MA Korean investment on P100-million bio-ethanol production factory, finalized last week through a memorandum of agreement with the provincial government, gives a clearer picture of Bohol 's first special economic zone now shaping up in the town of Talibon. On the requirement of a 60-hectare area to accommodate the ethanol production factory and residential area for workers near the aquaculture area and the provincial government's role in creating a free economic zone as development site, Governor Erico Aumentado said Talibon's future ecozone is ready for this. The governor also announced that Talibon Mayor Juanario Item has already consolidated 100 hectares for a special economic zone that came ahead of Ubay town. With the support of the Philippine Export Zone Authority, the provincial government targets to establish the Talibon special economic zone by end of 2009, after which the Bohol Investment Promotion Center will facilitate the creation of a tourism ecozone in Panglao. Ubay and Talibon have been groomed to be the commercial centers outside Bohol 's capital, Tagbilaran City , according to Aumentado.

The eyed Korean plant that will process red algae and cottoni seaweed into bio-ethanol will be the very first investor in Bohol 's very first ecozone in Talibon. The governor said the stretch of seasite along Buenavista, Getafe , Talibon, Ubay and President Carlos P. Garcia shows abundance of red algae. Dr. Gyungsoo Kim, president of Biolsystems Co., Ltd. of the Republic of Korea , is now checking the seaweed farms in the coastal towns of Bohol to determine the areas that can supply adequate raw materials for the processing of bio-ethanol and the quality of seaweed grown in these areas.

Biolsystems Co., Ltd. of the Republic of Korea , represented by Dr. Kim, and the province of Bohol of the Republic of the Philippines , represented by Aumentado, signed the memorandum of understanding on the establishment of a marine aquaculture project in the province. The MOU, signed on July 16 at Bohol Tropics Resort in Tagbilaran City , is valid for two years and maybe renewed based on mutual consent of both parties. “This is one project that will open up Bohol to massive investments by Korean government and investors. So we must have to seize this opportunity. This project will not only save our seawaters of Bohol from destruction and degradation by the activities of illegal fishers. I have been advocating in the north for alternative livelihood for poor fisherfolk to stop illegal fishing,” Aumentado pointed out in his message during the MOU signing ceremony. As stated in the MOU, both parties will promote and encourage cooperation for investment and joint venture between them in the fields of aquaculture and related post-harvest development.

The MOU also cited that the marine aquaculture cooperation would lead to common benefits and economic development of Biolsystems and Bohol that would even make the province the very first host to a world-class bio-ethanol processing factory in the Philippines and even Asia . The project also aims to promote cooperation in the field of marine aquaculture, post-harvest and ethanol production from sea algae. It shall also encourage and facilitate mutual consultation, exchange of technical assistance, investment and joint venture in specific areas of marine bio-technology. In the MOU, Biolsystems will lead the investments into areas of seaweed aquaculture ethanol production and post-harvest industries in Bohol ; conduct research; develop improved cultivation, farming and marketing methods to ensure higher yields of sea algae. The Korean entity shall also give preference to Bohol residents in hiring workers. Most of all, Biolsystems must ensure that the project will cause no damage to Bohol 's environment and its eco-tourism status and potentials in consonance with existing environmental laws in the country. The province of Bohol , for its part, shall arrange for the availability of three hectares to be the test area for aquaculture, 500 hectares for seedling plantation area to support the aquaculture, and a minimum of 25,000 hectares up to 100,000 hectares for the aquaculture site proper for 50 years. Bohol shall also work with neighboring provinces to consolidate up to one million hectares of total area to support the project.

On this, Aumentado said the stretch along Danajon double barrier reef of 273 square kilometers is more than enough for this, even if the computation will exclude the channel that serves as navigation route for vessels plying between Bohol , Cebu and Leyte. The remaining area can still reach even more than one billion hectares, and Bohol can expect support from Negros Oriental and Siquijor for the biofuel project, Aumentado said.

The MOU provides that the province shall reserve for the Korean company, the exclusive operation of this project for 25 years, as allowed by existing Philippine laws on investment. The governor also explained that Bohol has a provincial ordinance that gives a seven-year tax incentive for new industries like the bio-ethanol project, on top of theBoard of Investment /PEZA incentives. Moreover, the attendance of the 30 mayors of the coastal towns in Bohol during the MOU signing ceremony on Thursday last week signified an expected consideration for the project based on the zoning ordinances of the municipalities. The provincial government also takes the task of coordinating with the Philippine National Police and the Armed Forces of the Philippines in maintaining peace and order around the aquaculture and factory areas.

The province shall also provide an office space for the project and accommodation of Biolsystems employers for at least one year. Provincial Board members, the 30 mayors of the coastal towns in Bohol , representatives from the banking industry and business sector, the Bohol Seaweeds Council, people's organizations, heads of offices headed by Provincial Administrator Tomas Abapo Jr. witnessed the signing of the MOU. Aumentado initiated a topic on the seaweed industry in Bohol with Ambassador Choi Joong Kyung a week before the bilateral talks between President Gloria Macapagal-Arroyo and South Korean President Lee Myung-bak set during the 60th anniversary of the diplomatic relations between South Korea and Philippines in June. As Ambassador Choi arranged it, Aumentado and Dr. Kim met on the first day of the Korea-Philippines bilateral event and discussed the bio-ethanol processing project utilizing red algae and cottoni as raw materials. Aumentado also said that President Lee's speech during the South Korea-Asian countries summit made him realize the South Korean President's strong advocacy in “Green Growth” economic concept. “I thought at the start that it was limited to reforestation of denuded areas. By the course of the speech he strongly advocated for the production of alternative fuel in the like of growing cost of fossil fuel derived from the OPEC countries and one of those was the production of bio-fuel,” Aumentado mentioned in his message during the MOU signing ceremony.