Agrinurture Inc. (ANI) said on Thursday it has received an original proponent status for its joint venture proposal on meeting the rice supply requirements of the National Food Authority.
In a regulatory filing submitted by Agrinurture’s Glene Suyo, the company said it received a letter from the NFA recognizing the company as an original proponent for the public-private partnership (PPP) project.
“Relative to Agrinurture Inc.’s unsolicited proposal for a PPP project involving a joint venture for the Rice Supply Requirements of the National Food Authority, ANI wishes to inform the investing public that it has received today a letter reply from the National Food Authority, acknowledging receipt of the proposal and stating further that ANI has been considered and taken cognizant of as the original proponent,” the company said.
Under the agreement, ANI will be in charge of financing the procurement of as much as 500,000 metric tons of rice per quarter, equivalent to two weeks of the national inventory of subsidized NFA rice.
“Both parties shall jointly determine the origin, suppliers, delivery and arrival periods, pacing and loading, and discharging ports,” ANI told GMA News Online.
“NFA, on the other hand, will solely determine the type of commodity to be imported, specifications, and quantity,” it said.
The additional supply is intended to boost the country’s buffer stock, and not to compete with the output of local farmers.
“It only aims to augment the country’s rice inventory at no cost to the government,” the company said.
“Aside from not bearing the costs of importation, NFA has no risk or exposure to losses. All risks shall be borne by the ANI consortium from the time of purchase up to the point of dealing with undisposed stocks,” it said.
Once a project proposal has been given an original proponent status, it becomes subject to a Swiss Challenge. The challenge entails inviting other firms to make competing offers, while giving the original proponent the right to match such offers.
The project shall now proceed in accordance with both the technical and legal processes under the NEDA ‘Guidelines and Procedures for Entering into Joint Venture (JV) Agreements between Government and Private Entities’,” Agrinurture said. —VDS, GMA News