Global seeks BOI perks for power project

MANILA, Philippines - A unit of Global Business Power Corp. (GBPC), is seeking incentives for a coal-fired power plant in Iloilo.

“Panay Energy Development Corp. is applying for registration with the Board of Investments (BOI) as expanding operator of a 150-megawatt (MW) coal-fired power plant in Brgy. Ingore, La Paz, Iloilo City on a pioneer status under Book 1 of EO (Executive Order) 226 otherwise known as the Omnibus Investments Code of 1987,” the BOI said in a published notice.

If its application would be approved, the firm could enjoy fiscal and non-fiscal perks.

As an expanding operator, the firm could be granted exemption from payment of income tax for three years from the start of commercial operations.

The government offers incentives to attract investments in certain sectors.

Every year, the Investment Priorities Plan (IPP) which lists activities that could enjoy incentives, is released by the BOI.

Under the 2013 IPP, the energy sector is identified as a preferred activity.

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

The 2013 IPP also has a mandatory list of activities which should be granted incentives based on existing laws and covers export activities as well as those being promoted by the regional Board of Investments of the Autonomous Region in Muslim Mindanao.

Panay Energy announced earlier it is expanding its 164-MW coal-fired plant in Iloilo as it expects rising demand in power on the back of the growing economy of the province.

The expansion involves building another 150-MW coal-fired plant in Iloilo in the middle of the year, with commercial operations expected by July 2016.

GBPC chairman Francisco Sebastian has said the company is hopeful the building of a new power plant would encourage more business expansion and new investors to locate in Iloilo and Panay Island.

GBPC is a subsidiary of GT Capital Holdings Inc., the umbrella holding firm of the Metrobank Group.