Petron gets tax perks for power plant

Philippine oil refiner Petron Corp. has received tax breaks for its Php11 billion (US$255.28 million) solid fuel-fired power plant in Limay, Bataan. In a statement, the Board of Investments (BOI) announced that it will be giving fiscal and non-fiscal incentives to Petron. The multi-billion project involves the construction, operation and maintenance of a 70 megawatt (MW) solid fuel-fired power plant. Petron will sell 39% of its generated electricity to the grid like Meralco and other electric cooperatives through bilateral contracts. The remaining output or 61% will be used for the firms existing Bataan Oil Refinery. At full capacity, the plant can produce 219 MW annually which could translate to substantial savings and revenues for the company in its first year of operation. The plant will use coal as its primary fuel, to be substituted by petroleum coke depending on the market price of both fuels. Start of commercial operation is scheduled for July 2012. (October 20, 2010)