Major economic stories also shelved to background

The obsession with the Southeast Asian Games has temporarily relegated to the background the plans and projects for the development of Negros Island. This is especially true in the case of energy projects and other important developments on bioethanol and the sugar industry.

People’s focus has shifted to the ongoing SEA Games, especially after the Thai Prime Minister had alleged that the games were being rigged and had even threatened to bring up the matter in the next regional meeting.

If it is any comfort, the blast from Thai Prime Minister Thaksin Shinawatara not only roused a blistering counter-attack from the public but also reinforced the sense of nationalism among the common tao.

Some militants and critics of the President, however, heaped the blame on the Chief Executive for what they see as negative international perception, although the denunciation came only from a top Thai official.

Anyway, I sometimes think that the diversion provided by the games served to distract us from the gripes that seem to have clouded the atmosphere. But it seems now that even the usual protest against the high cost of living vis-a-vis low wages seems to take a temporary backseat as people were lured to the games, even if, at times, Filipino athletes fall by the wayside in the intense competitions.

$40 million for Sonedco expansion

For the past week, Negrense sugar producers were jarred by the report that the Southern Negros Development Corp. (SONEDCO), a wholly owned subsidiary of the Universal Robina Corp. (URC), is investing $40 million or P2.543 billion to put up a refinery here and expand its raw sugar production.

I said "jarred" because most sugar producers were wondering why URC president and chief executive officer Lance Gokongwei is embarking on the project despite the fact that there are already 11 refineries operating in the country. Of course, it is a logical step for the Gokongwei-owned central in the South.

I said logical because the Gokongweis also operate the URSUMCO in Bais City in Negros Oriental, and southern Negros has really no refinery.

The other mill, the Binalbagan Isabela Sugar Company in Binalbagan town, has a sister-company, the Bais Sugar Central, which also has a refinery in Bais City. The two firms are owned by the Chan brothers. Sonedco central is in Kabankalan City.

The capacity expansion is slated for July 2007, according to the press report quoting Gokongwei. The mill also hopes to increase its milling capacity from 4,000 tons to 6,000 tons daily.

Based on the URC report, P1.2 billion will fund the construction of a new line for refined sugar production and its by-product, molasses. It will have an estimated capacity of 2,250 million kilograms yearly.

The new refinery will give Sonedco a daily capacity of 15,000 bags per day.

Palm oil production

Then there was the announcement by the Metro Bacolod Chamber of Commerce and Industry (MBCCI) that it is spearheading promotional activities to attract investors to palm oil production in Negros Occidental, mostly in southern Negros.

MBCCI president Roberto Montelibano said the cost will reach up to P1.750 billion.

The initial cost of the project will be P1.3 billion for 5,000 to 10,000 hectares of oil palm plantation. This will reportedly cost P85,000 per hectare. The oil processing plant will cost P450 million with a capacity of 30 tons of fresh fruit bunch per hour.

Montelibano said funding for the plant development will be sourced from the Land Bank of the Philippines and the Agumil Agro Corp.

MBCCI has identified AK Chang and Company as a prospective investor for a joint venture in the oil mill processing plant.

MBCCI has picked southern Negros Occidental, particularly the sixth district, as the area where vacant or underutilized lands are abundant. Another factor is that it is less prone to typhoons.

An initial area of 6,000 to 15,000 hectares will be devoted to producing palm fresh fruit bunch, the raw material of an oil mill.

Palm oil products include crude oil, refined vegetable oil and palm kernel oil. It is also a potential source for bio-diesel.

According to the MBCCI study, the plantations will need some 5,000 to 10,000 full-time contractual workers. But they will be employed the whole year-round.

The MBCCI is now preparing a medium-term investment promotional and marketing plan for submission to the provincial government.

In short, the project, once operational, will provide year-round employment to farm or plantation workers, which is better than the seasonal jobs provided by sugarcane farms, which force plantation owners to provide workers with a subsidy during the off-milling season.

Additional investments

But there was some big news for Bacolodnons — a major investment in the Bacolod reclamation project operated by the Bacolod Real Estate Corp. (BREDCO).

Architect Ramiro Garcia Jr., liaison officer of the Monolith Construction and Development Corp., requested an endorsement from the Sangguniang Panglunsod for the issuance of an environmental compliance certificate (ECC) for the proposed closure of a road at the Rizal Extension which would stretch from the Wyco property down to Palanca Avenue.

Garcia sought the authority to build two overpasses to connect two huge buildings of the proposed SM City Bacolod. Actually, the area to be occupied by the SM Mall will be fenced off this month.

"The construction is going to happen very soon. The target date for its completion is October 2006, in time for the MassKara Festival," Garcia said.

The structure will be built on a 62,000-square meter property bought years back by Henry Sy. If the project pushes through, it will be half bigger than the present Robinson’s Place in the Mandalagan area.

Garcia said it will house four theaters and 100 stores. It will also have four escalators which can be used to access overpasses three feet higher than those at the Robinson’s Place.

"This is something exciting for Bacolod. You will see beautiful overpasses like the London Bridge," said Garcia, former Bacolod vice mayor.

BREDCO is operated by Simplicio Palanca.

A total of 14 lechon stores in the area were demolished last week. Melencio Villa, president of the Lechonan Country Vendors Association, sought the help of the Sangguniang Panlalawigan on their stores’ relocation.

Villa asked the SP whether the vendors can occupy the vacant stalls at the Vendor’s Plaza.

Incidentally, the opening of the SM Mall is expected to stimulate the commercial activities in the area, and the Vendor’s Plaza and its environs will most likely draw the vendors back to the area, which they had vacated because of lack of customers and buyers.

Anyway, these are exciting times. The takeoff of Negros Occidental’s economy is expected now that there has been a steady stream of big corporate leaders looking into the province’s business prospects, especially in the development of bioethanol fuel.

As they often say, keep your fingers crossed. The times ahead seem very rosy.