By Manny Piñol
A leading Israeli Agro-Industrial Company has formally submitted a Letter of Intent offering to fund and construct some 6,200 units of Solar-Powered Irrigation Systems (SPIS) covering an estimated 500,000-hectares of rice, corn and high-value crops farms in the Philippines.
The Letter of Intent forwarded to the Secretary of Agriculture also indicated the interest of the LR Group, one of Israel’s biggest agro-industrial firms, to establish Dairy Farms on a turn-key basis.
The total estimated cost of both the SPIS and the Dairy Projects is estimated at $1-B which the LR Group is willing to fund under a 10-year loan program to be guaranteed by the Israeli and Philippine Governments.
The LR Group was one of the Israeli companies which participated in a Business Forum organized by the Israeli Chamber of Commerce in the Philippines last month.
Following site visits in Tagum City and Llanera, Nueva Ecija earlier this month, the company signified its intent to support the DA’s SPIS and Dairy projects using Israeli technology.
Ilan Weiss, chairman of LR Group subsidiary Innovative Agro Industry, said the technology that Israel will introduce could double the production of Filipino farmers.
Next week, officials of the company will be back in the Philippines for a series of meetings with a group of local bankers who expressed interest in supporting DA programs.
They will also meet with local engineering companies who are expected to partner with the LR Group in the implementation of the projects.
The LR Group Letter of Intent marks the start of the negotiations which will be later submitted to the National Economic Development Authority (NEDA) for project evaluation.
Three weeks ago, during an activity in Buluan, Maguindanao, President Rody Duterte gave his approval for the start of exploratory negotiations with the Israeli company.
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