Provincial and Municipal LGUs with proposed and ongoing subprojects under the Department of Agriculture’s Philippine Rural Development Project (PRDP) were trained on the economic and financial analysis (EFA) of infrastructure and enterprise subprojects in CAR.

To create a common understanding on the basic concepts and guidelines in the preparation of Economic and Financial Analysis (EFA), PRDP Project Support Office (PSO) Economist James Sabio presented the review guidelines for farm-to-market road and other infrastructure subprojects such as communal irrigation system and potable water system.

This includes discussions on road influence area (RIA) estimation and its link to economic analysis, economic benefits, economic feasibility indicator, and sensitivity analysis.

Further, the review guidelines on Financial Analysis (FA) for I-REAP (Enterprise Development) subprojects was also presented covering the basic requirements under FA and the policies and guidelines in the computation of other emerging benefits, among others.

Hands-on workshops followed each of the presentation. Participants used the actual data of the proposed subprojects in their respective municipality/ province to work on.

Workshop outputs were later presented after which critiqued/ reviewed by the economists from the PSO and RPCO.

Other topics discussed during the training were the Rapid Appraisal of Emerging Benefits (RAEB) which will take place upon the completion of a subproject, the presentation of econ-related matters in collaboration with other units/ components of the PRDP, and the prioritization scheme for additional financing.

Meanwhile, the participants requested for another hands-on training on FA specifically for enterprise subprojects for it entails a more detailed computation.

Highlighting the importance of data consistencies, Sabio urged the participants to thoroughly review the figures versus the assumptions incorporated in the Feasibility Studies and Business Plans of the subprojects.

The EFA/FA strengthens the basis of assumptions in preparing financial projections to come up with more sound economic and financial viability indicators, hence, making a subproject more feasible. (Elvy S. Taquio, RPCO-CAR InfoACE Unit)