Friday, October 31, 2008

Jessica Anne D. Hermosa

BoI granted pioneer status to the P1.138 billion component of Roxol Bioenergy Corp.`s proposed bioethanol manufacturing plant in La Carlota City, Negros Occidental.

BoI also awarded incentives for the remaining P292-million component that will produce ethanol.

Under the Omnibus Investments Code, pioneer enterprises, particularly those that generate energy, must produce non-conventional sources of energy and rely on domestic raw materials. These projects can qualify for an income tax holiday, as well as tax- and duty-free importation of equipment.

The Roxol plant can process up to 365 tons of molasses from sugarcane to produce 100,000 liters of bioethanol daily.

"The company decided to produce bioethanol at a larger scale because of [the] bigger market [created] by the Biofuels Act of 2006. [The bioethanol] will be sold domestically to various oil companies," according to the BoI document.

Plant operations will start in January 2010.

BoI also granted pioneer status to shipbuilder Keppel Sing-marine Philippines, Inc. for a P590-million facility that will make tugboats and support vessels in Lapu-Lapu City, Cebu.

The investment will be used to upgrade the firm`s existing facilities. The project will employ 620 workers, BoI documents showed.

Two tourism-related investments likewise qualified for tax perks. BoI approved Sabin Resorts and Development Corp.`s P54-million expansion of a resort in Ormoc City, Leyte and the construction of the P35-million Hotel Kimikarlai in Tuguegarao City, Cagayan.

Low-cost mass housing projects of Filinvest Land, Inc. (P131.12 million), Firm Builders Realty Development Corp. (P81.43 million) and Phinma Property Holdings Corp. (P61.66 million) received incentives as well.


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