Villar wants Malampaya funds tapped to support development
of alternative energy source

Sen. Cynthia Villar, chairperson of the Senate Committee on Agriculture and Food, recommended to tap the Malampaya funds to support the development of ethanol and biomass as alternative source of fuel and energy and at the same time give the sugar industry a boost.

"Why not get the Malampaya (funds) for the improvement of energy source or energy development? That's another source. What will happen to the sugar industry with only P13 million?" Villar told Mario Marasigan, director of the Renewable Energy Management Bureau under the Department of Energy.

Speaking during the second public hearing on the proposed Sugar Cane Industry Development Act, Marasigan told the committee that they only have a total of P13 million budget for the research and development on biofuel.

Villar said the budget is too low and prompted her to suggest the use of Malampaya funds.

"Perhaps, you can tell Secretary (Jericho) Petilla that the sugar industry is looking for funds to develop ethanol and energy from bagas (wastes from sugar cane). Maybe we can get from the Malampaya funds," she said.

Villar noted that the sugar industry faces a challenge in 2015 when sugar tariffs for imported sugar will be lowered from 10 percent to 5 percent. She cited the need for a concerted effort of all stakeholders in the industry to make the sugar supply sufficient and the industry competitive.

Interviewed after the hearing, Villar said the Senate can coordinate with Malacanang for the use of Malampaya funds to help in the development of ethanol and bagas as a source of fuel and energy.

"That is why we are asking them to study this possibility of tapping the Malampaya funds," said Villar.

The bill was passed in the Lower House during the 15th Congress, owing to the support of representatives from sugar-producing provinces. She said she is optimistic that the bill, which was authored by several senators, namely, Senators Nancy Binay, Chiz Escudero, Antonio Trillanes IV, JV Ejercito, and herself, will be passed in the Senate.

The first public hearing on the bill was held in Bacolod City last November and also attended by stakeholders in both the public and the private sector, and farmers and millers.