MEMORANDUM CIRCULAR

No. ________
Series of 2023

SUBJECT: REVISED IMPLEMENTING GUIDELINES OF THE KADIWA FINANCIAL

GRANT ASSISTANCE PROGRAM

The Department of Agriculture (DA) during the Covid-19 Pandemic has been tasked to
ensure the availability of food by adopting measures to facilitate and/or minimize
disruption to the food supply chain, especially for basic commodities and services. Part of
the Department’s strategy is the provision of financial grant assistance to farmer and fisher
groups and community-based organizations (CBOs). This is to capacitate and involve them
in the food distribution system.
In the Philippines’ post-pandemic or new normal transition, food availability and
accessibility is crucial to the country’s recovery. Thus, the DA has continued to intensify the
operations of KADIWA not only in Metro Manila but also in the regions. The continued
operation of the program facilitated food availability and accessibility to consumers
through partnerships with national government agencies (NGAs), local government units
(LGUs), farmers and fisherfolk, private sectors, and community-based organizations. This
has proven effective in bringing fresh and affordable products directly to consumers in
urban centers.
However, challenges continued to arise during the operations of KADIWA. Farmers and
fisherfolk experienced limitations in their ability to supply the requirements of institutional
buyers, efficiency to transport their agri-products, and capacity to market their enterprise
and sell its products, among others. Thus, the “KADIWA Financial Grant Assistance
Program” has been established by the DA to capacitate this sector and help resolve the
limitations mentioned.
To ensure the holistic implementation of the Program, this revised Implementing
Guidelines is hereby issued and shall be provided to the DA concerned offices.

Section 1. Program Objectives

Generally, the KADIWA Financial Grant Assistance intends to help farmers and fisherfolk
and effectively improve the food distribution system nationwide. Specifically, it aims to:
● Capacitate farmers and fisherfolk to become reliable and efficient food commodity
suppliers;
 ● Increase the number of Farmers and Fisherfolk Cooperatives and Associations
(FCAs) who will engage and market in KADIWA Selling activities;
● Encourage partnerships between the proponent and private sectors/institutional
buyers to ensure the sustainability of the agri-enterprise.

Section 2. Scope and Coverage

The grant shall provide up to Php 5 million assistance to the proponents to cover post-
harvest, processing, value-adding activities (i.e., procurement of produce, aggregation,
packaging, transport and distribution of agricultural and fishery commodities), and
establishment of KADIWA Stores.
It shall not cover non-food agri-commodities (e.g., rubber, fiber, and copra) and production
support, such as seedlings, planting materials, fertilizers, farm machinery and tractors,
among others.
The grant assistance encompasses all eligible micro, small, and medium enterprise (MSME)
proponents nationwide. Ineligible proponents include individual farmer/enterprise and
non-registered groups.

Section 3. Definition of Terms

1. "Community-Based Organization (CBO)" refers to a type of a Civil Society

Organization (i.e., non-government organization, cooperative, association, domestic
corporation, People's organization, homeowners' association, indigenous people’s
organizations) with representation from the community, expressing the interest and values
of their members, duly registered with the Securities and Exchange Commission (SEC),
Cooperative Development Authority (CDA), Department of Labor and Employment (DOLE)
- Bureau of Rural Workers (BRW), or Housing and Land Use Regulatory Board.

2. "Farmers and Fisherfolk Cooperative and Association (FCA)” refers to farmers and
fisherfolk cooperative, association or corporation duly registered with appropriate
government agency (i.e., SEC, CDA, DOLE-BRW) and are composed primarily of small
agricultural producers, farmers, farm workers, agrarian reform beneficiaries, and fisherfolk
who voluntarily join together to form business enterprises or non-business organizations,
which they themselves own, control, and patronize.

3. "Local Government Units (LGUs)" refers to the political subdivision of the Republic of
the Philippines at provincial, city, municipal or barangay level.
4. "State Universities and Colleges (SUCs)" refers to public Higher Education Institutions
(HEIs) established by the national government and are governed by their respective
independent boards of trustees or regents.

5. "Food Commodities" refer to commonly consumed foods that are ingested for their
nutrient properties, such as raw agricultural commodities (e.g., crops, highland and
lowland vegetables, poultry and livestock, aquaculture products) or processed
commodities provided they are the forms that are sold or distributed for human
consumption.

6. "Transport Logistics" refers to different modes of transportation for hauling and

transporting of agri-fishery produce appropriate for the needs of the beneficiaries.

Section 4. Grant Purpose, Grant Amount, and Eligible Proponents

4.1. Grant Purpose

The eligible proponent shall utilize the financial grant for any or combination of the
following:
1. Trading Capital (procurement of farmer’s produce) or Working capital
(procurement of raw materials for processing) - maximum of Php 1 million;
2. Purchase of machinery or equipment for pre-processing (cleaning, sorting,
packing, drying, etc.) and processing activities;
3. Procurement of transport logistics and delivery vehicles;
4. Establishment and rehabilitation of storage facilities, warehouses, post-harvest
facilities, and processing centers;
5. Procurement of retail selling equipment like freezers, chillers, display
racks/shelves, manual and/or digital weighing scales, crates, etc., and
6. Establishment/renovation/improvement of KADIWA Store.

4.2. Grant Amount

Eligible proponents, such as FCAs, LGUs, SUCs, and CBOs may receive up to Php 5 million.
All eligible proponents shall provide equity equivalent to at least 20% of the total project
cost, which may be in the form of cash or in-kind.

If the LGU would apply as a conduit, the LGU or its identified FCA beneficiaries shall
provide the said counterpart.

4.3. Eligible Proponents

4.3.1. FCAs and CBOs

a. Must be an accredited Civil Society Organization (CSO);
 b. Must be registered with the Farmers and Fisherfolk Enterprise Development
Information System (FFEDIS);

c. Must have no unliquidated funds from the concerned office (DA Central Office or DA RFOs) ;
d. Must not have any Director, Trustee, Officer or key personnel related within the
fourth civil degree of consanguinity or affinity to any official of the government
agency or office handling or implementing the project to be implemented by the
organization. Relationships of this nature shall automatically disqualify the
FCA/CBO of the grant assistance.

4.3.2. LGUs
a. Must have no unliquidated funds from the concerned office (DA Central Office or DA
RFOs);
b. Must have identified farmer and fisherfolk beneficiaries, and
c. Must have identified LGU-accredited FCAs, if as conduit.
4.3.3. SUCs

a. Must have no unliquidated funds from the concerned office (DA Central Office or DA
RFOs);
b. Must have identified farmer and fisherfolk beneficiaries.

Section 5. Proposal Evaluation and Approval

The Proposal Evaluation and Approval phase is composed of the Application, Evaluation,
Review, and Approval processes. The final output of this phase is the approved and signed
evaluation report.

5.1 Application. Eligible proponents (FCA, LGU, CBO, and SUC) must submit their
application through a letter of intent and a project proposal with complete documentary
requirements provided in Annex 1.
5.2 Evaluation. The AMAS Director and RFO Regional Executive Directors shall designate technical staff
in their respective offices, who shall conduct the processing and evaluation of the proposals.
Only complete applications shall be evaluated.

The evaluation of the proposal shall be based on the following:

a. Assessment of management capability and credibility of the organization

● For FCAs and CBOs - This shall be based on the track record of similar
projects implemented and audited financial statements.
● For LGUs and SUCs- Certification of no unliquidated funds from DA
b. Assessment of the enterprise’ viability based on projected financial statements and
analysis
 c. The amount of the grant shall be based on the following:
● Procurement of produce - actual list of prospective farmers or number and
location of farmers where the produce will be procured
● Construction of Infrastructure - detailed engineering design and program of
works
● Acquisition of equipment, machinery or delivery vehicle - pre-canvass of
quoted prices, description, and specifications of the equipment, machinery or
vehicle
The evaluation process will take seven (7) working days per application and a site
validation will also be conducted after the technical evaluation. The evaluators may also
request comments and recommendation from concerned DA operating units, such as
Bureau of Agricultural and Fisheries Engineering (BAFE), Agricultural Training Institute
(ATI), Bureau of Agriculture and Fisheries Standards (BAFS), and other concerned agencies
in relation to the proposals for funding under the KADIWA financial grant. By the end of the
evaluation, an evaluation report shall be submitted to the reviewing team assigned by the
AMAS Director and the RFO REDs.
5.3 Review. The Review Team at the Central Office shall be led by the AMAS Director with
the Chief of the three (3) Divisions as members.
The Regional Review Team shall be led by the Regional Technical Director with the AMAD
Chief and additional members from other divisions in the region assigned by the Regional
Executive Director.
The team shall review the evaluation report prepared by the designated technical staff and
recommend to the approving authority the approval of the proposals. The review process
will take seven (7) working days upon receipt of the submitted evaluation report.
5.4 Approval. The approval of the grant assistance shall be signed by the following:
Particulars DA Central Office DA Regional Field Office
Final Approval Assistant Secretary (designated Regional Executive Director
by the Secretary) (RED)

Recommending AMAS Director Regional Technical Director

Approval (RTD)

Section 6. Pre-Implementation
The Pre-Implementation phase consists of the MOA Review and Signing and the Fund
Transfer process.
6.1 MOA Review and Signing. Upon approval, the DA shall execute a Memorandum of
Agreement (MOA) between the DA (represented by the Assistant Secretary or the Regional
Executive Director) and the proponent (represented by the Local Chief Executive,
President, or Chairperson).
6.2 Fund Transfer. The approved grant shall be released in accordance with the approved
work and financial plan of the Project. It shall be sourced from the DA-AMAS and DA-RFOs
funds under General Appropriations Act (GAA) Fund.
Moreover, the signing authorities of the Disbursement Vouchers and Obligated Request and
Status (ORS) for the release of funds shall follow the DA Memorandum Order No. 03, s.
2016 as amended by DA General Memorandum Order No. 01 s. 2018.

Section 7. Implementation
The Implementation phase is composed of the Project Execution and Monitoring processes.
7.1 Project Execution. The grantee must implement their proposed project and maintain
financial and accounting records of the grant funds received and utilized.
7.2 Monitoring. The AMAS and AMADs shall conduct the monitoring of the proponent’s
fund utilization reports, progress of the procurement of goods and support facilities, and
construction of infrastructure.

Section 8. Post-Implementation
The Post-Implementation phase requires the Project Completion and Liquidation
processes.
8.1. Project Completion. Upon submission of the complete liquidation report by the
proponent, a Certificate of Project Completion signed by the AMAS Director or the Regional
Executive Director will be issued.
On the other hand, the proponent must issue a Certificate of Acceptance signed by the
grantee. The grantees must ensure that all infrastructure, logistics, and equipment financed
under the KADIWA Financial Grant Assistance Program shall bear the DA and KADIWA
Logo. In addition, the KADIWA Stores must follow the KADIWA Price, which is lower than
the prevailing retail price at the nearest dry/wet market.
8.2. Liquidation. The proponent must submit a liquidation report to the DA. The
liquidation report should contain the following (per COA Circular No. 2012-001 dated June
14, 2012):
a. Final Fund Utilization Report certified by the accountant, approved by the Local
Chief Executive, President, or Chairperson, and verified by the internal auditor or
equivalent official of the DA
b. Pictures of implemented projects
c. Inspection report and Certificate of Project Completion
d. List of beneficiaries with their signatures signifying their acceptance/
acknowledgement of the project funds/services received
 e. Proof of Verification
f. Official Receipt issued by the DA acknowledging return of any unutilized/excess
amount
g. List of equipment procured out of the project fund
h. Warranty for procurement of equipment and project
i. Liquidation Report
All the processes stated are simplified into the Program Implementation Process Flow,
which can be seen in Annex 2.
Section 9. Fund Source
The funding requirement shall be sourced from the DA’s funds under General
Appropriation Act (GAA).
Section 10. Repealing Clause
All DA issuances, orders, rules and regulations, or parts thereof that are inconsistent with
the provisions of this Order are hereby repealed or modified accordingly.
Section 11. Separability Clause
If any provisions under this guidelines are declared unlawful or unconstitutional, the other
provisions not stated as such shall continue to be in full force and effect.
Section 12. Force Majeure
Neither party will be held responsible for any delays or failures in carrying out these
guidelines as long as they are caused by events or circumstances that are beyond their
control, such as natural disasters, war, civil unrest, government actions, strikes, labor
disputes, or difficulties in obtaining materials or transportation.

Section 13. Effectivity. These Guidelines shall take effect immediately upon signing.

Done this day of ________ of _______________________________________.

Approved:

DOMINGO F. PANGANIBAN
Senior Undersecretary
Annex 1. Documentary Requirements for Application
Documentary Requirements
1. For FCAs/CBOs
a. Certificate of Registration from Securities and Exchange Commission (SEC),
Department of Labor and Employment (DOLE), Housing and Land Use Regulatory
Board (HLURB), and Cooperative Development Authority (CDA) with corresponding
Certificate of Good Standing (SEC/DOLE/HLURB) or Certificate of Compliance
(CDA);
b. Authenticated copy of latest Articles of Incorporation (SEC) or Articles of
Cooperation (CDA) and copy of By-laws, showing the original
incorporators/organizers and the Secretary’s certificate for incumbent officers,
together with the Certificate of Filing (SEC) or Certificate of Approval (CDA);
c. Financial reports audited by independent Certified Public Accountant/s for the past
three (3) years preceding the date of proposal application. For FCA/CBO that has
been in operation for less than three (3) years, financial reports for the years in
operation and proof of previous implementation of similar projects;
d. Disclosure Statement by the FCA/CBO of other related business if any, and extent of
ownership therein;
e. Work and Financial Plan (WFP), and Sources and Details of Proponents Equity;
f. Complete project proposal approved/signed by officers, and
g. Sworn Affidavit of the Secretary of FCA/CBO that none of its incorporators,
organizers, directors or officers is an agent of or related by consanguinity or affinity
up to the fourth civil degree to the officials of the agency authorized to process
and/or approve the proposal, proposed MOA, and the release of funds.
2. LGUs
a. Project Proposal;
b. Work and Financial Plan, and
c. Sangguniang Bayan/Panlungsod Resolution authorizing the Local Chief Executive to
enter into a Memorandum of Agreement (MOA) approving the proposed project and
allocation of counterpart.

3. SUCs
a. Project Proposal;
b. Work and Financial Plan, and
c. Board of Regents Resolution authorizing the President to enter into a Memorandum
of Agreement (MOA) and approving the proposed project and allocation of
counterpart.

Annex 2. Program Implementation Process Flow

The KADIWA Grant Financial Assistance Program shall be guided by the process flow
below. It is divided into four (4) phases, namely, Proposal Evaluation and Approval, Pre-
Implementation, Implementation, and Post-Implementation.

Proposal Evaluation Pre- Implementation Post-

and Approval Implementation Implementation

- Application - Project
- MOA Review Execution - Project
- Evaluation and Signing - Monitoring Completion
- Review - Fund - Liquidation
- Approval Transfer