Whole new plant sought Mayor leads protest vs power plant rehab

CEBU, Philippines - City of Naga Mayor Valdemar Chiong is expected to lead today a "peaceful assembly" against a new private firm's rehabilitation and taking over of Salcon Power Corporation - Naga Power Plant Complex, an old power facility in Barangay Colon.

In a joint resolution, the barangay councils of Colon, North Poblacion and Tangke expressed their "preference for an entirely new power plant and strong opposition to a mere rehabilitation" of the 153.1-megawatt power complex.

"Numerous rehabilitation jobs undertaken by the management in the past years for the said power plant have not alleviated the living conditions of nearby residents, since pollution emission has not been effectively eradicated but has even worsened through the years," the resolution read.

Together with officials from the three barangays, Chiong is set to join the assembly to be held right at the frontage of the SPC Power Corp. complex along the national highway in Barangay Colon 8:30 a.m. today.

In a statement, city information officer Gary Cabotaje said the holding of the "peaceful rally" comes after reports that the Power Sector Assets and Liabilities Management Corp. issued notice of award dated April 27, 2014 to Therma Power Visayas Inc. of the Aboitiz Power Corp. as the highest bidder for the rehabilitation of the Naga facility.

However, the SPC Power Corporation has exercised its right to top the bid amount to acquire the power plant by paying the government P1.143 billion to the PSALM account with the Development Bank of the Philippines.

The amount was five percent higher than the P1.088 billion offer of TPVI, the statement read.

Cabotaje said the SPC Power Corporation had the right to top the highest bidder's offer under a land lease agreement with PSALM for the 55-MW Naga gas turbine in 2009.

The bid covers the sale and purchase of the Naga power assets and the lease of the land.

Under R.A. 9136 or the Electric Power Industry Reform Act of 2001, PSALM is granted authority to manage the privatization and maintenance of power generation assets, liabilities, contracted capacities, and disposable assets of National Power.

The Naga Power Plant Complex consists of the 52.5-MW Cebu 1 and 56.8-MW Cebu 2 coal-fired thermal power plants and the 43.8-MW Cebu Diesel Power Plant 1 composed of six 7.3-MW bunker C-fed power units.