BOI gives tax perks to P9.3 B worth of investments

MANILA, Philippines - The Board of Investments (BOI) has given income tax holidays (ITH) to P9.3 billion worth of projects under the 2010 Investments Priorities Plan (IPP).

Among the recipients of the ITH package is First Bukidnon Power Corp., a renewable energy developer, which is expanding a 1.6-megawatt (MW) hydroelectric power plant in line with the Renewable Energy Act of 2008.

“This will ensure a stable supply of electricity within the underlying areas and a welcome relief for the environment in lieu of the usual coal-fired plants that makes up the bulk of power generators in Mindanao,” said Trade and Industry Secretary and BOI chairman Gregory L. Domingo.

The plant is located in Damilag, Manolo Fortich, Bukidnon which is about 36 kilometers from Cagayan de Oro City. It covers an area of 13,959 hectares. The main diversion dam is located about 5.5 km from the forebay passing through the waterway canal. The forebay has an area of 2.83 hectares and a storage capacity of 40,000 cubic meters.

It will use flowing water from Agusan River to drive a generator and in the process convert the mechanical energy into electrical energy. The plant is a run-off-river scheme consisting of two identical horizontal shaft reaction turbines with an effective head of 121.5 meters and a speed of 900 rpm. It has two generating units with a capacity of 800 kw per unit for a total of 1,600 kw. The water flows to the penstock and is directed to pipes leading to each generating unit. The flow of water is controlled manually by a gate valve and passes through a wicket gate to the turbine runner and into the drop tube down to the tailrace. A hydraulic governor is used to control the wicket gate which in turn, controls the flow of water to the turbine generator.

The energy to be generated by the plant will be delivered to its off-taker, Cagayan Electric and Light Co. (Cepalco). The plant’s supply contract with Cepalco runs until May 28, 2025.

The total investment cost of the plant amounts to P106 million. The firm started commercial operation upon takeover of the plant in Oct. 14, 2005. First Bukidnon is a wholly-owned subsidiary of the Lopez-owned First Gen Corp. The plant was officially turned to FGBPC by the Power Sector and Asset and Liabilities Management Corporation (PSALM) on March 29, 2005.

Other BOI projects approved include the projects of SM Development Corp., Aboitiz Land Inc. and Filinvest Land Inc.