MEPA names two int’l generation firms to supply power to Mindanao

DAVAO CITY, March 18 (PNA) -- The Mindanao Electric Power Alliance (MEPA) has identified two world-class power-generation companies, which can supply emergency power for Mindanao.

Mindanao Business Council (MinBC) chair Vicente Lao said MEPA will hook up with Caterpillar Generation System based in Singapore that could bring in 20 megawatts power to Mindanao.

The other one is Hyundai generating company based in Korea, ready to generate 10 megawatts electricity, Lao said.

Caterpillar and Hyundai generating sets are running on diesel fuel, Lao said.

The two international companies will have yet to sign an agreement with power distributors and power cooperatives prior to their operations, Lao said.

He said MEPA is looking for more generators in the world as it eyes to bring in at least 200 megawatts of power to keep the operation of businesses.

“By end of April, Agus-Pulangi hydro power plants will stop operating,” Lao said, adding that Mindanao’s power deficiency remains to hover at 700 megawatts.

If there are no generators coming in, he feared that Mindanao will experience brownouts during the May 10 elections, he said.

Lao said MEPA has submitted its proposals to the government during a meeting in Malacañang, Tuesday.

The meeting was attended by all directly concerned agencies, including financial institutions’ Development Bank of the Philippines and Land Bank of the Philippines.

Lao said all those present are “all ears” to their proposals with the seriousness of the power problem confronting Mindanao.

Executive Secretary Leandro Mendoza who represented President Gloria Macapagal-Arroyo in said meeting assured to review MEPA’s proposal, Lao said, even as he described that government is serious in solving the power problem in the island.

The DBP and the LBP, for their part, have asked MEPA to come with figures in relation to the amount needed for the purchase or lease of power generators, Lao said, adding that the Philippine Long Distance Telepnone Company (PLDT) has also expressed its willingness to help in the procurement of generating sets.

The DBP has earlier assured it is ready to provide funds for the generation of at least 100 megawatts to Mindanao.

Lao has confirmed that power rates will surely increase once the world-class generators start to supply power for Mindanao.

Earlier, DBP president and CEO Rey David said power rates is expected to climb to as high as P21 per kilowatt hour from the current P3 per kilowatt hour once additional generation sets are procured or leased.

Lao, who confirmed David’s projection, however, expressed optimism that this will be reduced by about 10 to 11 percent should costly emergency power be blended with cheap power cost.

It was estimated that a 10-MW emergency power plant will cost an estimated 9.2 million US dollars, Lao said.

The total cost will include the following: Capital or Lease Cost (approximately) 7 million US dollars; Credit line for fuel required is P7.01/kWh, or 2 million US dollars for a 60-day cycle; Working capital for O&M is P0.78/kWh, or 0.2 million US dollars for a 60-day cycle;

It is expected that the emergency power will cost as much as P18-P19/kwh given today’s prices of fuel. The blended cost may be around P12/kwh, according to some estimates, Lao said. (PNA)
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