A PHP237 million World Bank (WB)-funded project will modernize banana chips processing in three Leyte towns, turning small-scale farming into a sustainable and profitable enterprise.

Under the project, dubbed the Eastern Visayas Banana Processing and Marketing Enterprise (EVBPME), the Omaganhan Farmers Agrarian Reform Cooperative (OFMPC) based in Tabango, Leyte, will consolidate banana produce from 27 farmer clusters, comprising 679 members across the towns of Villaba, Tabango, and San Isidro.

“These farmers will supply raw cardaba bananas to a modern processing facility in Villaba, which uses automated banana chip processing technology and adheres to international food safety standards,” the Department of Agriculture (DA) regional office here said in a statement on Tuesday.

The EVBPME is one of the officially approved initiatives under the Philippine Rural Development Project (PRDP), marking a breakthrough in the local banana industry.

Of the PHP237 million investment, WB will provide a PHP142 million loan while the balance will be shared by the Philippine government and the OFMPC.

Established in 1989 as a multipurpose savings and credit cooperative, OFMPC has grown into a key player in regional agriculture. The group initially ventured into banana production in 2013 despite facing setbacks due to typhoons and market shifts.

The project is expected to generate 107 jobs during the operational phase and an additional 132 jobs through infrastructure development.

Beneficiaries’ incomes are projected to increase from PHP20,887 to PHP24,937 in the first year of operations, culminating in an average annual income increase of PHP64,020 over a 10-year period, according to DA.

While at the enterprise level, projected net income is PHP30.4 million annually, supported by a strong return on investment of 24.42 percent, an internal rate of return of 18 percent, and a payback period of 7.6 years. (PNA)