Power discount assured
THE government is planning to seek from the national budget an allocation for the P500-million annual power rate discount given to three major investors in the Philippines over the next seven years to ensure their competitiveness, according to Trade Secretary Cristino Panlilio.
Panlilio said the scheme would ensure the three huge investments of Hanjin Heavy Industries Corp. Philippines, Texas Instruments Philippines and Phoenix Semiconductors Philippines Corp. would enjoy discounted power rates.
To ensure continuity of this energy support, Panlilio said this is now being "negotiated for budgeting in the General Appropriations Act (GAA)."
The discounts were given under the Industry Competitiveness Fund (ICF) enacted through separate executive orders under the Arroyo administration for the huge investments of those located in Subic, Clark, and Baguio.
Executive Orders 701, 856 and 666 were issued to entice these companies to put their investments in the Philippines.
"We are working on the ICF over the next seven years," Panlilio said. The companies have enjoyed the support three of the 10 years committed under the orders.
This year’s ICF budget has been allocated under the 2012 GAA.
Panlilio said an inter-agency body that includes the DTI is now drawing up the implementing rules and regulations for the fund.
The energy support system would enable the three firms to enjoy 20 to 30 percent cheaper rates than the regular power generation charge.
Panlilio said the three companies are employing thousands of Filipinos.
Hanjin’s $2-billion investment in Subic has made the Philippines now the world’s fourth-biggest shipbuilding country. It is now exporting ocean-going vessels to the world.
Hanjin has 5,000 workers, most of them highly skilled welders.
Texas Instruments also invested $2 billion for its expansion in Clark economic zone. The project is now fully operational and is exporting $3 billion to $4 billion worth of electronics products every year.
Phoenix Semiconductor, which is owned by Samsung of Korea, is putting in $500 million in Clark.
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