By Jennifer A. Ng
Reporter
THE Philippines has secured an estimated P9 billion in investment commitments in the agriculture sector from China, according to Agriculture Secretary Arthur Yap, who led a recent Philippine business mission to China.
He added they were also able to bag a deal that will allow the Philippines to penetrate the $1-billion Chinese fruit market. "Both the Philippines and China are bullish on the prospect of expanding existing trade and investment ties between the two countries."
Yap said the agriculture deal was with the Beidahung Group to go into rice and corn production in the so-called North Luzon Agribusiness Quadrangle, and that this was sealed with a formal letter of intent from the Chinese firm.
Beidahung is considered China's largest agricultural investor and the corporate arm of the Heilongjiang provincial government.
Yap estimated that Beidahung could spend around P4 billion to develop 200,000 hectares of land in the area, which it plans to lease to farmers. The company is planning to plant corn and rice, but Yap said the company is also keen on going into organic food-growing and into building of a bioethanol plant.
Another possible investment is that of the Chinese government through the Guangxi Agricultural Department for the development of an initial 40,000 hectares for cassava and sugar that would be used to produce ethanol in China and another 30,000 hectares for grains crops.
Yap said Manila has also secured a $40-million commitment from the Guangzhou Tianhe Yi Xin Fiber Product Co. Ltd., the largest buyer of coconut coir in China, to import 100,000 metric tons (tonnes) of coco coir at $400 per MT. "They will buy coco coir from us on the condition that the DA can ensure 17-percent moisture content and 97-percent purity of supplies."
The mission also secured from the China National Constructional and Agricultural Machinery Import and Export Corp. (CAMC) a deal for the supply and installation of 100 mobile ice plants, 10 refrigerated vans, and one central ice plant with surrounding satellite storages for coastal fishing communities in the country.
He said the Philippine Fisheries Development Authority is also preparing a three-phase package for the renovation, repair, rehabilitation and expansion of the Navotas Fishport Complex, to be financed from the balance of a $100-million loan negotiated with CAMC in 2000.
The Guangdong Guangyan Fishery Group Co. Ltd. will also build eight fish cages, 324-square meters each, in Tacloban City to hold a combined 200 tonnes of bangus.
Yap said these agreements and investment deals will be formally inked during the visit of Chinese Premier Wen Jiabao in Manila next month for the 12th Association of Southeast Asian Nation Summit.
Business Mirror
November 21, 2006
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