Israeli firm bidding for Philippines irrigation projects

MANILA, Philippines — A private Israeli firm has officially submitted its bid to finance the government’s irrigation projects for the improvement of the country’s rice production.

Agriculture Secretary Emmanuel Piñol said the LR Group of Israel-subsidiary Innovative Agro Industry has submitted its letter of intent offering to fund and construct some 6,200 units of solar-powered irrigation systems (SPIS) covering an estimated 500,000 hectares of rice, corn and high-value crops in the Philippines.

The letter, signed by LR Group chief executive officer Ami Lustig, also aims to establish dairy farms on a turn-key basis.

“The total estimated cost of both the SPIS and the dairy projects is estimated at $1 billion which the LR Group is willing to fund under a 10-year loan program to be guaranteed by the Israeli and Philippine governments,” Piñol said.

LR Group said the technology that it would introduce could increase rice production by four million metric tons of paddy rice per annum.

“By integrating renewable energy, with precision agriculture methodology and novel fertilization process, the project can put Philippines at the forefront of technology, sustain food security and increase the economic value of the domestic rice industry,” the letter read.

It was last month when President Duterte gave the green light for further talks between the DA and the LR Group for the financial loan.

“Next week, officials of the company will be back in the Philippines for a series of meetings with a group of local bankers who expressed interest in supporting DA programs,” Piñol said.

“They will also meet with local engineering companies who are expected to partner with the LR Group in the implementation of the projects,” he said.

The letter of intent submitted by LR Group will be forwarded to the National Economic and Development Authority for project review and evaluation.

Innovative Agro Industry was among the Israeli agriculture firms that met with DA to explore possible business opportunities for bilateral cooperation during a recent forum hosted by the Israel Export and International Cooperation Institute and the Israel Chamber of Commerce of the Philippines.

These develop as the Philippines looks at Israel for the development of various technological advancement in the local agriculture sector to improve the country’s farm production.

Piñol earlier said the Philippines will be needing technology and advice on areas of improving solar-power irrigation system, drone technology for crop protection, dairy farming, aquaculture and fish farming, and greenhouse technology.