April 14, 2023

The Development Bank of the Philippines (DBP) will fund aquaculture projects worth PHP 7 billion (~US$126 million; PHP 10 = US$0.18) through a local unit of a Thailand agricultural company, The Philippine Star reported.

 

The state-run DBP announced an agreement for credit assistance on aquaculture projects with Charoen Pokphand Foods Philippines Corp (CPFPC), a subsidiary of Bangkok-based Charoen Pokphand Group.

 

The DBP and CPFPC already have a partnership in place, having signed an agreement for poultry production in July of last year.

 

Michael de Jesus, president and CEO of DBP, said that the bank would provide financing for working capital requirements, fixed asset acquisition, installation of other support facilities, pond development or improvement, and post-harvest facility establishment.

 

The pipeline projects to be funded under the agreement are estimated to cost PHP 7 billion (~US$126 million) this year.

 

De Jesus said the partnership supports the Philippines' Department of Agriculture's commitment to intensify the fishery sector by increasing local prawn production to 276,320 tonnes from 2023 to 2027.

 

In 17 countries, CPFP operates vertically integrated agro-industrial and food businesses.

 

In collaboration with integrated partners, the local unit also produced, processed, and marketed poultry products. Its Thai parent company is one of the world's largest poultry and pork producers.

 

De Jesus said that DBP's Aquaculture Value Chain Financing programme, its most recent funding facility, aims to support the government's efforts in the local aquaculture industry.

 

This is also consistent with Philippines' President Marcos' goal of increasing agricultural productivity and modernisation efforts in the sector.

 

The projects with CPFPC will support a variety of aquaculture-related activities with a minimum funding of PHP 5 million (~US$90,446) and a maximum funding of PHP 15 million (~US$271,000), or up to 90% of the total project cost.

 

It also applies to medium-to-large businesses, with a minimum funding of PHP 15 million (~US$271,000), or up to 70% of the total project cost.

 

-      The Philippine Star