DAGUPAN CITY - The South Korean government is willing to give a grant of U.S. $2 million or more than P100 million to finance the establishment of a fish processing plant in Dagupan City.

Speaker Jose de Venecia, Jr. said he arranged for the financial grant with the South Korean prime minister and foreign minister when he went to that country two months ago.

De Venecia said he relayed the matter to President Gloria Macapagal Arroyo as soon as he came back from South Korea.

The fish processing plant, planned earlier by the Dagupan City government headed by Mayor Benjamin Lim, was intended to process locally-produced bangus to add more value to it for export to other countries where there are many Filipinos.

However, for lack of funds and for the fact that the national government can give only little financial support, the project has been stalled up to now.

De Venecia told Vice Mayor Alvin Fernandez and councilors of Dagupan that the city government must first submit a feasibilty study for the project to avail of the financial grant.

He said the U.S.$2 million grant from the South Korean government would be a big boon to Dagupan city as it will not secure loan anymore from the Land Bank of the Philippines or any lending institutions.

Mayor Lim earlier said for lack of fund in the city government to be used for the project, he is looking for a private investor to build it, with the city merely providing for the project site.

Lauding the bangus processing plant, De Venecia asked the Dagupan City government to take advantage of the grant by fast-tracking the needed feasibility study.

He explained that the financial assistance from the Korean government is a grant so the Dagupan City government does not have to pay it back, but it is under obligation to ensure its success. (PNA)