Board of Investments okays perks for P1-billion hydropower project

MANILA, Philippines - The Board of Investments (BOI) has extended its incentives package to the P1.09-billion investment for a hydroelectric power project in Davao by Hedcor Sibulan Corp.

The BOI said the additional investment in the plant brings the total money infused by Hedcor to P5.121 billion.

In 2005, Hedcor initially earmarked P4.031 billion for the project expected to start operations this year.

However, the company asked the BOI to consider its additional investment in the tax perks the firm will receive.

Hedcor sought the approval of the BOI to “positively recast the facts associated with its current registration owing to the increased capacity of the said hydroelectric plant and increase in its concomitant investments.”

The Sibulan hydroelectric power project involves tapping the headwaters of the Sibulan and Baroring Rivers and their tributaries to develop run-of-river type hydropower plants.

These are two cascading independent hydroelectric projects, namely the upstream Plant A with an installed capacity of about 16 megawatts and the downstream Plant B with about 26 MW. The combined output capacity was pegged at 42 MW.

The changes in civil and electro-mechanical characteristics of the project particularly the better level of turbine efficiency prompted the company to revise its installed capacity to 42.5 MW from 42MW.

Plant A will now be able to supply 16.5 MW of power plant and Plant B at 26 MW, giving a higher total combined capacity.

Because of the increased capacity and investment, the BOI granted the firm’s request for amendment of existing registration, primarily revising the target start of commercial operations by more than a year.        – Ma. Elisa Osorio