Finally, seafood processing plant resumes operations

By March 26, 2012Headlines, News

THE Seafood Processing Plant in Dagupan, forced into closure due to disagreements among city officials since October last year, has finally been given the green light to re-open its doors to traders and fish farmers.

The reopening was ordered after the Bureau of Fisheries and Aquatic Resources (BFAR) National Director Asis Perez held an executive meeting at city hall with Mayor Benjamin Lim and Vice Mayor Belen Fernandez.

Also in the meeting were BFAR Regional Director Nestor Domenden and Dr. Westly Rosario, chief of the BFAR-National Integrated Fisheries Technology Development Center (NIFTDC), who will continue to act as interim plant manager.

Lim and Fernandez both agreed to the resumption of normal operations under the existing policies of the plant until a new Memorandum of Agreement that will outline the creation and function of a seven-man joint management committee to pave the way for the plant’s privatization is signed.

The P100-million seafood plant, built through a grant from the Korean government through the Korean International Cooperation Agency (KOICA), is under the city’s ownership but a 2010 sanggunan resolution issued during the term of Mayor Alipio Fernandez, gave operation and management responsibility to BFAR until 2015.

Since Lim assumed office in 2010, he has been lobbying for city hall to take over the plant. Failing in his initial attempts, he caused the closure of the plant’s operations when the latter failed to secure a business permit. The business permit department, however, subsequently determined that a permit is not necessary as the plant since it is publicly owned and not intended to operate as a profit center.

KOREAN WARNING

In the meeting last week, Perez stressed the need to immediately put the plant back in operation as Korean engineers have warned that keeping it idle could cause the Pryon gas in the plant’s refrigeration unit and freezers to leak that could pollute the environment.

Perez also pointed out that holding the plant hostage to unresolved management issues could strain the good standing of Philippine-Korean relations.

Rosario noted that the KOICA engineers earlier told him that the plant’s machinery must be working at least four days a week for four hours each day to avoid deterioration.

Perez reportedly asked to meet with members of the Sangguniang Panlungsod, particularly the chairman on the committee on agriculture, separately.

The councilors, however did not attend the meeting as they were not invited by the city administrator to the city hall.

PRIVATIZATION

Meanwhile, the members of the proposed seven-man management committee will include two from the city government, two from BFAR, two from DA and another person who will be chosen by the six others.

The management committee will formulate the guidelines for the eventual privatization of the facility through public bidding.

The vice mayor, however, asked that the operation of the plant remain in BFAR’s hands as the city government cannot afford a co-management arrangement that will mean an annual P17-million allocation in the city budget.

The plant’s operations are currently being funded by BFAR.

Former Speaker Jose de Venecia Jr., who was instrumental in asking the Korean government to build the project, said he endorses Fernandez’ position while the bidding and privatization is being worked out.

Under the present policy, BFAR collects minimal toll fees for processing services and revenues earned go to the national government’s coffers.

Rosario said he has already informed the plant’s processing-customers about the resumption of the facility’s operations after the latter cancelled their reservations when the plant stopped its operations in Oct. 7 last year.

The local processors export to the United States, China and the Middle East.

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