The Cavite Biofuels Producers Inc., proponent of the P3.4 billion bioethanol plant to be located in a 24.56 hectare agro-industrial economic zone in Magallanes, Cavite, was granted tax and fiscal incentives by the Philippine Economic Zone Authority (PEZA).

In a report to Trade and Industry Secretary Peter B. Favila, PEZA Director-General Lilia B. De Lima said that four lots with corresponding titles would be consolidated for the project.

In July last year, the CBPI has submitted a letter of intent to Lobo-Lobo Development Corp. (LLDC) for the purchase of the land. CBPI and LLDC are expected to sign a conditional purchase agreement with the intention of finalizing the transfer of the property prior to financial closure.

The total investment for the land development is P55 million including the cost of the land, transfer of ownership and conversion.

The P55 million would be taken from the equity of the proposed P3.4 billion bioethanol facility.

CBPI has proposed to raise 30 percent of the P3.428 billion total project cost from equity investors.

Of the 24.56 hectare property, 10 hectares would be allocated as agro-industrial area, another 10 hectares as buffer zone and open space and the remaining 4.5 hectares for common utility area.

Site development is expected to commence April this year and completion by 2012.

The P3.428 billion total project cost would be used for the establishment of an integrated ethanol distillery and power cogeneration plant with a capacity of 125,000 liters per day and a power generating capacity of approximately 5 MW.

The proposed project site is suitabel for the development of a bioethanol plant in view of the availability of product transport facilities and plant logistics, sugar cane sources, favorable agro-climatic conditions and distillery operations.