The Rotary Club of Bacolod East 5-Year Irrigation Program
first draft, subject to revisions Project Proposal by Alfredo Bustamante III

     A Community Assistance Program to improve infrastructure, create income generating programmes, improvement of essential facilities, technical and managerial economic training for credit and finance towards self-sustaining and progressive cell communities. 
 

 
BSWM-SWIP. IMPOUNDING WATER FOR DRY MONTHS SUSTENANCE OF CROPS CONSEQUENTLY LED WATERSHED DEVELOPMENT AND SOIL CONSERVATION. 

I. Objective.  

       To build the necessary irrigation infrastructure required to eliminated poverty and unemployment.  Specifics of this objective is found in Section V.  9th Paragraph Table 1. 
 
       To lobby for a public policy to concentrate on developing the numerous water resources of Negros Occidental, by building irrigation infrastructure that will provide land reform beneficiaries and rice farming communities, sustainable economic livelihood, that should result in a rise in the standard of living, building stable and enterprising individuals and families, building sustainable new capacities via multiplier income effects. 

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II. History.  

       The Negros Business Forum spearheaded by Rotary Club of Bacolod East members namely: PP Miguel Asignacion as Chairman, PP Vilmo Limuaco, Rtn. Roberto Abello and incumbent Pres. Alfredo Bustamante III; has been on radio and TV since the first food crisis that caused the price of rice in the second half of 1995. Cereal prices, mainly rice and corn rose by 110% from P8-10 (P 26 /US$ then) to P18-25/ kilo. Inflation went on an uptick only to regain price stability at higher levels, by importations. 

       We are encouraged that the newly elected, President Joseph E. Estrada has announced that 
agricultural modernization and irrigation shall be his major concern during his term.  However, we are cautious to celebrate because words are not backed-up by action.  Read Section IV Current Events "A Blueprint of the President’s Agenda."  

       The solutions that the Negros Business Forum has concluded on, for the different problems besetting our province is too costly for our local governments to initiate. It was felt that a dialogue was needed with our local leaders in government, specially our legislators to direct their funds or enact legislation for the purpose of appropriating funds towards irrigation infrastructures. 

       In that meeting, we invited the Provincial Governor, the Philippine National Bank Chairman, the City Mayor, 7 of our Congressmen, the Sugar Regulatory Agency head, and the Visayas Mindanao representative of the Office of the President. 

       We have pinpointed IRRIGATION as our primary advocacy thrust. We have argued with our local and national leaders about this concern. 

       With better management of government resources, there should be money to appropriate for these important infrastructures. 

       We are encouraged that the newly elected, President Joseph E. Estrada has announced that agricultural modernization and irrigation shall be his major concern during his term. 

       We hope to accomplish within twenty years, the harnessing of Negros Occidental six major water resources, to provide the water that is available, that our rice farmers badly need. 

       It is for this reason, that we have made this advocacy a Rotary Club of Bacolod East objective. The Club Board has passed two resolutions, Series of RY1998-99 last Thursday, August 20, 1998 that reads as follows:  Resolution # 12 Moved by PP Eduardo Villanueva Seconded by Rtn. Ricardo Albayda

       Resolved, as it is hereby resolved, to complete the RC Bacolod East Website history to include the initiative on the Back-up Foundation., the Citizens Health Foundation, the Induction and Current Club Activities into the RC Bacolod East internet website. The completion of the RC Bacolod East internet website is necessary for the fund-raising of the RC Bacolod East Irrigation Project, so that, the potential sponsors may know of the Rotary Club of Bacolod East and its community involvement record. 

       Resolved, further, that an appropriation of P4000.00 fee for the design, construction, composition and inclusion of additional materials, facts and figures into our internet website.  Resolution # 13 Moved by PP Eduardo Villanueva Seconded by Rtn. Ricardo Albayda

       Resolved, further, that an Irrigation Project Oversight Committee, to be headed by PP and Community Service Director Vilmo Limuaco be organized for the purpose and objectives of the Irrigation Project.  

       These two resolutions was ratified and approved unanimously by the members of the Rotary Club of Bacolod East in attendance during the business meeting held Friday, August 21, 1998 

       It is the hope of the Rotary Club of Bacolod East, through the Irrigation Project, that by helping sourcing of funds it shall be a catalyst to expedite the accomplishment and maximization of the provincial irrigation requirements. It can do this both as a non-government lobbyist with a proven track record of community involvement. It can also be a model of integrity and purpose, that will solicit the trust of the community, in view of the fact that local governments under the Local Government Code may not depend on the national government to raise funds. It can do so by having direct access to Official Development Aid, grants and the capital markets. To-date, the local government neither has the experience, the credibility nor the ability to do this. 

       Given the support of donors, therefore, the RC Bacolod East Irrigation initiative shall only serve to capture the imagination and fast-track the completion of the provincial irrigation objective of 100% utilization of irrigation potential. 

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III. Rationale.  

                    Figure 1 Boom Bust Cycle 

Table 1.  Philippine Economic Growth 
 
 
       The pattern of economic growth, that the Philippines has exhibited since the post World War II period,  has been attempts at economic take-off via policies encouraging industrialization, import substitution and protection of infant non-agricultural industries. 
 
       The growth patterns in the business cycle during the rehabilitation years following WWII was paid by war damage claims against Japan and aid from USA.  US war damage claims were for damages incurred in the conduct of the war while the Philippines was still a colony. 
 
       Negros Island was a prime benefactor, along with Central and Southern Luzon because the US Sugar qouta act granted an allocation to sell duty and tariff free sugar into the high priced American domestic market.  In 1960, due to the embargo against Cuba, the Philippines was granted additional tonnages that made it fourth sugar supplier to the US and 10th in the world market.  The Philippines reached export levels of 2,000,000 MT into the US.  The Philippines was producing 3.4 MT in 1973 when sugar prices hit 64 US cents a pound in 1973.  The Philippines got a basic export qouta of 1.4 MT of sugar at the conclusion of the International Sugar Agreement of 1978. 
 
       Traditional landowner and laborer relations, however, failed to distribute the benefits of high sugar prices enjoyed by landowning sugarcane farmers.  Rice production, despite the presence of the Ford Foundation sponsored International Rice Research Institture at Los Banos, Laguna was relegated to second class activity.  Growth in cereal production was not going to keep up with an exploding population. 
 
       Population grew from 16 M at the end of WWII to 30 M in 1960 immediately before Ferdinand Marcos assumed the Philippine presidency in 1965.  RP foreign debt was only USD300 M. 
 
       As a result of  Martial Law in 1972, mild growth was experienced as Pres. Ferdinand Marcos cozied to the IMF, WB, all the multilateral financial institutions and rich donor developed countries,  where credit, soft-loans and aid can be secured.  These financing  was to employed to embark on  an ambitious 10 industrial projects controlled by political cronies, in what was supposed to be a Japanese zaibatsu format of industrial development. 
 
       The result was economic disaster, as graft and corruption took the better of  economic development aims.  Fund were dissipated  and  siphoned to hefty commissions to the managing cronies.  The glaring example of this is the mothballed Bataan Nuclear Power Plant, costing USD600 M at 1975 prices, which to-date the Philippines is spending millions of US$ on interest daily on the unpaid debt.   Philippine foreign debt reached USD28 B.  Population grew to 50 M. 
 
       The events that led to the EDSA people-power revolution that ousted Marcos was a period of hyperinflation with short term bills reaching 50% rate.  The government was bankrupt and those who had money to fly went to safe havens sending dollar reserves to the doldrums.  There was hunger in Negros during this period that attracted the world. 
 
       The Aquino presidency the followed the Marcos dictatorship were recessionary years marked by negative economic growth or anemic positive rates of  2% at the top.  Pres. Aquino’s social reform was the Comprehensive Agricultural Land Reform Law which mandated the breaking up of  large land holdings of others except her family’s own. 
 
       A new consitution, the Freedom Constitution of 1997 was promulgated and adopted which made safeguards that disguished dictatorship may never be allowed. Economic growth was paltry, political reforms took the form of running after the sultans of the Marcos regime.  There were numerous coups from the military insecure of the return of civilian command. 
 
       Food sufficiency was not a concern of  Pres. Corazon Aquino.  Land distribution was bureaucracy’s rallying cry. 
 
       The opening of national borders to liberalized world trade under the World Trade Organization and other regional groupings like the Asia Pacific Economic Cooperation, renewed Philippine growth which attained its highest percentile at 6.7 for 1996.  The growth was fueld by remmittances of 5 M overseas contract Filipino workers, who went into a diaspora in search of jobs, that could not be found in a creeping Philippine economy for the last 25 years. 
 
       Foreign trade and remittance liberalization also allowed the entry of foreign capital which resulted in increase in transnational companies investment and manufacture in their Philippine export processing zone base.    Precious agricultural land was again converted to industrial subdivisions; recreational, eg. golf courses and residential areas.  An unstable middle class, living beyond the standards of the 80% rural poor subsistence farmers,  spun-off into conspicous consumption of imported consumer goods and mass consumption lifestyle largely concentrated in MetroManila environs. 
 
       Foreign remittance by Filipno overseas workers amounts to USD$5B and the Philippines shared about 1% of  foreign direct investments. 
 
       Early in the incumbency of President Fidel Ramos, the Philippines was beset by power outtages due to the increase in consumption of power.  This was solve by Build Operate and Transfer schemes of investment which drew foreign interest.  Credit must be given to the Ramos presidency for putting a semblance of order in Philippine government financial spending.  Budget went into surpluses also due to privatization of the government’s erstwhile nationalized industries.  Philippine National Bank and Philippine Air Lines  led the government’s prized possessions to the auction bloc. 
 
       Exports also raised economic activity as it increased from USD$5 B in 1992 to USD$ 25 B in 1997.  However, the chronic deficits remain in the balance of payments, as short terms loans were used to shore-up the international reserves at the height of the currency crisis that sparked in July of 1997.  Philippine industry is weak with 90% of enterprises small and medium, unable to compete in the fast paced high tech international arena. 
 
       It is for this reason therefore, that to return developing economies into hard currency liquidty, the IMF has to bail out economies in distress such as Mexico in 1995 and now Korea, Indonesia and Brazil, to name a few.  But this is to pump-prime developing economies that had built too much capacities in real estate property development, automotive manufacture and other structural modernization agendas. 
 
       What about the unused capacities of  existing water resources, unemployed peasant labor, farm to market roads, post harvest facilities, properly managed rural credit with ready markets with mouths to eat food, that could be consumed if only it was locally produced? 
 
       It is for this reason, that the RC Bacolod East has petitioned your attention, crying that much of the propensity to spend by governments of developing economies has been to copy models of industrialization that abandoned completely the modernization of the primary sector.  This pattern is evidenced by the increasing urban decay, as country people flock to the cities in search of jobs that do not exist.  There is a backlog in residential construction; and where habitation exists, it is unfit for maintenance of  human dignity.  Social service is wanting and educational standards fail to prepare future generations for the 21st century.   A lot of programs are political rather scientific and measured solutions to eliminate the problem of underdevelopment. 
 
       The Department of Science and Technology projects that the Philippines is expected to be able to make simple combustion engines for rice threshers and tractors in 10 years.  Yet, in the early years of the Ramos administration, a P500 B armed forces modernization fund was appropirated out of the privitization proceeds.  Today, when President Joseph Estrada, has virtually called the Philippine government bankrupt, calling for prudence, the government has finally abandoned armed force modernization as a priority, admitting lack of funds.   The last governemtn has left P200B in accounts payable that cast doubts on the balanced budgets and surpluses earlier announced. 
 
       Today,  Philippine foreign debt stands at USD50 B with an equal magnitude for domestic debt. In the next twenty five years, demographic survey indicate a 65% increase in population to 125 million Filipinos. 
 
       What can developing nations stymied by the currency crisis do?  We believe that creating domestic demand out of local underutilized resources provide substantial opportunities to close the gap in a deflationary situtation as in the case of  a developing countries like the Philippines. 
 
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IV. Current Events 

       Numerous articles have been written in national and local newspaper over the past few months, emphasizing the need to act quickly. 

El Niño damage now P120M, 5 May, 1998, The Visayan Daily Star 
El Niño still wreaking havoc on RP, 17 May, 1998, The Philippine Star 
RP rice imports to reach more than 1M tons, 17 May, 1998, The Philippine Star 
Rice self-sufficiency in '99?18 June 1998, Business World 
Execs asked to account for P30B in lahar funds, 15 August 1998, Philippine Daily Inquirer 
Agri output worst in 20 years – Dar, 18 August 1998, Philippine Daily Inquirer 
New Miracle rice is key to solving food shortage, 20 August, 1998, Philippine Daily Inquirer 
Where are the irrigations systems?, 26 August 1998, The Visayan Daily Star 
A Blueprint of the President’s Agenda, 9 September 1998,  Philippine Daily Inquirer 
RP needs P62.5B to end chronic rice lack-DA, 27 September 1998, The Manila Standard 

Read also more articles about hunger from the site of the Philippine Daily Inquirer 

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V. Our Province.  

       Negros island is prime agricultural land, which is mainly planted to sugarcane. It is located in central Philippines in the Visayas hemmed in by Cebu to the East and Panay to the west. Sugar is the main agricultural crop milled by eleven remaining sugar mills with seventy tons milling capacity during the harvest season. The profitability of the industry passed with the termination of the Laurel Langley agreement and the US Sugar Act, which gave duty free access to the US sugar market in July 4, 1974. 

       With intensive use of its water resources, it can improve its productivity in rice, corn, coffee, vegetables and other high value crops. Experts say that we can improve on our sugar productivity and expand our agricultural plantings to upland areas by providing a network of water delivery systems and roads; improving people’s lives. 

       Most sugarcane estates belonging to the old order are now subject to agricultural land reform by a law passed in 1986 known as the Comprehensive Agricultural Reform Law. It called for the breakdown to large farms to worker/tenant beneficiaries with only a maximum retention allowed of 15 hectares. With land reform as the key thrust of the national government, water with improve technology; high yield varieties must be provided, so as not to frustrate the land beneficiaries, new owners, nascent entrepreneurs. 

       Water, the germinating agent of plant life, if available when needed, will propel present productivity three to four times. 

       In the last months of El Nino, Negros Occidental suffered a steep decline in production. Yet sad to say, there was water flowing in streams and rivers that could have been diverted to agricultural lands thirsty for water. 

       In 1972, then Pres. Ferdinand Marcos decreed a food sufficiency program called the "Palayan ng Bayan" or ricefields of the nation. Corporations and private farms were mandated to plant rice for their employees. It was also a rice program to bring up production to national demand. All was forgotten after the drought passed away. 

       1995 was the second time that the Philippines had a rice crisis, or a severe setback in production as a result of very low rainfall. This shortfall was solved only through importation. The escalation of rice prices was attributed to delayed importation because 1995 was an election year. The secretary of agriculture did not reveal the true nature of supplies so as not to embarrass the President. 

       The drought of 1997-1998 is the third time a rice shortage is experienced. 

       After the resolve caused by the rice crisis of 1995, the proposed national irrigation project to be funded by the unpassed Irrigation Crisis Act of 1995 included the following: 

NIP: National Irrigation Project 

       Today, three years after, they remain proposals. Project estimate amounts represent 1995 period; FOREX  Pesos 26:$  

       By drawing attention to this fact, we hope that the politicians will appropriate P5-P10 Billion (US$225M) over time towards the realization of this project for Negros Occidental requirements. 

       There are minor projects of smaller scale and cost had been identified by the Agricultural Engineering and Irrigation Systems Development Division of the Office of the Provincial Agriculturist. 
 

   
      It is therefore, the hope of the Rotary Club of Bacolod East to be a catalyst for the realization of this vision by passing Board Resolution #10, series of RY 1998-99 to pursue an Irrigation Project by seeking out donors, symphatetic to this objective. This is in line with the RI Theme 1998-99: "Follow your Rotary Dream". 

       The Rotary Club of Bacolod East shall coordinate closely with the Office of the Governor and the Provincial Agriculturist Office’s Agricultural Engineering and Irrigation Development Group in the selection, evaluation, planning, construction and monitoring of these irrigation projects. (See section VIII) 

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VI. Socio Economic Profile of Negros Occidental 

VII. The Food Supply Situation 

1. Already, there are areas in Negros that have experienced hunger during the El Nino weather phenomena. 

In the 1980s, there was recession caused by run-away inflation and flight of capital that lead to the ouster of the dictator, Ferdinand E. Marcos. Negros Occidental experienced hunger, that caught world attention. 

This latest drought lasted from September 1997 to May 1998. Luckily, the rains came towards the end of May. Rainfall was back to normal during the rainy or wet season that started, following the timely first rains. The next problem being foreseen and observed by meteorologist and weather stations is whether a La Nina reversal pattern of heavy rains is going to cause floods to the already harvestable crops. The first cropping by farmers should come in September 1998. 

2. Status and Proposed Measure for Irrigation Development.(as of 1995) 

 
B. Irrigated Area needed to balance deficit: 18,000 Hectares 
 

Total required (B) less Total Projects (C+D) = 11,611 Hectares 
Cost of Irrigation Development / Hectare P50,000 
Amount required P5,805,500,000 Billion pesos 

E. Originally, possible source of funds was on the "pork barrel" or political largesse given to congressmen out of government revenues given as quid-pro-quo for political cooperation with the President. But, the government announcing itself bankrupt and judging from the track-record of the congressmen, drawing from this source is not anymore possible. The provincial government has to lobby for direct contact with ODA funds and learn to secure these amounts from the capital market. 

3. A Selection of Project Sites: Bacolod City District and Fourth District 

       The province of Negros Occidental has several water resources covering its 792,590 hectares. It has a potential irrigable area of 100,000 hectares. Today only 35%, of these have been developed. There is a large area still to be tapped and developed, to provide water in order to maximize land use and productivity. Land tillers are still very much dependent on rain as a source of water, which limits their potential to maximize productivity, matching achievable harvest at today’s existing agricultural technology and practices. 

       In the short term, the province is targeting 54,647 hectares at a cost of P5.3 billion pesos. Project costs available were for 1995 and foreign exchange was at P26.30 / US$. Inflation rates were below double digit, 7-9% for 1995-1997. With the Asian currency crisis of July 1997, the Philippines has now deteriorate to 12% as the foreign exchange worsened to P43 / US$. The Philippines imported 600,000 MT to mitigate the 1995 rice crisis. Today, the government, through its agency the National Food Administration, has already imported 1.2 million MT and plans to import 800,000 more to stave-off a serious crisis if the plantings of May 1998 are destroyed by the typhoons that come during the wet season. It is important to note that 30% of crop losses are due to poor post-harvest facilities. 

       The more common irrigation projects in the province are the communal types, such as diversion dams, water impounding dams, small farm reservoirs, and open surface pump irrigation. These are irrigation systems that are implemented and constructed by the farmer beneficiaries (of the government’s land reform program; the Comprehensive Agricultural Reform Law of 1986) themselves. 

       Most areas that need these irrigation systems are the agrarian reform areas where most Agrarian Reform Beneficiaries do not have access to irrigation canals or even irrigation pumps. Not only that, they also don’t have enough capital and skills (for modern rice culture technology) to make their newly acquired land productive. 

       The Bago River originates in the mountain springs of Murcia municipality which traverses the Bacolod City District and flows into the Fourth District until it discharges into the Guimaras Strait between Bago City and the Municipality of Pulupandan. Bago River catchment area is about 759 square kilometers. It is located in the central part of Negros Occidental on Negros Island. It is located in the Hydro Map as Watershed no 25. It has annual rainfall of more than 2400 mm and a run-off of 1822 mm. Agro climactic criteria classifies 29100 hectares as wet and 46,800 hectares as moist. This allows a growing period of 270 to 320 days/year. 

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VIII. Rotary Club of Bacolod East Irrigation Committee 

       The RC Bacolod East Irrigation Project will be under a group of RC Bacolod East members to be known as the Irrigation Oversight Committee, supervised by the Community Service Director for the Rotary Year. The irrigation oversight committee shall be under the supervision of the RC Bacolod East board of directors. The oversight committee shall be headed by an executive member with two associates composing the executive committee for the Irrigation Project. The executive committee shall take charge of operational functions of the oversight committee. Any decision and action taken by the oversight committee shall be implemented by the executive member and his associates in the executive committee. All decisions of the Irrigation Project oversight committee shall have to pass the scrutiny of the club board and approved in a board resolution. 

The club members of the irrigation oversight committee are the following: 
PP Vilmo Limuaco Chairman 
PP Miguel Asignacion Vice-Chairman 
Pres. Alfredo Bustamante Executive member 
PP/ Dist. Sec Philip Abello Member 
Rtn. Roberto Abello Member for Finance 
Rtn Dr. Antonio Kho Member for Legal Matters and Economics 
Rtn. Daniel Jolipa Member for Engineering & Ex-com member 
Rtn. Opel Paredes Member for Engineering 
Rtn. Edmundo Causing Member for Human Development 
Rtn. Al Espino Member for Youth and Training 
Rtn. Francis Ramos Member for Spiritual Development 
Rtn. Virgilio Manguilimotan Member for Audit and Financial Reporting. 

       As soon as sponsor donations will come up to the amounts required for a Project to be initiated, The Irrigation Project Oversight Committee, through the executive committee shall inform the Project Partners in the Provincial Agricultural Office, the readiness of the RC Bacolod East to undertake a project. Either, the government will recommend an area or a farmer’s group recommend their area, the oversight committee shall study the feasibility of the proponent’s area, the economic benefits for the farmer’s group and their attitude in cooperating and meeting the guidelines of the RC Bacolod East Irrigation Project. 

       Upon, approval by the Club Board on the recommendation of the Oversight Committee, the RC Club Bacolod East shall enter into a memorandum of joint undertaking, whereby the RC Bacolod East will release Sponsor’s donation to fund the project according to its funding schedule. The other parties to the agreement shall be the Office of the Provincial Agriculturist, and the Farmer’s group cooperative represented by their President and officers. See Memorandum of Agreement for a Joint Undertaking. 

       It is the responsibility, from then on, of the Executive Committee of the Oversight Committee to monitor and control the construction of the infrastructure until its completion. 

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IX. A Sample Illustration - Upgrading of Alangilan Irrigation Project 

X. The Provincial Irrigation Task Force  

       The rice crisis in 1995 brought home a tough message: RICE SUFFICIENCY. Rice production’s main requirement is water. Irrigation development is imperative to Negros Occidental for it to be self-sufficient in food. 

       Nationwide, the total irrigated area is 47% of the total potential irrigable area. Negros Occidental has accomplished only 32% of its potential. It seems that National Government’s priority does not have irrigation development as a priority in spite of the fact that 65% of the population is in rural areas living on agriculture. Safety nets of the current National Medium Term Development Plan allocates a minimal amount for Irrigation, specially for Negros Occidental. 

       In order to fast-track irrigation development projects in the province, the Provincial Irrigation Task Force was created by the Provincial Government. The Office of the Provincial Agriculturist in turn created the Agricultural Engineering and Irrigation Development Group. 

        It is with this group that the Rotary Club of Bacolod East Irrigation Project will work and coordinate with. The Agricultural Engineering and Irrigation Development Group has the agricultural engineers, civil engineers, support facilities such as 2 new 4-wheel service vehicles, a dump truck, a cargo truck, two drilling rigs, several cement mixers and surveying equipment. 

       To-date*  projects are on stream with P* funding from various sources such as the Provincial 20% Development Fund, Food-for-Work Program, the Provincial Government’s own General Fund and Supplemental Budgets, and National Government line agencies such as the National Irrigation Administration, the National Food Authority, Local Government Unit (Province, City, Municipalities and Barangays have Revenue allotments from the National Revenue of the Department of Finance based on the Local Government Code) and the Department of Agriculture.

* veryfiying data to update to present status

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XI. Microeconomic effect 

       The current family threshold income in the Philippines in the rural areas is P5000.00 or US$119.04 a month. This means that a family of 6, parents and four children may be able to meet basic needs, without housing. 

       Income from rice farming from one hectare at current levels of production depending on rainfed paddy farming grosses USD 285.00/ cropping (a cropping is a 120 day cycle) or P12,000, not counting usurious cost of money. Production cost ranges from P8,000 to P 15,000/hectare depending on availabilty of capital. (US$/Peso @P43.35) The farmer has no chance at all because they are dependent on rain: planning for planting cannot be efficient. The second crop usually is a failure and third cropping is impossible because it falls on the dry months. 

       With water at their command, plantings can be planned like process engineering. With the new rice varieties offering higher yield, land reform beneficiaries may farm with hope to release themselves from the shackles of subsistence farming. 

       The multiplier effect resulting from increased capacities will create other employment opportunities; as post harvest facilities, construction of warehouses, increased credit facilities, among many obvious spin-offs. Health and educational infrastructures should follow heightened incomes. 

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XII. Project Management and Mechanics. 

       The RC Bacolod East Irrigation oversight committee Project Committee will write through its Executive Director a letter appealing for donations toward this project. 

       Donors may give a pledge of $5000.00 over a five-year period at $1000.00 per year to be remitted at the start of every Rotary Year on July 1. For the project to start this RY 1998-99, donors may give the initial installment of $1000.00 to start the project for this Rotary year. This will be remitted to the account of the Rotary Club of Bacolod East Irrigation Project at the Rizal Commercial Banking Corporation, Libertad Street Branch, Bacolod City. The idea of installments provides the donors the time evaluate the performance of the RC Bacolod East Irrigation Oversight Committee in its management of the project as well as whether, the project phase when complete has actually brought about the desired objective of a higher productivity, a three time planting cycle/year, and bringing about the cooperation of the individuals, families, cooperatives and the community towards the human and community development values which the RC Bacolod East wishes to instill in undertaking this activity. 

       3% of the amount received will be used for acknowledging and giving publicity to the project and the sustaining donors. Expenses shall be for information materials, brochures, reports, full-page ad with sponsor’s logos (press release when a phase of the project is completed). A phase is completed upon completion of the infrastructure. It is at this time when, target families, communities, or land reform beneficiaries, may use of the facilities towards harvesting their crops. We can therefore measure the change in income effect due to the availability of the resources. 

       10% shall be spent to give recognition to the donors of the project, in print, radio and on TV, 5% of donations towards this endeavor shall be earmarked for administrative work and organizing the families, communities, or land reform beneficiaries into cooperatives and human development. They shall be also formed into a Rotary Village Corps. RVC are formed by Rotary Clubs to improve community living and enhance enjoyment of life by encouraging community members to contribute to these goals by acting in the spirit of service to the community and their fellow human beings. Please refer to the official Rotary International Web site for more information on the RVC. 

       2% shall be budgeted for site inspections and visits by the Irrigation oversight committee of the project, to evaluate and control that plans and budgets are closely conformed to. 

       80% of donations shall go to direct cost of the project; materials and labor after reviewing cost studies and standards and components have undergone proper bidding from contractors. 

       It is our hope that, we can get a matching grant from Rotary International that we intend to use for use as working capital of these families, land reform beneficiaries or communities. This will be disbursed using microlending concepts similar to the Grameen bank technique which has a proven a track record of 97% repayment. Borrowers all shall be co-guarantors for all. Borrowers shall be educated to manage their credit and enterprise cooperatives. 

       Should we get the attention of government, we also hope their counterpart shall go toward building shelters, along the guidelines of Habitat International which has a project here in Bacolod City. Within their community, they shall build decent homes for themselves and their families. 

       In this way, the RC Bacolod East hopes to initiate and fulfill the dreams, goals and objectives of this year’s RI Theme, "Follow your Rotary Dreams". 

        We hope to this in an all encompassing effort to lift impoverished people out of poverty, by giving that them hope that Rotary Cares, via a technology and livelihood culture that they know through human and spiritual formation. 

       The Rotary Club of Bacolod East shall provide measures either to incorporate this project management into our Rotary Club of Bacolod East Foundation Inc. or initiate an adhoc foundation specifically for the purpose. 

       Audit and financial reports shall be made by Joaquin Cunanan & Co. Philippine partners of the international accounting firm of Price Waterhouse Inc. 

       If the Club can gain credibility as a project coordinator with this agencies, we hope to gain confidence of all government agencies and politicians, thereby hastening the project. The Club shall manage this project with maximum transparency in the conduct of management, specially the financial aspect. By lobbying for direct contact with official government assistance of the developed countries, we hope to be a guardian of these funds for its efficient and economic use. At present, it is the national government that distributes this aid to the local government based on the availability of funds. The Club only hopes that there is an equitable distribution of these infrastructure allocation. 

       The Club proposes to allocate interest income earned from deposits of the donor to the Rotary Club of Bacolod East Foundation to finance allied undertakings. 

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XIII. Quick Questions and Answers 

1. What is the objective of the project?
 To initiate the construction of irrigation infrastructure to upgrade the present facilities and complete the potential of 99,861.00 Hectares of  irrigable land in Negros Occidental.  As of 1995, the existing area is only 31,729.25 which represents 31.29 %. 
 
2. How much will this project cost? 
 In its totality the estimates to complete the project is US$ 225 M for Negros Occidental province.  The RC Bacolod East does not expect to handle this huge amount by Philippine standards, however, the club will be in a position to manage small scale projects ranging to P5M.  These projects are in the schedule of Office of the Provincial Agriculturist.  They range from P200,000.00 to P5M.  Exchange rate at present is P44.00 to the US$. 
 
3. Who will be the managers of the project?
 The RC Bacolod East is a civic club that wishes to arouse public sentiment to a policy of completing the infrastructure program for food sufficiency, which is rather well documented and known.  Much of the data in this proposal is derive from statistics, surveys and studies of the Office of the Provincial Agriculturist of the Province of Negros Occidental. 
 
 Specifically, the Irrigation Project Oversight Committee shall be the RC Bacolod East group that will be monitoring the construction of the projects.  The projects will be based on the plans, designs and costings provided by engineers and agriculturist of the Office of the Provincial Agriculturist. 
 
 The RC Bacolod East Irrigation Project Oversight Committee has businessmen, managers, engineers, agriculturist, lawyers and accountants with experience to manage the project. 
 The RC Bacolod East has a RC Bacolod East Foundation Inc. which can be turned into an ad-hoc office to manage the projects should sponsors funds warrant a special office for the purpose of overseeing the construction, completion of the project. 
 
 The management, budgeting, training of beneficiaries and the disbusement of funds to construct these projects shall be a totally Rotary undertaking.  It shall employ the highest standards of cost and budgets, audit and inspection to produce the proper financial reports to the sponsors. 
 
4. What will be the source of funding for this project? 
The RC Bacolod East is writng to  transnational corporation operating in the Philippines to kick-start the project hoping it will bring awareness to the efficacy of the solutions to unemployment and chronic lack of food supply. 
 
 If the RC Bacolod East can manage these projects with success and the desired results come about, public sentiment should weigh in favor of policies and appropriation of funds towards the bringing about of a 100% completion of irrigable potential. 
 
 Local government units such as municipalities, cities and provinces can raise capital by appropriating their local government share from national government revenues.  National funding, as a result of legislative budgetary appropriation, can reallign funds from hitherto politically montivated expenses to real needs, if the success of the project brings about the desired result of diminution of unemployment, increase in food supply and creation of multiplier income opportunity. 
 
 Educating the local governments with capital market techniques of raising capital will equip them with the ability to tap soft loans from multilateral funding agencies, official development aid from developed countries and investors who would like to get a better rate of return on capital.  Thus, local governments will issue bonds and other debt instruments just like in the developed countries.  Most local government do not have the ability and ther personality to do this. 
 
5. Who will be the beneficiaries of Sponsor’s donations?
 Only land reform beneficiaries with Certificates  of Land Ownership from the Department of Agrarian Reform shall be the  reciplient of aid.  However, before they can receive any amount, the shall have to organize themselves in to Cooperative and register with the government agency so that they shall acquire a cooperative personality. 

Next, they shall have to form themselves into a Rotary Village Corp under the supervision of the Rotary Club of Bacolod East.  They shall also have to attend workshops in business and credit management, personal and spiritual development to be arranged and provided by the Rotary Club of Bacolod East.  Possessing how a proper frame of mind of the development available for themselves and their families, they have to sign a memorandum of cooperation with the RC of Bacolod East to undertake a self-help program in the spirit of solidarity and service above self.  They shall have to provide part of the labor requirements of the project. 

Meanwhile, the RC of Bacolod East shall make sure that all legal guarantees that the project shall endow only to the cooperatives concerned.  Security of tenure and property rights shall be forged between the local government, the cooperative and RC Bacolod East. 

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XIV. Acknowledgment