PROSPECTIVE locators to the proposed special economic zone in the western part of Sarangani will enjoy reliable and cheap power supply once a huge coal power plant becomes operational in the area, a top company executive has assured over the weekend.

Joseph C. Nocos, Conal Holdings Corp vice president, said the coal-fired plant project in Maasim, Sarangani will help boost the proposed industrial zone also straddling the towns of Kiamba and Maitum.

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"The coal-fired power station will provide the impetus that will spur economic activities in Sarangani and neighboring areas in the region," he noted.

Conal Holdings, which is 60 percent owned by the Alcantara Group and the rest by the Electricity Generating Public Co. Ltd., Thailand's largest power producer, targets to go into commercial stream in early 2013.

Gregorio S. Gonzales Jr., Conal Holdings project manager, recently said that instead of 200 megawatts, the firm will initially construct a 100 MW coal power plant.

"We would bring the capacity to 200 MW when the demand is already there," Gonzales said.

At 200 MW, the power plant will cost the firm some $450 million.
Sarangani provincial and local officials have expressed optimism the power plant will lure more investors to the Maasim-Kiamba-Maitum Industrial Triangle (Makima-IT).

The provincial government has been pushing for Congress to pass a law that would create the Makima-IT to help jumpstart the economy of this coastal province.

Private business, represented bythe municipal chambers of commerce and industry of Maitum, Kiamba and Kaasim and the Sarangani chambers of commerce and industry are endorsing the initiative.

Senator Manuel A. Roxa II and Sarangani Representative Erwin L. Chiongbian had already filed separate bills in Congress for the creation of the special economic zone.

The Senate version of the bill was already approved by the joint committees on local government, finance, economic affairs, trade and industry and appropriation and is only awaiting the signature Senator Miriam Defensor-Santiago before it will be forwarded for discussion in the plenary session.

The counterpart committees in the House of Representative have also reportedly recommended its approval, subject to ocular inspection by the members of the committee.

Under the proposed bill from both chambers of Congress (SB No. 2983 and HB 5877), the Makima-IT Special Economic Zone (Mitseza) will have an authorized capital of P10 billion, with P6 billion reserved for government.

This will allow the National Government, the Provincial Government of Sarangani and local government units of Maasim, Kiamba and Maitum to invest in the special economic zone.

The remaining P4 billion will be reserved for private investors.

Among the key investment areas the special economic zone is eyeing are agro-processing, manufacturing and modern fishing port complex.

Included in the salient points of the proposed bill are tax holidays for six years, extendable to 20 years for expansion, tax and duty-free importation of raw materials, capital equipment, machinery and parts and granting of multiple entry visas for foreign nationals and their families working inside the zone.

The proposed special economic zone is modeled after the Subic and Clark special economic zone authorities.

The proposed site of the coal-fired power plant is a 60-hectare property in the village of Kamanga in Maasim which has also been identified as part of the Makima-IT zone.

Also included in the firm's project is a 7,500-hectare agro-forestry project that will offset carbon dioxide emissions from its coal-fired power plant. (BSS)