Gov’t to bid out contract for transfer of Pinamucan plant

The Investment Coordinating Council (ICC) of the National Economic and Development Authority (NEDA) has approved the transfer of the 110-megawatt Pinamucan diesel-fired power plant from Batangas to Dingle, Iloilo.

"The ICC approval last Thursday means that all is set for the National Power Corp. (Napocor) to bid out the transfer of the facility," Napocor legal counsel Rainier Butalid said.

Last week, the Joint Congressional Power Commission (JCPC) has also favorably endorsed the relocation of the power plant to avert the impending power crisis in the Visayas.

The JCPC’s go-signal is necessary since Napocor has been forbidden to enter into new contracts under the Electric Power Industry Reform Act.

In the JCPC resolution, the Napocor was given the full authority to implement the relocation of the Pinamucan plant to provide the Visayas region and the Cebu-Negros-Panay (CNP) areas the much-needed steady supply of electricity.

For the first semester of 2003, electricity consumption in the Visayas region rapidly increased by 11 percent.

The Pinamucan plant can operate as a replacement plant for the old power generating units currently operating in Panay and provide the much-needed power supply and sustainability of industries in the CNP.

The resolution further authorizes Napocor to realign its funds for the transfer of Pinamucan plant. Napocor said it will spend about P535 million for the transfer of the Pinamucan plant.

According to the bidding requirements, the project will involve the dismantling, hauling, transfer and installation of four 12.94-MW and four 14.63-MW diesel generator sets, auxiliary equipment and powerhouse from Pinamucan to Dingle. The bidding will start October this year.