ILOILO CITY, Philippines, September 26 (IslamOnline.net) - Apparently wooing the Moro Islamic Liberation Front (MILF) to hasten the peace talks, Manila announced Friday, September 26, that the Autonomous Region in Muslim Mindanao (ARMM), one of the poorest and least economically developed areas in the Philippines, stands to receive multimillion-dollar development assistance as soon as a peace agreement is finalized.

Philippine Overseas Development Assistance Secretary Mai Jimenez said a multi-million dollar windfall from the Multi-Donor Trust Fund that has been put together by the World Bank and the United States Institute for Peace (USIP), would be available once a peace accord is inked by both parties.

Virtually wooing the MILF to the negotiating table, Jimenez was quoted by Malacañang Palace as saying in an official statement released Friday, September 26, that by “merely coming to the peace negotiations will be enough to open the floodgates for prospective contributors to peace in Mindanao.''

Jimenez further underscored, “What is important about the fund is that the benefits would come in the form of grants and not loans. There would be no need to repay them - just peace in exchange for funds.”

The MILF and the government have separately announced earlier that the formal peace talks being facilitated by Malaysia may resume next month in Kuala Lumpur.

Mohaqher Iqbal, MILF information chief, told IslamOnline.net Thursday, September 25, that they would talk peace only when the government soldiers pull out of their former military base Buliok Complex.

Lawyer Eid Kabalu said on the same day that they would like to see the sincerity of the Arroyo administration through the cessation of hostilities in accordance with the cease-fire agreement they forged in the exploratory talks in August and last September 6.

Kabalu said nothing would happen with the negotiations if the third party monitoring team, which is led by Malaysia, would not be able to arrive in Muslim Mindanao to monitor the cessation of hostilities. He added they cannot be wooed by promises of financial assistance.

President Gloria Macapagal Arroyo, in a meeting with USIP officials In New York Thursday announced the Philippine government's program of an all-grant, Multi-Donor Trust Fund which will serve as a “peace dividend” for Mindanao as soon as a peace agreement is finalized.

The Trust Fund will provide assistance for the demobilization, disarmament and reintegration (DDR) of combatants and for the reconstruction and development of conflict-affected communities.

This will include the MILF communities and those areas in Mindanao whose growth and development were stunted due to the peace and order problems caused by the clashes of government and MILF forces.

The proposal was conceived when several multi-lateral and bilateral donors intimated to Arroyo their willingness to help the Philippines arrive at permanent peace in Mindanao. The World Bank and United States Agency for International Development (USAID) have proposed to lead the undertaking.

In a news release Friday, Arroyo was quoted as revealing that the World Bank will coordinate the establishment of the all-grant, multi-donor trust fund through an official delegation led by Finance Secretary Jose Isidro Camacho during its annual meeting in Dubai, United Arab Emirates.

USAID was the earliest to commit to contribute to the Trust Fund with the Islamic Development Bank, Organization of Petroleum Exporting Countries and the governments of Bahrain, United Arab Emirates, Kuwait and Saudi Arabia following suit.

Arroyo further underscored that the Trust Fund would be “over and above the U.S.$3.75 billion that has already been sourced for infrastructure, socio-economic and good governance projects that are already ongoing in Mindanao but have been hampered for decades.''

“We will try to enhance development efforts once the peace agreement with the MILF is finalized. This Trust Fund will facilitate the inclusion of the MILF in the implementation of development programs in Mindanao,'' Arroyo said.

The Trust Fund is the latest addition to the “windfall of peace'' Arroyo garnered in her short one-day visit here where she was also able to gain the support of United Nations Secretary General Kofi Annan to the Philippine government's efforts to achieve lasting peace in Mindanao as well as a reiteration of the commitment of Malaysian Prime Minister Mahathir Mohammad to take an active role in brokering peace with the MILF rebels.

Japan earlier pledged to invest some US$400 million to fund infrastructure and social development projects and help ease the impact of armed conflict in the Mindanao.

The European Union has also promised 500,000 euros to address the immediate needs of various communities recently displaced by war, including the provision of health services and livelihood opportunities.