November 16, 2006

Philippines seeks financial assistance from China for agriculture projects

THE Philippine government, through the Department of Agriculture (DA) is looking for at least US$415 million in financial assistance either in the form of a grant or loans from the Chinese government to finance public investment projects, particularly in agriculture.
           
The Business Mirror reported the bulk of the amount, or US$371.5 million, will go to financing at least eight major infrastructure projects.
           
Among the eight infrastructure projects, the biggest grant beneficiary will be the construction of paddy drying and corn-frying facilities of the GMA Rice and GMA Corn programmes. The post- harvest facilities for rice and corn would each cost US$150 million.
           
Other priority projects of Philippine government wants to undertake using the financial assistance from China include the Navotas Rehabilitation Project of the Philippine Fishport Development Authority; the cold-chain project of the Bureau of Post-Harvest and Research; a mobile ice plant of the Bureau of Aquatic and Fisheries and the rehabilitation and modernization of selected livestock auction markets in Mindanao.
           
Meanwhile, the Philippine government invites private investors to venture in several projects that would cost around US$43.86 million. These are the construction of a corn-processing plant for ethanol and feed mills for Region 2, a livestock sector packing house and a tilapia fish fillet project.
           
The DA is also looking for investments or financial assistance from China for small-scale projects involving crops, fruits and meat processing in some areas such as in Leyte and Mindanao.
           
Agriculture Secretary Arthur Yap has earlier said he will focus on infrastructure projects as a way to eliminate poverty in the countryside.
           
Yap recently flew to China to pursue a weeklong business matching and investment road show in China to attract more foreign investors into the Philippines, particularly in agribusiness and to participate in the 8th Cross-Strait Flora Expo in China's Fujian province.
           
Upon his re-assignment as the DA head, Yap said one of his key objectives is to entice investments in agribusiness ventures, particularly the development of 200,000 hectares of farm land in Central Luzon.
           
The DA chief, who is in charge of the so-called North Luzon Agribusiness Quadrangle (NLAQ), disclosed that he will be arranging sessions where the Philippine government could present its plan to build "super-regions" across the country to potential investors.