In a disclosure to
LHC made an offer to the provincial government of Ilocos Sur to pay real property tax (RPT) computed in accordance with the provisions of Executive Order 60. EO 60 allows the reduction and condonation of real property taxes and penalties assessed on power generation facilities of independent power producers (IPPs) under build-operate-transfer (BOT) contracts. The reduction and condonation cover all liabilities for RPT, including any special levies accruing to the special education fund for calendar year 2017 and prior years.
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The municipal treasurer then issued a notice of publication and auction sale covering the real properties of LHC, consisting of industrial machineries and buildings. LHC, however, questioned the correctness of the amount assessed as RPT delinquency and asked the court to prevent the auction sale of the assets covered by the warrants of levy issued by the municipal treasurer of Alilem.
"The action will seek the enforcement of the executive orders issued by the Office of the President directing the reduction of RPT on property, machinery and equipment and directly used by IPPs under (BOT) contracts (however denominated), and condoning related RPT interest and penalties," AboitizPower said. The Aboitiz firm was also backed by the
(PSALM), which issued a letter to the Municipality of Alilem urging it to reconsider the auction of the levied assets, in consideration of the ownership rights and interest of the government over the levied assets. LHC owns, operates and manages the 70-MW Bakun AC run-of-river hydropower plant located in Amilongan, Alilem, Ilocos Sur.
The plant was constructed and operated under the government's BOT scheme, which means the 254 gigawatts per hour of energy produced by the Bakun AC hydro plant annually is delivered and taken up by the
The Bakun PPA also requires LHC to transfer the Bakun AC hydro plant to Napocor in
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