September 4, 1997
JOINT DAR-LBP MEMORANDUM CIRCULAR NO. 29-97
SUBJECT : Supplemental Guidelines on the Implementation of Credit Assistance Program for Program Beneficiaries Development (CAP-PBD)
The DAR and Land Bank of the Philippines through a Memorandum of Agreement signed on 09 September 1996 agreed to jointly implement the Credit Assistance Program for Program Beneficiaries Development (CAP-PBD). To effect its implementation, the DAR issued Memorandum Circular No. 26, series of 1996, Implementing Policies and Guidelines on the Availment of CAP-PBD on 25 October 1996. Likewise, the LBP issued Credit Group Memo Circular No. 97-001. These two documents contain the same guidelines on CAP-PBD fund availment. AEIcTD
On February to March 1997, the CAP-PBD National Technical Review Committee (NTRC) and Program Secretariat (PS) conducted CAP-PBD Orientation Cum Planning Session for the DAR and LBP field implementors. This activity was conducted in four batches covering 25 provinces in 10 regions with a total of 183 participants. Selection of the focus areas are based on the number of LAD-free ARCs and ARCs with 76-99% LAD-accomplishment.
In this activity, relevant issues and concerns were raised by the participants which necessitate policy formulation to hasten, the implementation of CAP-PBD. Hence, this guideline is formulated as addendum to the provisions contained in MC No. 26, series of 1996.
II. ADDITIONAL PROVISIONS
2.1 Renaming of LBP Field Offices
• Due to LBP's implementation of Unified Systems Project in 1996, some officials/offices involved in CAP-PBD implementation are renamed as follows:
TITLE/DESIGNATION NEW TITLE/DESIGNATION
(Per MC No. 26-96/Credit Group
Memo No. 97-001)
Executive Vice-President Executive Vice-President
Agrarian Sector Agrarian-Domestic Banking Sector
Senior Vice-President Senior Vice-President
Field Operations Group Domestic Banking Sector
Head Assistant Vice-President
Field Loans and Review Cooperative Loans Department
Department (FLRD) (CLD)
Field Office Manager Branch Manager
Zone Manager Regional Manager
NEWLY CREATED POSITION
2.2 Organization And Management
A. Membership of the National Technical Review Committee (NTRC)
• The LBP Assistant Vice-President of the Cooperative Loans Department (CLD) shall be the Vice-Chairperson of the NTRC, while the Manager of the Integrated Rural Financing (IRF) remains as member of the NTRC.
• The LBP Cluster Head shall be required to sit in the NTRC during deliberation of projects (over P5 Million) depending on where the project originates.
B. Regional Project Management Committee and Provincial Project Management Committee
• The DAR Regional Support Services Division (SSD) and Provincial Beneficiaries Development Coordination Division (BDCD) shall be the designated program secretariat for the RPMC and PPMC, respectively.
2.3 Equity Participation Of The Proponent
• Equity of the proponent shall include not only cash and labor but also other assets such as land, building and materials owned by the proponent which will be used in the implementation of the proposed project.
• The proponent cooperatives will be encouraged to use the 3% rebate (granted upon prompt full payment of the loan) as additional capital build-up of the proponent.
2.5 Procedures Of Fund Availment
• For newly-organized cooperatives (i.e., cooperatives organized one year prior to loan application), any of the following documents may be submitted in lieu of the audited financial statements:
a) interim financial statement certified by a local accountant; and
b) certification from the Office of the Mayor (Local Government Unit) that the cooperative has just started its operation.
• In the accreditation of farmers organizations registered in SEC or BRW, organizational assets worth P15,000.00 shall be used instead of the required P15,000.00 capital build-up.
B. Process Flow and Timeframe
• Annexes A1 to A3 of this Guideline presents the flow of activities in the availment of funds under CAP-PBD and the corresponding timeframe for each activity.
• The set timeframe from evaluation of project proposal to release of loan to the proponent cooperative or farmers' organization is indicated below:
AMOUNT APPROVING MINIMUM MAXIMUM
AUTHORITY NO. OF DAYS NO. OF DAYS
Below P2 M PPMC 13 22
Over P2M up to P5M RPMC 17 28
Over P5 M NPMC 21 35
All orders, memoranda, circulars and issuances inconsistent herewith are hereby amended or repealed accordingly. HaDEIc
This Memorandum Circular shall take effect immediately.
Diliman, Quezon City, September 04, 1997.
(SGD.) ERNESTO D. GARILAO
(SGD.) JESLI A. LAPUS