SKorea to provide PHL $500m in soft loans, says Agri’s Alcala

The Philippine can get soft loans from the South Korean government for building post-harvest facilities, Agriculture Secretary Proceso Alcala said Tuesday.   Seoul has made available up to $500 million for the Philippines’ rice self-sufficiency by 2013, Alcala noted.   "(The South Korean government) believes in our rice self-sufficiency program. We are now in the process of identifying lands suitable for the rice processing centers," Alcala said in an interview with reporters.   The Philippine government has the option to draw on soft loans either from the Export-Import Bank of Korea or the Economic Development Cooperation Fund (EDCF), the Agriculture secretary said.   The Philippines and South Korea on Monday signed the framework agreement for the 2011-2013 Economic Development Cooperation Fund in Manila, giving the Philippine government the authority draw up $500 million in soft loans, grant and aid.   Last year, Manila and Seoul committed to implement a project involving the construction of four rice-processing centers in various parts of the country. The P785-million project was funded by a grant from South Korea.   The Department said that the Philippine government and the Korea International Cooperation Agency have agreed to put up rice processing centers in the provinces of Pangasinan, Iloilo, Bohol and Davao del Sur.   Alcala said that the rice processing center in Pangasinan was already completed adding that the establishment of rice processing centers was inspired  by the success of Korea's Agricultural Machinery Rental System.   South Korea has encouraged the Philippines to build rice-processing centers for efficient post-harvest operations, the Agriculture Department said.   The South Korean experience showed that the construction of 328 rice processing centers and 568 drying and storage complexes in Korea helped reduce working hours by 64 percent and operating costs by 34 percent. Post-production losses were also cut from 6 percent to 1 percent, according to South Korean officials.   Meanwhile, the funding for the P13.2-billion Jalaur River Multipurpose Project in Western Visayas was approved during bilateral meetings between the Philippines and South Korea, said Alcala.   The Korean Economic Development Cooperation Fund will account for 60 percent of the project cost or P7.92 billion, the Philippines will provide 40 percent in counterpart funding.   A priority project under the Philippine Regional Development Plan 2011-2015 for Western Visayas, Jalaur River Multipurpose Project is envisioned to sustain rice production efficiency. — VS, GMA News