Group hits Salcon's tax exemption grant

Cebu Alliance for Renewable Energy yesterday lashed out at the Board of Investment and Department of Trade and Industry officials for granting tax exemption to Salcon Power Corporation, saying Salcon cannot even clean up its own mess and clear itself of environmental issues.

CARE coordinator Vince Cinches claimed that DTI Undersecretary and BOI manager Elmer Hernandez granted Salcon-Korea Electric Philippines or the Kepco-Salcon Power Corporation a "pioneer status."

"It's nothing but outrageous and revolting, short of becoming illogical for giving a project that is old, dirty, and expensive technology a pioneer status, the proponent can't even get an Environmental Clearance Certificate," Cinches said.

He said giving a pioneer status "to a project that destroys the environment and endangering people's lives" will send out wrong signal to business community that the present government is encouraging business like Salcon-KEPCO.

"Giving a pioneer status to Salcon-KEPCO means that this multi-billion dollar project will not be burdened by taxes, meaning the government is not entitled taxes from Salcon-KEPCO. It is quiet ironic while majority of the poor Filipino's are wallowing in poverty and high taxation schemes, big businesses and corporations such as KEPCO are scot-free," Cinches said.

Meanwhile, KSPC management expressed confidence that it could still have something to celebrate this Christmas because it is expecting that the Environmental Management Bureau would grant its application for ECC before yearend.

KSPC spokesman Reinerio Lastimoso said the EMB did not deny their application for the ECC but only temporarily withheld its issuance and asked them to conduct more technical tests and submission of additional documents and reports. He added that these additional data would make sure that their proposed expansion project would comply with the government standards.

"We are confident that the ECC will be approved before the year ends. Cebuanos will have something big to rejoice when we celebrate Christmas," said Lastimoso, who is also Salcon's vice president for power generation.

He also denied accusations of CARE that they are using dirty technology, adding that they are ensuring that the interests of the public and the environment are upheld.

KSPC has proposed to construct and operate two modern coal-fired power plants that would cost around P15 billion that shall use advanced clean coal technology to augment the present capacity of Salcon. - Wenna A. Berondo