This covers the exploration, development, and/or utilization of energy sources adopting environmentally-friendly technologies that comply with the Clean Air Act, the Environmental Impact System law, the Biofuels Act, where applicable, and other relevant environment laws.
In the case of coal-fired projects, submission of Environmental Compliance Certificate (ECC) is a pre-registration requirement.
Projects that would utilize raw materials or semi-processed raw materials that are not locally produced (NLP) or not in sufficient quantity (NISQ) are exempt from NVA requirement.
Within 1 year from date of registration, projects with loan components in their financing scheme must have achieved financial closing; otherwise the project’s registration shall be subject to automatic cancellation. As evidence of financial closing, the enterprise shall submit a certification, in a form and substance satisfactory to BOI, issued and addressed by the lenders to BOI confirming the financial agreements are in full force and in effect.
Any of the following may qualify for pioneer status:
• Power generation projects located in missionary areas or off-grid areas; or
• Projects that cost at least the Philippine Peso equivalent of US$2 million per megawatt.
For power generation projects, only revenues from power generated and sold to the grid, other entities and/or communities based on bilateral contracts approved by the ERC may be entitled to Income Tax Holiday (ITH).
Power projects that are built contiguous to existing generating facilities shall be considered as expansion projects. However, if the existing base load plant has consistently dispatched at least 80% of their registered capacity for the past 3 years, the project to be registered may be considered new.
The amount of ITH to be granted shall not exceed 10% of the total revenue of generated power.
Applications for registration must be endorsed by the Department of Energy (DOE).
http://oshdp.com/wp-content/uploads/2014/02/2013-IPP-General-Policies-and-Specific-Guidelines.pdf (accessed June 18, 2014).