SPDA-BUSCO MOA for peace and development

Most of us will agree that peace and development go hand in hand as peace is elusive in the midst of poverty; conversely, eliminating poverty is very difficult to achieve when there is no peace.

A recent development that is calculated to help brighten dimmed hopes of a lasting peace in the Mindanao region is the signing of a memorandum  of agreement between the Southern Philippines Development Authority (SPDA) and Bukidnon Sugar Milling Co. (BUSCO) that is intended to develop and transform thousands of idle SPDA lands in Lanao del Sur into productive agri-business/agro-industrial pursuits — a project, that, when implemented, will generate jobs for thousands of Muslims, Christians, and Indigenous Peoples, and, consequently, lead to the much-desired and hoped-for peace and harmony among inhabitants.

The agreement seals the seriousness of both entities in working together for the development of these lands into self-contained, integrated agri-business-agro-industrial undertakings, i.e production of sugar cane and other crops, and eventually bio-fuels after BUSCO has completed a thorough study to determine suitability for crops, that will be followed by a comprehensive master development plan of the project site.

A reading of the MOA reveals economic as well as social responsibility at work. After BUSCO has evaluated areas that are suited to sugar cane and other crops,  BUSCO and SPDA have agreed that BUSCO will lease these areas. It will then  undertake farm infrastructure development which in turn will be followed by the contract growers’ actually engaging in sugar cane and other crops production. In other words investment would  be in two forms. One is in leasing the land and the other, actually undertaking agricultural projects on the land — a proposition that could involve billions of pesos over 5 to 7 years.

This columnist was told the project will spur accelerated development of the area and improvement of the quality of life of the people there — mostly Muslims, Christians and Indigenous peoples. Priority will be given to the present occupants and MNLF returnees and their families as contract growers. 

I was told that if the project pushes through, BUSCO will establish schools and housing facilities for the contract growers, and with SPDA, an Institute of Agronomics for Contract Growers to be run by selected agriculture graduates from different universities and colleges in the country.

As stated, BUSCO plans to build roads and bridges, and housing and educational facilities. In addition, the company will buy and process the cane produced by the farmers. In other words, BUSCO will pay for the cost of developing and helping the farmers improve their quality of life at no cost to the government.

The project, according to SPDA Chairman Saeed A. Daof, will “contribute immensely towards the advancement of the peace and development process in Mindanao. It will help in accelerating the completion of the 1996 GRP-MNLF Peace Agreement as envisioned by President Gloria Macapagal-Arroyo in revitalizing SPDA through EO 560. This is peace and development-building at work.”

In his job as chair of the “new” SPDA, Daof has instituted a corporate policy that adheres to, and implements “private sector, market-driven, profit-oriented initiatives, with less or non-dependency on government funds, transparency, and sincere dedication to public service.”  

BUSCO, SPDA’s partner in this noteworthy project, is known for its concern for the welfare of thousands of contract growers and employees in Bukidnon. Its presence in the area has without a doubt boosted the economy of municipalities and barangays.

Established in 1988  with Julio Sy Sr. as president, and with a respected board of directors, it is the second biggest producer of raw and refined sugar in the country, using state-of-the-art equipment in its refinery in Bukidnon. At the MOA signing held at Mandarin Oriental Hotel in Makati, BUSCO chairman Roman Ozaeta Jr., said the company “is committed to undertake thorough surveys and feasibility studies, at no cost to the government, within six months after the signing of the MOA, and the receipt of all pertinent data from SPDA to determine the area for sugarcane plantation and other crops. Such undertaking will be the basis or road map for the systematic preparation of a master development plan of the project site.”

Ozaeta said BUSCO accepted the invitation and challenge by the government through SPDA Chairman Daof, “to extend our helping hand to bring its expertise and capabilities to help foster and accelerate the balanced growth of Southern Philippines for national, social and political stability particularly in the municipalities of Wao and Bumbaran, Lanao del Sur.”

Guests attending the MOA signing were visibly impressed by the intent of the envisioned project. BUSCO president Julio Sy Sr. expressed to this columnist as he had in past meetings, about the time being ripe for a partnership between the government and private sectors to help in the development of Mindanao.

Representing Presidential Management Secretary Cerge Remonde, the brilliant Undersecretary Charito Elegir, who has served on the presidential economic staffs of five Presidents, was elated by the objective of the project, and said she looks forward to the success of the undertaking.

Undersecretary Nabil Tan, who represented Peace Secretary Hermogenes Esperon who had to attend a meeting in Malaysia at the time of the MOA-signing, described the project as “a milestone that will trigger a diversified agri-business/agro-industrial undertaking in the region. This multi-million project is an example of how unity and cooperation will propel Mindanao to greatness.”

Congressman Yusop Jikiri of the First District of Sulu told Daof he was thankful for a project that would help realize President Macapagal-Arroyo’s “catch-up” plan for the completion of the 1996 GRP-MNLF Peace Agreement.

Among the country’s top agriculture scientists and economists who are advisers to Chairman Daof who were present at the signing, UP Regent Nelia Gonzales expressed willingness to put to the attention of UP and collateral state universities, the advisability of undertaking technical cooperation  with the SPDA-BUSCO technical working committee that will prepare the master development plan for the project.

Daof said that in the spirit of transparency,  President Macapagal-Arroyo,  Secretary Jesus Dureza, then  Presidential Supervisor for the Mindanao Region, the SPDA Board of Directors and Administrator Sultan Yahya Jerry Tomawis had been informed about the project.

The MOA signing is the first step to helping accelerate development — and peace — in Mindanao. What is needed is cooperation from all sectors to make the project a reality. As Ozaeta said in his remarks, “The venture will move forward through cooperation, mutual understanding, good will and peace among the stakeholders.”

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