The Philippine Economic Zone Authority (PEZA) has approved the granting of tax and fiscal incentives to the agro-industrial economic zone that will host the P3.4-billion bioethanol plant of Cavite Biofuels Producers Inc. (CBPI) in Magallanes, Cavite.
In a report to Trade and Industry Secretary Peter B. Favila, PEZA director-general Lilia B. De Lima said that four titled lots would be consolidated for the project.
In July last year, the CBPI 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 will be allocated for agro-industrial area, another 10 hectares as buffer zone and open space and the remaining 4.5 hectares for common utility area.