Department of Agriculture allocate ₱415Million for irrigation, various agri projects in Samar

The Philippines' Department of Agriculture (DA) is investing an initial ₱415 million in Samar to jumpstart the development of its agriculture and fisheries sector, as part of the recently launched Northern Samar convergence agro-enterprise cluster.

Agriculture Secretary Proceso J. Alcala  who led the launch in Catarman over the weekend  said the bulk of the investments will go into the completion and repair of four irrigation systems, amounting to ₱380 million, while the balance of ₱35 million is earmarked for various agri-fishery projects.

Alcala said Samar should not remain poor as it is endowed with rich agriculture and marine resources. It needs a concerted effort among local officials, its people, farmers and fisherfolk, concerned government agencies and the private sector to work together, as shown by the national convergence initiative of the DA with the departments of agrarian reform (DAR) and environment and natural resources (DENR).

He said in the medium term, with sustained investments, political will and strong cooperation among all stakeholders, Samar should graduate from the top 10 poorest provinces in the country.

A major initiative is enabling Samar to produce sufficient amount of food, particularly rice, by making more farmlands productive through the establishment of irrigation systems, and teaching farmers modern and sustainable rice production technologies, Alcala said.

The ₱380-million fund from the DA's National Irrigation Administration (NIA) is allotted for the completion of two irrigation projects in Catarman-Bobon (P210M) and Bugko, Mondragon (₱150 Million), restoration of the Macagtas irrigation system in Catarman (₱15 Million) and construction of 120 kilometers of irrigation canals of Catubig Dam in Northern Samar (₱5 Million).

NIA Administrator Antonio Nangel said the four projects will irrigate an additional 7,140 hectares that could be planted twice a year, and benefit 2,000 farm-families.

At a conservative yield of four tons per hectare per season and two crops a year, the 7,140 hectares would produce an additional 57,120 metric tons (MT) of palay (unmilled rice) annually. This projected harvest represents roughly 23 percent of the total palay harvest of the three Samar provinces (northern, eastern and western) at 250,127 MT in 2010, Nangel said.

Alcala said the DA through its bureaus and agencies will also undertake the following projects in Samar:

•         ₱5.7 million for aquaculture and mariculture projects  Bureau of Fisheries and Aquatic Resources (BFAR);

•         ₱5.5 million for small water impounding projects and other initiatives  Bureau of Soils and Water Management (BSWM);

•         ₱2.8 million for coconut planting, replanting, and fertilization  Philippine Coconut Authority (PCA);

•         ₱2.7 million for banana production and Gulayan sa Paaralan projects  High Value Crops Development Program (HVCDP);

•         ₱2.2 million for establishment of abaca nurseries, stripping centers and solar dryers, and opening of 400 hectares of new abaca areas  Fiber Industry Development Authority (FIDA);

•         ₱1.76 million for research on integrated farming systems, and training of farmers Bureau of Agricultural Research (BAR) and Agricultural Training Institute (ATI);

•         ₱1.75 million for marketing assistance  Agribusiness Marketing and Assistance Service (AMAS);

•         ₱1.37 million for postharvest equipment and facilities  Philippine Center for Postharvest Development and Mechanization (PhilMech); and

•          ₱16 million for credit facilitation and crop insurance services  Agricultural Credit Policy Council (ACPC), Philippine Crop Insurance Corporation (PCIC), and the Agricultural Guarantee Fund Pool (AGFP).

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Surge in investment in the Philippines shows return of investor's confidence

As a clear indication of the return of investor's confidence in the Philippines, the country's top two investment promotion agencies - the Board of Investments (BOI) and the Philippine Economic Zone Authority (PEZA) - have reported an aggregate of P259.94 billion ($6 billion) worth of investments in the first five months of this year.

The figure is 189 percent higher compared to the P90 billion ($2.07 billion) approved investments generated in the same period of last year.

The BOI figure showed a staggering increase of 338 percent, from P43.65 billion ($1 billion) for the first five months of last year to P191.35 billion ($4.41 billion) for the same period of this year. PEZA, on the other hand, was able to increase investments by 48 percent, from P46.35 billion ($1.07 billion) to $68.59 billion ($1.58 billion) during the five-month period.

Earlier, the Bangko Sentral ng Pilipinas (BSP), the country's central bank, also reported that the Philippines continues to attract foreign investments, with foreign portfolio investments posting a $2.3 billion net inflow as of June 18 this year.

Data released by the BSP showed recently, the net inflow of " hot money," a term used to describe portfolio investments because of the speed that it can be poured and taken out of the economy, was more than thrice the $696.52 million in the same period in 2010.

Total inflows of foreign capital into the country as of June 18 amounted to $8.57 billion, more than twice the $4.08 billion last year, the BSP said.

But, according to the Department of Trade and Industry (DTI), the major sources of new investments were local investors with committed investments worth $224.57 billion ($5.18 billion), accounting for 86 percent of total investment approvals, while foreign investors contributed only $35.37 billion ($816 million) or a measly 14 percent. Officials said that the 390 approved projects are expected to create 74,266 additional jobs when fully operational, a 76 percent increase from last year' s 42,105.

A report by the state-owned Philippines News Agency (PNA) said that the manufacturing sector cornered the highest committed investments worth $120.79 billion ($2.79 billion), or a whopping 439 percent increase compared to the P22.41 billion ($517 million) posted in the same period last year.

One of the biggest projects to be undertaken this year is the modernization and conversion of the Bataan oil refinery of Petron Corporation, which is 99.47 percent Filipino-owned. Petron, which is an existing industry participant under the Downstream Oil Industry Deregulation Act of 1998, has infused new investments worth P74.78 billion in its Bataan project. Another notable project is New Carcar Manufacturing, Inc. (100 percent Filipino- owned), a new producer of steel billet, which has committed P10.57 billion ($244 million) worth of investments. The company's production facilities are proposed to be located in La Union, Cebu, Panabo City and Davao del Norte.

The electricity, gas, steam and air conditioning supply sector, which came in second with investments amounting to P70.17 billion ($1.62 billion), doubling the amount of investments for last year, remains bullish, garnering a 27 percent share of total investment approvals in the first five months of 2011.

The real estate activities sector also generated P51.77 billion ($1.19 billion) worth of investments in the first five months of 2011, posting an increase of 92 percent over last year's same period.

But it was the administrative support and service activities sector that posted the highest increase in investment approvals of 6,457 percent to P5.55 billion ($4.9 million). Accommodation and food service activities sector also posted a positive increase of 122 percent to P3.21 billion ($74 million).

Meanwhile, the implementation of the public-private partnership (PPP) program, a flagship project of President Benigno Aquino III, has hit another snag.

Newly-designated Transportation and Communications Secretary Mar Roxas said that he still would like to study first the bidding of the contract to operate Metro Manila's two railway systems - Light Rail Transit (LRT) 1 and Metro Rail Transit (MRT) 3 - which was scheduled on July 11.

Roxas said that the postponement of the first PPP bidding, which was ordered by his predecessor in the DOTC, was okay with him.

According to Roxas "I am comfortable with the postponement because I am not yet fully up to speed on it. It's a P15-billion ($346 million) project, mostly outflow, so we need to be very careful and sure about this.

President Aquino also said that 10 PPP projects would be bid out this year (2011).

 

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Singapore business investors visits Philippines for investments opportunities

Three months after President Benigno Aquino's investment promotion trip to Singapore, a Singapore business delegation is visiting the Philippines to explore business opportunities in the country.

The 40 top executives from 28 companies in Singapore are in the Philippines to explore trade and investment opportunities with the Philippine government and the private sector.

Aside from the business matching opportunities between various Singapore and Philippine companies engaged in housing and resort development, agribusiness, logistics, maritime and offshore engineering, and renewable energy, businessmen from Singapore were also able to get a first-hand update on the recent developments in the Philippine economy under President Aquino, a year after he took office.

The Singapore business delegation expressed optimism about the Aquino administration's emphasis on transparency and good governance which is vital in attracting foreign investments to the country.

Choo Chiau Beng, co-chair of the Philippines-Singapore Business Council, said: "The last one year, we have seen improvements and we can see that the new administration is heading the right way. One of the key areas is...they have opened up the skies, which mean that more airlines can fly to tourist destinations and provincial cities.

"They have also enlisted the PPP programs to modernize and privatize four or five airports, and this are encouraging because ultimately, infrastructure is very important, and if you have the right infrastructure, and the right policy in government with regards to infrastructure, the others will flow naturally."

With Singapore being the Philippines' fifth largest source of foreign direct investments, the Aquino administration is hoping it can lure more Singapore companies to invest in the Philippines and help fuel its economic growth.

 

 

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