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BoI okays perks for CNG use by transport operators
By Bernie Cahiles-Magkilat, Manila Bulletin (21 Jun 2004)

The Board of Investments (BoI) will grant incentives to transport operators and allied industries which will use compressed natural gas (CNG) in response to the government’s move to promote the use of cleaner energy sources.

Trade and Industry Secretary Cesar V. Purisima, who is also BoI chairman, said the incentives which could include income tax holiday and preferential import duty on capital equipment, is available to land transport operators, conversion shops, fuel terminal and vehicle assembly at specified minimum investment requirements.

"The incentives are offered primarily to help reduce our imports bill and reduce our pollution level," Purisima said noting that countries which have began using CNG have dramatically improved the quality of their air.

Under the incentives program, franchises of registered utility buses (PUBs) using CNG/LPG must have their own terminals and can accommodate all their units to avail of the BoI incentives.

Incentives include income tax holidays and preferential tariff on the importation of capital equipment that are not locally available.

Incentives are also given to shops that offer CNG/LPG conversion, retrofitting, repair, operation and vehicle maintenance with a minimum investment of $200,000.

These firms must also be compliant with the Philippine National Standards and procedures.

These shops are also required to provide warranties to their clients.

To qualify for pioneer incentives are also granted to projects for terminals with CNG/LPG refueling station with a minimum investment of $500,000.

The incentives also cover other activities such as design, construction, installation and its operation.

Incentives are also available to the establishment of new assembly facility or existing facility for the assembly of brand new quality CNG/LPG run vehicle and related part and components.

To qualify for incentives, projects under this activity must have a minimum investment of $8 million.

Purisima said that firms applying for incentives must be an accredited participant of the Natural Gas Vehicle Program for Public Transport of the Department of Energy.

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Cahiles-Magkilat, Bernie
Manila Bulletin

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