news/updates
Zubiri appeals to doubters not to scare away biofuel investors
By Paul Anthony A. Isla
BusinessMirror
January 18, 2008
INSTEAD of encouraging local and foreign investors to infuse much-needed capital to boost the country’s biofuels program, Sen. Juan Miguel F. Zubiri told the BusinessMirror Thursday that some of the investors he has spoken with have expressed concern over the statements made regarding a review of the Biofuels Act of 2006.
“Those headlines might cause the country to lose about $500 million worth of investments intended to help the country develop its biofuels industry. Interested investors, such as Bionor Transformacion and Coromoto Communicacion, immediately called me and asked what was happening,” Zubiri said in an interview after a press conference of the Sugar Alliance of the Philippines (SAP).
The legislator warned that the government might stand to lose a total of P130 million in investments supposed to be infused to the countryside, as investors are becoming apprehensive of investing in the country.
Zubiri quantified that there is about P70 billion to P80 billion in investment and P50-million investments that are estimated to be poured into ethanol and jatropha production, respectively.
Zubiri said the Philippines will not be able to attract investors, if some quarters make it seem to appear that the government is insincere with its biofuels program.
Zubiri assured that the government will be pushing through and is actually going full steam ahead with respect to its biofuels program.
Apart from foreign investors, Zubiri said local investors have also expressed apprehensiveness, particularly those with loan applications with lenders or banks.
He explained that without a mandate, banks or lenders will not approve loans of potential biofuel producers.
At the rate things are going, Zubiri also revealed that the country may definitely not be able to comply with the mandated 5-percent ethanol blend by next year.
Zubiri said there are 10 ethanol plants supposed to start construction this year, but the statements made the past few days seem to either scare investors away or make investors apprehensive.
Zubiri noted the Biofuels Act of 2006, on the other hand, allows the National Biofuels Board to either lower the mandated blend or allow the importation of ethanol in the absence of local supply.
And even importing ethanol will defeat the purpose of the law. Zubiri expressed willingness to bite the bullet and swallow the bitter pill of importing ethanol from Brazil just to comply with the law.
Zubiri said there are actually 18 companies seeking to be accredited by the Department of Energy and there are actually three plants that are under construction already.
With the three plants being put up with an annual aggregate ethanol production of 90 million liters a year, Zubiri said the industry is still short by 150 million liters to meet the 5-percent blend as mandated by the Biofuels Act of 2006.
Bukidnon Gov. Jose Ma. R. Zubiri Jr., on the other hand, said the need to supply sugar cane to enthanol producers will not be competing with the need to supply sugar cane for the country food requirements.
