Legal basis and related program framework
- Republic Act No. 10068 (Organic Agriculture Act of 2010) establishes the organic agriculture framework that this Order implements through its Implementing Rules and Regulations (IRR) and the National Organic Agriculture Program (NOAP).
- The evaluation, approval, and implementation of organic agriculture project proposals are conducted in line with the NOAP and Republic Act No. 10068 priorities.
Policy objective and project support purpose
- This Order is issued to ensure the effective and efficient implementation of activities supporting the promotion, propagation, and development of organic agriculture in the Philippines.
- Funding support under this system is directed to organic agriculture activities consistent with Republic Act No. 10068, its IRR, and the NOAP.
Who may be funded and what projects qualify
- Eligible project proponents for funds assistance include Peopleas Organizations (POs) (including farmers’ and fisherfolks’ organizations), cooperatives, federations and/or consortia of these groups.
- Eligible project proponents include agribusiness enterprises, including industry associations.
- Eligible project proponents include non-profit organizations such as NGOs and foundations.
- Eligible project proponents include government organizations such as local government units (LGUs), government corporations, and other local and national government agencies.
- Eligible project proponents include academic and educational institutions such as State Universities and Colleges (SUCs) and private academic institutions.
- Projects eligible for funding must be directly related to:
- the National Organic Agriculture Program (NOAP), including priority projects that support the key components: Production and technology support; Extension and capability building; Research and development; Institutional development and strengthening; Market development; and Promotion, advocacy and education;
- enhancing the global competitiveness of Philippine organic agricultural products;
- advancing the organic farming sector, including the establishment of common service facilities; and
- catering to indigenous peoples, agrarian reform beneficiaries, tribal and marginalized communities, among others.
- Minimum project criteria require that funded projects are, at the minimum, consistent with policies and priority thrusts under Republic Act No. 10068, its IRR, and the NOAP, and that they:
- are complementary, supportive, and not duplicative of various and current DA and other government funding windows/programs;
- exhibit market, technical, financial, socio-economic, ecological, and organizational viability and feasibility as applicable;
- enhance the competitiveness of target beneficiaries/sector(s), especially small farmers and/or fisherfolk;
- provide product/service competitiveness in local and/or foreign markets in terms of prices/fees and quality;
- promote upstream and downstream linkages with related and/or complementary agricultural activities;
- provide clear and verifiable proof of sustainability of operations; and
- benefit most of the sector/industry group and not only selected firms or groups within the sector.
- Projects involving attendant infrastructures, machineries and equipment can be included.
- Multi-component projects are eligible for fund support provided they are officially endorsed by appropriate Regional Field Units (RFUs)/Implementing Agencies (IAs) to the National Technical Working Group (NTWG).
- The NTWG must identify allowed project types and sub-components and update the allowed list from time to time.
- Projects must be in accordance with National Organic Agriculture Board (NOAB) priorities for the year.
Project qualification threshold and evaluation level
- Project evaluation is performed at the National level or at the Regional/Implementing Agency level depending on the total amount of project cost requested from the DA Organic Agriculture Fund.
- The NTWG evaluates proposals when the request for project funds is more than Five Million Pesos (PhP5,000,000.00).
- The RTWG/Implementing Agency Technical Working Group (IATWG) evaluates proposals when the request for project funds is Five Million Pesos (PhP5,000,000.00) and below.
National and regional technical bodies
- The NTWG on Organic Project Proposal Evaluation is chaired by the Chief, Policy Advocacy & Legislative Support Division and vice-chaired by the Director, Project Development Service.
- The NTWG includes representatives from National Agriculture and Fishery Council (NAFC), Field Operations Service (FOS), High-Value Commercial Crops Development Program (HVCDP), Bureau of Plant Industry (BPI), Office of the Undersecretary for Special Concerns (OSC), Bureau of Soils and Water Management (BSWM), Agri-business and Marketing Assistance Service (AMAS), PHILMECH, BFAR, BAI, BAR, and Agricultural Training Institute (ATI).
- The NTWG may include resource persons from other DA bureaus, attached agencies, implementing units, and concerned agencies such as DILG, DENR, DepEd, DAR, DTI, DOST-PCAARRD, and DOH, as needed.
- The NTWG develops criteria for evaluating projects for approval by the NOAB.
- The NTWG evaluates detailed project proposals endorsed and pre-screened by the Technical Secretariat.
- The NTWG conducts interviews/site validation when necessary to ensure veracity of data/information in proposals.
- The NTWG ranks and prioritizes proposals for endorsement to NOAB based on project feasibility/acceptability indicators and the minimum project requirements.
- The NTWG recommends changes to project guidelines to the NOAB.
- Each Regional Field Unit (RFU) and concerned Implementing Agency (IA) constitutes a technical working group similar to the NTWG to:
- develop evaluation criteria for approval by the Regional Executive Director/IA Head;
- evaluate detailed proposals endorsed and pre-screened by the RFU/IA Technical Secretariat;
- conduct interviews when necessary to ensure veracity of proposal data; and
- rank and prioritize proposals for endorsement to the Regional Director/Implementing Agency Director based on feasibility/acceptability indicators and minimum requirements.
- The BAFPS of DA serves as the Technical Secretariat for organic agriculture project evaluation.
- The Technical Secretariat undertakes initial screening and preappraisal with the DA Office for Special Concerns to verify submission of necessary requirements/documents before TWG evaluation.
- The Technical Secretariat updates proponents on application status.
- The Technical Secretariat facilitates fund transfer processing to implementing agencies and RFUs for approved projects.
- The Technical Secretariat prepares regular NOAB reports on implementation status.
- The Technical Secretariat maintains a database of approved and disapproved proposals, including assessment, monitoring, and completion reports.
Evaluation, submission, and approval process
- Projects for possible assistance are identified and formulated by prospective proponents from the private sector, government sector, and non-governmental sector.
- Proponents must prepare and submit a substantive project proposal that meets minimum criteria, including the prescribed project concept note (Annex B) and project proposal (Annex C) and other application requirements requested by the TWG other than those in Annex A.
- Submitted proposals are filed with the concerned Regional Field Unit and DA Implementing Units.
- Feasibility studies are the responsibility of the proponent.
- Concerned DA units, bureaus, and/or attached agencies/corporations may be consulted in preparing proposals/feasibility studies.
- Technical assistance may be tapped to assist small farmers/fisher folks groups in preparing project proposals.
- Proponents must shoulder a minimum of twenty percent (20%) of the total project cost as counterpart in the form of cash, labor, and others.
- Submitted concept notes, proposals, and documents undergo initial screening and preappraisal by the Technical Secretariat and the TWGs of RFUs/DA bureaus/attached agencies/implementing units.
- Proposals with fund requests greater than Five Million Pesos (PhP5,000,000.00) are forwarded to the National Technical Secretariat.
- The National Technical Secretariat verifies conformity of submitted documents with Annexes A, B, and C and with other provisions of these guidelines.
- RFUs/DA bureaus/attached agencies/implementing units, through their TWG, are authorized to decide approval/disapproval of projects requesting not greater than Five Million Pesos (PhP5,000,000.00).
- Heads of RFU/DA bureaus/attached agencies/implementing units must inform the NOAB of approved projects for information.
- Proposals requesting more than Five Million Pesos (PhP5,000,000.00) that pass initial screening and preappraisal must be submitted to the NTWG for evaluation.
- Proposals that fail initial screening and preappraisal are returned to the proponent for improvement based on TWG recommendations (regional and national).
- Disapproved concept notes are subject to notification, and proponents may submit revised and/or improved proposals for reapplication.
- For requests more than Five Million Pesos (PhP5,000,000.00), TWG-submitted shortlists that pass evaluation and prequalification, including a Project Evaluation Report (PER), are submitted to the NOAB for review and approval.
- TWG lists of proposals that fail evaluation and prequalification are submitted to the NOAB for information.
- Any fraudulent submission of documents by a prospective proponent results in disqualification of the proponent from availing assistance and future funding.
- All approved project proposals are assigned a Project Code for documentation.
- Proponents are notified immediately of the evaluation result and are required to submit a final Work and Financial Plan (WFP) based on approved funds within one (1) month to the Secretariat upon receipt of approval notice.
- Proponents must sign a Memorandum of Agreement (MOA) with the DA and the implementing agency.
- Release of funds and disbursement follow existing government accounting and auditing rules and regulations.
Implementation, monitoring, audits, and reporting
- The Implementing Agency monitors all projects to ensure implementation proceeds in line with approved time-frames, budgets, and methods.
- Regular monitoring by Implementing Agencies and RFUs covers:
- actual usage of total funds released;
- status of implementation/completion;
- status of project operations;
- competitiveness aspects of the project;
- employment generated and other social benefits gained;
- value-added from the project;
- gender concerns; and
- other relevant information.
- Implementing Agencies must monitor environmental/ecological impact of the project pursuant to the IRR of Republic Act No. 10068.
- Implementing Agencies must facilitate external audits covering operational, financial, and management aspects of all assisted projects.
- Monitoring activities are conducted by Implementing Agencies in coordination with concerned DA units, including the Commission on Audit (COA), using monitoring guidelines (Annex F) approved by the NOAB.
- All projects must submit a completion report (Annex G).
- Completion reports must be submitted by the Implementing Agency/RFU to the NOAB through the Secretariat.
- Completion reports are due within two (2) months after the project completion date indicated by the proponent in the project proposal.
- DA through NOAB is notified of projects that fail to provide a completion report.
- A project is deemed completed when all expenses are liquidated in accordance with relevant COA Circulars and DA administrative orders.
- Proponents whose projects do not meet Monitoring and Completion Report requirements are ineligible to submit future project proposals for prioritization.
- Completed projects must receive final appraisal by the NOAB and TWG on Project Success.
- The implementation system includes a requirement to provide a monitoring set and timeline using the listed annexes.
Consequences, sanctions, and continuing access
- Successful project proponents may avail of financial assistance for other projects provided that:
- previously received funds have been properly liquidated;
- the previous project passed evaluation satisfactorily; and
- the proponent submits a favorable recommendation from the implementing agency of the previous project.
- A proponent is black listed and perpetually banned from receiving financial assistance under the organic agriculture program on these grounds:
- failure, without justifiable cause, to submit a completion report after receiving at least three (3) formal requests by the Implementing Agency or the NOAB; and
- failure, without justifiable cause, to liquidate previously received funds.
Annexes, separability, and timeline documents
- The following annexes are deemed part of the guideline system:
- Annex A – Application Requirements;
- Annex B – Project Concept Note Template;
- Annex C – Organic Agriculture Project Proposal Format;
- Annex D – Guide Organic Agriculture Project Proposal Evaluation;
- Annex E – Project Evaluation Report (PER) of Project Proposals;
- Annex F – Project Monitoring Report;
- Annex G – Project Completion Report;
- Annex H – Site Validation Report;
- Annex I – Memorandum of Agreement;
- Annex J – Summary of Project Evaluation Procedure and Timeline.
- Separability is applied: if any provision or part thereof is declared invalid, the remaining separable provisions remain in force and effect.
Operational notes on agency representation and sequencing
- DA may be represented by the concerned RFU, provided that the RFU and its Regional Executive Director (RED) are authorized through a Special Order issued for that purpose.