DAVAO—The Board of Investments (BOI) has granted approval for a PHP26-million solar rooftop project at Nakashin Davao International, Inc., marking it as the first energy efficiency and conservation (EEandC) initiative to receive such incentives under the EEandC Act. This pioneering project introduces significant advancements in sustainable practices within the local manufacturing sector.
According to Philippines News Agency, the 519.2 kilowatt peak (kWp) Solar PV Rooftop System to be installed at the Nakashin food manufacturing plant is the first registered project to be incentivized under the 2022 Strategic Investment Priority Plan (SIPP). This system aims to substantially reduce energy consumption over its projected 25-year lifespan. “The solar PV rooftop system, covered under Tier I of the SIPP, is designed to cut energy consumption. Over its 25-year lifespan, it is expected to deliver annual energy savings of 17.27 gigawatt hour, resulting in a total reduction of 137,000 tons of carbon dioxide emissions,” stated the BOI.
The project is set to benefit from an income tax holiday (ITH) covering 50 percent of its capital investment, aligning with provisions from the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act. Additionally, it will enjoy duty exemption on the importation of capital equipment, raw materials, and spare parts or accessories.
This announcement comes as Nakashin Davao International continues to export agricultural and aquatic products to markets in Japan and the European Union. The project reflects a growing trend among local industries investing in sustainable energy solutions. Last year, MinibeaMitsui reported a PHP500 million investment in a ground-mounted solar power generation system with a capacity of 7.9 megawatt hours for its plant in Danao, Cebu, although this project has not yet been registered with the BOI as an EEandC initiative.