The objectives of the project are:
1. To expand the production base by helping agrarian reform beneficiaries (ARBs) to break out of subsistence agriculture and diversify their marketable surplus;
2. To raise production and distribution efficiency in order to improve quality, competitiveness and increase prices of agricultural products; and
3. To promote equitable distribution of production and productivity gains among all sections of the rural poor in the target areas.

The project will support the Government's Medium Term Development Plan for 2005-2010 and will pursue a holistic approach to poverty reduction by promoting an agribusiness approach to rural development. It will assist the implementation of the Comprehensive Agrarian Reform Program (CARP) by supporting 152 agrarian reform communities (ARCs) and ARC Clusters.

The total loan amount is US$ 100 million.

UPDATE:

31 October 2008

The project has been approved by the Board on 27 October 2008; and is expected to close by 30 June 2015.  The total cost of the project is estimated at US$ 208.4 million.  US$ 70 million of which will be provided by the Asian Development Bank.