THE Philippine government is eyeing to secure a P20-billion investment agreement with Brazil for the possible construction of five bioethanol distillery/plant during President Arroyo’s state visit next week, a senior Agriculture official said.

Philippine Agricultural Development and Commercial Corp. (PADCC) president Marriz Agbon said he and some officials will be leaving on Friday for Brazil, ahead of the President.

“We have already submitted five proposals to partner with Brazilian ethanol producers for bioethanol projects here in the Philippines,” said Agbon.

The PADCC official said the proposals were submitted to select members of Unica, the Brazilian federation of sugarcane and ethanol manufacturers.

Agbon said the government is eyeing to forge joint-venture agreements with Brazilian companies.

He noted that the minimum required investment for an ethanol plant is around P4 billion. The minimum cost already includes the expenses for a 5-hectare plantation of feedstock and a plant that has a 30-million-liter annual capacity.

“Since [Brazil] is 40 years [ahead of] us [in bioethanol production], we’re hoping to come across cost-effective arrangements and the use of high-yielding [sugarcane varieties],” said the PADCC official.

Agbon said a group of select sugarcane planters will join the President’s delegation.

He said the Philippine government had actually signed an agreement for agricultural research and commercialization with a Brazilian company which he refused to name.

Among the agreements the Philippine government is expected to sign with Brazil are a technical agreement on the exchange of germplasm of high-yielding sugar-cane varieties and technological exchange in high-value crops, specifically mango, coffee and rubber.

“During the trip, we will have a technical cooperation agreement or protocol for specific projects. We’re still working that out, that is why we will be arriving in Brazil a few days earlier than the President to finalize the areas of cooperation,” said Agbon.