A POWER firm said its 200-megawatt power plant project in the town of Maasim in Sarangani will help boost the proposed industrial zone in the western part of the province.

Conal Holdings Corp. vice president for business development Joseph Nocos said the US$450 million coal-fired power station will provide the impetus that will spur economic activities in Sarangani and neighboring areas in the region.

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The Provincial Government is pushing for Congress to pass a law that would create the Maasim-Kiamba-Maitum Industrial Triangle (Makima-IT) to help jumpstart the economy of this coastal province.

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

Senator Mar Roxas and Sarangani Representative Erwin 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 committee members.

Under the proposed bill from both chambers of Congress (SB 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, Provincial Government of Sarangani and local government units (LGUs) 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.

Nocos said the power plant will help ensure that reliable and cheap power supply will be available to locators in the industrial zone once the power plant goes on commercial stream in 2012 or early in 2013.

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.

Aside from the coal-fired power plant, Conal is also conducting a study to build a three-tiered, 17-megawatt hydropower plant along Siguel River.

Also included in their project is a 7,500-hectare agro-forestry project that will offset carbon dioxide emissions from its coal-fired power plant.