Leyte: A PHP237 million World Bank (WB)-funded project meant to modernize banana chips processing in three Leyte towns will soon start following its approval, the Department of Agriculture (DA) said on Monday. The Eastern Visayas Banana Processing and Marketing Enterprise (EVBPME) is the first subproject in the entire Visayas Cluster to receive a No Objection Letter 1 (NOL1) for 2025 from the Philippine Rural Development Project (PRDP) through the Regional Project Coordination Office 8 (RPCO 8).
According to Philippines News Agency, the DA regional office here stated that the approval is a significant boost to regional competitiveness and farmer empowerment. The NOL1 clearance allows the release of project funds and signals the start of implementation. 'This project exemplifies how innovation and collective enterprise can drive inclusive rural development. It stands as a model for clustering, modernization, and sustainability in Eastern Visayas,' the DA said in a statement.
The project is perceived as a substantial step toward transforming the banana industry in Leyte and the broader Eastern Visayas region. It will directly benefit 679 banana farmers organized into 27 clusters across the towns of San Isidro, Tabango, and Villaba in Leyte. According to PRDP-RPCO 8, the EVBPME will integrate these clusters into a large-scale, market-oriented production and processing enterprise, enhancing value addition and expanding access to national and export markets.
Of the PHP237 million investment, WB will provide a PHP142 million loan, while the balance will be shared by the Philippine government and the Omaganhan Farmers Agrarian Reform Cooperative (OFMPC) based in Tabango, Leyte. Established in 1989 as a multipurpose savings and credit cooperative, OFMPC has grown into a key player in regional agriculture. The group initially ventured into banana production in 2013 despite facing setbacks due to typhoons and market shifts.
The project is expected to generate 107 jobs during the operational phase and an additional 132 jobs through infrastructure development. Beneficiaries' incomes are projected to increase from PHP20,887 to PHP24,937 in the first year of operations, culminating in an average annual income increase of PHP64,020 over a 10-year period, according to DA. While at the enterprise level, projected net income is PHP30.4 million annually, supported by a strong return on investment of 24.42 percent, an internal rate of return of 18 percent, and a payback period of 7.6 years.
