MANILA, Philippines – The Philippines is eyeing exploratory talks with Chinese banks for possible financial assistance to boost the local agriculture industry.
Agriculture Secretary Emmanuel Piñol said he would be accompanying President Duterte in his state visit to China next week to look into possible investment and financial aid for the country’s rural developments projects and other agricultural concerns.
“I asked permission from the President that on the sidelines of the state visit, I will make an arrangement for exploratory talks with the banks of China and other institutions,” Piñol told reporters in a chance interview.
“I asked him (Duterte) if it’s okay to have a long term loan from Chinese banks for post-harvest, fisheries and grains investments. Although, I still could not come up with the exact figure,” he added.
The President, together with his delegation, is expected to visit Beijing on Oct. 19 to 20, just a few months after the Permanent Court of Arbitration in The Hague ruled in favour of the Philippines against China on maritime entitlements in the West Philippine Sea.
Duterte has firmed up his plan to visit China this month amid criticism from the US over mass killings in his bloody war against drugs.
Piñol said the long-term loan, should there be formal and final discussions, would be allotted for farm-to-market roads, post-harvest and cold storage facilities and processing centers.
“My vision for the administration is to finish all farm-to-market roads. We already have the existing PRDP (Philippine Rural Development Project) and I want to supplement that,” he said.
While the PRDP is assisted by the World Bank, Piñol said there was still a huge demand for roads from the local farmers.
The six-year national project, which was jumpstarted by former agriculture secretary Proceso Alcala, aims to increase rural income and enhance farm and fishery productivity in the targeted areas in the four clusters of North Luzon, South Luzon, Visayas and Mindanao.
The PRDP is already operating in 78 of the 80 provinces nationwide with a total portfolio of P39 billion for the infrastructure development component and P400 million for the enterprises segment.
Piñol is likewise optimistic about agricultural exports for the rest of the year after the Chinese government lifted the ban on the import of bananas coming from the Philippines.