ISRAELI agro-industrial company LR Group is set to present its proposed Solar-Powered Irrigation System (SPIS) to the Department of Finance (DoF) next week.
Agriculture Secretary William D. Dar said representatives of LR Group will meet with the DoF on Tuesday to discuss funding for the project.
“What they (LR Group) will discuss with the Department of Finance next week is that there is a group that can support them in terms of bringing $200 million investment, and they will give at one percent loan interest, so sabi ko (I said) let’s do it. I’ll strongly support, and this is again showcasing that yes, water is needed in agriculture,” he told reporters.
LR Group’s affiliate Innovative Agro Industry Ltd. (IAI) is said to help raise the initial investment of $200 million, or P10 billion, to start the project.
The government has been pursuing projects to ensure that there is water supply in farms around the country.
LR Group previously submitted a P44-billion proposal to then Agriculture Secretary Emmanuel F. Piñol for the establishment of 6,200 SPIS, which can cover about 500,000 hectares of rice and high-value crop farms.
President Rodrigo R. Duterte gave his approval for the project during the initial negotiations, which involved the Philippines and IAI.
However, Mr. Dar said he discussed a new model for SPIS with the Israeli company, which is more cost-efficient than its initial proposed model.
“Ang (The) cost of LR (Group), ’yung (their) first model nila [is] good for eight hectares ay P1.2 million, including installation. The other model they have is good for 32 hectares, and that is P5.8 million, including installation,” he explained.
“This time around, mas madali ma-install (It’s easier to install). In two weeks, ’yung (the unit) good for 32 hectares, it can be operational, and it’s simple. It also has fertigation. You can apply fertilizers through this system. This is much more cost-effective,” he added. — Vincent Mariel P. Galang
