LA TRINIDAD, Benguet – The SN Aboitiz Power Benguet Inc. (SNAPBI) turned over P79.5 million cheque to the provincial government last week as payment for the local transfer tax in the acquisition of the Binga and Ambuklao dams which would significantly benefit the province for its growth and development.
In behalf of the provincial government, Governor Nestor Fongwan acknowledged the local transfer tax handed over by SNAPBI led by its Chief Executive Officer Emmanuel Rubio after the execution of the Deed of Absolute sale for the 75 megawatts (MW) Ambuklao and 100 MW Binga hydroelectric facilities on September 25 this year.
The tax is one half (1/2) of the one percent (1%) of the total purchase price of US $ 325 million for the two hydroelectric facilities.
The Ambuklao and Binga dams were acquired by SNAPBI from the Power Sector Assets and Liabilities Management Corporation (PSALM) after emerging as the highest bidder in the public bidding opened by PSALM for these facilities.
Fongwan said the local transfer tax, a one time payment, is over and above the other expected taxes still to be received by the province. The local transfer tax should have been paid to the national government but with the provisions of the Local Government Code it will now be paid to the provincial government, he stressed.
He said this will certainly benefit the people of Benguet in uplifting their way of life and will further generate more employment. He expressed hopes that the partnership with the company will go a long way not only the host towns but the province as a whole.
SNAPBI Chief Executive Officer Emmanuel Rubio said the among the taxes still to be paid by their company are national wealth tax based on the generation of the two hydroelectric facilities, business taxes, benefits to host communities under Energy Regulation 1-94 and other corporate taxes.
"This is our commitment to become responsible citizens in the province to immediately and promptly pay our taxes to the province" Rubio stressed. He said the company looks forward to staying long in the province and would like to renew their stay for the next 50 years as their permit in the use of the land approved by the Department of Environment and Natural Resources will be 25 years.
In their press release, it stated that SNAPBI has also a separate allocation to fund corporate social responsibility (CSR) programs in the surrounding communities of the dams.
The CSR fund would be made available to proposed projects by host communities endorsed by the local government unit’s councils.
To qualify for CSR funding, the projects must be in line with the key result areas
of SNAPBI such as livelihood and eco-tourism, education and information technology, health and environmental protection.
The municipality of Itogon recently received P6 million from SNAPBI for the electro-mechanical permit secured for the Binga hydroelectric facility. *** FNMartin with reports from S.C. Aro/PIA-Benguet
