Delegates at the 4th Mindanao Working Group meeting identify priority agenda items for Mindanao.

MANILA, April 20, 2006 (IslamOnline.net) – Long-lost peace will not be the lone fruit of the anticipated agreement between the Moro Islamic Liberation Front and the Manila government as foreign governments have promised millions of dollars in aide for the rehabilitation of the southern island of Mindanao, Islam's birthplace in the Philippines.

"Mindanao has great potential for rapid development if different groups can begin to trust each other, find agreements, and, together, focus on the development of Mindanao, especially those areas that have been affected by the armed conflict," Joachim von Amsberg, World Bank Philippines director, told IslamOnline.net on Thursday, April 20, 2006.

He said several countries, including the US, Canada, New Zealand, Sweden Australia, have vowed to chip in financial assistance, to be only released once a peace agreement is inked, through the World Bank-administered multi-donor Mindanao Trust Fund (MTF).

The MTF will provide short and medium-term grant funding to Mindanao by pooling the resources of several international partners in a simple program in order to harmonize and simplify support to Mindanao that might otherwise be fragmented in several smaller programs.

The MTF is not expected to be a substitute for on-going or planned bilateral or multilateral programs for Mindanao.

However, by focusing this fund on conflict-affected communities, initial resources will be focused on the worst-off areas and accelerate the arrival of social and economic benefits that can result from lasting peace.

The more than three decades of intermittent conflict on Mindanao have resulted in the destruction of infrastructure, population displacements, deferred development, and lack of trust among people at the local level and between these and government authorities.

In February, the MILF and Philippine government negotiators met and discussed the peace agreement, which both parties said might be finally sealed within the year.

Von Amsberg noted that US$ three millions have already been collected for the first phase of the program that aims "to promote inclusive and effective governance processes, and to assist economic and social recovery in the conflict-affected areas of Mindanao."

He believes that such funding "is significant and strategic but small compared to the overall needs."

The World Bank official asserted that capacity building in the first phase "will unlock international support in Phase 2 of around US$50 million or more."

According to the World Bank, the financial grants will be used to help build the capacity of the Bangsamoro Development Agency (BDA), which is an agency of the MILF, local government units and other service provider agencies, pilot test a few projects, and establish the organizational set-up for implementation of sub-projects in conflict-affected areas of Mindanao.

The second phase will be sustaining what will be started now in the first phase and is expected to proceed to smooth and fast implementation of sub-projects in conflict-affected areas, provide technical assistance, and gradually transfer full program management responsibility to a Bangsamoro entity.

The fund was welcomed by the Philippine government.

"The Mindanao Trust Fund brings to fore the strategic importance of forging a common front in laying the ground for the mechanisms for rehabilitation and development, ahead of the final peace agreement," Jesus Dureza, the presidential adviser for the peace process, told IOL.

"This is precisely the direction the President wants the peace process to move forward, pursuing political settlement to end conflict through peace negotiations, while simultaneously addressing development imperatives in conflict-affected areas," he added.

The first phase of the Mindanao Trust Fund-Reconstruction and Development Program (MTF-RDP) was unveiled late last month.

The Office of the President for Peace Process and the Mindanao Economic Development Council (MEDCo) are the key government counterparts for MTF-RDP.

The local counterparts are the BDA and the Autonomous Region in Muslim Mindanao (ARMM) regional government.

However, some remain wary.

"Let us not forget that foreign financial assistance had been given in the past and we have remained poor," Eric David, a Mindanao native, told IOL.

"We should be more vigilant now. We should be able to make the changes in our lives felt to determine whether the so-called foreign aide reaches us or not."