PROJECT DESIGN

I. PROJECT TITLE : BANCA/FISHING BOAT LOAN

II. AMOUNT : P 8,000,000.00

III. SOURCE OF FUND : 2017 LOCAL GOVERNMENT DEVELOPMENT FUND – GEN. FUND

IV. PROJECT LOCATION : EIGHTEEN (18) CORPORATE BUSINESS ORGANIZATIONS (CBOs)

IN COASTAL COMMUNITIES OF DAVAO OCCIDENTAL

V. RATIONALE :

Section 16 of Book 1 of the Local Government Code of 1991 states that “Every Local
Government Unit shall exercise the powers granted, those necessarily implies there from, as well
as powers necessary, appropriate, or incidental, for its efficient and effective governance, and
those which are essential to the promotion of the general welfare of the constituent.

Correspondingly, the province of Davao Occidental and its present leadership provides
livelihood projects to the vulnerable sector of the society to reduce poverty where most of these
are poor farmers who barely make a living.

Of the 105 barangays of Davao Occidental, a total of 62 are coastal barangays, majority of
which are in Jose Abad Santos with 23 barangays. According to DSWD 2016 data, 19 662
households are 4Ps beneficiaries, an indicator of the poverty threshold of province; Jose Abad
Santos having the most number of beneficiaries (8 261), followed by Don Marcelino (3 653) and
Malita (3 315).

It is the thrust of the provincial government to alleviate the poverty level of the fisherfolks
and remove the province from the 4Ps list of beneficiaries. The Corporate Business Organizations
(CBOs) has been conceptualized to bring people with a common ground to work together in order
to strengthen each other. As majority of the province’s constituents are from fishing communities
and judging from the plight of these people, it is only natural for the government to provide
assistance to these communities in the form of loan as managed by the CBOs. Of the 24 existing
CBOs, 18 of which include coastal communities which even more heightens the need for
assistance to these CBOs.

VI. OBJECTIVES
A. General
1. Provide a profitable means of income for the fishermen while maintaining the ecological
balance of Davao Gulf

B. Specific
1. To improve the socio-economic condition of coastal communities
2. To increase household income thru the provision of commercial fishing boats
3. To empower the fisherfolks in actively protecting the marine ecosystem
4. To inculcate the value of cooperation to achieve a common goal of improving the overall
condition of coastal communities

VII. PROJECT DESCRIPTION

The Fisheries Technical Group of the Provincial Agriculture Office of Davao Occidental has
been tasked to facilitate a loan program for commercial fishing boat loan to potential CBOs in
coastal communities of Davao Occidental. By operating as a unit, the fishermen may eliminate the
necessity of going through personal debts in order to operate and go through middlemen to
market their catch.

F/AD PD No. 0002 SY 2017 1

 The role of the CBO is to manage the commercial fishing boat loan by tapping the local
community for manning the operation, providing the necessary start-up capital for the operation
and marketing of the catch. They shall also be liable for the payment of the loan within a period
consensually agreed upon by the stakeholders.

Commercial fishing boats, made from fiberglass, fitted with outriggers shall be outsourced
from successful bidders. The Fisheries Technical Group shall provide a plan on the specifications of
the boat which shall be delivered by the supplier as specified and agreed upon by technical
consultants on commercial fishing boat construction.

Fiberglass has been selected for this project because of its durability, ease of maintenance
and economical advantage in terms of longevity. Aside from this, it reduces the pressure from our
forests as it only the mold will be made from wood. It is also labor-efficient, making it available to
the fishermen in the shortest possible time.

A fish aggregating device and fishing paraphernalia will be purchased and installed to ensure
regular fish catch and volume of production.

VIII. IMPLEMENTATION STRATEGIES

1. Site Visitation/Consultation/Extension Activities

The Fisheries technical team will visit the existing coastal CBOs to consult and
coordinate the implementation of the project in their location.

2. Licensing and Registration

The CBO, in the person of the project manager, shall take care of the registration and
licensing of the commercial vessel with the DTI, MARINA and BFAR. The provincial
government, in the capacity of the Fisheries group, shall work with the MARINA and BFAR in
the necessary training for the crew especially on the safety of the crew.

3. Start-up and Marketing Scheme

The CBO, being the manager of the commercial fishing operation shall provide the start-
up capital to include but not limited to, fishing paraphernalia, food allowance of the fishermen
and their families during the course of the operation, gasoline and lubricants, maintenance of
the motor and general upkeep of the fishing boat, and others as the need arise.

A ledger will be kept for each crew to maintain the records of his individual expenses for
his family. The crew and CBO shall decide the scheme for distribution of income.

4. Loan and Collection Scheme

A memorandum of agreement (MOA) and/or contract of loan (COL) shall be entered

upon by the provincial government and the CBO concerned as represented by its project
manager. The terms and conditions of the loan shall be discussed further in the MOA or COL.

The CBO shall be responsible for collecting the payments for the fishing boat loan. The
collected amount shall be submitted to the municipal treasurer’s office for safekeeping which
shall be forwarded to the provincial treasurer’s office. Aside from the official receipts that shall
be issued to the beneficiaries, collection ledgers shall be signed and countersigned to
safeguard the payee.

F/AD PD No. 0002 SY 2017 2

 5. Fish Aggregating Devices (FADs/Payao)

In accordance with JAO 02 which prohibits the operation of commercial fishing vessels
within Davao Gulf during the close season for small pelagic fishes from June 1 to August 31 of
every year, FADs will be installed along Talaguton, Don Marcelino, Davao Occidental, being
identified as area for off-season FADs by BFAR.

IX. TARGET INDICATORS

TARGET TOTAL
ACTIVITY
Jan – Mar Apr – May June – Sept Oct - Dec TARGET
1. Site Identification 18 sites
2. Consultations/Meeting 18 sites
3. Validation of Beneficiaries 10 sites
4. Bidding for Fishing Boats 1 activity
5. Signing of MOA 10 sites
6. Delivery of Fishing Boats
7. Assessment/Evaluation/
3 activities 3 activities 6 activities
Documentation

X. TIME FRAME
ACTIVITIES J F M A M J J A S O N D
1. Site Identification x x
2. Consultations/Meeting x x
3. Validation of Beneficiaries x x
4. Bidding for Fishing Boats x
5. Signing of MOA/Distribution of boats x
6. Delivery of Fishing Boats x x
7. Assessment/Evaluation/ x x x x x x x
8. Documentation

XI. MONITORING & EVALUATION

1. Project Evaluation & Documentation

A personnel from the fisheries core group shall conduct monthly monitoring to evaluate
the payment and upkeep of the fishing boats and submit monthly progress report to the
Provincial Agriculturist.

Project monitoring, evaluation and documentation shall be conducted during the

project.

2. Composition of the Project Implementing Unit

The implementation of this project shall be done in close coordination with other
partner agencies such as the Planning and Development Office, Provincial Agriculture Office,
Commission on Audit, among others.

XII. BUDGETARY REQUIREMENTS

ACCOUNT CODE OBJECT OF EXPENDITURES AMOUNT
Machinery and Equipment
1-07-05-050 Marine and Fishery Equipment: Fish Aggregating 1,060,000.00
Device Construction etc
1-07-06-040 Watercraft (Outrigger boats) 6,000,000.00
1-07-05-030 Information and Technology Equipment 250,000.00
MOOE
5-02-03-090 Fuel, Oil & Lubricants 160,000.00
5-02-03-100 Agricultural and Marine Supplies Expenses 300,000.00
5-02-12-990 Other Supplies and Material Expenses 180,000.00

F/AD PD No. 0002 SY 2017 3

Prepared by: Reviewed by:

JINKY C. COMON NALLY S. BANGOY

Project In-Charge Provincial Agriculturist

Recommending Approval:

ROBERT BELLARMINE R. BAJO

PGDH – Planning & Development

Approved by:

CLAUDE P. BAUTISTA
Governor

F/AD PD No. 0002 SY 2017 4