Latest Stories

Gov’t lines up PPP projects in agriculture


The Department of Agriculture has lined up two major public-private partnership projects that involve post-harvest facilities for corn and perishable produce.

Zenaida M. Villegas, director of the DA’s Project Development Service, said in an interview that Agriculture Secretary Proceso J. Alcala had been apprised of and had accepted the proposal for a P298-million grains central project that was meant to rehabilitate and upgrade existing corn trading and processing centers across the nation.

Villegas said the DA was expected to refer the corn depot project to the National Economic and Development Authority within the month. “We hope to have it approved by September,” she said.

National Agribusiness Corp. is the intended implementing agency for the grains central while the Philippine Center for Post-harvest Development and Mechanization or PhilMech is the project proponent.

There are 11 facilities proposed to be included in the project, for which Land Bank of the Philippines and International Financial Corp. have been engaged as transaction advisers.

PhilMech has also presented a proposal for a P683-million cold chain system for perishable goods that, unlike the corn post-harvest system, would be a greenfield undertaking.

Villegas said the cold chain plan might not be as fast-moving as that for the Grain Central because there were “issues that still need to be addressed.”

Five routes have been identified for the proposed cold chain system, with Benguet-Manila as the pilot. The others are Cagayan-Manila, Manila-Cebu, Cebu-Manila and Visayas inter-island connections.

Further, potential sites are still being considered for a fruits and vegetable facility in La Trinidad, Benguet, and for an abattoir project in Guiguinto, Bulacan.

Last April, Economic Planning Secretary Arsenio M. Balisacan said that potential PPP projects in agriculture, to be attractive to private investors, would need government subsidies, incentives or other means of assured funding or return on investment.

Balisacan said this might be done through “take-or-pay” provisions which, unfortunately, were not popular in the Philippines because such arrangements were blamed for the high price of electricity in the country.

Balisacan cited an economics maxim that a project might be viable economically, but might not be financially feasible.

This means that incentives such as government subsidies—in the form of “viability gap funding”—are necessary for agricultural PPPs.

Follow Us

Follow us on Facebook Follow on Twitter Follow on Twitter

Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: Agriculture , Business , gov’t , PPP

  • Wadav

    Bakit di n naman kasali ang MINDANAO?

    • Siako Estrangero

      ayusin nyo muna peace and order dyan! ako naman ang investor di ako mag-aaksaya ng pera dyan kung ganyan kayo kagulo. if you think you deserve to be given… PROVE IT!

Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94


  • UN heads say Syria aid needs ‘largely unanswered’
  • Captain who left doomed ferry had 40 years at sea
  • UK woman held for murder after children’s bodies found
  • Washington calls S. Sudan violence an ‘abomination’
  • Abducted soldier freed in Compostela Valley
  • Sports

  • UP nips St. Benilde; Adamson blasts RTU in Filoil women’s caging
  • Kevin Garnett responds to Raptors’ GM F word
  • Albert Pujols hits 500th HR of major league career
  • UST posts twin kill in Filoil pre-season cup opening day
  • Wizards beat Bulls in OT to take 2-0 series lead
  • Lifestyle

  • Entering the monkhood a rite of passage
  • Haneda International Airport: A destination on its own
  • Wanted: Beauty queen with a heart that beats for the environment
  • Kim Atienza: At home with art and design
  • Life lessons I want to teach my son
  • Entertainment

  • Ex-Fox exec denies allegations in sex abuse suit
  • Kris Aquino backtracks, says Herbert Bautista and her are ‘best friends’
  • Summer preview: Chris Pratt enters a new ‘Galaxy’
  • Bon Jovi helps open low-income housing in US
  • Summer movie preview: Bay reboots ‘Transformers’
  • Business

  • McDonald’s 1Q profit slips as US sales decline
  • SEC approves SM’s P15B retail bond offer
  • $103M Vista Land bonds tendered for redemption
  • Oil slips to $102 as US crude supplies seen rising
  • SC stops Meralco power rate hike anew
  • Technology

  • Engineers create a world of difference
  • Bam Aquino becomes Master Splinter’s son after Wiki hack
  • Mark Caguioa lambasts Ginebra teammates on Twitter
  • Brazil passes trailblazing Internet privacy law
  • New York police Twitter campaign backfires badly
  • Opinion

  • One-dimensional diplomacy: A cost-benefit analysis of Manila’s security deal with Washington
  • No ordinary illness
  • Reforest mountains with fire trees and their kind
  • Day of the Earth
  • When will Chinese firm deliver new coaches?
  • Global Nation

  • Hong Kong accepts PH apology; sanctions also lifted
  • China won’t budge, wants PH gov’t to apologize to HK
  • Cha cha train to follow Obama visit?
  • No word yet on inking of US-PH defense pact during Obama visit
  • Filipina, 51, shot dead by 24-year-old American boyfriend
  • Marketplace