RP may lose P51 billion worth of investments in bioethanol

MANILA, Philippines - At least P51 billion in potential investments in bioethanol projects may be lost due to the failure of the government to assure investors that it will nurture the initially capital intensive bioethanol industry, a sugar industry leader said yesterday.

At least 17 bioethanol projects costing P3 billion each have been lined up, according to Jose Maria T. Zabaleta, chairman of the Ethanol Producers Association of the Philippines (EPAP) and chairman of San Carlos Bioenergy Inc. This is not counting the development of additional sugar lands to grow feedstock and the potential employment to be generated for farmers and technical personnel, he said.

Speaking to reporters on the sidelines of the opening yesterday of the Agrilink Exhibit at the World Trade Center in Pasay, Zabaleta expressed disgust at the government’s failure to provide the necessary safeguard and assurance for the local bioethanol industry.

For instance, he pointed out that of the former Arroyo administration failed to increase to 20 percent the tariff on imported ethanol to protect local ethanol producers.

“They abandoned us,” Zabaleta said.

What is happening now, he revealed, is that Brazilian ethanol is being imported into the country at zero tariff and at dumping price.

Only two firms – SCBI and Roxas Holdings Inc. – invested P3 billion each to put up their bioethanol plants.

According to Zabaleta, SCBI is not producing any ethanol at present and is instead focusing on the production of sugar and other sugar alcohols.

Roxas Holdings, likewise, Zabaleta said, is not producing ethanol and is simply concentrating on sugar production

Zabaleta is hoping that the new administration of President Aquino will realize the potential waste of not supporting and nurturing the growth of the local bioethanol industry especially since there is already a law in place mandating the use of bioethanol for blending with gasoline and diesel.

He noted, however, that Energy Secretary Rene Almendras and Agriculture Secretary Proceso Alcala, have not made any move to help the industry.

Zabaleta said EPAP, is hoping that the Aquino administration will give the same protection to the bioethanol industry as Thailand is giving to its own bioethanol industry.

He said, there are at least 15 other projects already lined up and waiting to invest.