Thursday, December 16, 2010

P2.8-b geothermal project seeks perks

Manila Standard Today

by Julito G. Rada

Petroenergy Resources Corp., a wholly-owned Filipino company, is seeking fiscal incentives from the Board of Investments for its P2.8-billion Maibarara geothermal power project in Sto. Tomas, Batangas and Calamba, Laguna, documents from the incentive-giving agency show.

The project involves the construction and operation of a 20-megawatt 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 were the wind energy projects in Sual, Pangasinan, 30 MW; and Nabas, Aklan, 30 MW.

Petroenergy committed to deliver the electricity output through National Grid Corporation of the Philippines starting at P5 per kilowatt-hour on the first year on the approval of the Energy Regulatory Commission.

The project’s investment of P2.8 billion, which will be funded by 40-percent equity, covers pre-operating cost, site preparation and acquisition and installation of equipment. It requires 82 personnel when commercial operations start in October 2013.

Meanwhile, the BoI expects to surpass its investment target of P287 billion in 2010 with the approval of additional projects before the year ends. The investments target for 2010 is P345 billion. They include investments generated by the BoI, Philippine Economic Zone Authority, Clark Special Economic Zone and Subic Bay Metropolitan Authority.

BoI and Peza account for 90 to 95 percent of the country’s overall investments inflow.

The Philippines registered its highest investments in 2008 with P464.2 billion.

The investments declined in 2009 to P314 billion following the global financial crisis.

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