According to Favila, with the current energy crisis and the need to look for alternative energy sources, the country should perhaps tap existing investors who are already engaged in alternative energy production.
However, under existing BOI rules, such investors are compelled to export all of their production.
Favila noted that "we promote these kinds of investments because we need it."
The production of alternative energy is capital intensive and requires a lot of capital.
"We should take a look at the rules and at temporarily waiving this requirement so we can make use of alternative energy rather than force them to export," Favila said.
One such investment that the government can already make use of is that of Chemrez which is engaged in biodiesel production.
The BOI had approved the P980 million bio-diesel project of Chemrez Inc. (CI) with pioneer status.
Chemrez produces resins, colorants and chemicals.
It is part of the D&L Group which is a leading provider of colors, chemicals and plastics in the country.
The company will produce bio-diesel using crude coconut oil as raw material input.
It will put up the first and most modern large-scale plant in the whole of Asia which will have a capacity of 50,000 metric tons per year.
The plant is scheduled to be operational in the first quarter of 2006.
According to Edwin Lao, chief financial officer of Chemrez, of the almost P1 billion project cost, P300 million is from internally-generated funds while almost P700 million is financed from bank loans.
The bio-diesel, which will go by the brand "BIOACTIV", is a clean burning fuel enhancer and can be used with no modification to diesel engines.
As a fuel enhancer, it treats many of the problems that other additives address individually.
It cleans, lubricates and oxygenates the fuel resulting to efficient combustion, longer mileage and cleaner emission.
Extensive tests conducted in the Philippines, Japan and Korea confirm the benefits of the product.
BIOACTIV as a diesel enhancer is recommended to be blended at ratios between one to five per cent.
Chemrez will hire an additional 50 workers for this project.