The Philippine government has earmarked 50 million pesos ($1.18 million) to construct and upgrade packing facilities in banana-producing region, in order to satisfy the required export standards, a senior government official said on Wednesday.

Agriculture Secretary Proceso Alcala said the Department of Agriculture (DA), in partnership with small banana growers and exporters, will initially set up two banana packing facilities in Santo Tomas, a city in southern Philippine province of Davao del Norte.

He added that the 50 million pesos budget, which will come from President Benigno S. Aquino III's Social Fund, will also be used to upgrade existing packing facilities to enable small banana farmers to comply with the international sanitary and phytosanitary standards (SPS).

Alcala said that the DA, through the Bureau of Plant Industry ( BPI), is currently inspecting small banana packing facilities in Davao region, and subsequently accredit those that meet required standards.