MANILA, Philippines - Local renewable energy developer Philcarbon Inc. will enjoy tax perks for a P3.4-billion wind power project in Southern Luzon.
In a statement, Philcarbon said the Board of Investments (BOI) has approved the company’s application for registration of its 33.4-megawatt (MW) Bulalacao wind project in Oriental Mindoro.
Philcarbon president Ruth Yu-Owen said the BOI approval in October will allow the company to conduct pre-development of the 33.4-MW Bulalacao wind power project.
“The BOI has approved our application for registration as new renewable energy developer of wind power energy resources to avail incentives such as duty free importation of capital equipment as we prepare for the construction of our wind power projects,” Yu-Owen said.
The renewable energy firm said it can also avail of other tax incentives like income tax holidays.
Yu-Owen said the Bulalacao wind power project will require a P3.425-billion investment.
The green energy project will be funded by a combination of debts and private equity, Philcarbon said.
Philcarbon wants to start building the wind farm in September 2014, with commercial operations to start in January 2016.
Bulalacao is located in Oriental Mindoro, which is 140 kilometers south of Manila.
“It is estimated to generate 73.146 gigawatt-hours of wind energy. Greenhouse gases per year that will be abated is 47,545 metric tons,” Philcarbon said.
The host community will benefit from royalty taxes, real estate taxes, employment generation, livelihood program and tourism promotion, it added.