TO:	The Minister of Energy The Minister of the Budget The Treasurer of the Philippines The Chairman, Philippine National Oil Co.

In line with our country's program to develop our indigenous energy resources in order to lessen our dependence on imported sources of energy,  I have directed the acceleration of our program to produce Alcogas to displace current premium motor fuel utilization.  Pursuant to said directive, the Philippine Sugar Commission has entered into a lease contract with Victorias Milling Company for the use of their distillery in the production of alcohol for blending into Alcogas.

Because existing distilleries are geared only towards producing hydrous alcohol, which is incompatible for blending with gasoline, there is need to install a dehydration facility in Victorias to further process alcohol to the desired quality.  Additionally, further investments would be required for alcohol storage and blending facilities.

In view of the  foregoing,  the Treasurer of the Philippines is hereby directed to release to the Philippine National Oil Company, the amount of P10.0 million  out of the Special Fund created pursuant to Section 8 (j) of Republic Act No. 6173,  as amended, to finance the investment requirements of the aforecited facilities.

The Philippine National Oil Company is hereby directed to submit to the President, a report accounting for the disbursement and utilization of the foregoing funds.

This Letter of Instruction shall take effect immediately.

Done  in the  City of Manila, this 1st day of February, year of Our Lord, nineteen Hundred and Eighty. the