Quantcast
Latest Stories

Gov’t plan may see the light of day

By

The government’s long-delayed plan to put up cold chain facilities for perishable goods across the country may finally see the light of day, with the help of the private sector.

Economic Planning Secretary Arsenio M. Balisacan told Inquirer editors and reporters that such a project would require incentives, like the so-called “take-or-pay” provision, to attract private enterprises.

This contractual provision will make sure that a private entity profits from any transaction by committing one party to either take delivery of goods or services, or pay a certain amount.

But the take-or-pay provision has left a bad taste in the mouth of consumers who believe it to be the reason why electricity prices in the country are so high.

“Take-or-pay may be needed in certain locations—not all—of a nationwide cold chain project,” Balisacan said. “This may be necessary, for example, in Benguet.”

The Department of Agriculture has lined up three major public-private partnership (PPP) projects, including a multipurpose irrigation project, as well as a network of postharvest facilities for corn and a string of refrigeration facilities for perishable products.

The Philippine Center for Postharvest Development and Mechanization, or PhilMech, has drawn up a proposal for a P683-million cold chain system, which will be considered a greenfield undertaking.

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

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

Balisacan said the PPP approach as applied in agricultural projects needs something extra, compared to PPP projects in urban centers, like tollways.

“There are peculiarities in the agriculture sector, such as the seasonality of production and the impact of natural forces,” the government’s chief economist said.

Agricultural projects need government subsidies, incentives, or other means of assured funding or return on investment to be attractive to private-sector partners, he explained.


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: Arsenio M. Balisacan , business incentives , cold chain , Philippines , take or pay



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
Advertisement
Advertisement

News

  • Seabed search for missing Malaysian jet to widen
  • Lacson rejects calls to name ‘pork’ execs
  • Obama due in Seoul as North Korea nuclear test fears grow
  • Hold departure order out vs Corona, Singson
  • Malaysia to release MH370 report–PM
  • Sports

  • Michael Phelps loses to Lochte in comeback meet
  • Sharapova advances to Stuttgart quarterfinals
  • Galedo caps ride of redemption
  • Beermen, Express dispute second semis slot today
  • Lady Agilas upset Lady Bulldogs in four sets
  • Lifestyle

  • ‘Recovered’ Banksy works on display ahead of sale
  • Marinduque: Visiting the ‘palm of the ocean’
  • First at Vatican in 60 years
  • How Jing Monis Salon gave Krissy the pixie
  • Want to be a supermodel? Work on your inner beauty, says Joey Espino
  • Entertainment

  • Paul McCartney to play at Candlestick concert
  • Kristoffer Martin: from thug to gay teen
  • Has Ai Ai fallen deeply with ‘sireno?’
  • California court won’t review Jackson doctor case
  • Cris Villonco on play adapted from different medium
  • Business

  • PAL hailed for ban on shark fin cargo
  • BSP to change tint of P100 bill
  • Nielsen sees car buying boom in the Philippines
  • How author of best-seller exposed ‘one percent’ economic elite
  • Bangko Sentral readies new bank lending rules
  • Technology

  • Cloud strength helps Microsoft earnings top Street
  • Vatican announces hashtag for April 27 canonizations
  • Enrile in Masters of the Universe, Lord of the Rings?
  • Top Traits of Digital Marketers
  • No truth to viral no-visa ‘chronicles’
  • Opinion

  • Corruption not invincible after all
  • Editorial Cartoon, April 25, 2014
  • No deal, Janet
  • Like making Al Capone a witness vs his gang
  • MERS-CoV and mothers
  • Global Nation

  • Filipinos second-shortest in Southeast Asia
  • China welcomes PH apology
  • Only 4 Etihad passengers not accounted for
  • Abandoned in Malta,15 PH seamen return
  • Senator hopes PH will also get same vow
  • Marketplace