Jatropha Plantation and Bio-diesel Processing Plant in Bohol

By Angeline Valencia

In partnership with the provincial government, the Philippine National Oil Company-Alternative Fuels Corp. (PNOC-AFC) intends to establish an integrated jatropha plantation and bio-diesel processing plant in Bohol, another sunshine industry in Bohol.

According to Antonieto Pernia, chief of staff of the Governor’s Office and head of the Provincial Government Media Affairs (PGMA), the project involves cultivation of jatropha in 10,000 hectares of idle, sloping lands in Bohol.

Pernia recently met with PNOC-AFC president and CEO Peter Anthony Abaya and PNOC-AFC general manager Clovis Tupas.

In the proposed arrangement, PNOC will provide all the technical assistance to the farmers for free- -how to plant and the technologies about jatropha cultivation.

Governor Erico Aumentado tasked Pernia to facilitate the establishment of jatropha plantation in a total of 10,000 hectares of land in Bohol before his term ends in 2010.

Provincial Legal Officer Handel Lagunay had recently been to Manila to discuss with the counsel of PNOC-AFC and Abaya to finalize the details of the memorandum of cooperation between the province and PNOC, to implement an integrated jatropha plantation and jatropha bio-diesel processing project here.

The provincial government will organize interested farmers into cooperatives that will focus on jatropha plantation. Membership with these cooperatives serves as guarantees for the farmers to avail of production loans with the Land Bank of the Philippines.

The governor had already arranged a loan package through a discussion on the jatropha project with the LBP manager.

Pernia explained that the provincial government is what the banking circle call, one of the “preferred clients”, and has poured P400 million to support the project.

A coop-member farmer can avail of a loan worth P40,000 per hectare.

“So, if we plant on 10,000 hectares we can avail of loan in the amount of P400 million with LBP,” Pernia explained.

This will be implemented through an outgrowership program wherein the governor will issue an endorsement to PNOC that these coops will cultivate jatropha. Then they will enter into a marketing agreement.

The marketing agreement will provide that PNOC will buy all the produce of the coop member who will cultivate jatropha through the production loan that LBP will extend.

The coop members will just have to present the marketing agreement to LBP to avail of a production loan.

Of the 800 varieties of Jathropa, there are only 30 varieties planted in Bohol- -only those that have been proven to have high oil content, Pernia said.

He added that only Bohol has the largest nursery of jathropa in the entire country- -in Candijay and Guindulman where the biggest nursery of the 30 varieties is located.

The marketing agreement with PNOC will also guarantee LBP that the farmers can pay their loan amortization because it would mean they will be cultivating PNOC-certified jatropha varieties, those that have high oil content.

To ensure quality yield, PNOC will provide all the technical assistance to jatropha farmers.

In fact, Pernia said, Abaya had also told him that PNOC even commissioned University of the Philippines-Los Baños for further study on better farm inputs and technologies to increase the oil content of jatropha seeds which may lead to increase of the buying price for jatropha.

Pernia also cited that the president of Petro Green Inc. even mentioned Bohol’s potential capacity to supply all jathropa planting materials to Mindanao plantations, considering the province’s favorable climate.

Jatropha’s productive period spans from 30 to 50 years, giving the farmers weekly harvest year round.

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  1. jun gutierrez says:

    gud day!can we buy jatropha seeds from your company for my research. i’m jn gutierrez from msu-iit, iligan city. ds s my contact no. 0919-2040-664.thank you.

  2. Ron Guadiz says:

    Ms. Valencia,
    My team is negotiating with a bulk buyer of the Jatropha seeds. We are looking for sources. This project will definitely propel given the right marketing channel. I wanna know how far you’ve gone with the project.

    Please call me.


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