Wanted: Philippine Agriculture Investors

The Department of Agriculture Urges US Firms to Invest in Philippine Agriculture Projects

The Department of Agriculture (DA) is encouraging American companies to invest in farm-related projects that will be undertaken under the private-public partnership (PPP) program.

Agriculture Secretary Proceso J. Alcala presented before the American Chamber of Commerce (AmCham) the six farm-related projects which the government plan to implement in 2011.

“As we all are painfully aware, our government’s financial and management resources are severely limited. We, therefore, would welcome as many partners and supporters to chip in and share their bit to these programs and projects,” said Alcala in his speech at an AmCham meeting held in Makati City recently.

Alcala cited three projects, namely, the establishment of cold chain systems along four major food routes to and from Metro Manila and Cebu and the construction of rice processing and trading centers with bulk handling and logistics support in 10 major seaports nationwide.

Each cold chain system cost around P1.35 billion while grains centrals with bulk handling capacities could reach P90 million to put up.

Alcala also made a pitch for the establishment of agri-food commodity handling service facilities in railway terminals of the Southrail to allow efficient transport of goods from South Luzon to Metro Manila. The project is expected to cost P1.5 billion.

“For all these projects, possible revenue sources will come from service fees to be collected from processing, drying, storage and transport of commodities as well as sales from various production inputs,” he said.

On irrigation development, the DA chief cited the P14.4-billion Kabulnan-2 multipurpose irrigation and power project in Sultan Kudarat, the P18.5-billion Balog-Balog multipurpose project Phase Two in Tarlac, and the P15.2-billion Jalaur River multipurpose project, Stage II in Iloilo.

“For these [irrigation] projects, possible revenue sources will come from irrigation service fees and the sale of electric power,” said Alcala.

The DA chief noted that President Aquino is banking on the PPP program to “hasten infrastructure buildup to help ensure food security and sufficiency at regional levels.”

By Business Mirror


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