A Concept Paper for the Proposed

Isabela Province’ Commercial

Dairy Production Project

A Sustainable Commercial Dairy Production Project

Undertaking for the Benefit of the Children of the
Province of Isabela
PROJECT OVERVIEW
The Isabela Commercial Dairy Project shall involve the setting up of a
commercial milk production facility owned and operated by the Provincial
Government of Isabela which is aimed primarily in effectively addressing the
nutritional concerns of toddlers and children suffering from under nourishment
due to lack of available supplemental nutritional intake like fresh cow’s milk.

The Province hopes to engage in a profitable enterprise that will not only help
its constituents, but will also augment its coffers to finance other meaningful
projects for the people.
HOW IT WORKS
• The Province shall provide the land for the commercial milk production facility
• The Province shall finance the entire operations such as construction of the plant
facility, acquisition of plant equipment, adoption of dairy production technologies
and sourcing needed funds from its own available funds, loans from GFIs like the
LBP and DBP, and accessing available international and local grants.
• The Province shall engage is strategic partnership with other government stake
holders such as the Department of Education, the Department of Health, the
Department of Agriculture, and the National Dairy Authority.
• To ensure efficient operations and management, as well as its commercial viability
- the Province shall engage the expert services of private management group.
PROJECT IMPLEMENTATION PHASES

Phase 1. PROJECT FEASIBILITY PREPARATION

The Province shall initiate the preparation of a Project Feasibility Study (FS) by:
• Securing funds for the preparation of the FS by using its available funds.
• If funds for the FS preparation is not sufficient, seek funding assistance from the
Department of Agriculture, Department of Science and Technology, and
National Dairy Authority from its available funds and/or assist in securing loan
from the LBP or DBP
• The Province may also seek funds from international and local organizations to
assist in securing funds for the FS preparation
 PROJECT FEASIBILITY STUDY

AVAILABLE FUNDS FUND ASSISTANCE ASSISTED LOAN GRANTS

Province of Isabela Dept of Agriculture LBP International
National Dairy Authority DBP Organization
Dept of Science & Technology
Local
Organization
PROJECT IMPLEMENTATION PHASES

Phase 2. PROJECT FUNDING

The Province shall secure the required capital and operating funds for the project
by:
• Securing additional funds from the Department of Agriculture, Department of
Science and Technology and National Dairy Authority and/or assist in securing
loan from the LBP or DBP
• Seeking available grants from international organization like the USAID,
UNESCO, or other international and local funding organization
 PROJECT FUNDING

AVAILABLE FUNDS FUND ASSISTANCE ASSISTED LOAN GRANTS

Province of Isabela Dept of Agriculture LBP International
National Dairy Authority DBP Organization
Dept of Science & Technology (USAID. UNESCO,
ETC.)

Other Local
Organization
PROJECT IMPLEMENTATION PHASES

Phase 2. PROJECT IMPLEMENTATION

The Province shall engage the services of a private group to manage, operation
and maintain the commercial viability of the milk production plant under an
”OPERATE AND MAINTAIN (O&M)” Scheme. This will insure that that plant’s viable
commercial operation is fully realized. This will help the unburden the Province
from utilizing its limited fund resources.

To ensure viability of the Province’s “Free Distribution of fresh milk to local

children” program, the Province shall enter into Agreement with the Department
of Education and the Department of Health to subsidize the supply of milk to the
children.
 PROJECT IMPLEMENTATION
O&M PARTNEER
• Commercially operate and
maintain the plant
• Engage in the sale and
distribution of fresh milk to the
locality and nearby provinces
PROVINCE OF ISABELA
Secures SUBSIDY for its FREE MILK
DISTRIBUTION PROGRAM to local
Children
• With the Department of Education and
Department of Health for it free milk
distribution to local children
• From local and international
organization
END OF PRESENTATION