P4.3B in Loans Allotted for Jatropha Farmers

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Thursday, May 22, 2008

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P4.3B in Loans Allotted for Jatropha Farmers

MANILA - The Land Bank of the Philippines has set aside P4.3 billion in loans for the development of a 100-hectare tract of marginal land in Quezon, which will be planted to jatropha, a biofuel feedstock, reports the Inquirer.

In a statement, LandBank said the amount would be extended as credit assistance to qualified growers, such as cooperatives, small and medium-scale entrepreneurs and farmers’ organizations in the province.

According to LandBank, the amount was provided under a memorandum of agreement it signed Wednesday with the local government of Quezon and the Philippine National Oil Co.-Alternative Fuels Corp. (PNOC-AFC).

Under the agreement, LandBank will allot the P4.3 billion as loans to jatropha growers, covering 100,000 hectares.

The production area can be further increased in phases depending on the suitability and economic feasibility of the identified lands.

The PNOC-AFC shall serve as the market for jatropha seeds and crude oil. It will likewise provide technical assistance to nursery growers, like the certification of jatropha seeds.

PNOC-AFC also plans to assist jatropha plantation growers through technology transfer.

According to LandBank president and CEO Gilda E. Pico, the P4.3 billion it had allocated to Quezon forms part of the P10-billion fund the bank had earmarked for biodiesel projects nationwide.

View the Inquirer story by clicking here.