Department of Agriculture Secretary, Arthur Yap, had offered over 1.5 Million hectares of forest management areas to some high level Saudi investors so that they can invest in agricultural projects in the country. Some of the possible projects mentioned was for palm oil, fruits and biofuel feedstock.
The Saudi delegation is led by Saudi Agriculture Minister Dr. Fahad Bal-Ghunaim. They were shown yesterday areas in Mindanao. Mindanao is known as an agricultural paradise because it is usually spared by the 20+ typhoons that visit the Philippines yearly. This doesn’t mean however that Mindanao is free from the effects of weather. Strong rains take the place of typhoons in some areas that result in landslides and soil erosion. While some areas in the south west are sparsely rained on.
Aside from the land, the Saudi investors were also offered special economic zones status that has more or less the standard incentives of tax and duty-free importation of capital equipment as well as tax perks for their employees.
Secretary Yap said that the lands ready for agribusiness include the Community Based Forestry Management areas (CBFM) that have been identified by the Department of Environment and Natural Resources (DENR).
He also said that this offer is open to local investors as well as foreign partners.
Based from my talk with a DENR employee before, CBFM’s are usually long term leases issued to entities. They maintain the forest and are able to earn livelihood from it. Up to a certain extent they are allowed to harvest the forest but they are also required to replant the trees they cut down. Not sure if this type of lease allows them to plant other commercial crops, but in leases like that given by the DENR, there is usually a limit to the hectarage based on the size of the CBFM. Of course with that kind of land area, there is usually some local insurgents that one has to deal with.
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Category: Biodiesel, Bioethanol, Feedstock
