SMC putting up 3 coal power plants in ARMM

MANILA, Philippines - Diversified conglomerate San Miguel Corp. (SMC) plans to build three 58-megawatt (MW) coal-fired power plants in the Autonomous Region in Muslim Mindanao (ARMM) to help spur economic activity in the country’s most underdeveloped region.

SMC intends to put up power plants each in Basilan, Tawi-Tawi and Jolo, Sulu to supply power at a considerably lower rate, its president and COO Ramon Ang said.

“I am offering P3 per kilowatt-hour (kwh) to supply them, from P15 [per kwh being charged today],” he said.

Currently, ARMM – which is comprised of Basilan, Lanao del Sur, Maguindanao, Sulu and Tawi-Tawi – is being served mostly by National Power Corp. (Napocor) through the Small Power Utilities Group (SPUG).

For the power projects, SMC is in talks with Agriculture Secretary Emmanuel Piñol for the construction of these power facilities, Ang said.

“It was okayed by Secretary Piñol because this will create very good growth,” he said. “If given a contract, I should be able to put these up in two-and-a-half years.”

Last September, Piñol said he met with Ang for a possible partnership in putting up medium-sized feed mill facility using corn and cassava produced by Tausugs to engage the people of Sulu to improve its poultry industry.

Ang said SMC has no issues in investing in ARMM, which has been avoided by investors due to instability of peace, lack of infrastructure and lack of a stable power supply.

In June last year, SMC signed a memorandum of understanding (MoU) with ARMM Gov.Mujiv Hataman to help develop the area. Part of the MOU covers an agreement for SMC to build a power plant to help provide long-term solutions to Mindanao’s power crisis.