MASICAP II assists six projects worth P4.1M in Misamis Oriental
Misamis Oriental confidence in investing in the promotion of medium and small scale industries in the province appears to be well founded.
In its First Quarter Performance Report to the capitol covering the period Aug 22, 2011 to Nov. 22, 2011. , the Medium and Small Scale Industries Coordinated Action Program (MASICAP II) told Misamis Oriental Gov. Oscar S. Moreno it was able to assist six projects with an aggregate total project cost of PhP 4,099,613.43 and loan/grant component of PhP 2,045,758.47.
“The assisted projects are expected to create incremental employment of 19.73 and benefit 249 beneficiaries, mostly farmers,” said Cherrilyn L. Baylon, MASICAP II program coordinator in her report. Another project is in the pipeline with four others identified for possible assistance.
The provincial government through Gov. Moreno entered into a memorandum of agreement with the Masicap MSME Development Foundation, Inc. headed by its president Vicente T. Paterno to support the national government’s thrust in developing small and medium enterprises (SMEs) through the provision of technical personnel to assist residents with prospective SME projects in the province. The agreement started August 1, 2011 renewable annually upon mutual agreement of the two parties.
Under the terms of the agreement, MASICAP II would provide a team of three trained personnel to assist SME prospects in Misamis Oriental prepare project feasibility studies and documents that can help them avail of loans and other assistance from banks and other funding agencies. In return, the LGU would shoulder the operating expenses of the assigned team.
“We chose to tap MASICAP II in consonance with our general strategy of pooling resources with the public and private sector to fund our programs,” Gov. Oscar S. Moreno said. “We are happy to note that under this strategy of Kurambos, we have helped our MSMEs sustain their invaluable contribution to our province’s economy.”
Latest figures from the Misamis Oriental Provincial Office of the Department of Trade and Industry (DTI) show a total of 294 small and medium enterprises of which 50 are food enterprises and another 19 crafts MSMEs registered with the agency.
MASICAP has its beginnings in 1974 when the Department of Trade and Industry’s successful program of the same name ran for six years. In August 2002, MASICAP Foundation launched the MASICAP II pilot program in five provinces and cities in Southern Mindanao with funding from Mr. Paterno and volunteer work by MASICAP 1 alumni.
Once the MASICAP II pilot operations demonstrated its relevance and effectiveness in assisting SMEs obtain loans/grants for new/expanded SME projects, it expended to other sites in Southern and Central Mindanao with funding from participating LGUs and the Development Bank of the Philippines (DBP) in 2003-2004.
For the period September 1, 2004 to May 31, 2011, MASICAP II has assisted 233 SMEs file applications for loans/grants with another nine SMEs assisted. Total project cost for the 233 SMEs assisted totaled PhP 188,308,825.95 with total loans/grants components of PhP 94,749,423.65.
Funding was provided mainly by Quedancor which financed 73 percent of the total loans/grants released, with the balance coming from the DBP, Land Bank of the Philippines, Small Business Corporation and rural banks.