PROJECT CONTRACT

KNOW ALL MEN BY THESE PRESENTS:

This Contract is executed and entered into by and between the following parties:

The DEPARTMENT OF AGRICULTURE – MINDANAO INCLUSIVE AGRICULTURE

DEVELOPMENT PROJECT – PROJECT SUPPORT OFFICE MINDANAO (DA-MIADP
PSO), a special project of the Department of Agriculture represented herein by DIR. ABEL
JAMES I. MONTEAGUDO, Project Director of DA-MIADP Project Support Office
Mindanao, herein referred to as the “DA-MIADP PSO”;

-and-

The DEPARTMENT OF AGRICULTURE – REGIONAL FIELD OFFICE XII, MIADP -

REGIONAL PROJECT COORDINATION OFFICE XII, with office address at Koronadal
City represented herein by JOHN B. PASCUAL, Regional Project Director, hereinafter
referred to as the “DA-RFO XII, MIADP-RPCO XII”

-WITNESSETH-

WHEREAS, the Government of the Philippines (GOP) has obtained a loan from the
International Bank for Reconstruction and Development – World Bank (IBRD-WB) with
IBRD Loan No. 9488-PH dated June 25, 2023 amounting to ONE HUNDRED MILLION U.S.
DOLLARS (US$100,000,000.00) for the purpose of financing the “MINDANAO INCLUSIVE
AGRICULTURE DEVELOPMENT PROJECT (MIADP)” to address the lingering poverty
among the indigenous peoples of Mindanao by by enhancing their production and marketing
capacities through agricultural infrastructure and enterprise development programs, activities and
projects within the regions covered by their ancestral domains;

WHEREAS, the MIADP is geared to sustainably increase agricultural productivity, resiliency,

and access to markets and services of IP farmers and fisherfolk groups within the ancestral
domains of Mindanao, is being implemented by the Department of Agriculture (DA)
specifically to increase agricultural productivity and improve the living standard of the indigenous
peoples of Mindanao, through the building or enhancement of the capacity of Local Government
Units (LGUs) in providing basic services, supporting the construction of basic infrastructure, and
providing employment and income-earning opportunities within Mindanao;

WHEREAS, all funds concerning the implementation of the MIADP components, namely (a)
Ancestral Domain Planning and Social Preparation (AD-Plan), (b) Resilient Ancestral Domain
Agri-Fisheries Infrastructure (AD-Infrastructure), (c) Ancestral Domain Agri-Fisheries
Production and Enterprise Development (AD-Enterprise) and (d) Project Management and
Support, Monitoring and Evaluation, will be coursed through and maintained by the DA-MIADP
PSO;

NOW THEREFORE, for and in consideration of the foregoing mutual covenants hereinafter
contained, the parties do hereby bind themselves and agree on the following obligations and
responsibilities:

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 ARTICLE I
The Project

1.1 Coverage and Expected Output

The Project covers the transfer of funds to the DA-RFO XII, MIADP-RPCO XII in the
amount of FORTY SIX MILLION ONE HUNDRED SIXTY THREE THOUSAND TWO
HUNDRED FORTY & 00/100 (Php46,163,240.00) to defray its operational expenses for the
implementation of the project for the period of January 1, 2024 to December 31, 2024.

The said amount shall be utilized for MIADP related implementation activities and
administrative support to carry out the following:

i.Facilitate/coordinate the conduct of briefings/consultations/orientations to LGUs and project

partners.
ii.Review and update documentary requirements with concerned stakeholders.
iii.Institutionalize and operationalize the Regional/Provincial management implementing
structures.
iv.Setting up of the implementation structure at the provincial level.
v.Provide technical assistance to LGUs in the implementation of the MIADP.
vi.Ensure prompt submission of reports relating to the status of implementation activities and
fund utilization covered under this Project Contract.

The DA-MIADP PSO shall be responsible for monitoring and ensuring satisfactory outputs
of this Project Contract.

1.2 Project Fund Utilization

The project funds will be utilized as follows:

i.Traveling Expenses
ii.Training Expenses
iii.Office Supplies Expenses
iv.Fuel, Oil & Lubricants
v.Semi-Expendable – ICTE
vi.Telephone Expenses – Mobile
vii.Consultancy Services
viii.Other Professional Services
ix.Repairs and Maintenance – Motor Vehicles
x.Representation Expenses
xi.Rent – Motor Vehicles/Office Space
xii.Other Maintenance and Operating Expenses
xiii.Other operational expenses related to MIADP implementation activities

1.3 Project Fund Releases

The DA-MIADP PSO will release the whole amount to DA-RFO XII, MIADP-RPCO XII
based on their approved Work and Financial Plan (WFP) subject to a monthly liquidation.

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 ARTICLE II
Execution of the Contract

2.1 The DA-MIADP PSO shall:

a) Transfer the amount of FORTY SIX MILLION ONE HUNDRED SIXTY THREE
THOUSAND TWO HUNDRED FORTY & 00/100 (Php46,163,240.00) to cover the
operating expenses from January 1, 2024 to December 31, 2024, subject to availability
of funds;

b) Facilitate the release of the funds to the DA-RFO XII, MIADP-RPCO XII.

c) Authorize the DA-RFO XII, MIADP-RPCO XII to coordinate all MIADP activities
related to the execution of this Contact;

d) Provide technical support to the DA-RFO XII, MIADP-RPCO XII for the overall
planning, management and coordination of activities to ensure smooth and efficient
implementation of the project;

e) Monitor implementation of Project Contract activities in the DA-RFO XII, MIADP-

RPCO XII; and,

f) Provide other forms of assistance as deemed necessary by DA-RFO XII, MIADP-

RPCO XII.

2.2 The DA-RFO XI, MIADP-RPCO XII shall:

a) Issue official receipt corresponding the amount released by DA-MIADP PSO;

b) Prepare and submit monthly the following documents to DA-MIADP PSO on or before
the 5th day of the following month:
▪ Report of Disbursement

▪ Statement of Receipts and Expenditures (SRE)

▪ Statement of Expenditures (SOE)

c) Ensure that funds are disbursed in accordance with the existing government accounting
and auditing rules and regulations;
d) Ensure that the funds are being utilized according to its intended purpose with due regard
to economy, efficiency, and the achievement of the project’s objectives;
e) Settle with the Commission on Audit (COA) whatever audit observations and
disallowances found in the course of its examination.

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 ARTICLE III
Miscellaneous

3.1 Mutual Obligation

DA-MIADP PSO and DA-RFO XII, MIADP-RPCO XII agree to perform, fulfill, abide by and
submit to any and all of the provisions, and requirements and all matters and things contained or
expressed in or reasonably to be inferred from the Contract Documents. All unobligated amount
shall be returned or applied to succeeding Project Contracts.

3.2 Contract Period

The DA-MIADP PSO and the DA-RFO XII, MIADP-RPCO XII agree that the Project
Contract herein described shall be implemented from January 1, 2024 to December 31, 2024.

3.3 Performance Assessment

In case of unacceptable performance by the DA-RFO XII, MIADP-RPCO XII to discharge the
defined activities stated in this Project Contract, the DA-MIADP PSO shall cause the suspension
of fund releases and cancellation or reallocations of funds, as the case may be.

3.4 Notices

All notices called for by the terms of this Contract shall become effective only at the time of
receipt thereof and only when received by the parties to whom they are addressed:

For the Department of Agriculture: The Project Director

Mindanao Inclusive Agriculture Development
Project Alvarez Bldg., A. Angliongto Sr. Avenue,
Davao City

For the DA-RFO XII, MIADP-RPCO XII: The Regional Project Director
Mindanao Inclusive Agriculture Development
Regional Project Coordination Office
Region XII, Koronadal City

3.5 Integration

DA-MIADP PSO and the DA-RFO XII, MIADP-RPCO XII agree that this Project Contract
expresses and integrates all agreements, promises and covenants of the parties and supersedes all
prior negotiations, understanding and agreements, whether written or oral and that no
modification or alteration of this Contract shall be valid or binding on either party unless
expressed in writing and executed with the same formality as this Contract.

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 ARTICLE IV
Effectivity

This Agreement shall take effect on the date of the signing hereof by the parties concerned and
shall be terminated upon satisfactory fulfillment of all the terms and conditions embodied herein.
Any modification or amendments to this Agreement, as proposed by either party shall mutually be
agreed upon in writing by all the parties hereto.

IN WITNESS WHEREOF, the parties have hereunto set their signatures this _______
day of ____________ 2024 in __________.

DEPARTMENT OF AGRICULTURE- DEPARTMENT OF

MINDANAO INCLUSIVE AGRICULTURE REGIONAL
AGRICULTURE DEVELOPMENT FIELD OFFICE XII, MINDANAO
PROJECT, PROJECT SUPPORT INCLUSIVE AGRICULTURE
OFFICE DEVELOPMENT PROJECT,
REGIONAL PROJECT
COORDINATION OFFICE- XII

By: By:

ABEL JAMES I. MONTEAGUDO JOHN B. PASCUAL

Project Director Regional Project Director
SIGNED IN THE PRESENCE OF:

CRISTY CECILIA POLIDO MARIA CECILIA E. FRANDO

Deputy Project Director Regional Deputy Project Director

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 ACKNOWLEDGMENT

Republic of the Philippines )

City of Davao ) S.S
x-------------------x

BEFORE ME, this _____ day of _________ 2024 __________, personally appeared the
following persons:

Name Competent Evidence of Identity Place/Date Issued

1. ABEL JAMES I. MONTEAGUDO P1344073B DFA Davao City/Apr 04, 2019

2. JOHN B. PASCUAL ________________ ________________________

All known to me to be the same persons who executed the foregoing instrument and signed their
signatures above and acknowledged to me the due execution hereof is their free and voluntary act
and those of the offices they represent.

This instrument consisting of six (6) pages, including the page on which this acknowledgement is
written, has been signed on each and every page by the parties and their witnesses, and sealed
with my notarial seal.

IN WITNESS WHEREOF, I have hereunto set my hand, the _____ day of ___________, 2024
and place above written.

Doc. No. _____________

Page No. _____________
Book No. _____________
Series of 2024