Agreement allots land, funds for biofuel crop

MANILA, Philippines - A government-led lender, a state-controlled energy company, and the province of Quezon signed an agreement to produce and process jatropha, a biofuel plant. Besides allotting 100,000 hectares of marginal lands in Quezon for the crop, the agreement will also provide credit assistance worth P4.3 billion from the Land Bank of the Philippines (LBP) to qualified growers, including cooperatives, small and medium entrepreneurs and farmers’ organizations. The fund is part of the P10 billion earlier allotted by the Philippine government’s largest lender to support bio-diesel projects nationwide. For its part, the Philippine National Oil Co.-Alternative Fuels Corp. (PNOC-AFC) shall serve as the market for jatropha seeds and crude oil. The state energy company will provide technical assistance for nursery growers like jatropha seed certification. It will likewise extend assistance to jatropha plantation growers through technology transfer. Meanwhile, the local government of Quezon, through the Quezon Jatropha Development Board, shall accredit seedlings suppliers and identify growers with good track records for endorsement to Landbank. The LGU shall also formulate/enact ordinances that will promote production and processing of jatropha, and provide support services and infrastructure like farm-to-market roads to improve the delivery of goods and services. The area of production can be further increased in phases to more than 100,000 hectares depending on the suitability and economic feasibility of the lands identified. The agreement was signed by Gilda Pico, Landbank President and Chief Executive Officer, Peter Anthony Abaya, PNOC-AFC president and CEO, and Quezon Province Governor Rafael Nantes in ceremonies at the Landbank Plaza in Malate, Manila. Pico said Landbank’s assistance to jatropha production is consistent with its commitment pursuant to the Biofuels Act of 2006 which mandates the use of biofuels in the country. “This is also in line with our thrust to expand our support to projects dealing with agri-based, renewable and other alternative sources of energy," she said. - Cheryl M. Arcibal, GMANews.TV