Napocor awards $53-M contracts

State-run National Power Corp. (Napocor) has awarded two turnkey contracts worth $53 million (P2.5 billion) to foreign firms for the upgrading and expansion of the substation components of the San Pascual Cogeneration power plant.

Napocor sources said China-based Harbin Corp. and Hyundai Ltd. of Korea have been picked to supply and construct the system requirements for sub-stations 1 to 4 of the San Pascual plant.

The two companies will supply the steel power, poles, conductors and line materials to interconnect the San Pascual Cogeneration power plant to the Luzon Power grid.

Part of the proceeds from Napocor’s $191.4-million Power Transmission Reinforcement Project (PTRP) loan from Asian Development Bank (ADB) will be used to finance this project. PTRP will integrate the electricity grids of Luzon, Visayas and Mindanao into a unified grid by year 2003.

Napocor earlier awarded some $16.538 million worth of contracts to six foreign firms for the rehabilitation and interconnection of San Pascual-Batangas and San Pascual-Sta. Rita 230 kilovolt associated transmission lines.

The six firms are: Valmont Industries Inc., China East Resources Import/Export Corp., Mitsui & Co. Ltd., North East China Electric Power Import/Export Corp., KEC International Ltd., and Pirelli Cables and Systems Inc.

According to sources, the rehabilitation of the 230-kv network would enable the Luzon Power Grid’s transmission system to accommodate the power generation capacity additions from various independent power producers.

The PTRP will complement the various interconnection projects completed in previous years. Napocor completed the Samar-Leyte interconnection in 1983, the Negros-Panay interconnection in 1990, and the Negros-Cebu interconnection in 1993.

Three years ago, Napocor completed the Leyte-Luzon interconnection which allows the transmission of 440 MW of geothermal power from Tongonan, Leyte to Luzon. – Donnabelle Gatdula