DMCI Power Corp. of the Consunji Group is investing P620 million to complete a 10-megawatt bunker fired power facility that will deliver electricity to the Palawan grid.
“Construction of the Aborlan plant is proceeding as scheduled. We expect it to go online by yearend,” DMCI Power president Nestor Dadivas said in a statement.
The Board of Investments recently granted DMCI Power a six-year income tax holiday for its 2 x 4.95-MW bunker-fired power plant in Aborlan.
Under the 2014 Investment Priorities Plan 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 benefitting the electricity consumers of Palawan,” said Dadivas.
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 was established in 2006 to provide sufficient and reliable electricity to areas that are not connected to the main transmission grid.
Aside from Palawan, the company also provides power to Masbate, Calapan, Oriental Mindoro and Sultan Kudarat through supply contracts with electric cooperatives. DMCI Power has a total contracted capacity of 56 MW.