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METRO
Pacific Investments Corp. (MPIC), the listed flagship
company of Hong Kong-based First Pacific Co., is in
talks with five local and foreign companies for a
potential partnership in bio-fuels production.
Assistant vice president for investor relations, Denis
Lucindo, told the BusinessMirror that the company is
“still interested in biofuels, in general, and we are
open to proposals. In fact, there are ongoing
discussions now with some companies which are exploring
projects here.”
Lucindo’s disclosure came a day after MPIC announced the
termination of its memorandum of understanding (MOU)
with Basic Energy Corp. (BEC) for a joint venture in
biofuels.
When
asked when he expects the new talks to be completed, he
said, “It is hard to say though if a deal would be
finalized within the year as the discussions are still
at an early stage.”
On
Friday, MPIC said it cancelled plans for a biofuels
joint venture with BEC as the financial model the latter
presented failed to meet its expectations. The MOU
between the two parties was signed in July.
“It was
a good project but it doesn’t meet our expectations on
profitability,” Lucindo said.
MPIC
wants to enter the biofuels industry because it is in
line with its fundamental direction to create long-term
value for its shareholders by actively and carefully
considering opportunities in the vital sectors of the
economy.
The
company, which also holds interests in real estate,
health care, water distribution and tollways management,
earlier conducted due diligence on the existing ethanol
assets of BEC in Zamboanga del Norte and South Bukidnon.
BEC’s plan is to build two bioethanol plants at a cost
of P3 billion each.
Meanwhile, BEC said it will pursue its plan to become
one of the country’s major producers of biofuel despite
the failed talks with MPIC.
To
support the said endeavor, it forged a memorandum of
agreement with Ecomarketfarms Inc. (EMF) to expand its
Zamboanga cassava project in the Zamboanga Peninsula and
jump-start agricultural operations in the area. The
move, BEC said, will generate revenues from the sale of
cassava tuber products to food manufacturers.
The plan
eventually is to form a joint-venture company with EMF
to further expand and develop the existing cassava
plantation and supply the feedstock requirements for a
150,000 to 200,000-liters per day ethanol plant.
The
enactment of Republic Act 9367 or the Biofuels Act of
2006, has encouraged local energy companies to embark on
biofuel projects. The law mandates that locally-produced
ethanol should make up 5 percent of all
locally-distributed gasoline by January 2009, bringing
the annual projected ethanol requirement to 309 million
liters. |
