THE mega food hub planned to rise inside the Clark Civil Aviation Complex (CCAC) by 2028, along with other flagship projects, are seen to be a “game-changer” for the Philippines’s overall agricultural productivity and the “revitalization” of the country’s exports sector, among others, according to the Clark International Airport Corporation (CIAC).
CIAC President Arrey Perez made the forecast after the Department of Trade and Industry (DTI) and the Department of Agriculture (DA) inked on Monday a Memorandum of Understanding (MOU) with the CIAC to collaborate in the development of the National Food Hub in Clark.
“The National Food Hub, in tandem with the CIAC’s six other flagship projects, will be a game-changer for the Philippines’ overall agricultural productivity and the revitalization of our exports sector. And key to everything is partnerships like this–where minds and wills align,” Perez said.
Trade and Industry Secretary Alfredo E. Pascual told reporters on the sidelines of the MOU signing that this food hub will ensure that food waste would be reduced to avoid passing on the cost to consumers in Metro Manila.
At the grassroots level, Perez said the mega food hub will “empower” farmers, livestock growers and even fishermen.
The food hub, however, is still undergoing a feasibility study and market sensing this year. Perez said CIAC aims to award the contract to the private sector by 2025. If this timeline is followed, the CIAC chief said the construction of phase 1 of the food hub will happen from 2025 to 2028.
“Of course after the award, they will build the facility. So when they build the facility — at least that’s what we can call Phase 1 – [it] will happen by 2025 all the way to 2028,” he noted.
The CIAC said the estimated project cost for the 64-hectare Clark National Food Hub is $152 million or P8.56 billion.
As the DTI is tasked to provide assistance to encourage investments in the construction and management of the Food Hub, Pascual said foreign participants such as Rungis International Market in Paris, France and Mercabarna market in Barcelona,Spain have “expressed interest to participate [to invest in the hub].”
DTI described Rungis International Market as the largest wholesale food market in Europe and is located on the outskirts of Paris. Mercabarna is a “vital wholesale market” located in Barcelona, Spain, specializing in the distribution of fresh produce, seafood, meat, and flowers.
Meanwhile, in the local scene, the country’s “tycoons” could invest in this mega food hub, especially since a lot of conglomerates are already going into logistics “because they’ve already seen the importance of logistics in ensuring supply, various things not just food, but even raw materials and delivery of finished products in their manufacturing operation.”
“So those are the ones we will invite as partners. They have to form consortia. In France, for example, its ownership is dispersed. The local government also has some participation. National government and then the private operators,” Pascual said.
Under the MOU, the DA will lead the development of a policy framework, public investment, and support services necessary for domestic and export-oriented businesses to support the overall goals of the National Food Hub.
This includes sourcing funds needed to set up or improve cold chain facilities and food terminals that will help expand the logistics network of the Food Hub.
Meanwhile, the agreement noted that the DTI, through its Supply Chain and Logistics, Wholesale and Retail Trade Office (SCLWRTO), is “mandated to formulate policies and measures relative to the supply chain, trade facilitation and logistics in promoting the interest of exporters, importers and traders in the shipment of commodities by helping secure competitive rates and equitable terms and conditions by carriers/transport operators and other service providers.”
The agreement also mandated DTI to establish a system of accreditation of sea freight forwarders, logistics providers and multimodal operators.
The national food hub’s services will include research and quality control, warehousing, food processing, international shipping, marketing services, and trading for local and foreign markets.
Other flagship projects of CIAC are the National Food Hub Gateway Road, the Clark Entertainment and Events Center, Urban Renewal and Heritage Conservation Program, CRK Direct Access Link, New CIAC Headquarters and Site Development for Second Runway.
According to CIAC, the National Food Hub Gateway Road project aims to “enhance” transportation infrastructure by upgrading the existing airport-New Clark City road to be the “dedicated” gateway to the Clark National Food Hub and “facilitate smoother access” to the Clark International Airport.