| Initial allowance |
| 2. Subject to paragraph 3, the initial allowance to be made under section 19(1) of the Act in respect of BP Singapore Pte. Ltd., Caltex Operations Ltd. and Singapore Petroleum Co. Pte. Ltd. Joint-Venture Hydrocracker Complex shall be equal to 100% of the capital expenditure that is incurred by BP Singapore Pte. Ltd., Caltex Operations Ltd. and Singapore Petroleum Co. Pte. Ltd. on the provision of machinery and plant solely for the Hydrocracker Complex up to the time the Hydrocracker Complex starts operating. |