Thursday, May 22, 2008 [ philstar.com ]
Land Bank of the Philippines has signed an agreement with PNOC Alternative Fuels Corp. (PNOC-AFC) and the provincial government of Quezon for the development of a 100,000-hectare jatropha nursery worth over P4.3 billion.
The fund allocation will cover the establishment of jatropha nurseries and development of jatropha plantations in marginal lands in Quezon province.
The deal will also include the construction of processing plants and refineries in the province.
“With the signing of the tripartite pact, the efforts of PNOC-AFC, Landbank and the province of Quezon 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,” PNOC-AFC president and CEO Peter Anthony A. Abaya said.
The provincial government, along with Landbank, will identify growers – cooperatives, individuals, people’s organizations, small and medium enterprises, corporations — that will undertake the production of jatropha and related activities.
Landbank shall make funds available to finance PNOC-AFC’s establishment of additional processing plants/refineries. Likewise, it shall extend loans to qualified growers based on the approved farm plan and budget subject to its existing credit policies and guidelines.
Quezon province, meanwhile, shall accredit 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.
PNOC-AFC shall withhold and remit to Landbank the portion of its payments to growers equivalent to the amount of the latter’s loan amortization.
“The MOA 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,” Abaya said.
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