To lure investors Medellin offers tax incentives for power plant

CEBU, Philippines - The Municipal Government of Medellin is willing to host the new power plant that a Korean investor wants to put up in Cebu.

The Korea Southern Power Co., Ltd. (Kospo), a subsidiary of Korea Electric Power Corporation, is reportedly eyeing the towns of Medellin and Daanbantayan in northern Cebu for its power plant.

Mayor Ricardo “Ricky” Ramirez is offering tax incentives to the investor should it chooses his town to be the location of the new power plant in Cebu.

Kospo officials, who made a courtesy call to Cebu Gov. Gwendolyn Garcia last week, expressed interest to address the power supply shortage in Cebu by putting up a power plant in a 100-hectare area.

Ramirez said the advantage in Medellin is that Kospo would need to talk to only one or two people in the town for them to acquire huge tracts of land since landowners have vast areas to their name. This is unlike in other towns wherein several landowners would comprise a 100-hectare area.

Moreover, Ramirez said, Medellin is next to Bogo and San Remigio, which have ports.

“I’m very willing to host them here, with tax incentives,” said Ramirez.

Byeong Jin Choi, senior manager of the Overseas Business Team, Business Development Department of Kospo, had said they made the business decision to offer the powerplant project after seeing that Cebu needs it.

The Korean Electric Power Corporatopn (Kepco)-Salcon Power Corporation has put up power plants in Naga, southern Cebu, that will be completed this year. This is expected to provide Cebu with 446 megawatts more of power supply.

But with the rate of progress in Cebu wherein power requirement is rising because of the increase in number of establishments, a new power plant is welcome.

Kospo is also considering wind power plants in Cebu.

Gov. Garcia had said Kospo’s interest to invest in Cebu is something positive and shows that investors are recognizing the fact that the investment climate in the province is ideal.

Rep. Benhur Salimbangon had offered the fourth district, the territory of which includes Medellin, for Kospo to look at.

Medellin already has several existing Korean investments. The northern town has an existing Korean village with a golf course servicing Koreans and other amenities.

Just late last year, another Korean investor also started construction of a P250-million tourism facility in Medellin that would feature a five-star hotel and condominium as well as a new golf course.

For several years now, Medellin is host to more than 100 Koreans per week. They fly to Cebu just to play golf in Medellin. — (FREEMAN)