Manila is negotiating a deal with Beijing for the construction of solar-powered irrigation systems (SPIS) to boost the Philippines’s farm productivity.
Agriculture Assistant Secretary Arnel V. de Mesa said the agriculture department is now “drafting” the “possible engagements” with China for the irrigation project.
De Mesa said the Department of Agriculture (DA) is targeting to submit a feasibility study (FS) on the official development assistance-backed (ODA) project to the National Economic and Development Authority (Neda) next year.
The DA earlier formed a project preparation team (PPT) that would handle and expedite the completion of the FS of the proposed China SPIS project.
De Mesa, who chairs the PPT, revealed that part of the details being ironed out by the DA are the technical specifications of the project, including the capacity and number of SPIS to be built nationwide.
He said China’s proposal was forwarded to the DA by Neda. He noted that the value of the China-backed SPIS project would be “more than the minimum” Investment Coordination Committee (ICC) threshold.
The DA official said talks on the SPIS project started during a recent bilateral meeting between Manila and Beijing.
Under Philippine regulations, all ODA-funded projects must undergo the approval process of the Neda-ICC, provided that they meet the minimum threshold value set by the government.
The PPT has been tasked to ensure that the project documents of the China-backed SPIS project are compliant with the requirements of the DA-Wide Project Clearinghouse System and Neda-ICC.
The PPT will also prepare the timeline of activities from preparation until finalization and approval of the irrigation project.
In recent years, the construction of SPIS has been regarded as one of the key projects that would improve local agricultural productivity as it would provide much needed water resources to farms.
In August 2018, the Duterte administration had announced that it is aiming to irrigate 500,000 hectares of land through SPIS.
The DA said the national government had planned to allocate at least P43.7 billion for the construction of around 6,250 SPIS until the end of the term of former President Duterte. An SPIS, which could irrigate at an average of 80 hectares, costs about P7 million, according to the agency.
The additional 500,000 hectares of irrigated farms would be able to produce at least 2 million metric tons (MMT) of rice, the DA said.
Despite a record high domestic output, the Philippines was only able to produce 81.5 percent of its total rice supply last year, lower than the 85 percent rate recorded in 2020, latest official statistics showed.
In its annual report on food availability, the Philippine Statistics Authority (PSA) revealed that the country’s rice self-sufficiency ratio (SSR), which measures the volume of commodity supply that is locally produced, declined last year due to higher import volume.
PSA data showed that milled rice production last year rose by 3.44 percent year-on-year to 13.054 million metric tons (MMT). This, however, pales in comparison to the 33.71 percent increase in imports.
The Philippines posted a record unmilled rice output of 19.96 MMT last year, based on data from the agency.