Thursday, May 22, 2008 Funds for Jatropha development approved
THE Philippine National Oil Company-Alternative Fuels Corporation (PNOC-AFC), together with Land Bank of the Philippines (Landbank) and the Quezon Provincial Government, on Wednesday inked a P4.3 billion agreement for the development of a jathropha nurseries, plantation and processing plant in the province.
PNOC-AFC president Peter Anthony Abaya said they will initially looking at 100,000 hectares for this project.
"With the signing of the tripartite pact, the efforts of PNOC-AFC, Landbank and the Quezon Provincial Government relative to the jatropha production project are strengthened and consolidated. The local government of Quezon will identify, consolidate and commit, in coordination with PNOC-AFC, an initial area of 100,000 hectares of land found to be suitable for jatropha cultivation in Quezon," said Abaya.
Under the agreement, the province and Landbank shall identify growers-cooperatives, individuals, people's organizations, small medium enterprises, or corporations that will undertake the production of jatropha and related activities.
Landbank will also make funds available to finance PNOC-AFC's establishment of additional processing plants/refineries.
The government-owned bank will also extend loans to qualified growers based on the approved Farm Plan and Budget subject to Landbank's existing credit policies and guidelines.
The province, on the other hand, will be responsible for the accreditation of the seedlings suppliers who will undertake the nurseries and provide jatropha seedlings to the growers at an agreed price.
Upon harvest of jatropha seeds, PNOC-AFC shall purchase, in commercial quantities, the seeds produced by growers at a guaranteed floor price subject to upward price adjustment (as stipulated in the production, technical and marketing agreement with the growers).
The PNOC-AFC shall withhold and remit to Landbank the portion of its payments to growers-cooperatives equivalent to the amount of the bank's loan amortization.
"The agreement was made to establish the formal working relationship of the three parties to synchronize and strengthen all existing efforts supporting the development of alternative and renewable energy sector in the country," added Abaya.
The signing of the agreement was held at Landbank office in Malate, Manila and was attended by top officials of the three parties, including PNOC-AFC chairman Renato Velasco and president Peter Anthony Abaya; Quezon Governor Rafael Nantes and Provincial Administrator Aristeo Flores; and Landbank president Gilda Pico and executive vice president Wilfredo Maldia.
In August last year, the Quezon Provincial Government signed a memorandum of agreement (MOA) with PNOC-AFC for the "promotion, production and processing of jatropha" in the province.
Consequently, Landbank signed a MOA with PNOC-AFC on that same month last year for the "financing and marketing of jatropha."
Both MOAs are in line with Republic Act 9367, otherwise known as the "Biofuels Act of 2006." Under this law, government-financing institutions, including Landbank, are mandated to accord high priority to extend financing to Filipino citizens and entities engaged in activities involving, among others, the production of bio-fuels. (MSN/Sunnex)
