PROPOSAL FOR MINDANAO AGRO-ENTERPRISE DEVELOPMENT PROJECTREMOTE

RECEIVING TERMINAL (RRT)

REGION: XII

PROVINCE: SOUTH COTABATO

12.1 Project Construction oOf of High Value Crops Processing Center With with
Title: Machineries and EquipmentConstruction of Remote Receiving
Terminal (RRT)
Location/Agricultural Province of South Cotabato is located in the Southern part of the island
Land Use of Mindanao. It is bounded by the province of Sultan Kudarat in the north
Information/Backgro and west, in the east and south by the city of General Santos and
und province of Sarangani. It is composed of 10 municipalities and 1 City
with a total land area of 402,851.69 hectares (ha), of which 232,311 ha.
(57%) is devoted to agriculture. In South Cotabato, agricultural
productivity is one of the major thrusts of the provincial government
geared towards the development of idle arable lands suited for the
production of high value commercial crops and even in the maximization
and utilization of agricultural lands. High value crops commodity on its
part significantly contributes in achieving food security, affordability and
sufficiency in the province.

Project location is being pointed out as to its strategic position, presence

of dominant high value crops as to its volume and their availability and
the accessibility as to hauling and transportation activities.

Proposed location for the project would be in the Municipality of Surallah

in a one ha. Lot donated to the local government unit for government
project. Pertinent documents are already in place serving the purpose.

Description Tupi, a first class municipality of South Cotabato, is one of the major fruit
and vegetable producing areas in Region XII. It has a total of 2,486
hectares devoted to fruit production ranging from avocado, banana,
durian, guava, guyabano, lanzones, mangosteen, papaya and
pineapple, producing around 218,512 metric tons annually. Suited to a
wide range of vegetable species comprising of ampalaya, bell pepper,
broccoli, cabbage, carrot, cauliflower, eggplant, radish and tomato, the
municipality is a major supplier of vegetables to prime urban centers in
SOCCSKSARGEN and in Metro Manila.
The proposed High Value Crops Processing Center with Machineries
and Equipment which will be located in Tupi will serve as a catchment
center of high value crops from upper and lower valleys, and even the
neighboring municipalities in Region XII. It is complete with a value-
chain system of processing, packaging, distribution and marketing that
will reduce hauling cost and food wastage, maximize the value of
commodities, reduce interference of middlemen in the course of trading,
and bring about competitive prices for local fruits and vegetables,
thereby increasing farmers’ income. It will improve farmers’ access to
food markets and increase availability of healthy food for the direct and
indirect influence areas. It is projected that the Processing Center will
absorb at least 20% of the total agricultural produce of the entire region
in the first five years covering an estimated: 150,929 hectares for palay
and corn, 429,180 hectares for fruit crops, and 731,774 hectares for
non-food and agricultural crops.
Strategically located at the heart of SOCCSKSARGEN region, the
Processing Center is expected to decongest highly-concentrated urban
centers of Region XII of population and socio-economic activities that
will help arrest escalation of urban management issues in nearby city
centers. Projected traffic volume of hauling vehicles resulting from its
operation can easily be accommodated by Tupi’s six-lane national
highway, with future expansion plan to 8-10 lanes. The Processing
Center is highly accessible to the national highway and to the ports of
General Santos City.
The project will boost development of local industries and create 2,500
jobs that will spur local and regional economic development. Province of
South Cotabato is located in the Southern part of the island of
Mindanao. It is bounded by the province of Sultan Kudarat in the north
and west, in the east and south by the city of General Santos and
province of Sarangani. It is composed of 10 municipalities and 1 City
with a total land area of 402,851.69 hectares (ha)s,. in which 145,529.9
has. (2017) is devoted to agriculture. In South Cotabato, agricultural
productivity is one of the major thrusts geared towards the development
of idle arable lands suited for the production of high value commercial
crops and even in the maximization and utilization of agricultural lands.
High value crops commodity on its part significantly contributes in
achieving food security, affordability and sufficiency in the province.
Currently, the province has 300 small processors catering to their own
processing requirements. One large processor with its own processing
plant, the Kablon Farms, Inc. is one enterprise that goes into fruit
processing and chocolate production for local and international market.
Add to this is the presence of Dole Philippines, Inc., a Multinational
Corporation which is into large scale pineapple processing and its own
import and export business exposure. 75 Farmer
cooperatives/Associations and 20,242 farmers with high value crops
have to contend with having the raw materials as their selling point with
farmgate prices for the traders. The proposed processing center to be
constructed with machineries and equipment will be the answer to the
farmers’ woes as to product wastage, farm and income losses and shelf
life of their produce. The value adding scheme to their raw materials
redounds to increase in income thus alleviation from their present
economic status is imminent.
This proposed processing center will be situated in a one (1) ha. lot in
the Municipality of Tupi which is 1.5 kilometers from the National
Highway. Built-up area will be 835 sq.m. housing the following:

Offices – 117 sq.m.

Temperature Control Storage – 116 sq.m.
Mobile Shelving and Multi-tier Racking – 169 sq.m.
Processing and Packaging – 316 sq.m.
Room Service Order Taker – 67 sq.m.
Kitchen and laboratory – 50 sq.m.

Tonnage capacity of the processing center for varied high value crops
(fruits and vegetables) is estimated to be around 15.8 serving not only
the 300 small processors in the province but also the more than a
thousand MSMEs (2021 data from DTI) leaning on agricultural
production if this project be realized.

The proposed project will promote value-adding and minimize post-

harvest wastage of agricultural products which means higher value for
their produce that will benefit and elevate the living condition of farmers
in the province through increase in their income.
Project
implementation unit

Region Filed Office XII

Lead Cooperative would be selected from among cluster cooperatives to
man the project with its set of assigned personnel with the involvement
of the PLGU as one of the stakeholders through its Audit and Monitoring
Team to ensure the success and sustainability of the project
notwithstanding all the techical assistance and capacity development
inititiatives for the FCAs and MSMEs.
Implementation
period
Rationale SOCCSKSARGEN is one of the top producers of high value crops such
as vegetables, fruits, plantation and root crops in the country. Given its
favorable weather condition and fertile soil, production aspect is
emphasized in Southern Mindanao.
 The Province of South Cotabato, which is one of the leading provinces
in the region, is rich in agricultural resources and has a great potential
for crop production especially high value crops and post-harvest facilities
development. In 2017 base on the strategic crop development zone,
more or less 32,751.08 ha.aectares were planted with high value crops
such as industrial, fruits, vegetables, legumes and root crops. Last 2021,
a total of 41,566 hectares ha. planted with plantation/industrial crops
(banana, pineapple, mango, coffee and cacao),1,113.5 hectares ha.
planted with fruits (guyabano, passionfruit, calamansi, melon and dragon
fruit) and with vegetables(tomato, squash, bellpepper and silinglabuyo)
1,235.2 hectares ha planted with rootcrops (sweet potato, cassava and
taro) and 617.52 hectares ha planted with legume (peanut). Most of
these crops are highly perishable and need to undergo processing for its
higher market potential value. The processing center for high value
crops plays a vital role in ensuring food security, prevention of wastage,
long shelf life and price competitiveness for finished product not only in
the province but in the region as well. The establishment of processing
center is the present need in the production area for processing of
agricultural produce, that would help in increasing farmers income and
can give sustainable livelihood for the farmer producers. Processing
center that will be established is a fully-equipped plant for three (3) types
of food products such as dry (e.g. powder), high value liquid (juice, milk,
cream, puree, sauces, soup) and individually quick frozen products. It
comprises of raw materials and intermediate products derived from the
agriculture sector which goes into manufacturing in sequential manner.

At present, the practiced followed by the farmers is the quick sell after
harvest without any processing and value addition, which results to an
imbalance between demand and supply thus farmers get lower prices in
the market for their raw harvest. With the help of a processing center,
farmers can have an additional value to a product so as to increase
marketability and longer shelf life. The processing center will not only
make available offer 2,500 jobs is not only providing for added
employment and higher income to the farmers but also reducinge the
post-harvest losses of agricultural produce. Also, strong linkages will be
established between farmers and consumers which is an important
factor in marketing fresh agricultural produce as well as processed ones.

Furthermore, the planned processing center will be staffed with

experienced food scientist, engineers and technologist who work with
entrepreneurs to develop and fine-tune farmers products and cater
quality control services to enhance the processing methods of the
goods. Hence, this proposal.
Benefits Direct beneficiaries of the project are the High Value Farmers, Farmers
Cooperatives and Associations, Producers, Processors and
Consolidators.
 Consolidation of products from the farmers (15.8 tons for processing)
thus volume is acquired needed for local and external demand.
 Increase in income of farmers to 20%
 Less wastage of fresh farm produce – 20% to 30%
  Longer shelf life
 Price competitiveness
 One stop shop for consumers and suppliers alike
 Promote marketing linkages with other production channels
 Access to technical assistance from LGUs and other national
agencies
`
Beneficiaries  Direct beneficiaries of the project are the High Value Farmers,
Farmers Cooperatives and Associations, Producers, Processors and
Consolidators.

No. IP Non IP Male Female

Farmer 2,315 (75 810 1,505 1,389
Cooperative FCA’s)
and
Association
High Value 20,242 9,108 11,134 12,145 8,097
Crop
Farmers
(Producers)
Processors 300 50 250 180
Consolidators 250 50 200 150

No. IP Non IP
Farmer 2,315 (75 810 1,505
Cooperative FCA’s)
and
Association
High Value 20,242 9,108 11,134
Crop
Farmers
(Producers)
Processors 300 50 250
Consolidators 250 50 200
Cost
I Direct Cost Unit Quantity Unit Estimated Cost
price (Php)
General Requirements
Permits, Condition of
Contract, Drawings, Bill of lot 1 225,000.00
Quantity, Specs, Plants
and Tools, Employers’
and Engineers’ Facility,
Temporary Works and
Restrictions
Construction
II Civil Structural Works, Site
Improvement, Concrete
Works, Masonry Works,
Metal Works, Thermal and
 Moisture Protection, Doors
and Windows, Finishes
and Accessories and
Special
Construction,Mechanica
Engineering Installation,
Drainage Installation,
Plumbing Installation,
Firefighting Installation, Air lot 1 112,500,000.00
Conditioning Installation,
Mechanical Installation,
Building Management
System, Electrical
Engineering Installation,
Lighting and Power,
Telephone/ICT System,
Central Battery
Emergency Lighting
System, Addressable Fire
Alarm System, Voice
Evacuation System,
Security and Access
Control System
Installation, Audio
/Video Intercom
SystemIndirect Cost
Provisional Sum
Machineries and
Equipment lot 1 37,275,000.00
II Indirect Cost
II Taxes and Insurance,
Project Manager and
Engineers’ Salary, Office
Equipment and Supply, lot 1 7,980,000.00
Repair and Maintenance,
and Miscellaneous
CostIndirect Cost
‍
Total 157,980,000.00
Contribution Stakeholder/
Project 2024 2025 2026 2027 2028
Contribution
Implementation
Dept. of 157.9M 150,000
Agriculture Capacity
(Infra and Development
Equipment) Trainings
Workshops
PLGU 31 M
(1.5 km. road
development 150,000
, 1,200 linear Capacity
meter Development/
perimeter Trainings
fence with Workshops
lighting, 1 ha.
land)
Cooperative
Federation 0.5M 0.7M
(business (Orientation,
permit, Seminars,
insurance, Trainings,
office Workshops,
supplies/ Utilities)
Materials)

Operation
Dept. of
Agriculture 100,000 150,000 150,000 150,000 150,000
(technical (technical (technical (technical (technical
assistance) assistance) assistance) assistance) assistance)
PLGU 100,000 150,000 150,000 150,000 150,000
(technical (technical (technical (technical (technical
assistance) assistance) assistance) assistance) assistance)
Cooperative 6.15 M 6.75 M 7.5 M 8.25 M 9.07 M
Federation (salaries and (salaries and (salaries (salaries and (salaries and
wages, wages, and wages, wages, wages,
supplies and supplies and supplies and supplies and supplies and
materials, materials, materials, materials, materials,
working working working working working
capital, capital and capital and capital and capital and
utilities) utilities) utilities) utilities) utilities)
Maintenance
Dept. of 150,000 200,000 200,000 200,000 200,000
Agriculture (monitoring (monitoring (monitoring, (monitoring, (monitoring,
activity) audit and audit and audit and audit and
reporting) reporting reporting reporting
activity) activity) activity)
PLGU 150,000 200,000 200,000 200,000 200,000
(monitoring (monitoring, (monitoring, (monitoring, (monitoring,
activity) audit and audit and audit and audit and
reporting reporting reporting reporting
activity) activity) activity) activity)
Cooperative 1.5 M 2M 2.6 M 3.3 M
Federation (repair and (repair and (repair and (repair and
maintenance maintenanc maintenance maintenanc
of processing e of of e of
equipment) processing processing processing
equipment) equipment) equipment)
 PROPOSED SOUTH COTABATO PROCESSING CENTER
Palian, Tupi, South Cotabato
SN DESCRIPTION AMOUNT (PHP)
A GENERAL REQUIREMENTS 225,000.00
A.1 Permits 20,250.00
A.2 Condition of Contract 11,250.00
A.3 Drawings 22,500.00
A.4 Bill of Quantity 33,750.00
A.5 Specification 15,750.00
A.6 Plants and Tools 36,000.00
A.7 Employer's and Engineer's Facility 27,000.00
A.8 Temporary Works 38,250.00
A.9 Restriction 20,250.00
B CONSTRUCTION 112,500,000.00
B.1 Civil/Structural Works 45,000,000.00
B.1.1 Site Improvement 6,750,000.00
B.1.2 Concrete Works 11,250,000.00
B.1.3 Masonry Works 7,200,000.00
B.1.4 Metal Works 9,900,000.00
B.1.5 Thermal and Moisture Protection 2,250,000.00
B.1.6 Doors and Windows 1,800,000.00
B.1.7 Finishes 3,600,000.00
B.1.8 Accesserories and Special Construction 2,250,000.00
B.2 Mechanical Engineering Installation 39,375,000.00
B.2.1 Drainage Installation 5,906,250.00
B.2.2 Plumbing Installation 5,118,750.00
B.2.3 Fire Fighting Installation 7,875,000.00
B.2.4 Air Conditioning Installation 9,450,000.00
B.2.5 Mechanical Installation 10,237,500.00
B.2.6 Building Management System 787,500.00
B.3 Electrical Engineering Installation 28,125,000.00
B.3.1 Lighting and Power 7,312,500.00
B.3.2 Telephone/ICT System 3,656,250.00
B.3.3 Central Battery Emergency Lighting System 4,500,000.00
B.3.4 Addressable Fire Alam System 7,031,250.00
B.3.5 Voice Evaculation System 1,406,250.00
B.3.6 Security and Access Control System Installation 2,500,000.00
B.3.7 Audio/Video Intercom System 1,406,250.00
C PROVISIONAL SUM 37,275,000.00
C.1 Machiniries and Equipment 37,275,000.00
Total Estimated Cost 150,000,000.00