MANILA, Philippines – A unit of the Lopez Group has secured tax perks for its three renewable energy (RE) projects worth P11.96 billion.
“The BOI (Board of Investments) approved this month First Gen Mindanao Hydro Power Corp. (FGMHPC) as RE developer of hydropower energy resources for its three projects in Mindanao worth P11.96 billion with a total energy capacity 62.75 megawatts (MW),” the agency said in a statement yesterday.
With the approval of the registration of the three projects, FGMHPC can enjoy incentives such as income tax holidays and duty-free importation of equipment for seven years as provided by the Renewable Energy Act of 2008.
RE is listed as a mandatory activity in the 2012 Investment Priorities Plan.
The government provides incentives to encourage firms to invest in priority activities or sectors.
The first of the three projects is the 23 MW Bubunawan hydropower project worth P5.07 billion, which will be located in Bukidnon.
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The project, which will have two units of turbine-generator sets, is estimated to produce an annual average of about 138 gigawatt hours (GWH) of electrical energy with a maximum annual generation capability of about 201 GWH of clean and renewable energy.
The project is expected to provide jobs to up to 45 personnel.
The second project worth P1.803 billion will be situated within the Cabadbaran town of Agusan del Norte.
The project, which will involve the construction and installation of up to three units of 3.25 MW turbine-generator sets, is estimated to produce an annual average of about 50 GWH up to a maximum yearly generation capability of about 85 GWH of clean and renewable energy.
Some 27 jobs are expected to be created by the project.
Aside from the two projects, FGMHPC project is also putting up a 30 MW Puyo hydropower project in Jabonga, Agusan del Norte, worth P5.06 billion.
The project involves the construction and installation of two units of 15 MW turbine-generator sets.
The Puyo facility is seen to churn out an annual average of about 191 GWH.
It is also expected to create 27 jobs.
All three projects are scheduled to start operations in January 2017.