THE Board of Investments (BOI) recently granted DMCI Power Corporation a six-year income tax holiday for its 2×4.95 megawatt (MW) bunker-fired power plant in Aborlan, Palawan.
Under the 2014 Investment Priorities Plan (IPP) of BOI, power projects in missionary areas qualify for pioneer status.
DMCI Power’s entitlement to the tax incentive was determined based on its project’s ability to contribute to the economy’s development as measured by its net value added, new jobs generated, multiplier effect and measured capacity.
“This incentive will effectively lower DMCI Power’s true cost of generation charge, in the end benefiting the electricity consumers of Palawan,” DMCI Power president Nestor D. Dadivas said on Tuesday.
The tax holiday will be applied once the Aborlan facility begins its commercial operations or six years from December 2016, whichever is earlier.
DMCI Power is investing around P620 million to build the facility, which will contribute nearly 10MW of electricity to the Palawan grid.
“Construction of the Aborlan plant is proceeding as scheduled. We expect it to go online by yearend,” added Dadivas.