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NATIONAL FOOD AUTHO I [L]S:.|'.#
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Quezon CitY

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FAX MESSAGE FOR TRANSM +..
E,.:

TO: DIRECTOR RUBEN J. RESIDE PM

NFA REGION V, LEGASPIC]TY NFA
B\n I ---,.

PM JOSE DANILO V. NIEVES PME

NFA DAET, CAMARINES NORTE NFA SORSOGON

PM EDNA R. DE GUZMAN

AO-2K13-L-_gia..L THE DEPARTMENTOF AGRTCULTURE AND NFA HAS ENTERED INTO A

MEMORANDUM OF AGREEMENT FOR THE IMPLEMENTATION OF THE AGRI-PINOY RICE PROQESSING CENTER
(Rpc PRoJECT) . DA REGTONAL FIELD OFFICE V (DA-RFO-V)WILL BE TRANSFERRING FUNDS FOR WORKING
CAPITAL AND TECHN]CAL CAPABILITYTRAINING OF QUALIFIED RECIPIENTS OF RPCS AS FOLLOWS:

FIETD OFFICE AMOUT{I BENEFICIARY/LOCATION RPCTYPE

NFA DAEI CAM. MASICAP MULTI-PU RPOSE COOPERATIVE, DAET,
RPC-1
NORTE
1.5M - CAMARINES NORTE
1'5M - PECUARIA DEV'TCOOP., BULA, CAM. SUR RPC-1
NFA PIL] 2 1.sM \ MAGARAO MPC, MAGARAO CAM, SUR RPC-1
CAMARINES SUR 1.5M * ftr-I 54XP16*S PALAY SEED GROWERS COOP RPC - 1.
1.5M - SAN AGUSTIN-SAN RAMON FARMERS COOP. RPC-L
NFA OGBONG AGRARIAN REFORM BENEFICIARIES,
1.5M RPC-1
CATANDUANES VIGA. CATANDUANES
IROSIN MARKETVENDORS & FA.RMERS DEV'T
NFA SORSOGON 1.5M - COOP. IROSIN. SORSOGON RPC - 1.

THE PROVINCIAL OFFICE CONCERNED SHALL 1SSUE AN OFFICIAL RECEIPT AND DEPOSIT THE AMOUNT TO
AN AUTHORIZED GOVERNMENT DEPOSITORY BANK TO BE NAMED AS"NFA AGRI.PINOY RPC ACCOUNT'"1
THE AMoUNT SHALL BE TAKEN UP AS 'DUE TO OTHER NGAS - DA - AGRI-PINOY RPC (416.05.APRP)"
AND A SEPARATE RECORD OF ALL RPC TRANSACTIONS SHALL BE MAINTAINED.
COPY OF THE MOA AND OTHER DOCUMENTS SHALL BE SENTTO YOUR END SHORTLY AND BRIEFING
oN THE DETATLS / GUIDELTNES tN THE IMPLEMENTATION OF THE PROJECT WILL BE CONDUCTED.
YOU ARE HEREBY INSTRUCTED TO DIRECTLY COORDINATE WITH DA-RFO V.
FOR IMMEDIATE COMPLIANCE.

ADM CALAYAG
O.B. NFA

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MEMORANDUM OF AGREEMENT

KNOW ALL MEN BY THESE PRESENT:

This Memorandum of Agfeenrent made arr entered into this ?l day of

November 2013 in Quezon City, by ald,between:

The DEPARTMENT OF AGRICULTIIRE, with principal address at

Elliptical Road, Diliman, Qr-rezon City, Philippines, represented
herein by its Secretar5r, PROCESO J. ALCALA, and hereinafter
referred to as "DA;"

-ald-

The NATIONAL FOOD AUTHORITY, a government-owned and

controlled corporation attacLred to the DA, with office address at
Philippine Sugaf Center Bldg., North Avenue, Diliman, Quezon
City, Philippines, represented herein by its Administrator, ORLAN
A. CALAYAG, hereinafter referred to as "NFA."

WITNESSETH;

- WHEREAS, the Department of Agriculture is primarily tasked w'ith rice

production to ensure food secrrrity and seH-suffrcienry in rice, and increase the
igrcome level of the farmers through the FOOD STAPLES SUFFICIENCY
PROGRAM (FSSP);

WHEREAS, in support of FSSP tl,e DA through its Regional Field Office

(RFO) is implementing the Agri-Pinoy Rice Processing Center (RPC Program), an
intervention to reduce post-harvest losses by providing access to efficier'rt
doyrng and milling facilities, and contribute to increasing farmers' income, the
guidelines for which is hereto attached as Annex "A";

WHEREAS, the DA shall provide support fund amounting tot-ll-Z-.5jt-

for working capital and technical capability training to rnembers of the farmers'
organizations who are duly identified as qualified recipients of RPCs by the DA,
the list of identified beneficiaries is hereto attached as Annex oB";

WHEREAS, the NFA is the DA-attached agency tasked with maintaining

staple food grains buffer stocks, stabilizing the supply and price of the staple
grains at affordable level, and providing the farmers reasonable returns on
investments in rice production;

WHEREAS, the NFA was tasked to handle and manage the DA funds as
for the RPCs' working capital and technical capability building of RPC
icers and members consistent with the schedule certilied to by the DA-RFO
budget officers and Regional Directors. The schedule is hereto attached as

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 NOW, THEREFORE, for and in consideration of the foregoing, the DA and
NFA hereby agree to joinfly implement their various and specific
responsibilities under the DA-NFA RPC Program according to tl.e following
terms and conditions:

DUTIES AND RESIPONSIBILITIDS

A. The DA through its RFO shall:

1. Trartsfer to the concerned NFA Regional Offrce the amount

corresponding to the type and number of RPCs situated in their areas
in accordalce with the a"ttached schedule (Annex "D"), and for the
conduct of technical capability training for tlle RPC officers and
members in the total amount of F 157.5M
2. Issr.le to NFA a "Notice of Readiness" as basis to release tlre working
capital to Fos after determination of the beneficiary's qualifrcation
for the grant considering the foliowing requirements:
a. FOs duly registered with proper government agencies with
Certifi cate of Accreditation
b. the approved business Plan
c. completion of conStruction of RPC facilities provided by DA
3. Collaborate with NFA on the management of the RPC's working capital
and technical caPabilitY ftrnds;
4. Release in favor of NFA Regional Office the management fees
equivalent to 3o/o of the total regional allocation to be taken from the
Admin Component of the total regional allocation;
5. Monitor the implementation and marrg.gement of the RPC and
utilization of the funds released to NFA;
6. Provide NFA with corrrplete report on the status of constructiOn the
RPC for the simultaneous conduct of technical capability training;
7. Provide the freeded technical assistance to ensure the implementation
of the project with the assistance of PhilMech;
8. Conduct regular monitoring and evaluation in collaboration with
PhilMech;
9. Perform the other requirements and duties stated in COA Cirdular
2012-OO1 and other relevant COA issuances.

The NFA through its Regional/Provincial Offices shall:

1. Prepare the project Work and Financial Plan for the implementation of
DAjRPC Frograml
.1 Prepare a business operation and rnanagement plan for
approval of the DA-RFU steering/management committee in case of
NFA-managed RPCs.
2. Put up aTrUst Fund Account for the Fo-RPC Pro-iect, for its
utilization as initial working capital of the RPC;

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\). Receive the fund tfansfer from DA-RFO, issue official receipt and
deposit the amount to authorized government depository banks to be
named as "NFA AGzu-PINOY AQCOUNT";
4. Take up the funds in the books as Trust Liability and maintain
separate records of all RPC transactions;
5. Manage the disbursement and liquidation of the RPC Admin Funds in
accordance with the usual government accounting and auditing rules
and regulations;
6. Ensure that the fund allocated has been earrfrarked/used only for the
intended project;
7. Administer, marlage and disburse the funds for the intended purpose,
and in accordance with government accounting and auditing rutres
and regglations;
8. Undertake FO capability building activities for RPC personnel who will
consequently operate, malage and maintain the facilities and training
of Fos who will avail of the use of the RPC in preparation for the
establishment of the RPC business enterprise in collaboration with
PhilMech;
g.1 conduct FO orientation and briefing on RPC project concepts and
principles
g.2 Initiete the formation (hiring) of the Fo-RPC Management Team
and facilitate their specialized training on RPC operations and
management
8.2.1 Devise appropriate internal control mechanism to efficiently
manage the RPC working capital funds;
8.3 Facilitate, assist and mentor FOs in thef preparation of their RPC
business Plans (procurernent, processing and marketi:rg plans);
8.4 Initially operate and rnalage the RPC 3 for at least 2 seasons;
9. Make available the RPC records for inspectio4 by the duly authorized
representatives from DA and COA auditors;
10. Require FOs to issue Official Receipts for the amount received from
NFA;
11. Require the FOs tp subrnit periodic guarterly {inancial report on the
status of the RPCs working capital including its utilization of funds;
12. Submit financial and liquidation reports to DA-RFOs of the
transferred trust fund by the NFA to the FO'

PROVISIONS

No modification of this MoA or any provisions thereof shall be made,

except .pon execution of a written instrument duly signed by both
a.nd,
circrrmstances necessitate tfre revision of the agreements
bodied in this MOA, the concerned parties shall, prior to such
fevision, coordinate in the process of revision and grant a reasonable
/ gr^""period of implementing such revision'
S. ihe necessary implementing rules and regulations governing the
use
of the subject funds shall form part of this MOA'
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EFFECTTVITY

This agreement shall be effective upon signing of the parties and shall
remain in force for two (2) years unless otherwise earlier terminated, or
extended as mutually agreed upon by the parties'

IN WITNESS WIIEREOF, the parties have hereunto affixed their

signatures this day of ilDV' zf , 2013 at Quezon City, Philippines.

ENT OF AGRICULTURE For: NATIONAL FOOD AUTHORITY

rurmriffi fr ffirliffi rffi ilirlfi iiiiiiiltifi r lrrrl

lii r.pMng Pls clt. thlr cod' : SIGNED IN THE PRESENCE OF:
For Signaiure: S'1 1-13-0268
R.c.lvcd : 11f19r2O13 02100 PM

Q1uq,; '-' -
---TTTr--DE"N CRUZ

ACI(NOWLEDGMEII,T

Republic of the PhiliPPines)

Quezon City ) S.S

BEFORE ME, a notary for and in the City of Quezon, personally appeared:

Name Competent Datel Place of Issue

Evidence of
Identitv
ORLAN A. CALAYAG NFA r.D.. 940334 JAN.- 23. 2013,/NFA-Q.
PROCESO J. ALCALII Ttt tt4 - o14 - 464

known to me artd to me known to be the same persons who executed the

foregoing Memorandum of Agreement and acknowledged to me that the same is
their free and voluntary act and deed.

\IIITNESS MY HAND AND SEA'L,

written.

Doc. No. Cl ;
Page No. tt ; Legal Affairs Dept. NFA - Cec.tral Ofice
Book No. Y'" " ; Fhilsugin tstdg. NorthAvs., Quezon City
FTF" No. 7 546025 Fasig Ciry I -5..2012
Series oI2OE. IBtr lio. 869379 No.r. 201X IISV{ Roll 1.1o- 3C959
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