Ethanol plants among the agreements in Arroyo visit to Chinaadmin
The Chinese firm CAMC Engineering Co. Ltd. and the Negros Southern Integrated Biofuels Company signed Monday in Nanning, China two memoranda of agreement for the construction of two ethanol plants in Negros Occidental estimated to cost $65 million, Negros Occidental 5th district Representative Ignacio Arroyo said.
President Gloria Macapagal-Arroyo graced the signing, which was among the activities she attended during her China visit.
The signing of the final contracts on the projects is scheduled in December when the two companies are expected come up with the detailed procedures, Representative Arroyo said in a telephone interview.
CAMC president Luo Yan and Aurelio Lacson of NSIBC signed the memoranda, according to Arroyo. First Gentleman Jose Miguel Arroyo, Bacolod Representative Monico Puentevella, China’s Ambassador Li Jinjin, Agriculture Secretary Arthur Yap and officials of CAMCE also witnessed the signing.
Lacson said the MoA would pave the way for the establishment of an ethanol plant in Murcia and another one in Dacongcogon Sugar Central in southern Negros.
He said these two projects would create 6,000 jobs, with the ethanol plants providing direct employment to 1,000 workers.
Arroyo said the plant in Murcia would cost about $30 million while the one in Kabankalan would require about $35 million.
Each plant is expected to produce 120,000 liters of ethanol a day and would be operational in two years, he said.
At the same meeting, businessman Jose Revilla also signed a MoA for the building of an ethanol plant in Zamboanga del Norte, Arroyo said.
Luo Zhao Hui, spokesman of CAMCE, said that they would be bringing in machinery and equipment from China but will be utilizing the local work force as well as local materials for the construction of the ethanol plant.
Both parties agreed to meet either in the Philippines or in China to finalize the agreements.