Monday, June 26, 2006
Hedcor is largest single income taxpayer in Benguet
IN A certificate released by the Bureau of Internal Revenue (BIR) in Cordillera, Hedcor, Inc., the largest developer of run-of-river mini hydropower in the country, has paid P32 million in income taxes, including the P9.8 million in tax credits during 2005, making the company the largest single corporate taxpayer in Benguet last year.
In addition, the wholly owned Aboitiz Company has paid for the year P3.5 million in Real Property and Business taxes. These taxes were directly paid to the Province of Benguet, particularly the municipalities of La Trinidad, Sablan, Tuba, Itogon, and Bakun. These five communities host 13 of Hedcor's 19 hydropower plants in the country.
The company also disclosed that as of December 2005, total taxes paid since the start of their operations has amounted to P385 million. Corporate tax remittances made up the bulk with P178.2 million, while Real Property and Privilege taxes contributed P73.5 million and P67.3 million, respectively.
On top of the taxes mandated by law, the company also shares three percent of its gross revenue to its host communities. Two percent of this community share goes to the host municipality and one percent goes to the host barangay.
"It has always been our mandate to help develop our host communities, which have supported us since we started," said Hedcor president Rene Ronquillo. "The share is one of the many benefits of clean energy generation; to support the sustainable development of communities at the same time preserve the environment," he said.
The community share that now amounts to P113 million, started in 1991 through memoranda of agreements with various barangays that host the company's operations. The share has been instrumental for these barangays to finance watershed preservation activities, infrastructure developments, irrigation projects, and even seed money for multi-purpose cooperatives and livelihood projects. This has led to the sustainable co-existence between the mini hydro operations and the people of the community.
In addition to the voluntary share, Hedcor and the Aboitiz group's social development arm, Aboitiz Group Foundation, Inc. (Agfi), also support host communities through college scholarships, computer donations, medical missions, and various livelihood projects. To date, Hedcor's and Agfi's assistance since 2001 has now amounted to P3.4 million.
Hedcor started in Benguet as Hydro Electric Development Corporation (HEDC) and started its operations in the province in 1985 when they were awarded a 22-year operating contract to rehabilitate and manage the three Asin hydropower plants in Tuba, Benguet.
Since then, the company has increased the Asin plants' generating capacity from 700 kilowatts to 3.8 megawatts. Also, HEDC, together with sister company Northern Mini Hydro Corporation (NMHC), has successfully built 10 run-of-river hydropower facilities in four other municipalities in Benguet. All 13 plants generate an average of 164 million kilowatt-hours of clean energy annually.
HEDC and NMHC in June 2005 merged with another Aboitiz subsidiary, Benguet Hydropower Corporation, to form Hedcor. The company now operates 19 hydropower plants in Benguet, Ilocos Sur, and Davao with a total capacity of 113 megawatts of clean energy. (YB)
(June 26, 2006 issue)
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