P140-M power project eyed in Puerto Princesa

N E W S B R I E F S

02/12/2009

The Palawan Power Generation Inc. (PPGI), a consortium comprising the FLG Management and Development Corp., Theta Petroleum Corp. and Power One Corp., will spend P140 million on a power generation project under the government’s small power utilities group scheme in Puerto Princesa.

PPGI was formed to develop, create and administer power facilities to supply and transmit electricity to industrial users, distributors and other public utilities.

The proposed project was approved by the Board of Investments (BoI) for fiscal incentives on a pioneer status based on its project cost.

PPGI, which is a vehicle of the Palawan Electric Cooperative (Paleco) for the power project it intends to operate, will convert and rehabilitate the nine-megawatt Puerto Princesa diesel power plant that was leased from state-owned National Power Corp. (Napocor).

The consortium will convert the diesel-fueled engines of Napocor to run on bunker fuel to stabilize power supply.

Once operational, the project is expected to generate savings of at least P2.3 billion for the national government over a 15-year period.

When restored, the facility is expected to generate about one-fourth of the total electricity demand in Palawan.

Meanwhile, the Delta P, also an independent power producer in the province, and Paleco have signed a temporary agreement to assure no disruption of power distribution.

Mayor Edward Hagedorn earlier expressed apprehension about the expiration of Delta P’s operation contract in April.

Delta P supplies 15 megawatts to the Puerto Princesa electric consumers.

There are about 40 megawatts of installed generating capacity in the province.

The peak requirement of Palawan and Puerto Princesa is 21 megawatts, which means there is a surplus in generated power. PNA

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