Agriculture employs a quarter of the Philippines' workforce and contributes about 10% to the country's gross national product. Despite its importance, the sector faces slow transformation due to low productivity, climate change impacts, and inadequate infrastructure. These issues contribute to high food prices and significant food losses.
The Philippine Rural Development Project (PRDP) was launched to address these challenges by increasing rural incomes and improving productivity in agriculture and fisheries. The project works with provincial governments, who develop Provincial Commodity Investment Plans (PCIPs) based on scientific studies such as value chain analysis and climate risk assessments. These plans guide investments toward modernizing the agri-fisheries sector and making it more resilient to climate risks.
Through PRDP, capacity building, technical assistance, and financial support are provided for enterprise and infrastructure projects proposed by local government units or producers’ groups made up of farmers’ or fisherfolk’s associations.
Since its inception in late 2014, PRDP has assisted approximately 1.55 million beneficiaries nationwide, with women accounting for 39% of this group. PCIPs have been prepared in all 81 provinces. The project has constructed or rehabilitated over 2,362 kilometers of farm-to-market roads, resulting in a 66% reduction in travel time and a 52% decrease in transport costs. Annual household real income increased by 26%.
One example is the Tibolo Farm Workers Association (TIFWA), an Indigenous Peoples’ association from Mindanao's Bagobo Tagabawa Tribe. With PRDP support for their green coffee beans processing enterprise, TIFWA improved production capacity and quality, which helped members compete locally and begin entering international markets.
Funding for PRDP includes US$814 million from the International Bank for Reconstruction and Development through three loans, as well as US$21.98 million co-financing from the European Union targeting vulnerable groups in Mindanao.
The Department of Agriculture implements the project alongside local government units and producer groups who manage subproject operations and share costs. The EU’s contribution is focused on areas like the Bangsamoro Autonomous Region in Muslim Mindanao.
Building on these experiences, two new projects were approved by the World Bank Board in June 2023: the Mindanao Inclusive Agriculture Development Project (US$100 million), focusing on Indigenous Peoples in Mindanao; and PRDP Scale-Up (US$600 million), aimed at larger-scale investments aligned with local priorities. The government has also proposed a new program addressing climate adaptation within agriculture. Additionally, three upcoming projects in social welfare, water supply, sanitation, and education will adopt PRDP’s systems during their design phase.