Petroenergy's P2.8-billion renewable energy project gets BOI perks

MANILA, Philippines - The Board of Investments (BOI) has given tax incentives to the P2.8-billion renewable energy project of Petroenergy Resources Corp. (PERC).

PERC is a 100 percent Filipino owned firm who applied for incentives for its 20 MW renewable energy (Geothermal) Power Plant in Sto Tomas, Batangas and Calamba, Laguna.

The project involves the construction and operation of a 20 MW Maibarara Geothermal Plant in Mt. Makiling covering areas in Sto Tomas, Batangas and Calamba, Laguna. The proposed activity is the firm’s third renewable energy project applied for BOI registration. The two previous registrations are wind energy projects in Sual, Pangasinan (30 MW) and Nabas, Aklan (30 MW).

The generated electricity will be delivered to firm’s client via the National Grid Corp. of the Philippines (NGCP) starting at P 5/kWh on the first year upon ERC approval.

The project will generate a total investment of P 2.8 Billion which will cover pre-operating cost, site preparation and acquisition and installation of equipment. It will be funded by 40 percent equity. The manpower requirement is 82 personnel. The start of commercial operations is in October 2013.

Pursuant to the general and specific guidelines of the 2010 IPP on power projects, the subject application qualifies for registration under mandatory list and is entitled to the incentives set forth under the said RE law.