DBP extends P200-M loan for Bukidnon palm oil

MANILA, Philippines - The Development Bank of the Philippines has signed a memorandum of agreement for a total P200-million loan for development of a palm oil plantation and oil mill in Kalilangan, Bukidnon under its Tree Plantation Financing and Sustainable Agri-Business Financing Programs. The project, which is being undertaken in partnership with the Bali Oil Palm Produce Corp. (BOPPC) and Kalilangan Oil Palm Growers Association (KOPGA), involves the development of 3,000 hectares of palm oil plantation and the establishment of a 30-ton per hour oil mill in Kalilangan, Bukidnon. Under the MOA, DBP will lend P80 million to KOPGA for the planting and development of an initial 800 hectares of the oil palm plantation. The project may be expanded to include the additional 2,200 hectares with estimated project cost of P220 million. KOPGA will provide the necessary manpower requirement for the project and implement oil palm farming technology prescribed by the BOPPC. KOPGA will also deliver fresh fruit bunches (FFB) harvest to BOPPC, which will have the exclusive right to buy the FFB. BOPPC, meanwhile, will conduct capability training and seminar and provide technical assistance to KOPGA for free.  It will also provide the necessary agricultural inputs like fertilizer and pesticide at reasonable price and seedlings for the plantation.