Officials of the Metro Bacolod Chamber of Commerce and Industry yesterday asked why the government itself is “stifling” the birth of a new industry that could give jobs to many and stimulate the economy.

This was the point raised by MBCCI president Roberto Montelibano and Greg Lopez, executive director of the Bio-Ethanol Philippines Inc.

Lopez, the most vocal advocate of bioethanol, pointed out that in other countries, governments makes sure that incentives are given to infant industries to be able to attract investors.

“But here in the Philippines , the government is pussy footing in the petition by the Ethanol Producers Association of the Philippines and the Confederation of Sugar Producers Association Inc. to raise the tariff level of bioethanol from the current one percent to 10 percent at least,” he said.

The petition is now with the Tariff Commission. Although both were also aware that President Gloria Macapagal-Arroyo had issue anexecutive order two years ago when the country still had not produced a single drop ethanol.

That was supposed to pave the way for the entry of ethanol that could insure the compliance with the mandated five percent blend with gasoline.

“But now, with the country already producing bioethanol, there is all the reason to raise it to the level of 10 to 30 percent to pave the way of the flowering of the infant ventures, Montelibano said.

Bacolod Rep. Monico Puentevella, meanwhile, said he has written the Tariff commission arguing that the agency should immediately heed the collective demand by both the EPAP and the Confed to have the tariff raised to 30 percent.

Another point raised by Montelibano and Lopez was the need for the 10 percent equity by the government in ethanol ventures.

And, more important, the need for the contract of intent by oil firms to use ethanol as gasoline blend for use by motor vehicles, they added.

The equity needed, Lopez said, can just be left with the investors by the government and will fuel later the emergence of at least five more bioethanol plants.

In the case of the letter of intent contract, he added, that usually allows banks to lend money to prospective ethanol manufacturing ventures.

An ethanol plant may soon be put up in the Murcia area, according to Montelibano.

But he said that foreign investors are willing to put up the equity with the government guarantee that it will be honored and respected.

“Some countries have already indicated they are willing to pick up the one percent equity but with the promise that they will receive the ethanol products for export to them, Montelibano said.*RLE

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