CONCEPT NOTE

AGRICULTURAL CREDIT POLICY COUNCIL (ACPC)

CAPACITY BUILDING PROGRAM

I. INTRODUCTION

The DA-ACPC conducts capacity building programs that are intended to support the
DA-ACPC in carrying on its mandate to increase the flow of credit to the countryside
by developing organizations and institutions that could effectively act as partner
lending conduits (PLCs) of ACPC Credit Programs and as training arms for SFF
borrowers.

For 2025, the DA-ACPCs Capacity Building Programs (CBP) are aimed to: (i) to
increase the number of partner lending conduits (PLCs) by developing and
strengthening their capacities at a desired level of maturity that will qualify them to
become efficient and effective partners of ACPC in credit delivery and eventually
mainstream them to access capital loans for relending from the regular banking
system; and (ii) to empower small farmers and fishers and mainstream them into the
regular banking system.

Anent to this, the DA-ACPC shall utilize a network of Development Institutions/

External Resource Provider (ERP) – the State Universities and Colleges (SUCs), the
Agricultural Training Institute (ATI), the Cooperative Development Authority (CDA),
qualified PLCs, and other development institutions. These development institutions
shall be the one to facilitate the conduct of the CBP in accordance with the
parameters set by DA-ACPC.

Before the start of the CBP, a nationwide training needs analysis (TNA) will be
conducted to identify the priority areas for capacity building for PLCs and borrowers,
in areas of: (i) Credit Delivery and Financial Management; (ii) Agri-Enterprise
Development and Management; (iii) Governance; and (iv) Financial Literacy
Training.

II. TARGET GROUP

The following group are the training participant beneficiaries for the DA-ACPCs
Capacity Building Programs:

a. Farmers and Fisherfolk Organizations (FFOs) as potential borrowers;

b. Potential ACPC partner lending conduit financial institutions;
c. Potential borrowers (member-borrowers of the Potential ACPC partner lending
conduit financial institutions);
d. Existing borrowers (members of the ACPC partner lending conduit financial
institutions); and
e. Pool of trainers from the Existing ACPC partner lending conduit financial
institutions.
III. OBJECTIVES

a. To enhance the maturity of existing and potential PLCs to a desired level and
eventually increase the number of PLCs that will work with ACPC in extending
loans to rural borrowers;
b. To provide capacity building to potential borrowers, including the assistance in
business plan preparation, to ensure the viability of their projects and eventually
the repayment of their loans;
c. To increase the outreach of ACPC Credit Programs by capacitating potential
borrowers FFOs and its individual members;
d. To identify and nurture PLCs and individual small farmer and fisherfolk
borrowers that can be mainstreamed into the regular banking system; and
e. To develop a pool of trainers on credit delivery and financial management to
assist ACPC in implementing CBP.

IV. METHODOLOGY AND PLANNED ACTIVITIES

A. Training Needs Assessment/ knowledge Assessment

Before the start of the Program, a nationwide training needs analysis (TNA) will be
conducted to identify the priority areas for capacity building of the training participant
beneficiaries for the DA-ACPCs Capacity Building Programs.

The conduct of a nationwide TNA shall be out-sourced by the ACPC through a

Development Institution/External Resource Provider. The TNA shall be procured
through bidding process. The engagement shall be a consultancy contract in line
with the RA 9184 or the “Government Procurement Reform Act” or the 2016 Revised
IRR.

The result of the TNA report will include a clear set of recommended measures on
how the capacity building participants can improve the capacities of the capacity
building target participants. These could then be addressed by the development
institution experts during the face-to-face training and the coaching phase.

B. Scope of Work to be provided by the Development Institution/External

Resource Provider

The scope of work and other deliverables for the DA-ACPCs Capacity Building
Programs shall depend on the result of the prior training needs assessments.

On the other hand, the Development Institution/External Resource Provider has the
option to accept all or portion/s of the areas of capacity building engagements.
Illustration 1: Implementation of the Capacity Building through Development
Institution

1. Training Module Development; and Business Plan Preparation

The actual training or ICB intervention for the individual training participant
beneficiaries for the DA-ACPCs Capacity Building Programs shall depend on the
result of the prior training needs assessments conducted.

a. The Development Institution/External Resource Provider shall develop specific

training modules for the capacity building participants assigned in them. The
different topics that are relevant to credit delivery are grouped into these major
categories:

 Credit Delivery and Financial Management

 Agri-Enterprise Development and Management
 Governance
 Financial Literacy Training

b. The Development Institution/External Resource Provider may also assist the

individual famer and fisherfolk borrower in crafting the required business plan
before accessing credit.

The Intellectual Property Rights ownership of the modules and all its derivatives
shall be owned by DA-ACPC. The Development Institution/External Resource
Provider shall hold the Da ACPC free and harmless from any and/or any other
intellectual property claims or suits from third parties relative to the Memorandum
of Agreement on the provision of capacity building program.
2. Conduct of Capacity Building for Potential Partner Lending Conduits
These group of ICB intervention beneficiaries were previously assessed by the DA
ACPC Program Development Division and was found lacking of one or more of
the eligibility criteria for ACPC Partner Lending Conduit.

The training interventions will be on their lacking eligibility criteria for effective
partner lending conduits. They will be enhanced to a desired level of maturity and
will be included among the PLCs that will work with ACPC in extending loans to
rural borrowers.

Annex A provides for the matrices of training interventions relative to their training
needs.

3. Conduct of Capacity Building for the Existing Partner Lending Conduits’

Training Pool
These groups of ICB intervention beneficiaries are the pool of trainers for officers
and staff in the Partner Lending Conduits.

The training capacitation shall be on topics: (i) financial literacy training; (ii) credit
worthiness; (iii) entrepreneurial mindset; (iv) effective sales and marketing
techniques; (v) digital marketing; (vi) simple recording for small farmers and
fisherfolks; (vii) sustainable enterprise; and (viii) business registration and
licensure.

Annex B provides for the matrices of training interventions relative to their training
needs.

Development Institution/External Resource Provider responsibilities in

Trade test/assessment scheduling, monitoring, reporting and
certification:
 Shall device Trade Test guidelines, subject to the approval of DA ACPC, in
ascertaining whether the trainee is capacitated to act as Trainer in the
partner lending conduits and be able conduct re-echo of training to loan
borrowers.
 Must submit to DA ACPC five working days in advance of each month end
or as often as needed, in a format determined by DA ACPC, a monthly
schedule of trade tests/assessments to be conducted by the Development
Institution/External Resource Provider.
 Must submit trade test/ assessments results once a week or as often as
needed to DA ACPC in a format determined by DA ACPC.
 Must verify trade test results within five working days of receiving them, in
accordance with DA ACPC criteria and guidelines aligned to the relevant
ICB and lending policies.
 Must recommend certification of qualified trainer/s subject to DA ACPC
approval after verifying the results.
  Inform the trainer/s who did not pass the trade test, and recommend the re-
taking of the assessment

Figure 2. Procedure for the conduct of Training of Trainers and Trade

Test/Assessment

1. Submit to ACPC
schedule of trade
tests/assessments

Conduct of
trade tests/
assessments

3. Inform the trainer/s 2. Submit submit trade

who did not pass the test/ assessments
No
trade test results

Yes

3. Recommend
certification of qualified
trainer/s

4. ACPC to verify the result

5. ACPC certification as a
Trainer
4. Facilitate the Conduct of Re-echo Training to New and Existing Borrowers
The training of trainers for officers and staff shall be cascaded to small and
fisherfolk.

The re-echo training interventions shall be on topics: (i) financial literacy training;
(ii) credit worthiness; (iii) entrepreneurial mindset; (iv) effective sales and
marketing techniques; (v) digital marketing; (vi) simple recording for small farmers
and fisherfolks; (vii) sustainable enterprise; and (viii) business registration and
licensure.

Annex B provides for the matrices of training interventions relative to their training
needs.

5. Facilitate and Monitor the Execution of Action Plans

The Development Institution/External Resource Provider shall facilitate and device
a monitoring tool in measuring the success and attainment of goals of projects
and programs under the capacity building program.

Annex C provides for the matrices of training interventions and the corresponding
results.

6. Submit Training Completion Report and Other Relevant Reports on Training

Fund Utilization.
The Development Institution/External Resource Provider shall submit to DA ACPC
the Training Completion Report to update the latter on the learners’ progress
through training assignments.

Annex D provides for the suggested Training & Workshop Completion Report
template.
 Figure 3. Procedure for the reimbursement/liquidation of Training fund and Re-Echo
Training

Documents (as applicable):

1. Conduct of training
and/or re-echo training
I. Processing of
Reimbursement/liquidation
2. Submission of reports
and request for 1. Letter Request of
reimbursement/ Reimbursement/Liquidation
with breakdown of actual
liquidation expenses
2. Original Official
Receipts/Invoices named to
3. Inform the ACPC
3. Original Signed Quotations
Development Completeness from three (3) different
Institution of the No of documents? suppliers
lacking documents 4. Duly accomplished and signed
attendance sheet per training
needed to submit day
Yes 5. Other documents required by
ACPC
3. ACPC to process the
request II. Re-echo Training
Reimbursement

1. Notarized Contract of Services

4. Approval of the of the Trainer
request 2. Training Report of the TPLC
3. Post Evaluation Form

C. Memorandum of Agreement (MOA) with Development

Institution/External
Resource Provider
 The initial MOA between DA-ACPC and the Development Institution/External
Resource Provider shall be for the 2025 implementation of the DA-ACPCs Capacity
Building Programs. The Duties and Responsibilities of the Development
Institution/External Resource Provider in the MOA were discussed in the preceding
paragraph. A subsequent MOAs may be entered into for the years 2026, 2027, 2028
implementations of the program.

The MOA between DA-ACPC and the Development Institution/External Resource

Provider shall be governed by the provisions of R.A. No. 9184 or the “Government
Procurement Reform Act”, and Section 53.5, IRR of R.A. No. 9184 on Agency-to-
agency agreements. It is the general policy of the government to purchase its
requirements from the private sector. However, it acknowledges that, in some
exceptional cases, procurement from another agency of the government is more
efficient and economical for the government, subject to the following conditions:

i. The DA-ACPC shall justify that entering into an Agency to- Agency Agreement
with the Development Institution/External Resource Provider is more efficient
and economical to the government;
ii. The Development Institution/External Resource Provider has the mandate to
deliver the goods and services required to be procured or to undertake the
infrastructure project or consultancy required by the Procuring Agency;
iii. Development Institution/External Resource Provider has the absorptive capacity
to undertake the project;
iv. Development Institution/External Resource Provider owns or has access to the
necessary tools and equipment required for the project, including the module
development, the conduct of trainings, and follow through activities on coaching
& mentoring, and monitoring & evaluation;
v. Sub-contracting is not allowed. However, the Development Institution/External
Resource Provider may implement the infrastructure project in-house, by job-
order, or through the pakyaw contracting system;

Procedure:

i. The DA-ACPC unit shall justify to the BAC that the resort to Agency- to-Agency
is more efficient and economical to the government.
ii. It shall likewise secure a certificate from the relevant officer of the Development
Institution/External Resource Provider that the latter complies with all the
foregoing conditions.
iii. Based on the assessment and recommendation of the DA-ACPC-ICB, the DA-
ACPC BAC shall issue a Resolution recommending the use of Agency- to-
Agency Agreement to the DA-ACPC Executive Director.
iv. In case of approval, the DA-ACPC shall enter into a Memorandum of Agreement
with the Development Institution/External Resource Provider. The duration of the
MOA shall depend on the series of training that shall be implemented.

D. Training Cost, Liquidations and other Reportorial Requirements

The DA-ACPC shall provide P2,400 per trainee, full board and lodging, and
individual aliquot share in the venue rental. It shall also provide P2000 individual
business plan prepared. The cost estimates on: (i) development of training modules;
(ii) resource person fee; and (iii) other relevant training costs and expenses, shall be
provided by the Development Institution/External Resource Provider.

E. Timeline

1st 2nd 1st 2nd

Activities Sem Sem Sem Sem 2026 2027 2028
2024 2024 2025 2025
Preparatory Activities
MOA with DI/ERP

TNA and Kick-Off

meeting
Capacity Building
Activities
FFO
Potential PLC
Follow Through
Activities on Target
Setting and Monitoring
FFO
Potential PLC
ANNEX A: POSSIBLE TRAINING INTERVENTIONS FOR POTENTIAL PARTNER LENDING CONDUITS

Potential Areas of Duration of Target

ACPC Eligibility Criteria Training Courses
Weakness/es Training Participants
Satisfactory credit standing, if any
Fundamentals of 2 Day Manager
Cooperatives 16 hours Bookkeeper
Cooperative Governance 1 Day Cashier
and Management 8 hours Treasurer
management
Account/Loan
Complete Core Management officers: manager, bookkeeper, 3 Days
Strategic Planning Officers
cashier, loan officer 8 hours/day Election
Committee
1 Day
Conflict Management Audit Committee
8 hours
Ethics Committee
Review of Credit Policy 1 Day
credit policy 3 Days
Internal Control
At least 2-year track record in lending forms 8 hours/day
internal control 3 Days
Audit Management
8 hours/day
capital Resource Generation and 3 Days
poor collection Mobilization 8 hours/day
Profitable on the year preceding application and
operational cost BOD
as of the time of the application for credit fund 1 Day
volume Financial Literacy Secretary
fund management 8 hours Treasurer
3 Days Manager
Credit Management Bookkeeper
8 hours/day
Cashier
Liquidity Basic Accounting for Non- 3 Days Account/Loan
Risk Asset Ratio of not more than 10%
Capital Accountants 8 hours/day Officers
3 Days
Risk Management
8 hours/day
Poor Collection 3 Days
Internal Control
Disturb Economic Activities such 8 hours/day
Past Due Ratio of not more than 25% as calamities Values-Re-Orientation 1 Day
Poor membership selection 3 Days
poor CIBI/loan processing Loan Delinquency Control
8 hours/day
 ANNEX B: TRAINING COURSES FOR INDIVIDUAL SMALL FARMERS AND FISHERFOLK

Training Courses Duration of Training

2 Day
Fundamentals of Cooperatives
16 hours
1 Day
Cooperative Governance and Management
8 hours
3 Days
Strategic Planning
8 hours/day
1 Day
Conflict Management
8 hours
Review of Credit Policy 1 Day
3 Days
Internal Control
8 hours/day
3 Days
Audit Management
8 hours/day
3 Days
Resource Generation and Mobilization
8 hours/day
1 Day
Financial Literacy
8 hours
3 Days
Credit Management
8 hours/day
3 Days
Basic Accounting for Non-Accountants
8 hours/day
3 Days
Risk Management
8 hours/day
3 Days
Internal Control
8 hours/day
Values-Re-Orientation 1 Day
3 Days
Loan Delinquency Control
8 hours/day

Annex C: Nurturing Activities- Facilitate and Monitor the Execution of Action Plans

ACPC Eligibility Criteria
Satisfactory credit standing, if
any
Complete Core Management
At least 2-year track record in
lending
Profitable on the year
preceding application and as
of the time of the application
for credit fund
Risk Asset Ratio of not more
than 10%
Past Due Ratio of not more
than 25%
Annex D: Training & Workshop Completion Report
Potential Areas of
Training Courses Nurturing Activities
Weakness/es
Fundamentals of Cooperatives  Installed Books of Accounts
management Cooperative Governance and
officers: manager, Management  Increased Capital Build Up
bookkeeper, cashier,
Strategic Planning  Applied parliamentary procedures effectively
loan officer
Conflict Management when conducting meetings, Minutes, Agenda,
credit policy Review of Credit Policy Reporting, etc.
forms Internal Control  Developed a short-term Strategic Plan
internal control Audit Management
 Increased Membership
capital Resource Generation and
poor collection Mobilization  Development of Credit Operations Manual
operational cost
 Developed Business Plan
volume Financial Literacy
fund management  Enhanced market linkage
Credit Management
 Generated Financial Statements
Liquidity Basic Accounting for Non-
Capital Accountants  Installed Internal Control System
Risk Management  Competency in conducting Audit
Poor Collection Internal Control
 On-going lending operations
Disturb Economic Values-Re-Orientation
Activities such as  Additional economic activity
calamities
Poor membership  Eligible as Training Partner / Resource
selection Loan Delinquency Control
Provider in provision of Trainings
poor CIBI/loan
processing
 Training & Workshop Completion Report

Training Title
Training Venue
Duration From To
Nos of Participants Male + Female = Total
Observer if any Male + Female = Total
Objectives 1.
2.
3.

Expected Outcomes 




Description of Day (1)

Content (Head Day (2)
Topics) Day (3)
Day (4)
Continued
Evaluation by The most interesting Topics:
Trainees
The least interesting Topics:

Suggestions for
further improve-
ments by trainees

Total Expenses
Per Unit

Prepared by Name Designation Date

Attach also:

1) Summarized Training Evaluation Form

2) Summarized Training Expenses Form
3) Participants profile