BOI approves incentives for SMC plants

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The Board of Investments (BOI) recently approved for fiscal incentives the projects of San Miguel Consolidated Power Corp. (SMCPC) and SMC Consolidated Power Corp. as new operators of 300 megawatts (MW) each of coal-fired power plants located in Davao del Sur and Bataan, respectively.

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 of 4.2 percent 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.


SMC Consolidated is constructing another P25.5-billion 300 MW coal-fired power facility at Barangay Lamao, Limay, Bataan.

The Bataan plant contributes to the energy sufficiency goals for Luzon island. By 2014, the country will be in need of an additional 1,050 MW, according to the DOE.

The SMC Consolidated plant in Bataan will start operations in 2016 and will employ at least 214 people.

Both projects will import coal either from Indonesia or Australia during the commissioning and start-up operation. Coal samples from these countries have higher heating values compared to local supply.

The firms, however, will eventually utilize local coal coming from the Daguma coal mines, which is owned by their affiliate San Miguel Energy Corp.

Both facilities are qualified in the preferred activities 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 Executive Order No. 226.

The IPP identifies priority sectors that can avail of fiscal and non-fiscal incentives.

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