Biofuel plant gets tax perks

A new biofuel and ethanol production plant in Mindanao, in Southern Philippines, has been granted tax incentives and other perks from the Board of Investments. South Bukidnon Bio Energy Inc. will invest Php4 billion pesos (US$92.4 million) on a plant that will produce bioethanol, as well as a co-generation plant that will produce electricity, the company said in a submission to BOI. The firm has received pioneer status, entitling it to six years in income tax holiday (ITH) for its power generation activities. However, its ethanol production was approved with non-pioneer status, entitling it to only four years of ITH. The plant, a joint venture between Bronze Oak and Green Renewable Holdings, Inc., is set to operate in December 2010. (October 19, 2007)