SPC: We’re building a new plant

CEBU, Philippines - Salcon Power Corporation yesterday told the Cebu Provincial Board it would build a new plant in the City of Naga, contrary to reports that it only intends to rehabilitate the Naga Power Plant Complex.

This was in response to a City Council resolution expressing “strong opposition” to the rehabilitation of NPPC.

The PB invited Department of Energy, Power Sector Assets and Liabilities Management Corporation and SPC representatives as well as city officials led by Mayor Valdemar Chiong to shed light on the issue.

Senior manager Cesar Villegas announced during the PB session yesterday that SPC is proceeding with preparations to build a new coal-fired plant, as it awaits the formal turnover of the NPPC from the government this month.

“SPC has decided to engage a reputable international consulting firm to conduct a full-blown feasibility study to cover the technical, environmental, financial, and commercial aspects of a new coal-fired power plant,” he said.

SPC was awarded ownership of the NPPC after it exercised its right to top and pay P1.14 billion to PSALM. 

Chiong, on the other hand, said the City Council resolution, which also calls for the construction of a new clean coal power plant, was passed before SPC won the bidding.

“We strongly believe nga di na efficient ang old plant.  Pasalamat ko, di mi mo-object sa new power plant,” Chiong said told the PB.

Last July, SPC announced its plan to build two Greenfield 100-megawatt power plants inside the NPPC to help support the sustainable economic growth of Cebu and the rest of the Visayas.

Yesterday, Villegas said that as part of due diligence, SPC conducted an internal study focusing on the technical aspect of the generating plants, while under an operate and manage service contract.

SPC has invited contractors Korean Plant Service, Doosan Heavy Industry, and Guangxi Hydroelectric Constructions Bureau, to make a comprehensive assessment of the plants.

Villegas said they expect to break ground before the end of 2015 and the facility would be finished in three years.

“We expect the feasibility study to show us the recommended and appropriate technology, design, size, capacity, coal specification, etcetera,” he said.

In the meantime, SPC is conducting heavy maintenance activities on the Cebu Diesel Power Plant that is targeted to generate its full capacity of 36 megawatts by December 2014 to help increase power reserves in the Visayas.

The SPC also assured that it would retain as many employees as necessary in the ongoing CDPP maintenance and the forthcoming operation of the Land-Based Gas Turbine.

“As long as the Supreme Court does not issue a restraining order, SPC will continue to pursue its plans for NPPC,” added Villegas. (FREEMAN)