by Cristina Arzadon

PAGUDPUD, Ilocos Norte -- On a huge tract of grasslands here will rise the first and largest coconut bio-diesel project in the country.


Last year, the Department of Environment and Natural Resources in Ilocos Norte started conducting site assessments in barangay Caunayan and found the area to be suitable for coconut plantation.

Juan de los Reyes, Jr., provincial environment and natural resources officer, said officials are itching for the project to take off because of the long term benefits that would redound to locals in terms of livelihood and income opportunities.
The massive plantation of coconuts is also environmentally-friendly as it will help reduce the greenhouse effect.

The project will be jointly undertaken by the Philippine BioEnergy Northern Luzon Inc. (BENLINC) and the Japan-based partner Pacific Bio-Fields Corp. headed by its president Moriaki Hayashida.

The coco plantation will reportedly cover up to 600,000 hectares of public, non-disposable lands in Northern Luzon.

Project proponents Ilocos Norte Rep. Roque Ablan, Jr. and Ilocos Sur Rep. Salacnib Baterina said their Japanese counterparts are pouring in P3.5 billion for the growing of coconuts that will be used as bio fuel for their public transports.

Once processed, the coconut is converted into a coconut methyl ester, an essential component for the production of bio-diesel. The output will then be shipped to Japan to meet the country's demand for bio fuel.

"This project is certified as viable. We are merely waiting for the development plan (from Japanese investors)," de los Reyes said.

Groundworks for the coco plantation began during the last quarter of 2008. DENR Secretary Lito Atienza asked the local office last year to identify an ideal site to grow vast amounts of coconut seedlings.

Investors wanted a large tract of land whose title is clean that would become the subject of a lease agreement with the Philippine government.

Representatives from the Japanese counterparts made an actual survey of the land parcels in Caunayan and wanted a barren area where it would not be necessary to cut trees.
"The investors were conservative with paper works and they did not want to fell down trees," de los Reyes said.

He said PENRO staff took time to search for a feasible land for coconut plantation because most land parcels were either saddled with legal impediments or covered by tenurial agreements with private individuals.

De los Reyes said the land's paperworks have been ironed out and the last step for the project to be launched is the development plan.

The public lands will be covered by a special land use agreement with tenurial rights of up to 50 years.

While coconut seedlings would be provided by the Philippine Coconut Authority, the plantation area would require additional seedlings from other parts of the country such as Zamboanga City. A processing plant will be built in nearby Pasuquin town.

On top of coconut seedlings, the DENR recommended the planting of agro-forest trees using the inter-crop method to help mitigate climate change.

De los Reyes said the plantation area could be expanded to other villages in Pagudpud going further to the northern town of Adams and the neighbouring province of Cagayan Valley.

Baterina, who started developing a pilot coconut farm in Ilocos Sur, recently made a ceremonial coco planting in a 1,500 hectares of land here. In three to four years, the seedlings are able to grow for processing.