Philippine Daily Inquirer
The Board of Investments (BoI) has approved the registration of Energy Development Corp.’s existing Southern Negros Geothermal Production Field (SNGPF) and Bacon-Manito Geothermal Production Field (BacMan), granting reduced corporate tax rates to both projects.
According to Republic Act. No. 9513, or the Renewable Energy Act of 2008, RE developers that acquire and operate existing RE facilities that have been operating for more than seven years as of Feb. 11, 2009, are no longer entitled to an income tax holiday.
However, they are still entitled to a reduced corporate tax rate of 10 percent on their taxable income upon registration with the Department of Energy (DoE).
With the approval of their BoI registration, these EDC projects will now enjoy reduced tax rate for the SNGPF and BacMan.
Both projects were already in operation for more than seven years—SNGPF since 1983, BacMan I since 1993, and BacMan II since 1994—when the RE Law took effect. They were registered with the DoE on Oct. 23, 2009.
The SNGPF in Negros Oriental provides steam to fuel the 192.5-megawatt (MW) Palinpinon geothermal power facility, which is owned and operated by EDC subsidiary Green Core Geothermal Inc.
Palinpinon 1 has 25 production wells, 11 injection wells, and a 14-kilometer pipe network, while Palinpinon 2 is made up of 16 production wells, six injection wells and a 7-kilometer pipe network.
The SNGPF’s total book value as of end-2010 amounted to P1.39 billion. The project employed 288 people.
The BacMan production field in Albay and Sorsogon supplies steam to run the 150-MW BacMan geothermal plant of Lopez Group subsidiary BacMan Geothermal Inc.
BacMan 1 has 14 production wells, seven injection wells, and a 15-kilometer pipe network, while Bacman 2 is composed of nine production wells, five injection wells, and a 5-kilometer pipe network.
The geothermal power project, which provided jobs to 261 people, had a net book value of P2.52 billion as of end-2010.
“The country still has a vast potential of tapping geothermal energy since it has many volcanic areas. These projects are in line with our target of a geothermal capacity of at least 3,000 MW by 2030,” Trade Undersecretary and BoI managing head Cristino Panlilio said in a statement.
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