
Originally Posted by
yhokz101
Basaha na ang benefit sa local government, dli magpataka ug yawyaw.. abilidad nmo dli katigo mo sabot. pa iwit ba pod ning govt? Kanus-a kaha na nga dli maka benefit ang govt.. mangurakot paman gani na.
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As a power-generating company, Northwind does not have a franchise to distribute electricity; this function is undertaken by INEC. Thus, Northwind cannot directly provide electricity to the local community. However, the project has provided other significant benefits to the communities before and after it commenced operations in May 2005.
Under prevailing energy regulations, a local government unit hosting a power generating facility is entitled to a royalty of 0.01 peso for every kilowatt hour generated. The revenue is to be used for electrification (25 percent), development and livelihood (25 percent), and reforestation, watershed management, health, and/or environmental enhancement (50 percent). The royalty is distributed among the three levels of local government according to a principle of radiating benefits. The three barangay where the facility is actually located receive 25 percent, the municipality retains 40 percent, and the province receives the remaining 35 percent. To the Municipality of Bangui, the project has been worth about 2 million pesos annually. These revenues are indeed significant when one considers that Bangui's net income was only 4.9 million pesos in the year prior to the establishment of the wind farm.
Bangui also benefits directly through the business taxes it has been able to collect from the operation of the turbines. In its second year of operation, Northwind paid its first annual real estate taxes of 3.9 million pesos well ahead of the tax deadline as part of its corporate social responsibility policy. This alone represents more than a sevenfold increase in Bangui's real property tax revenue. Northwind also pays an annual business tax of 500,000 pesos. The increase in local revenues promotes Bangui's classification from a fifth class to a fourth class municipality under the Local Government Code. This is important because a municipality's fiscal performance is used by the national government to determine budgetary allocations, entitlement to foreign and local loans and grants, and allotment of shares in national revenues.309 According to municipal budgeting rules, the real estate tax revenues are divided between the municipality and the host barangay where Northwind's facilities are actually located. So far this has resulted in additional annual revenue of about 120,000 pesos for the each barangay. Village officials plan to use the additional funds to improve their meager public health services and facilities.
The province sees the project as a major strategic gain for its economy. Northwind now supplies 40 percent of the province's electrical needs pollution free and priced at a 7 percent discount. With the stabilization of the electrical output, it is hoped that the province can move forward with its long-term economic development plans that rely on agriculture and light manufacturing. It has also incorporated the project into its recommended tourism site listings, and hopes to attract other wind farms for other suitable areas.