Govt awards tax perks to JG Summit power project

The Board of Investments has given tax perks to JG Summit Holdings' P140-million renewable power generation project in Kabankalan, Negros Occidental. The project will involve the construction, installation and commissioning of a power facility with a total installed capacity of 12 megawatts inside the Universal Robina Corp.’s sugar factory compound in Kabankalan. The energy the plant generates will be used to service the power requirements of URC’s sugar mill and refinery. Perks granted to the project include up to eight years of income tax holidays, duty-free importation of equipment and raw materials and a host of non-fiscal incentives. The project qualified for government incentives under the Investment Priorities Plan power generation bracket covering those utilizing indigenous and renewable energy such as biomass, waste to energy conversion, solar, geothermal, wind, hydro and tidal. The facility will be using bagasse, a by-product of sugar refining, as fuel. “The project is in support of the government’s program to encourage private sector participation and promote utilization of indigenous and renewable energy resources in power generation to reduce dependence on imported fuels as endorsed by the Department of Energy," the project’s profile filed with the BOI said. The project is expected to start commercial operation in October 2008 and will be hiring 25 persons. Excess power to be generated by the facility will be offered to the Negros Occidental Electric Cooperative. - GMANews.TV