Phoenix Semiconductor receives P33M in power reimbursements from PH

Listed manufacturer Phoenix Semiconductor Philippines Corp. (PSPC) has received P33 million from the Philippine government, representing a portion of its receivables under the mandated electric power discount incentives.

The P33 million it received as reimbursement from the state-owned Clark Development Corp. (CDC) arose from discounted electricity incentive under Executive Order No. 856 and its lease agreement with CDC, the PSPC said in a disclosure to the Philippine Stock Exchange on Thursday.
 
"This amount is the fourth partial reimbursement of the government through CDC of the power discounts for electricity utilized and fully paid by PSPC since the commencement of its commercial operations in 2011," the company noted.

The balance of the total collectibles due to the company for the advanced full payment of power charges since the start of its commercial operations in 2011 until December 2015 amounts to P739.18million.

The incentive on power discounts under E.O. 856 is in line with the Industry Competitiveness Fund established under the May 2009 E.O. 796.

To attract more foreign direct investment into the country, the 2009 order was issued to support power-intensive industries that placed substantial investment in the Philippines.

"The discounted power rate program of the government supports power-intensive industries that pour in substantial investments in the country in order to make the Philippines more attractive to foreign direct investments," PSPC said.

The PSPC noted the collection will increase the company's cash and cash equivalents by $0.66 million. — Ted Cordero/VS, GMA News