Technical Assistance to the Republic of the Philippines for Enhancing Access of the Poor to Microfinance Services in Frontier Areas

This report discusses the technical assistance (TA) provided by the Asian Development Bank to the Government of Philippines to increase access and efficiency of microfinance services for the poor in frontier areas that have little or no access to formal or semi-formal financial services.

The paper states that:

• The TA will provide:
  • Capacity building to non-governmental microfinance institutions (MFIs) in frontier areas to increase skills and best practice for sustainable microfinance;
  • Education for poor and low-income groups on microfinance services.
• The purpose of the TA is to:
  • Support the development of a viable financial system that can provide microfinance services to the poor, enabling them to pursue economic opportunities and income generating activities;
  • Support education for the poor on microfinance.
• The expected outputs of the TA are:
  • An assessment of : NGO MFIs, microfinance access and demand and informal finance in frontier areas;
  • NGO MFIs trained in best practices for sustainable microfinance through on-site mentoring and training;
  • Education of the poor in the area of microfinance.

The report then discusses:

• The methodology and key activities of the program;
• Cost and financing;
• Implementation arrangements;
• The President's decision.

The report concludes by presenting the following features of the project framework:

• The design summary;
• Performance indicators and targets;
• Monitoring mechanisms;
• Assumptions and risks.