Gov't leases 1/10th of RP agricultural lands to China firm

2007-10-17

Gemma Bagayaua

GMA News Online

The contract is expected to bring in about US$3.87 billion in investments. The MOU with Fuhua Co. is one of 18 agriculture- and fisheries-related contracts that was signed in the presence of Chinese Premier Wen Jianbao when he visited Malacañang in January this year. The 18 contracts cover agriculture and fisheries research, the provision of facilities for fishery and agriculture, the investment of Chinese entities in local agribusiness, and other trade-related matters. (Click here to read the Summary of RP-China Deals Relating to Fisheries and Agriculture.) Read more: https://www.gmanetwork.com/news/topstories/specialreports/64800/newsbreak-gov-t-leases-1-10th-of-rp-agricultural-lands-to-china-firm/story/ More stories: https://www.gmanetwork.com/news/ Follow us: https://www.facebook.com/gmanews/

Gov’t reviewing big land-lease deals

2011-09-27

Kristine L. Alave

Farmlandgrab

Lease contracts covering millions of hectares of agricultural lands signed by the Department of Agriculture with foreign entities during the Arroyo administration are currently being reviewed to determine if they are in accord with the current administration’s food security plan.

The main Chinese operating company slated to lease and cultivate the land. Fuhua specializes in hybrid crop technology and international agribusiness. It was the corporate vehicle for implementing the 1M ha project. Notably, Fuhua committed to set up a “credit platform company” to finance farmers’ production inputs, backed by loans from CDB.

CDB agreed to fund the venture’s capital needs. A briefing paper indicated Fuhua’s investments would be supplied by CDB over 5–7 years. It’s unclear if this would be a loan to Fuhua or a package to the PH government; critics feared it meant farmers or the PH government might incur debt. No funds were actually released due to the suspension.

The Jilin provincial government co-signed the deal, signalling Chinese official support. It likely helped coordinate between Fuhua and China’s central authorities. Jilin’s interest was in securing grain supply and promoting its agribusiness “going out.” The province’s involvement gave the project a government-to-government aspect.

2007

These agencies (led by DA) represented the Philippines in the MOU. They formed the “convergence group” signing the deal. Their role was to enable the project – e.g., clearing legal hurdles, providing data on lands, coordinating with landowners/ARBs, and even building necessary infrastructure and organizing farmers. Essentially, the PH government was to bear certain costs and facilitation duties to ensure Fuhua’s success.