San Miguel power subsidiary wants government incentives

Needs perks to build two coal-fired power plants.

San Miguel Consolidated Power Corporation wants the incentives for its planned coal-fired power plants in the province of Bataan in Luzon and Davao del Sur in Mindanao.

SMCPC is applying for registration with the Board of Investments as a new operator of 2 x 150 MW coal-fired power plants in Bataan on a pioneer status.

It has also filed an application for registration as new operator of a coal-fired power plant with a capacity of 300 MW in Davao del Sur on a pioneer status.The construction of both power plants is ongoing.

Should the filed applications be approved, SMCPC can enjoy incentives such as an income tax holiday for six years. The ITH can be extended for another eight years.

The firm will also be entitled to duty-free importation of capital equipment, and other non-fiscal perks.

Under the 2012 Investment Priorities Plan, the energy sector has been identified as a preferred activity which can qualify for incentives from the government.

San Miguel Corporation is engaged in the power and energy business through SMC Global Power Holdings. SMC is also involved in other the food, beverage, packaging, petroleum, airline, infrastructure projects, mining, telecommunications and banking business.