Seafood process plant starting to rot
LEAVE a facility idle and it will surely go in the way of decay.
That is what is beginning to happen to the P100 million Seafood Processing Plant in Dagupan, built through a grant from the South Korean government, whose operations have been suspended since October 7 last year after the city government determined it did not have a business permit from the city.
Dr. Westlty Rosario, chief of the National Integrated Fisheries Technology Development Center (NIFTDC) and designated interim manager of the plant, however, said the continued suspension of the plant’s operations no longer hinges on the business permit for which the requirements have already been submitted.
He said pending issue at hand is the adoption of a memorandum of agreement (MOA) between the Department of Agriculture-Bureau of Fisheries and Aquatic Resources (DA-BFAR) and the Dagupan City government outlining the terms for the joint management of the facility.
The final draft of the MOA has not been submitted for signing.
The MOA was prepared by BFAR but before it could be signed by the two parties, the Presidential Management Staff (PMS) took cognizance of the matter for review.
Rosario said the PMS indicated it would like to ensure that any decision should protect the basic terms of the bilateral agreement between the country and South Korea.
Rosario had recommended to the city government that pending final approval of the proposed MOA, BFAR be allowed to resume operations to prevent the corrosion of the plant’s equipment but the city hall did not respond.
The facility is co-owned by BFAR and the city government per a MOA signed by both parties in 2010 and affirmed by a city ordinance. When it was completed, the city, through then Mayor Alipio Fernandez Jr., handed the management to BFAR for a period of five years.
When Mayor Benjamin Lim assumed the mayoralty in July 2010, he wanted the plant’s management to be transferred to the city government.
The plant was subsequently forced to close after the Lim pointed to the absence of the plant’s business permit in violation of city’s ordinance which in turn prompted BFAR to cease operations until a permit was secured.
After BFAR substantially complied with all the administrative requirements, the city’s business center determined the plant did not need to apply for a business permit because it is considered a government agency. BFAR was advised to simply secure blue card for its workers.
“We have secured all requirements, including certification from the Bureau of Food and Drugs as we want our products to pass the Hazard Analysis Critical Control Point (HACCAP) which is a strict requirement in the United States market,” Rosario said.
He said BFAR is waiting for the go-signal of the Dagupan City government as a matter of courtesy.
LOSSES
Asked to quantify the opportunities lost as a result of the stoppage of the plant’s operation, Rosario said exporters of processed bangus to the U.S., China and Middle East who depended have already shifted their orders to other plants.
He added there were 60 workers who were sidelined when the seafood processing plant stopped operations.
At the same time, Rosario pointed out that under the joint management arrangement proposed by the city of Dagupan, the city will share in the P17.5 million operating costs annually.
Rosario pointed out that the plant is intended for mainly research and service and not for strictly commercial purposes so the city may not be assured of a return on its annual investment.
“Exporters and producers only pay a minimal fee to the management because it is the effectiveness of technology and development of methods that are essential to plant.,” Rosario said.
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