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THREE
joint venture firms involving Chinese companies will
seek incentives such as on taxes for bioethanol plants
they plan to put up in Negros Occidental and in Cagayan
Valley with sugar cane as feedstock.
Eugenia
Go, the Department of Agriculture’s China desk officer,
told reporters, “They [investors] have been asking about
what possible incentives they can tap if they put up the
plants.”
Go said
the joint-venture firms have yet to be organized because
the Chinese firms and their Philippine-based companies
have yet to sign memoranda of agreement.
BM SB
Integrated Biofuels Co. and Chinese firm Nanning Yongkai
Industry Group will partner to put up a $35-million
biofuels plant in
Murcia,
Negros Occidental. Nanning Yongkai will also partner
with Negros Southern Integrated Biofuels to put up
another $35-million plant in Kabangkalan, Negros
Occidental.
The
third joint venture would involve One Cagayan Resource
Development Inc., Nanning Yongkai, and China CAMC
Engineering Co. Ltd. for a $35-million bioethanol plant
in Piat,
Cagayan Valley.
Go said
the agreements may be signed by all parties within the
month. Construction for the bioethanol plants may start
in 2008 and may all be completed within 18 to 24 months.
Under
the Biofuels Act of 2006, companies involved in biofuel
production could enjoy a host of tax incentives as well
as concession loans from government financing
institutions. |
