Quedancor to fund P400-M palm oil project in Mindanao

Quedan and Rural Credit Guarantee Corp., the credit arm of the Department of Agriculture, is set to finance a 4,000-hectare palm oil plantation and a mill complex in northern Mindanao. The entire project is estimated to cost P400 million.

The plantation component of the project will be run by private planters, organized agrarian reform beneficiaries and small farmers with tenurial instruments issued by the Department of Environment and Natural Resources.

The mill portion, will be developed by A. Brown Energy and Resource Dev’t Inc. (Aberdi), private planters and organized small landholders under a divestment scheme with Aberdi, Quedancor chairman and Agriculture Secretary Luis Lorenzo Jr. and Quedancor president Nelson Buenaflor.

"In principle, this project is now ready to take off. The DA has its full support because it will turn underdeveloped land into productive use, sustain income and spur rural industrialization," said Lorenzo.

Buenaflor said about P280 million is required to turn 4,000 hectares of farm land spread over Bukidnon and Misamis Oriental into an oil palm plantation that would be fully productive by 2005.

He said that while some 190 has. had already been planted, various stakeholders have agreed to raise P84 million for the full development of the plantation while Quendancor would be infusing P196 million more to help in the process.

"By end 2003, we are expected to lend P80 million to finance the establishment of at least 1,500 has. of palm oil in Region 10," Buenaflor said.

The mill will have a production capacity of 10 tons of palm oil per hour by 2005, and will cost P120 million.

The amount will be raised through a P36-million infusion by the proponents, while Quedancor will be providing a loan for the P84-million balance.