The IPPs have agreed to invest in distribution facilities connecting their power plants with adjoining communities as part of government’s O Ilaw program.
The IPPs have been accused of entering into onerous power purchase agreements (PPAs) with the National Power Corp. (Napocor) to the disadvantage of government.
The IPPs are: Alstom Philippines Inc., Alsons Consolidated Resources, Electrobus Consolidated Inc., Edison Global Electric Ltd., East Asia Diesel Power Corp., Duracom Mobioe Power Corp., Sunrise Power Co., East Asia Utilities Corp., Cebu Private Power Corp., Covanta Energy Philippines Holdings Inc., Cal Energy Development Co., Quezon Power Philippines Ltd. Co., San Pascual Co-generation Co. Phils Ltd., State Power Development Corp., and Hydro Corp.
The rural electrification project or O Ilaw which was launched under the Estrada administration has so far electrified 700 barangays, leaving a thousand more barangays to be electrified.
The program includes financial and technical assistance, incentives for the IPPs participating in the program, and the relationship between the IPP and the recipient barangay.
Existing IPPs have a combined power capacity of over 3,000 megawatts (MW). The main bulk of the new power sources will come from the Sta. Rita and the San Lorenzo gas-fired power plants, both in Batangas. Both plants are operated by First Gas Power Corp., a subsidiary of the First Philippine Holdings Inc. of the Lopez group.