Summary of RP-China Deals Relating to Fisheries and Agriculture

Summary of RP-China Deals Relating to Fisheries and Agriculture Print E-mail
Thursday, 18 October 2007
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Below is a summary of the various memoranda of agreements (MOA) that the Philippine government entered into with the Chinese government and other Chinese entities relating to the agriculture and fisheries sectors. The list also includes a number of agreements in which the parties are Chinese and Filipino businessmen. While most were signed during the visit of Chinese Premier Wen Jianbao early this year (January 15-16), quite a number were formalized in 2006.

Data here were culled from copies of the MOAs obtained by Newsbreak, the briefing paper on the agreements prepared by the Department of Agriculture's China Trade Desk, a briefing paper prepared by the Initiatives for Dialogue and Empowerment through Alternative Legal Services, Inc., and news reports.

1MOA to expand and deepen the scope and cooperation between the agricultural agencies of China and the Philippines. This MOA expands the scope of the 1999 MOA on Agriculture and Fisheries Cooperation and the 2004 MOU on Fishery Cooperation between the two countries, to include cooperation in food security, job creation, and poverty alleviation. It also broadens the scope of the agreement and includes cooperation on biotechnology, biofuels, agri-tourism, post harvest development and handling, food processing and marketing technologies. (download here)

* Philippine signatory: Department of Agriculture
* Chinese signatory: Ministry of Agriculture
* Signed: January 15, 2007

On Research

2MOA for the establishment of a 35-hectare technology demonstration farm in Mabalacat, Pampanga, for the application of new varieties of sweet corn, vegetables, and crops. The agreement provides that the new varieties will eventually be applied in a 2,000-hectare area—if the demo farm succeeds. (download here)

* Philippine signatory: Department of Agriculture
* Chinese signatory: Guangdong Academy of Agricultural Sciences (GDAAS)
* Area covered: 35 hectares, to be expanded to 2,000 hectares
* Signed: January 16, 2007

3MOA to engage in technical cooperation on aquaculture, fishery products processing, marine fishing (in accordance with Philippine laws), aquatic products, and fishery necessities trading, technological research, etc. It calls for the establishment of the Sino-Filipino Fishery Cooperation Pilot zone, initially in Region 8. (download here)

* Philippine signatory: Bureau of Fisheries and Aquatic Resources
* Chinese signatory: Guangdong Ocean and Fishery Administration
* Signed: January 16, 2007

On Trade

4MOA that commits the Jiangnan Wholesale Market, China's largest fruit and vegetable center, to provide the Philippines's Department of Agriculture a 5,000-square-meter space for Philippine tropical fruits. (download here)

* Philippine signatory: Department of Agriculture
* Chinese signatory: Guangzhou Jiangnan Fruit & Vegetable Wholesale Market Development Co., Ltd (joint government and private sector)
* Signed: January 15, 2007

5MOA to deepen cooperation on sanitary and phytosanitary measures. Parties agreed to exchange information on sanitary and phytosanitary legal systems as well as "consider the interests" of both parties in the formulation and implementation of laws, regulations and standards, procedures, methods and technologies of pests, diseases, poisonous and hazardous substances. (download here)

* Philippine signatory: Department of Agriculture
* Chinese signatory: General Administration of Quality Supervision, Inspection and Quarantine
* Signed: January 15, 2007

6MOA between the Department of Agriculture and Guangzhou Zongbao Fiber Product Co, Ltd for the production, supply, and delivery of coconut fiber or coco coir products equivalent to 100,000 metric tons for 2007. (download here)

* Philippine signatory: Department of Agriculture
* Chinese signatory: Guangzhou Zongbao Fiber Product Co, Ltds
* Signed: December 8, 2006

Establishment of agriculture/fisheries ventures that will export produce to China

7MOA involving the lease/development by the Fuhua Corp. of land in the Philippines for the cultivation of hybrid corn, hybrid rice, and hybrid sorghum. (download here)

* Philippine signatory: Department of Agriculture, Department of Agrarian Reform, and Department of Environment and Natural Resources
* Chinese signatory: People's Government of Jilin Province, China Development Bank, and Jilin Fuhua Agricultural Science and Technology Development Co., Ltd. (private sector)
* Promised investment: US$ 3.83 billion (30 billion RMB)
* Area covered: Lease of 1,000,000 hectares (50,000 hectares for 2007)
* Status: Signed on January 15, 2007
* Note: The contract does not specify the amount to be invested; it's not clear if this is a direct investment or a loan. It states that Fuhua will establish a credit platform company, which implies that participants in this project would be borrowing from Fuhua.

8MOA on the development of land in the Philippines for cassava and sugar for ethanol production. (download here)

* Philippine signatory: Department of Agriculture, Department of Agrarian Reform, and Department of Environment and Natural Resources
* Chinese signatory: Agricultural Department of Guangxi Zhuang Autonomous Region
* Promised investment: US$6.2 million
* Area covered: An initial 40,000 hectares of agribusiness lands
* Status: Signed on January 15, 2007
* Note: The contract does not specify the amount to be invested. Parties agree that "any disagreement or dispute shall be resolved through amicable negotiations and/or diplomatic channels."

9MOA on a joint establishment of a bioethanol plant in the country. (download here)

* Philippine signatory: B.M. SB Integrated Biofuels (private sector; president is Mr. Aurelio L. Lacson)
* Chinese signatory: Nanning Yongkai Industry Group (private sector; president is Mr. Lai Kebin)
* Expected investment: US$35 million
* Signed: January 15, 2007

10MOA for the supply machineries and equipment and the establishment of facilities to manufacture bioethanol. (download here)

* Philippine signatory: Negros Southern Integrated Biofuels Company (private sector; president is Mr. Aurelio L. Lacson)
* Chinese signatory: Nanning Yongkai Industry Group (private sector; president is Mr. Lai Kebin)
* Expected investment: US$35 million
* Signed: January 15, 2007

11MOA on the setting up of facilities in Palawan to produce 150,000 liters of bioethanol a day. (download here)

* Philippine signatory: Palawan Bio-Energy Development Corp. (private sector; president is Mr. Vicente S. Sandoval, Jr.)
* Chinese signatory: China National Constructional and Agricultural Machinery Import and Export Corp. (CAMCE) (private sector; president is Madam Luo Yan)
* Area covered: 10,000 hectares
* Signed: January 15, 2007



12MOA to develop bio-ethanol plants, each with a capacity to produce at least 150,000 liters a day. (download here)

* Philippine signatory: One Cagayan Resource Development Center Inc. (private sector; president is Mr.Peter T. Roxas)
* Chinese signatory: Nanning Yongkai Industry Group (private sector; president is Mr. Lai Kebin) and China CAMCE Engineering Co., Ltd., (private sector; president is Madam Luo Yan)
* Expected investment: US$35 million
* Signed: January 15, 2007

13MOA on a joint venture in aquaculture, hatchery, and the processing of various fish species, mollusks, seaweeds, and other marine products. (download here)

* Philippine signatory: Philippine Marine Technology Group, Inc. (President: Helen Tong)
* Chinese signatory: Shandong Gaolu Co. Ltd. (private sector; board chairman is Cai Hongbo)
* Expected investment: P15 million
* Signed: December 3, 2006

14MOA to form a joint venture corporation—under a 60-40 percent ownership in favor of the Filipino partner—to invest in the culture of high value species (abalone, sea cucumbers, sea urchins, and scallops) in mariculture parks in various parts of the Philippines. (download here)

* Philippine signatory: Sun Warm Tuna Fishing Corp. (private sector; president is Mr. Richard Sy)
* Chinese signatory: Guangdong Guangyuan Fishery Group Co. Ltd. (private sector; CEO is Fang Jianmin)
* Expected investment: P20 million
* Signed: January 16, 2007

15MOA between the Philippine China Fisheries Consortium, Inc. and the Xunshan Fishery Co. Ltd. on the breeding and culture of grouper and other high-value species. (download here)

* Philippine signatory: Philippine China Fisheries Consortium Inc. (private sector; president is Mr. Wilson Chu)
* Chinese signatory: Xunshan Fishery Co. Ltd. (private sector; president is Li Changqing)
* Expected investment: P25 million
* Signed: November 27, 2006

Supply/Construction Contracts tied to a credit facility

16MOA with the China CAMCE Engineering Co. Ltd. on the provision of small mobile ice plants and transport facilities to municipal fishery cooperatives and associations. (This includes ice storage facilities, refrigerated vans, cold storages, and transport facilities which are classified or identified as part of the cold chain.) (download here)

* Philippine signatory: Department of Agriculture
* Chinese signatory: China CAMCE Engineering Co. Ltd.
* Note: CAMCE will "prepare the feasibility studies and preliminary engineering designs, plans and specification, cost estimates and construction work schedule for the installation, maintenance, operation of identified post harvest facilities" and "provide the funds for the implementation of the project."
* Signed: January 16, 2007

17MOA for the construction of a shipyard, establishment of a cold storage facility, and the rehabilitation of the Navotas Fish Port Complex to be funded through a credit facility under CAMCE. (download here)

* Philippine signatory: Department of Agriculture
* Chinese signatory: China CAMCE Engineering Co. Ltd.
* Note: CAMCE will "prepare the feasibility studies and preliminary engineering designs, plans and specification, cost estimates and construction work schedule for the installation, maintenance, operation of identified post harvest facilities."
* Signed: January 16, 2007

18MOA on the development and construction of the Candaba Water Resource Project as an alternative source of irrigation and potable water. (download here)

* Philippine signatory: Metropolitan Waterworks and Sewerage System (MWSS)
* Chinese signatory: China CAMCE Engineering Co. Ltd.
* Signed: January 16, 2007
* Note: In the agreement, the MWSS agrees to designate the project as a "national government project," which "may qualify for national government guarantee for any financing that will be extended." For its part, CAMCE shall conduct the feasibility study, and "arrange the engineering, procurement, and commissioning (EPC) contractor for the project and provide government to government financing." It also states though that "nothing in this MOU shall be construed or interpreted as granting and/or awarding any preferential, exclusive, prior or vested right to CAMCE to work, develop, and/or implement the entire project or any of the packages, phases, stages or portions thereof."

OTHERS

19An agreement which involves the development of land in the North Luzon Agribusiness Quadrangle (NLAQ) to establish an agroindustrial project with all-weather greenhouses for the production and export of quality flowers and off-season vegetables and fruits to Japan, Hong Kong, and Taiwan.

* Philippine party: A Business Mirror report of January 15, 2007 quoted Agriculture Secretary Arthur Yap as saying that Beidahuang is expected to sign a contract with E.L. Enterprises Inc.
* Chinese party: Beidahuang Heilongjiang Group (private sector)
* Expected investment: US$120-million
* Area covered: 200,000 hectares
* Status: Not yet signed