CAGAYAN DE ORO CITY – The Development Bank of the Philippines said it recently signed a memorandum of agreement for the development of a palm oil plantation and oil mill in Kalilangan town in Bukidnon province under its Tree Plantation Financing and Sustainable Agri-Business Financing Programs.
It said the project – which is being undertaken in partnership with the Bali Oil Palm Produce Corporation and Kalilangan Oil Palm Growers Association – involves the development of 3,000 hectares of plantation and the establishment of a 30-ton per hour oil mill in Kalilangan.
Under the accord, Development Bank of the Philippines will lend P80 million to Kalilangan Oil for the planting and development of an initial 800 hectares of the oil palm plantation. The project may be expanded to include the additional 2,200 hectares with estimated project cost of P220 million.
Kalilangan Oil will provide the necessary manpower requirement for the project and implement oil palm farming technology prescribed by the Bali Oil. Kalilangan Oil will also deliver fresh fruit bunches harvest to Bali Oil, which will have the exclusive right to buy them.
Bali Oil, meanwhile, will conduct capability training and seminar and provide technical assistance to Kalilangan Oil for free. It will also provide the necessary agricultural inputs like fertilizer and pesticide at reasonable price and seedlings for the plantation. (Mindanao Examiner Business)
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