BOI okays incentives for San Miguel coal plants
MANILA, Philippines - The Board of Investments (BOI) has approved incentives for two coal power plant projects worth P51.34 billion of the San Miguel group.
The plants, with capacity of 300 megawatts (MW) each, are located in Davao del Sur and Bataan, and will be operated by San Miguel Consolidated Power Corp. (SMCPC).
SMCPC is constructing a P25.5 billion power plant in Lamao, Limay, Bataan that will be operational by 2016 and will employ around 214 personnel.
The Bataan plant will boost energy supply in Luzon.
The P25.84-billion power plant in Culaman, Malita, Davao del Sur, on the other hand, is expected to start operations by end-2015. It will also employ 214 people.
The Davao del Sur plant is aimed to address the power requirements of Mindanao.
According to the Department of Energy's (DOE) Power Development Plan from 2010 to 2030, peak demand for electricity in Mindanao will grow by average annual growth of 4.2%.
The department projects Mindanao will require an additional 550 MW on top of the committed power projects by 2018. The country, meanwhile, will need an additional 1,050 MW of power by 2014.
The San Miguel plants will import high-quality coal either from Indonesia or Australia during commissioning and start-up operations.
The group will eventually use local coal coming from the Daguma coal mines, owned by affiliate San Miguel Energy Corp. in their continuing operations.
The convergence activity is qualified in the preferred activities under the Energy sector category of the Investment Priorities Plan (IPP).
The BOI is the chief agency tasked to implement the IPP under a provision of Executive Order 226 or the Omnibus Investments Code. The IPP identifies priority sectors that can avail of fiscal and non-fiscal incentives. - Rappler.com