Aboitiz unit gets tax perks
Power firm’s hydro plant to augment supply in MindanaoBy Paolo G. Montecillo
Philippine Daily Inquirer
The government has approved tax perks for the Aboitiz group’s Tudaya 1 Hydroelectric power plant that aims to help augment Mindanao’s power supply.
In a statement, the Board of Investments (BOI) on Friday said it had approved the application of Hedcor Sibulan Inc. (HSI), a wholly owned subsidiary of Aboitiz Power Corp., as a renewable energy developer of the Tudaya 1 power plant. The project will provide an additional 6.6 megawatts to the current supply of power in Mindanao.
The project worth P1.165 billion “conforms with the specific guidelines of the 2012 Investment Priorities Plan under the Mandatory Inclusion of the Renewable Energy Act and the memorandum of agreement between the BOI and the Department of Energy,” the BOI said.
This entitles the facility to a multi-year income tax holiday and other fiscal incentives.
The firm plans to construct and operate the 6.6 MW hydroelectric power project within the municipality of Sta. Cruz, Davao del Sur. It will tap the waters of the Sibulan and Baroring river systems to generate power.
“The continuing installation and expansion of such renewable energy plants reaffirms the commitment of the government to increase the country’s renewable energy resources as part of its National Renewable Energy Program,” the BOI said.
Over the years, renewable energy has evolved into a major contributor of the country’s primary energy supply. As the 2010, the national supply reached 40.7 million tons of oil equivalent (MTOE). Renewable energy sources accounted for 57.5 percent or 23.4 million MTOE of those needs.
The program’s vision for the long haul aims to increase the renewable energy capacity of the country to 15,303 MW by 2030 or triple the 2010 output of 5,438 MW.
Hydro energy already accounted for over 60 percent of the country’s renewable energy output as of 2010.
Under the program, the government intends to boost it further adding an additional 341 MW by 2015, an additional 3,161 MW by 2020, towards attaining the aggregate target of 8,724 MW by 2030. The hydro power sector will add 5,394 MW at the end of the program.
“With the mushrooming of renewable energy plants in the country, this will go a long way towards achieving energy self-sufficiency for the country,” the BOI statement read.
HSI will employ a total of 23 personnel once the project’s commercial operation begins in September 2014.
The amount of power to be produced is expected to be sold to Davao Light and Power Company, Inc. (DLPC), an electric distribution utility with a franchise area of 3,561 square kilometers comprising the entire Davao City and the Davao del Norte areas of Panabo City and Municipalities of Carmen, Dujali and Sto. Tomas. It is expected to address the pressing power supply needs of the region.
This is the third hydro plant of HSI after Sibulan Plant A and Plant B which produces a combined capacity of 42.5 MW. These plants contribute substantially towards reducing carbon emissions annually within the area.
Short URL: http://business.inquirer.net/?p=116649