agriculture, Forestry and Natural Resources and Development, an attached agency of the Department of Science and Technology.