PNOC unit asks private firms help on jatropha projects

The PNOC Alternative Fuels Corp. (PNOC-AFC), a subsidiary of the Philippine National Oil Corp., is seeking the help of private lenders to bankroll planned jatropha-related projects. PNOC-AFC President and Chief Executive Peter Anthony Abaya said the government firm would submit proposals to financial institutions such as Standard Chartered, Citigroup, Barclays Capital, McQuarie Bank and United Coconut Planters Bank. “Our proposals to them should cover funding for plantations and refineries,” Abaya said. But the PNOC-AFC would continue to rely more on partnerships with private companies, rather than private lenders. “We’re seeing potentially seven to 10 foreign partners coming in, some just for plantations and some with refineries,” Abaya said. The Land Bank of the Philippines has made available between Php5 to 10 billion (US$110-220 million) for farmers and farmer groups wanting to establish their own jatropha plantations and even their own refineries and other facilities. Under the agreement, Land Bank would provide loans to qualified farmers or farmer groups wanting to venture into jatropha-related activities (September 12, 2007)