Government finalizes P30-B Hungary loan for Laguna Lake cleanup, rubber manufacturing
Agriculture Secretary Emmanuel Piñol will be in Hungary for an official business this weekend to finalize the 500-million euro (roughly P30.6 billion) loan earlier offered by the European country. Joven Cagande, File
MANILA, Philippines — The Department of Agriculture expects to secure a P30-billion loan from the Hungarian government which it plans to use for the cleanup of the Laguna Lake as well as the establishment of the first-ever rubber manufacturing plant in the country.
Agriculture Secretary Emmanuel Piñol will be in Hungary for an official business this weekend to finalize the 500-million euro (roughly P30.6 billion) loan earlier offered by the European country.
“(Finance) Secretary Dominguez asked me to follow-up on their offer for a credit facility through Hungary’s Eximbank,” Piñol said.
Bulk of total loan or about P20 billion will be allocated for the cleanup of the Laguna Lake while the remaining amount will be invested for the rubber plant in Mindanao.
Piñol will be joined by Laguna Lake Development Authority general manager Joey Medina and representatives from Dennis Uy’s Udenna Corp., which will serve as corporate vehicle for the rubber plant.
“We are planning to access that for the private sector. Our proposal, if they will approve, is to put the (loan) in a local bank which could be accessed by factories to allow them to set up water treatment facilities,” Piñol said.
“We will also be meeting with the Finnish group Black Donuts Engineering Inc. to finalize the memorandum of agreement to allow us to start the feasibility study,” he added.
The planned manufacturing plant will cater to domestic consumption for the production of tires for passenger vehicles, cargo, small pick-ups and agricultural machineries.
It is estimated to produce four million tires per year. One tire averages 10 kilograms and is composed of 40 percent natural rubber from the estimated 130,000 hectares of local rubber farms.
This will translate to about 16,000 metric tons (MT) more of rubber to be planted and produced annually.
Also part of the plan is the installation of a new line that will manufacture motorcycle and bicycle tires. This is expected to employ about 800 Filipinos.
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