Thursday, August 30, 2007 Arroyo orders conduct of massive tree planting
* Bank offers aid for farmers who will engage in Jathropa plantation
PRESIDENT Gloria Macapagal-Arroyo has ordered the environment department to launch the Project 727, a project aimed at reforesting seven million hectares of unproductive land that would result in P2 million in profits for seven years.
Arroyo gave the order during the town hall meeting on bio-fuels and reforestation at the jatropha demo and seed production farm in Talakag, Bukidnon.
She said the original project plan was contained in an order of the Department of Environment and Natural Resources (DENR) in 2005, which seeks to set aside four million hectares of "open and unproductive forest lands" for farming and agri-business.
She said the project involved the planting of non-endemic forest species like mangoes and other fruit trees. She said other "economically" beneficial crops include jatropha or "tuba-tuba."
Arroyo said a study showed that a farmer can earn P200,000 per hectare just from planting jatropha.
"The sooner that '727' project can take off, the sooner that flora can reclaim barren areas, oil can gush from trees, and native fruits will displace imported apples on the Christmas shopping basket," she said.
Arroyo also ordered the energy department to study the feasibility of using liquefied petroleum jatropha (LPJ) in communities near jatropha plantations.
"The sad fact is costly LPG (liquefied petroleum gas) has made us a nation of woodcutters. The good news however is that cheap tuba-tuba or jatropha trees would transform us into a nation of tree planters," she said.
Meanwhile, the Land Bank of the Philippines (LBP) in Cagayan de Oro City has agreed to provide financial assistance ranging from P5 to P10 billion to farmers that will engage in jatropha plantation.
Peter Anthony Abaya, president of the Philippine National Oil Company's Alternative Fuels Corporation (PNOC-AFC), said funding would be "made available" for farmers that will participate in the jatropha programs of the company.
"The P5 to P10 billion would be made available for the (jatropha) programs but for the access of the farmers groups," Abaya told reporters during a press briefing for the First Jatropha Mindanao Forum.
In a memorandum of agreement inked between PNOC-AFC represented by Abaya and Landbank president Gilda Pico Tuesday, PNOC-AFC will be in-charge in the production, technical and marketing agreement with farmers groups, cooperatives small and medium enterprises, corporation and other entities qualified to undertake the production of jatropha.
The PNOC-AFC will likewise buy the produce of the growers at a guaranteed floor price.
The LBP, on the other hand, will assist PNOC-AFC in identifying qualified or potential growers with good credit standing and business reputation in the field of jatropha plantation or in similar or related undertaking as well as extend loans to growers and corporations duly endorsed by PNOC-AFC and make funds available to finance the production and development of jatropha nurseries, plantation and the construction of refineries and other facilities of PNOC-AFC for the biofuels development project, subject to LBP's existing credit policies and guidelines.
LBP is tasked to provide credit information guidelines, procedures, training/seminars and conduct annual review of Farm and/or Refinery Plan and Budget and adjust the same, if necessary.
"These underscored Landbank's commitment to extend financing to entities engaged in the production of crude jatropha oil and biodiesel thru massive growing jatropha," Pico said.
Abaya revealed that aside from LBP, the Development Bank of the Philippines (DBP) has also offered a similar financing for jatropha development, adding that the company is also looking at the possibility of putting up a jatropha refinery in Cagayan de Oro City, especially since most good varieties of jatropha can be found in Mindanao.
Abaya said Cagayan de Oro is a strategic location because it is near the Phividec Industrial Estate. "How big the refinery will depend on our partners. We have three possible partners and we can put up a refinery in different locations like Quezon, Palawan and Mindanao," he said.
According to Abaya, PNOC-AFC is focusing on more than one million hectares of possible plantation in Cagayan de Oro City to General Santos City corridor, which includes the regions of Socsargen, Caraga and Misamis.
A one hectare jatropha plantation needs about P30,000 to P50,000 in development cost but it would depend on the grower.
Part of the agreement is the creation of a tripartite committee which will serve as a proper venue in addressing concerns and resolving issues on operational and other matters affecting the overall implementation of the project locally once a separate agreement with the respective growers identified/evaluated by LBP shall be selected by PNOC-AFC as its co-venturer. This will be composed of at least one (1) representative from each partner - the PNOC-AFC, LBP and growers/farmers.
Both Abaya and Pico expect the joint undertaking to further spur countryside development, create jobs and accelerate the production and use of alternative fuels.
President Arroyo was scheduled to attend the jatropha forum together with Energy Secretary Angelo Reyes and Agriculture Secretary Arthur Yap but Arroyo proceeded to Talakad in Bukidnon for another event.
Agriculture Undersecretary Jesus Paras delivered President Arroyo's keynote address. (JMR/MSN/Sunnex)
