ADB OKs $1 million feasibility study for fertilizer facility

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April 28, 2026 | 12:00am

MANILA, Philippines — The Asian Development Bank (ADB) has approved a $1-million feasibility study for a potential coal-to-urea facility in Semirara Island, the Department of Agriculture said yesterday.

Agriculture assistant secretary and spokesperson Arnel de Mesa said the ADB has approved the agency’s funding request for an initial study on the technical and financial viability of a local fertilizer facility.

“We already received the approval from ADB, we will start the mobilization of the team,” he told reporters on the sidelines of an investment forum.

Last week, the agency confirmed that it was planning to construct the country’s first coal-to-urea manufacturing facility, aiming to strengthen the country’s fertilizer supply amid global price shocks.

The DA is looking to construct the facility within Semirara Island in Caluya, Antique, where 90 percent of domestic coal is produced.

De Mesa added that teams from the DA and the ADB are set to be mobilized this week to begin the feasibility study.

“We will be meeting the ADB team, their experts, together with our team that will lead our operations plus of course the FPA (Fertilizer and Pesticide Authority),” he said.

The feasibility study is expected to run for two months, with an initial end-date by August or September. The agency is looking to start development of the fertilizer facility by November or December and would begin operations by the end of 2027.

The escalating conflict in the Middle East has continued to push fertilizer prices higher as supplies tighten. Reduced supplies of fertilizers are expected to dampen local farm production, prompting the DA to seek alternative sources.

The United Nations Food and Agriculture Organization said global fertilizer prices are estimated to rise by an average of 15 to 20 percent during the first half of the year due to the Middle East conflict.