Ambrosio R. Villorente
Status of AOPC Biomass Project
In reaction perhaps to my column "BOI Approves P1.8 billion Aklan Power Project" June 8 – 12, 2010 issue, a copy of the "Progress Report" of ASEA One Power Corporation is provided to this writer.
The progress report was dated June 22, 2010 and addressed to Aklan Governor Carlito S. Marquez. It was signed by the Chief Executive Officer Paul Y. Rodriguez. The report is of three (3) pages, written on short bond paper.
The report tells about the status of the 12 MW Biomass Power Plant Project in Banga, Aklan.
The report said: 1. The selection of the Engineering, Procurement, Construction Contractor on a turnkey system will be done on July 15, 2010 after conducting the bidding; 2. The power plant construction is expected to start in September 2010. Some 300 technical and non-technical personnel to be employed and priority will be accorded to Aklanons,
3. The power plant construction completion is in June 2012 or in January 2013 at the latest; employ 160 officials and employees when operational. 4. The submission of the initial Environmental Examination Report to the DENR necessary for the issuance of the ECC, a pre-requisite before the start of the power plant construction.
Mayor Refuses
However, the ECC application is still pending with the DENR regional office, Iloilo City because the Mayor of Banga is refusing to sign the Zoning Classification already passed by the Sangguniang Bayan of Banga, Aklan.
The AOPC is requesting assistance from the office of the Provincial Governor for the issuance of Zoning Classification therefore.
But what are the reasons of Banga Mayor Antonio Maming of refusing approval of the Zoning Classification which has already passed critical study and analysis of the members of the Sangguniang Bayan of Banga?
It will be good for Mayor Maming to give his reasons why he is refusing to approve the Zoning Classification. If the project is feasible as far as Aklan, specifically, Banga is concerned, Mayor Maming must approve the Zoning Classification.
His continued refusal will redound to the deprivation of Aklanons from possible employ-ment, will deprive the people from selling and earning income out of farm waste, and will impede the production of electricity badly needed by the people of Aklan.
Mayor Maming will earn the ire of 54 rice millers who have already signed sales contracts with AOPC and the members of the farmer’s cooperatives for the supply of rice straws. 5. The Biomass Renewable Energy Contract was already signed and the Department of Energy has issued Certificate of Registration on February 1, 2010. This strongly attests to the financial and technical capability of AOPC to undertake the biomass power plant project. 6. The Board of Investment has approved the project that will entitle the project for fiscal and non-fiscal incentives under the Renewable Energy Law of 2008.
So that the project can start and be completed in June 2012, the AOPC is requesting for the immediate approval by the Mayor of Banga of the Zoning Classification of the 12 MW in Banga, Aklan. AOPC also requests Akelco in Complying with the terms of the Power Supply Agreement.
But what are the terms and conditions of the Power Purchase Agreement signed by Akelco and AOPC? The Akelco members – consumers must be informed of it. After all, they are the buyers and consumers who will pay for what they received and used. The people have the right to know of matters concerning and affecting them. Akelco and AOPC are obliged to reveal the terms and conditions provided in the contract.
Fiscal Incentives
But the catch is, AOPC is asking the provincial government to grand it exemption on the payment of realty and other taxes on civil works, equipment, machinery, and other improvements for seven (7) years".
Wow! Seven years not to pay provincial taxes! And the request is open-ended: "payment of realty and other taxes" and "taxes on civil works, equipment, machinery and other improvements". It is unlimited tax exemption for everything for seven (7) years?
AOPC’s basis of its request for tax exemption is its "substantial investments…on the project and the immense positive socio-economic environmental, triple bottom line impact of the project on the community and …stakeholders."
This request for tax exemptions deserves public discussion. Let the people know for their better information and under-standing. Let the people know of the terms and conditions of PPC Akelco signed with AOPC. /MP
1 comment:
We understand that several of the Electric Cooperatives have cancelled their contracts with ASEA ONE. or AOPC due to the delays encountered and the continual changes from 2.5 MW then 6 MW and finally 12 MW with an additional 30 MW to follow.
Is ASEA ONE qualified as ro-ro ferry operator to build and operate a biomass power plant. I am sure that the Mayor of Banga has very good insight and reasons for not signing and protecting his constituents. Obviously ASEA ONE has not completed the required consultation necessary for this type of project to attain the Environmental Compliance Certificate nor actually the Department of Energy Renewable Energy Certificate (must have been an oversight of the DOE).
ASEA ONE has done little to move the project forward and has stated that they have Power Purchase Agreements that have lapsed or have been cancelled. Where is there finance coming from?
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