EU FUNDS MINDANAO PEACE INITIATIVE

The European Union (EU) has extended two grants totaling 60.5 million euros (about US$67.9 million) to assist in the government's ongoing peacebuilding and development efforts in Mindanao

 The twin funds are focused on strengthening the institutions of the newly formed Bangsamoro autonomous government, creating jobs and improving community-based infrastructure in the island's agricultural communities.

On behalf of the Philippine government, Finance Secretary Carlos Dominguez III signed on June 26 the Financing Agreement (FA) for the Mindanao Peace and Development Programme (MINPAD)-RISE Mindanao transmitted by the EU to formalize the EUR35.5 million grant for the project.

He also signed a separate FA for the EUR25 million grant for the Support to Bangsamoro Transition (SUBATRA) program on July 1.

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 (US$4.48 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).

The EU is a major contributor to the Mindanao Trust Fund for Reconstruction and Development (MTFRD), a multi-donor grant facility established in 2005 to consolidate international development assistance for the socio-economic recovery of conflict-affected communities in southern Philippines.