Power plant operator warns of blackout in Puerto Princesa

Puerto Princesa is likely to experience a massive and prolonged power interruption starting this month if the National Power Corp. (Napocor) fails to settle its obligations to the Puerto Princesa power plant, the main source of electricity for the city. Lionel Rossignol, director of Delta P Inc. which operates the Puerto Princesa power plant, said the company will run out of funds to buy fuel.

Rossignol said since the company started its operations, it has not received any payment from Napocor for the energy it has generated and delivered.

"What is paradoxical here is that Palawan Electric Cooperative (PALECO) still keeps on collecting from the consumers and remits the same to Napocor," he said.

According to Rossignol, Delta P continues to operate the power plant despite the non-payment of Napocor, taking into consideration the plight of the people of Puerto Princesa, but only as long as the fuel lasts.

Last Feb. 15, Delta P refueled for the fourth time, but the company may not risk any more costs since each refueling amounts to P7 million. At present rating, the power plant ran out of fuel yesterday.

But Rossignol said the company is willing to coordinate with Napocor to resolve the unpaid bills.

Napocor officials, on the other hand, are not ready to issue any comments on the alleged unpaid power from Delta P.

Delta P is a member of the Wartsila Philippines Inc. Group of Companies. In 1997, Paragua Power Corp. started its operation in Palawan with Pan Asia Power and TerrEner Development Corp. as its incorporators.

It was ST Capital Ltd., a Singaporean company that provided Paragua with the power plant under a leasing agreement secured by Wartsila Diesel International Oy, Ltd. from Finland.

After five years of operation, Paragua has yet to fulfill a number of legal and financial obligations to ST Capital forcing the latter to terminate the lease agreement on Nov. 25, 2002 and to call on the Wartsila security.

As a consequence, Wartsila was forced to compensate ST Capital and had no choice but to take over the plant. The plant has since then been assigned by Wartsila to Delta P.

The Puerto Princesa power plant is one of the largest foreign investments in Palawan.