Deal #436

Location #1

Spatial accuracy level
Exact location
Location
San Mariano, Philippinen

Latitude
16.986370516309908
Longitude
122.01799707567136
Target country
Philippines
Comment on location
San Mariano

Location #2

Spatial accuracy level
Exact location
Location
Delfin Albano, Philippinen

Latitude
17.3166667
Longitude
121.78333329999998
Target country
Philippines

Land area

Intended size (in ha)
11000
Comment on land area
The original plan of the Taiwanese, Japanese, and Philippine investors was to establish a biofuel company, Green Future Innovations Inc. A domestic company—Ecofuel Land Development Inc.—would supply the feedstock by developing 11,000 hectares of sugar cane plantation in the municipality of San Mariano using contract farming. However, the investment scheme was not executed as intended due to resistance from NGOs, the disinterest of farmers, and complex property rights. In order for the plantation company to concretise its plans, it shifted to short-term lease contracts and brought in cheap and experienced sugar cane workers from elsewhere.

Intention of investment

Intention of the investment
Biofuels

Nature of the deal

Nature of the deal
Lease

Negotiation status

Negotiation status
[2010] Intended (Expression of interest)
Concluded (Oral Agreement)
Comment on negotiation status
Various short term leasing deals have been conpleted with small and medium size landowners.

Implementation status

Implementation status
[2012] In operation (production)
Comment on implementation status
According to 'Sweet and Bitter: Sugarcane Expansion in Northern Luzon, The Philippines, and Aceh, Indonesia, 2006–13' the bioethanol plant to which Ecofuel supplies feedstock began operating in 2012, albeit with lower production levels than originally envisaged because Ecofuel could not yet comply with the required volume of delivery.

Leasing fees

Annual leasing fee
5000
Annual leasing fee currency
Philippine Peso (₱)
Annual leasing fee type
per ha
Comment on leasing fees
The companies are using short term lease contracts and brought in cheap and experienced sugar cane workers from elsewhere. The lease agreement usually covers three years and is renewable for another three years. The rent ranges from PHP 5,000–10,000 (roughly EUR 88–176 in 2014) per hectare per year depending on the distance of the farm from the processing plant. The company takes over the land for the duration of the contract, organising production and recruiting labourers.

Contract farming

Contract farming
Yes
Comment on contract farming
The contract farming scheme requires that the landowners work or at least supervise the farm work themselves. The company advances the production costs, optionally including labour costs, then deducts these from the grower’s earnings in the harvest period, computed at PHP 1,200 (approximately EUR 21 in 2014) per ton of sugar cane.

Operating company

 

Network of parent companies and tertiary investors/lenders. Please right-click the nodes to get more details.

Legend
  • Is parent company of
  • Is tertiary investor/lender of
  • Left-click to reveal related parent companies and tertiary investors/lenders.
  • Right-click on investors to get more information.
  • Left-click to hide related parent companies and tertiary investors/lenders.

Data source #1

Data source type
Media report
File
Date
2012-08-30

Data source #2

Data source type
Media report
File
Date
2011-06-06

Data source #3

Data source type
Media report
File
Date
2012-08-30

Data source #4

Data source type
Government sources
File
Date
2011-02-09

Data source #5

Data source type
Research Paper / Policy Report
File
Date
2011-04-08

Data source #6

Data source type
Research Paper / Policy Report
File
Date
2012-10-17
Comment on data source
Paper prepared for the Land Deal Politics Initiative conference “Global Land Grabbing II”, Cornell University, Ithaca, New York, October 17-19 2012

Data source #7

Data source type
Media report
File
Date
2012-08-30

Data source #8

Data source type
Media report
File
Date
2014-06-24

Data source #9

Data source type
Research Paper / Policy Report
File
Date
2015-10-01

Data source #10

Data source type
Media report

Consultation of local community

Community consultation
Limited consultation

How did the community react?

Community reaction
Rejection
Comment on community reaction
In a joint statement today, the Asian Peasant Coalition (APC), the Kilusang Magbubukid ng Pilipinas (KMP) and the Danggayan dagiti Mannalon ti Isabela (DAGAMI-Isabela), said because of the farmers’ militant actions the Bio-ethanol plant was victoriously shut down.

Displacement of people

Comment on displacement of people
Displacement took place

Former land use

Former land use
Smallholder agriculture
Pastoralism

Former land cover

Former land cover
Cropland
Shrub land/Grassland (Rangeland)

Detailed crop, animal and mineral information

Crops area
Sugar Cane

Overall comment

Overall comment
The Bio-ethanol plant was shut down in 2012, but I am not sure whether the whole project was abandoned. Hence, I am not sure whether the areas of sugarcane cultivation were abandoned as well, therefore I do not indicate that the project was abandoned. (2015) Even though the plant has been shut down in August 2012, some operation is still ongoing because according to the report of Inquirer.net the company laid off some workers last 2014 hence there is still an ongoing operation but it did not specify what kind

June 13, 2016, 5:03 p.m.

overwritten

This version

Compare with previous version

July 7, 2015, 5:23 p.m.

overwritten

Show this version

Compare with previous version

Nov. 20, 2013, 3:22 p.m.

overwritten

Show this version

Compare with previous version

Aug. 1, 2013, 8:29 p.m.

overwritten

Show this version

Compare with previous version

June 2, 2013, 11:47 p.m.

overwritten

Show this version

Compare with previous version

June 2, 2013, 11:45 p.m.

overwritten

Show this version

Compare with previous version

May 24, 2013, 6:20 p.m.

overwritten

Show this version

Compare with previous version

May 21, 2013, 6:04 p.m.

overwritten

Show this version

Compare with previous version

March 9, 2013, 1:27 p.m.

overwritten

Show this version

Compare with previous version

Feb. 15, 2013, 4:59 p.m.

active

Show this version

First version

There are no comments to this deal yet.

Add a comment

(mandatory)
(mandatory)
(mandatory)

I've read and agree to the Data Policy.