Two memorandums of agreement were inked in China yesterday in the presence of President Gloria Macapagal Arroyo that will pave the way for the building of two ethanol plants in Negros Occidental estimated to cost $65 million (P3.237 billion) and are expected to create thousands of jobs, Rep. Ignacio Arroyo (Neg. Occ., 5th district) said.

Final contracts are expected to be signed in December 2006 after detailed procedures are discussed, he said.

Arroyo, who had worked for the signing of the MOAs, said the they were signed by Luo Yan, president of China's CAMC Engineering Co. Ltd, and Aurelio Lacson representing the Negros Southern Integrated Biofuels Company, Arroyo told the DAILY STAR.

Witnessing the MOA signing, aside from President Arroyo were first gentleman Jose Miguel Arroyo, Bacolod Rep. Monico Puentevella, China's Ambassador Li Jinjin, Agriculture Secretary Arthur Yap and officials of CAMCE.

Lacson said the MOA will pave the way for the establishment an ethanol plant in Murcia and another one in Dacongcogon Sugar Central in southern Negros.

He said this will create job opportunities for at least 5,000 people outside of each plant and another 1,000 inside each plant.

Arroyo told the DAILY STAR the plant in Murcia will cost about $30 million and the one in Kabankalan about $35 million.

Each plant is expected to produce 120,000 liters of ethanol a day and could 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 will be bringing in machineries and equipment from China but will be utilizing the local workforce as well as local materials for the construction of the ethanol plant.

Both parties agreed to appoint relevant personnel to meet within a week after the submission of the offer to discuss in detail the procedures for the acquisition and financing and the EPC obligations, either in the Philippines or in China.*CPG

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