THE Land Bank of the Philippines is extending P4.3 billion as credit to qualified growers of jatropha, the bank said Wednesday.

The qualified growers include cooperatives, small and medium entrepreneurs and farmers’ organizations.

In a statement, LandBank said the amount will be taken out of the P10-billion credit window created last August for farmer-cooperatives interested in raising fuel crops, primarily jatropha.

LandBank signed a memorandum of agreement with the local government of Quezon and the Philippines National Oil Co.-Alternative Fuels Corp. (PNOC-AFC) for the production and processing of jatropha in Quezon province.

The deal calls for LandBank to allot P4.3 billion for the 100,000-hectare marginal lands identified by the local government of Quezon for jatropha production.

Marginal lands are arable lands that are not used for raising food crops.

The bank said the land area can still be increased in phases “depending on the suitability and economic feasibility of the lands identified.”

The PNOC-AFC will serve as the market for jatropha seeds and crude oil produced from the plant. It will also determine the right variety and acceptable oil content of the seeds for planting, and extend assistance to jatropha plantation growers through technology transfer.               

Meanwhile, the local government of Quezon, through the Quezon Jatropha Development Board (QJDB), will accredit seedlings suppliers and identify growers “with good track records” for endorsement to the bank.

The Quezon government shall also formulate/enact ordinances that promote production and processing of jatropha. It will also provide support services and infrastructure like farm-to-market roads to improve the delivery of goods and services.

LandBank president and chief executive officer Gilda Pico said the bank’s assistance to jatropha production is consistent with its commitment pursuant to the Biofuels Act of 2006, which mandates the use of biofuels in the country.

“This is also in line with our thrust to expand our support to projects dealing with agri-based, renewable and other alternative sources of energy,” Pico said.

In a phone interview, Liduvino Geron , LandBank vice president for program management group, which handles the credit line for biofuels, said Quezon province is a “potential area” for the cultivation of jatropha.

He said similar agreements were signed in Iligan City for the cultivation of jatropha in 1,500 hectares of marginal land, for which P6 million will be allotted, as well as in Cagayan de Oro, where P9 million have been earmarked for the cultivation of the fuel-producing crop in 200 hectares of land.

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THE Land Bank of the Philippines is extending P4.3 billion as credit to qualified growers of jatropha, the bank said Wednesday.

The qualified growers include cooperatives, small and medium entrepreneurs and farmers’ organizations.

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