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THREE Indonesian firms have expressed interest in supplying fuel to
Korea Electric Power Corp. (Kepco) and SPC Power Corp.’s (Salcon)
proposed coal-fired power plant in Cebu.
The potential suppliers who have submitted bids
for the 10-year fuel supply contract of the 200-megawatt plant
include PT Kideco Jaya Agung, PT Kasih Industri and PT Central
Corporindo.
The project proponents did not disclose the
price offers, but they indicated the price would be lower than what
is offered at the spot market.
Rolando T. Bacani, Kepco Philippines general
manager, said the company is set to hold excavation ceremonies for
the official start of construction of the coal plant on February 14.
The power plant is estimated to cost over $400
million. Thirty percent of the financing cost will be shouldered by
equity from Kepco Philippines at $75 million and Salcon at $50
million.
The Naga coal plant is expected to help avert a
looming power supply shortage in the Cebu grid, which is expected to
hit the region by 2009.
But Bacani said the facility may be late in
addressing this as “this early the island’s power situation is
already in a critical stage.” The facility is scheduled to be
completed in 2011.
“Visayas is already experiencing power outages
whenever there is a power plant tripping because the level of
spinning reserve is not being met,” he added.
The plant was originally scheduled to start
construction much earlier but was delayed as the company sought to
secure supply contracts for 180 megawatts of the plant’s capacity
from distribution firms.
Among the electric cooperatives that signed off
take agreements for the plant’s output are Cebu 1 Electric
Cooperative Inc. (CEBECO 1), CEBECO 2, Central Negros Electric
Cooperative, Inc., Negros Oriental 1 Electric Cooperative, Inc. (NORECO
1), NORECO 2, and Negros Occidental Electric Cooperative, Inc.
-- Euan Paulo C. Añonuevo
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