The Board of Investments has granted incentives to a Chinese-backed renewable energy project in Northern Mindanao, which is expected to help boost industrial development in the region.
According to the BOI, it approved the application of Liangan Power Corp. (LPC) for its proposed P1.36-billion, 11.9-megawatt hydropower project, which will be fully operational by January 2019. The project, which is expected to employ up to 44 personnel, would fall under the mandatory list of the 2014-2016 Investment Priorities Plan (IPP).
“This project which has the support of Chinese investors will further spur industrial development in the South since it is located between two strategic cities. With the government pushing for more infrastructure projects in the countryside by next year, the role of renewable energy is crucial in achieving the pace of industrialization,” Trade Undersecretary and BOI Managing Head Ceferino Rodolfo said in a statement.
Liangan Power targets to provide reasonably priced supply of electricity with minimal negative impact on the environment and host communities.
The project is situated in Northwest Mindanao within the municipality of Bacolod, Lanao del Norte and is within the proximity of Iligan City and Cagayan de Oro, the BOI said.
Data from the Mindanao Development Authority (MinDa) showed that some 31 percent of Mindanao’s power supply was coming from renewable energy, mainly hydropower sources. Aggregate dependable power supply in Mindanao stood at more than 2,300 MW, while peak demand was about 1,600 MW.
Trade Secretary Ramon M. Lopez noted that Chinese backed projects like that of Liangan served as a concrete manifestation of President Duterte’s emphasis to attract more investors from China. The BOI and the Philippine Chamber of Commerce and Industry are working closely to bring in more investors from countries recently visited by Duterte.
“The recent visit of President Duterte opened the floodgate of investments from China. The efficiency of the BOI in approving registration applications without sacrificing prudence in regulation, is a testament to the promise of the President that ease of doing business is guaranteed under his administration. The Philippines henceforth is the destination of investors,” PCCI chair Emiritus Francis Chua was quoted by the BOI as saying.