1. PROJECT PROGRESS REPORT
As of EO May 2012
Project Title: Second Cordillera Highland Agricultural Resource
Management Project (CHARMP 2)
Implementing Agency: Department of Agriculture
Fund Sources: Total Project Cost: P 3,081,862
GOP Department of Agriculture
Loan: IFAD, OFID, ADB
Grant: IFAD
LGUs:
Beneficiaries:
Location/Area 6 provinces, 37 municipalities, 170 barangays
Coverage: Abra: Lacub, Licuan-baay, Malibcong, Luba, Tubo,
Sallapadan, Bucloc, Boliney
Apayao: Calanasan, Kabugao, Conner
Benguet: Bokod, Kabayan, Bakun,
Kibungan,Buguias,Kapangan, Atok, Sablan,
Mountain Province: Barlig, Besao, Sadanga, Sagada,
Bontoc, Tadian, Bauko, Sabangan
Kalinga: Balbalan, Pasil, Lubuagan, Tanudan, Tinglayan
Ifugao: Hingyon, Hungduan, Tinoc, Asipulo, Mayoyao
Description:
* Project Goal: Poverty reduction and livelihoods improvement of poor rural
indigenous communities in the upland areas of CAR
* Objectives:
1. Increased farm family income of the rural poor through sustainable
agricultural development; and
2. Enhance the quality of life of the rural poor by improving land tenure
security, food security and watershed conservation.
The project has five components:
(1) Community mobilization, participatory planning of investments, and
land titling; (2) community watershed conservation (including forest
management and agro forestry development); (3) agricultural and
agribusiness development, and promotion of income-generating
activities; (4) rural infrastructure development; and (5) project
management and coordination.
Project Duration: Start: January 1, 2009 End: December 31, 2015
CY2009- CY2015
PROJECT PROGRESS
For CY 2012 AO 1st AO 2nd AO 3rd AO 4th Quarter
Quarter Quarter Quarter
Target 7.8
Actual 2

2. Slippage 5.8
Cumulative Status: Status Physical Financial
(Since start of project) Target For recalibration FOA+ Grant:
based on MTR Php 2,417.48
Actual 18 % Obligation:
(slippage) Php 428.17 (18%)
Current Implementation Low availment of project funds, especially for
Issues and/or Problems infrastructure development due to difficulty of LGUs in
Encountered (if any): providing cash counterpart as required in the existing
NG-LGU cost sharing policy
Actions Taken/ With the suspension of the prevailing cost sharing policy
Recommendations: arrangement, a NG-LGU cost sharing mix of 60%-40%
for 1st-2nd class LGUs, 70%-30% for 3rd-4th class
LGUs is being proposed to the NEDA Investment
Coordinating Committee. Pending the approval of the
proposal, the LGUs regardless of their classification were
recommended to opt for the cost-sharing arrangement
included in the Project Financing Agreement, where the
CHARMP2 shoulders 60% and the LGUs provide 40%
equity to proceed with the implementation of proposed
subprojects.
The Project sought RDC-CAR endorsement requesting
the DBM to allow the utilization of its savings amounting
to Php 50 million from the Infrastructure for Rural
Productivity Enhancement Sector Project for the
CHARMP2 to hasten implementation of 47 subproject
proposals of LGUs which were submitted to DA-OSEC
for funding assistance. DA for its part is closely
coordinating with the DBM on this matter.
The Project has proposed during the Midterm Review
Mission for the revision of the micro-credit
subcomponent to a rural finance scheme aiming to
support income generating and livelihood activities of
beneficiaries. The proposed Livelihood Assistance Fund
(LAF) will replace the microcredit to be managed by POs
in the 170 barangays and aimed to benefit Livelihood
Interest Groups (LIGs).
The credit subcomponent is
not feasible for poor target
beneficiaries in the Project
areas
Remarks: A Project Mid-Term Review Mission composed of IFAD
Consultants and NEDA Staff was fielded from January

3. 16-February 6, 2012. The mission recommended
revisions in the project design to improve performance.
The Project is now seeking NEDA-ICC approval of the
revised project design.
Agency Contact Person: DIR. MARILYN V. STA. CATALINA, CESO IV
Regional Executive Director, DA-RFU-CAR &
Project Director, CHARMP2
CAMERON P. ODSEY
Project Manager, CHARMP2
SECOND CORDILLERA HIGHLAND AGRICULTURAL
RESOURCE MANAGEMENT PROJECT
PROJECT SUPPORT OFFICE
Address: Baguio Stock Farm Compound, Marcos Highway corner
Sto. Tomas Road, 2600 Baguio City
Telefax: +63 74 444 8329/ Tel No. +63 74 444 7991
Email: charm@mozcom.com

4. Second Cordillera Highland Agricultural Resource Management
Project (CHARMP 2)
Meat Processing

5. Meeting with the
beneficiaries
Project field
assessment