BOI grants tax incentives to new projects worth P500 million

MANILA, Philippines - The Board of Investments (BOI) has granted tax breaks and other non fiscal incentives to three projects amounting to almost half a billion pesos.

The largest among the three was for the application of StateMotor Corp. for project under Classification II (Commercial Vehicles) of the New Motor Vehicle Development Program (MVDP) otherwise known as EO 156.

StateMotor will invest P371 million or $8.2 million in commercial vehicle assembly and parts manufacturing in its plant at J. Aguilar Avenue, Pamplona, Las Piñas City. Assembly capacity will be at 500 units annually.

GWM is one of the largest automotive firms in China , with products sold to more than 120 countries and regions. As China’s first private automobile enterprise listed on the Hong Kong Stock Exchange, it has more than 30 subsidiaries and over 22,000 staff members with an annual capacity of 400,000 complete vehicles and the capability to independently produce key parts such as engines as well as front and rear axles.

The second approval was given to Kenrich Development Corp. for its housing project in Tungkil, Minglanila, Cebu.

The P80.7-million project dubbed as Villa Celina 2A Subdivision, involves the development of 15,709 square meters (sqm) of land and the construction of 133 low-cost mass housing units in duplex and row houses ranging from 32.6 sqm to 39.6 sqm. Commercial operations are set to begin on September 2010 employing 106 personnel. 

The third was given to Well-Delight Network Corp. for its production of frozen tuna slices and by products in General Santos City, South Cotabato. These by-products include tuna head, bones, skin, black meat, jaw, belly, tendon, tail, fins and ribs among others.

The P35.6-million project will source the basic raw materials like fresh yellow fin tuna. Frozen slices are expected to be exported to Japan while the by-products will be sold to wet markets, restaurants and feed manufacturers/formulators. The company is slated to start commercial operation in September 2010 employing 115 people.  

Meanwhile, the BOI has also given tax perks to the P1.673 billion renewable energy power plant in Quezon which is partly owned by the sister of the province’s congressman.

Lydia S. Reyes, sister of three-term Quezon Congressman Danilo E. Suarez, owns 40 percent of the Unisan Biogen Group (UBG).

UBG received the incentives for its 10 megawatt (MW) renewable energy (biomass) power plant in Barangay Muliguin, Unisan, Quezon under the R.A. 9513 otherwise known as the Renewable Act of 2008.

The P1.673-billion project will use coconut husks, wood chips and other biomass wastes as fuels for the operation of the plant. To ensure adequate supply of these fuel sources, UBG has entered in long-term deals with coconut farmers in Quezon, Batangas, Bicol, and other provinces. At full capacity, the company needs about 90,230 metric tons (MT) of biomass wastes.  

“This alternative source of energy will boost the power capacity of the area and will make power rates more affordable,” said Trade and Industry Secretary and BOI Chairman Gregory L. Domingo. 

With a 25-year RE supply contract, UBG will sell its plant-generated electricity to the Quezon 1 Electric Cooperative (QUEZELCO 1) starting at P5.74 per kWh on the first year of operation, upon approval from the Energy Regulatory Commission (ERC). Additional income will also be derived from sale of carbon credits.