Govt push for progress with P26 bln naphtha cracker project

16-Jan-06

The Cabinet level Tariff and Related Matters committee decision to reduce tariffs on petrochemical products to a maximum of 5% from 7-10% has upset JG Summit Petrochemical Corp. (JGSPC)’s plans. Gokongwei-led Association of Petrochemical Manufacturers of the Philippines (APMP) had filed a petition for mandamus asking the court to force the involved government agencies including the DTI to release the minutes of the meetings leading to this decision. Philippino Trade and Industry Secretary has challenged the Gokongweis to go ahead with its P26 billion naphtha cracker project whether the company’s demand to be provided with the minutes of meetings that led to the government decision to reduce tariff protection on midstream petrochemical products be granted or not. Last year, the Board of Investments has already approved the P26 billion naphtha cracker project of JG Summit Petrochemical Corp. (JGSPC) although the project has been planned several years ago and failed to materialize.