Business World Online
Posted on June 29, 2012 06:20:25 PM
SUBIC, ZAMBALES -- Local government officials have called on proponents of a 600-megawatt (MW) coal-fired power plant to move the planned facility outside an economic zone here so property taxes can be collected.
"RP Energy (Redondo Peninsula Energy, Inc.) will not be paying any real property taxes because they will be located inside Subic Bay Freeport. Unlike the Masinloc plant which pays P300 million in real property taxes, they will not be paying at all," Zambales Vice-Governor Ramon G. Lacbain claimed at public consultation on Friday, referring to the provision wherein locators at economic zones are exempt from certain taxes.
"Why not move it out of Subic…if a coal plant is really needed so at least the people benefit more?," he said.
Meralco PowerGen Corp.--one of the proponents behind the plant--for its part said it would be difficult to change the plans as it will have to reconsider factors such as water depth and grid connections.
The firm is working with Aboitiz Power Corp. and Taiwan Cogeneration Corp. under the RP Energy joint venture.
"It will delay our plans," Aaron A. Domingo, executive vice-president of Meralco PowerGen, said in a press conference after the hearing.
Mr. Domingo went on to add that the project proponents may still end up paying taxes anyway even if the $1.2-billion plant is located within the economic zone as they will sell the output outside the area.
"We are currently seeking advice from private accounting firms regarding the real property tax issue…" he said.
The power plant is expected to help augment Luzon's power supply and is targeted for operation beginning 2015. The Energy department previously said it is counting on the committed capacity of the Subic power plant to help deliver needed power when demand increases in 2015.
RP Energy already has the environmental clearance for the first 300-MW unit of the power plant but has yet to receive permits for the second unit.
Mr. Domingo said the company "will not build the power plant without the second unit".
Zambales Governor Hermogenes E. Ebdane, Jr., for his part, said more studies conducted before a decision can be made for the power plant.
Mr. Lacbain similarly added that RP Energy must put into writing the project's proposed benefits to the community to make up for the potential emissions from the coal plant.
Shares of Meralco closed at P253.40, up 0.96% from its previous close of P251 a piece.
Shares of Aboitiz Power closed at P34.15, down 0.87% from its previous close of P34.45 a piece. source
"Why not move it out of Subic…if a coal plant is really needed so at least the people benefit more?," he said.
Meralco PowerGen Corp.--one of the proponents behind the plant--for its part said it would be difficult to change the plans as it will have to reconsider factors such as water depth and grid connections.
The firm is working with Aboitiz Power Corp. and Taiwan Cogeneration Corp. under the RP Energy joint venture.
"It will delay our plans," Aaron A. Domingo, executive vice-president of Meralco PowerGen, said in a press conference after the hearing.
Mr. Domingo went on to add that the project proponents may still end up paying taxes anyway even if the $1.2-billion plant is located within the economic zone as they will sell the output outside the area.
"We are currently seeking advice from private accounting firms regarding the real property tax issue…" he said.
The power plant is expected to help augment Luzon's power supply and is targeted for operation beginning 2015. The Energy department previously said it is counting on the committed capacity of the Subic power plant to help deliver needed power when demand increases in 2015.
RP Energy already has the environmental clearance for the first 300-MW unit of the power plant but has yet to receive permits for the second unit.
Mr. Domingo said the company "will not build the power plant without the second unit".
Zambales Governor Hermogenes E. Ebdane, Jr., for his part, said more studies conducted before a decision can be made for the power plant.
Mr. Lacbain similarly added that RP Energy must put into writing the project's proposed benefits to the community to make up for the potential emissions from the coal plant.
Shares of Meralco closed at P253.40, up 0.96% from its previous close of P251 a piece.
Shares of Aboitiz Power closed at P34.15, down 0.87% from its previous close of P34.45 a piece. source
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