Proposed to be located in Agusan del Sur, the company is expected to invest $60m in the project.

The company also concluded an agreement with the the Manobo Wawa Sectoral Tribal Council in Agusan del Sur to provide feedstock for the plant.

The Manobo tribe, as part the agreement, will plant an industrial tree plantation across 10,000ha in the region to provide wood chips as feedstock for the biomass plant.

In exchange, the tribe will be entitled to a 20% share from the plant’s net revenues.

Eastern Petroleum chairman Fernando Martinez said that the company would raise 70% funds required for the construction through a loan and while the remaining 30% will be equity.

Financing for the plant as well as the engineering, procurement and construction contracts are expected to be finalized in early 2013.

Construction is scheduled to begin in the third quarter with work expected to be concluded in two years time.

Eastern will sell electricity from the biomass plant to Agusan del Sur Norte Electric Cooperative as well as the Wholesale Electricity Spot Market.