2 coal-fired plants given incentives

Manila Bulletin 
By Bernie Cahiles-Magkilat 
Published: June 18, 2013 
The Board of Investments (BOI) recently approved two coal-fired power projects of San Miguel Corporation worth P51 billion that will generate 300-megawatt power each plant in Davao del Sur and Bataan.
For its Davao del Sur plant,  SMC Power Corporation (SMCPC) is constructing the P25.84-billion coal-fired power project at Barangay Culaman, Malita, Davao del Sur. Commercial operation is expected to start by December 2015. The project is expected to employ 214 personnel.
The project will augment the power requirements in Mindanao.  According to the Department of Energy’s (DOE) Power Development Plan 2010 to 2030, peak demand for electricity in Mindanao is expected to increase at an average annual growth rate of 4.2% until 2030. The DOE projects that power consumption in Mindanao will require an additional capacity of 550 MW on top of committed power projects by 2018.
The company will also build another P25.5 billion 300-MW coal-fired power project at Barangay Lamao, Limay, Bataan. The Bataan plant will contribute to the energy sufficiency goals for Luzon island. By 2014, the country is already in need of an additional 1,050 MW, according to the DOE.  The Bataan plant is expected to start operation in 2016 with 214 people.
Both projects will initially import coal either from Indonesia or Australia during the commissioning and start-up operations.  Coal samples from these countries have higher heating values compared to the local supply.
The firm, however, has committed to eventually utilize local coal coming from the Daguma coal mines which is owned by their affiliate San Miguel Energy Corporation (SMEC).
Power generation is listed under the energy sector category of the Investment Priorities Plan (IPP). The BOI is the lead agency tasked to implement the IPP under the provision of the E.O. 226. The IPP identifies priority sectors that can avail of fiscal and non-fiscal incentives. 
BOI-registered enterprises are granted up to four-year income tax holiday incentives.   source