Business & Economy

DA working on 3 PPP projects

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MANILA -- The Department of Agriculture, through its Public-Private Partnership Unit (DA-PPP), is currently working on three major projects aimed at supporting the country’s agriculture and fisheries sector.


DA Project Development Service Director Zenaida M. Villegas said the projects for consideration under the PPP scheme include the construction of a multi-purpose reservoir dam in Iloilo, the improvement of existing postharvest processing and trading centers, and the establishment of a cold chain system.

Villegas, who also heads the DA-PPP Coordinating staff, said the multi-billion Jalaur River Muti-Purpose Project Stage II (JRMP II) that will be implemented by the National Irrigation Administration (NIA) will soon take-off to provide year-round irrigation to agricultural areas in the province of Iloilo.

The project fund amounting to P11.212 billion will be sourced from the Economic Development Cooperation Fund (EDCF) through the Export-Import Bank of Korea (Korea Eximbank).

The KEXIM-EDCF has already signified its intention to finance the conduct of a study to determine the feasibility of implementing JRMP II.

“The Korean agency has indicated during a mission earlier this year that it shall consider such technical assistance once the detailed engineering design for the irrigation component is completed. A draft Terms of Reference for the conduct of said feasibility study has been prepared by the DA and subsequently endorsed by the National Economic Development Authority (NEDA) to the KEXIM-EDCF,” Villegas said.

NIA Region VI Division Manager and concurrent acting project manager of JRMP II Engr. Jesus Dato-on said that construction of access roads to the site is already on- going.

“NIA targets to finish the JRMP II before the term of President Benigno S. Aquino III ends in 2016. The project will serve an estimated 21,227 farmer beneficiaries -- 14,893 from the new area and 6,334 from the rehabilitated area,” Dato-on said.

Aside from irrigation, KEXIM-EDCF will also finance two other components of the JRMP II: hydro-power generation and domestic water supply.

Another ongoing project is the Grains Central Project which seeks to rehabilitate, expand, and enhance existing corn trading and processing centers nationwide.

The Philippine Center for Postharvest Development and Mechanization (PhilMech) is the project proponent while the National Agribusiness Corporation (NABCOR) will serve as the project’s implementing agency.

For this project, Villegas said the DA has engaged the assistance of the Land Bank of the Philippines (LBP) and the International Financial Corporation (IFC) as transaction advisors.

“The PPP Grains Central Project will be presented to Agriculture Secretary Proceso Alcala Monday (July 15), while the complete project documents will be submitted to the NEDA Investment Coordination Committee within the third quarter of this year,” Villegas said.

There are eleven Corn Postharvest Processing and Trading Centers (PHPTC) proposed to be included in the said project.

Meanwhile, PhilMech has presented a proposal for a cold chain system project which aims to reduce postharvest losses, maintain the quality of perishable goods, and promote direct marketing/online auctions.

The agency has identified five routes that will be included in the project: Cagayan-Manila, Visayas-Inter-Island Connections, Manila-Cebu, Cebu-Manila, and Benguet-Manila which will be the pilot route.

The DA-PPP Unit has likewise conducted ocular inspections on potential sites in La Trinidad, Benguet for the Fruits and Vegetable Cold Chain Center and in Guiguinto, Bulacan for the AAA abattoir project.

Consultative meetings had already been undertaken with the local government units of the provinces of Benguet and Bulacan in order to confirm the availability of sites being eyed for the aforementioned projects. 

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