The National Development Co. (NDC) has agreed to partly fund a private sector-led bio-energy project, the state firm said over the weekend.

Arthur N. Aguilar, general manager, said the NDC board had approved a deal with Bronzeoak Philippines, Inc., which is spearheading the National Fuel Ethanol Program. He did not indicate the project cost.

Touted as an energy independence strategy under the Medium-Term Philippine Development Plan, the program will promote the production and commercialization of ethanol, a fuel additive made from sugar cane.

NDC will fund 40% of a company called San Carlos Bio-Energy, Inc., while the remaining 60% will be provided by Bronzeoak, a two-year-old Filipino company jointly owned by Zabaleta & Co. and Bronzeoak Ltd. Of the United Kingdom. San Carlos Bio-energy will develop and operate a stand-alone mill and distillery complex for ethanol, among others, in San Carlos, Negros Occidental, constituting the ethanol program's development phase.

For the project operation phase, to be financed with 30% equity and 70% debt, NDC has committed to provide 30% equity. Bronzeoak will put up 30% while a group of sugar planters will provide another 20%.

The remaining 20% will be shouldered by unidentified investors.