SMC power unit seeks BOI perks

MANILA, Philippines - San Miguel Consolidated Power Corp. (SMCPC) is seeking incentives for its coal-fired power plants in Bataan and Davao.

In a published notice, the Board of Investments (BOI) said “SMCPC is applying for registration with the BOI as a new operator of 2 x 150 MW (megawatt) coal-fired power plants at Barangay Lamao, Limay, Bataan on a pioneer status.

In a separate published notice, the BOI said SMCPC has also filed an application for registration as new operator of a coal-fired power plant with a capacity of 300 MW in Barangay Culaman, Malita in Davao del Sur on a pioneer status.

The construction of the power plants in Bataan and Davao del Sur is ongoing.

Should the filed applications be approved by the BOI, the firm can enjoy incentives such as income tax holidays (ITH) for six years.

The ITH can be extended for another eight years.

The firm will also be entitled to duty-free importation of capital equipment, and other non-fiscal perks.

Incentives are offered by the government for activities or sectors in which it wants to attract more investments.

Under the 2012 Investment Priorities Plan (IPP), the energy sector has been identified as a preferred activity which can qualify for incentives from the government.

Also listed as preferred activities under the 2012 IPP are agriculture, agribusiness and fishery; creative industries or knowledge-based services; shipbuilding; infrastructure; mass housing; research and development; green projects; motor vehicles; strategic projects; disaster prevention, mitigation and recovery projects; iron and steel; and hospital or medical services.

San Miguel Corp. (SMC) is engaged in the power and energy business through SMC Global Power Holdings.

Apart from power and energy, SMC is also involved in other businesses such as food, beverage, packaging, petroleum, airline, infrastructure projects, mining, telecommunications and banking.