NEDA body approves add’l loans for rehab of Tiwi-Makban power plants

The National Economic and Development Authority-Investment Coordinating Council (NEDA-ICC) has approved in principle some P1.5 billion in new loans to finance additional requirements in the rehabilitation of Tiwi and Makiling-Banahaw (Makban) geothermal power facilities.

Official documents show that Tiwi and Makban will need P806.12 million and P699.4 million, respectively to fund the additional rehabilitation works which will include replacement and/or repair of equipment and materials.

Napocor Rogelio Murga said the additional financing will still be reviewed. "We (Napocor) have been requested by the ICC to review the costing. The aim is to lower than further the cost for additional works," he said.

On top of the additional works, Tiwi (P2.6 billion) and Makban (P1.89 billion) will undergo a partial rehabilitation which will entail project cost of P4 billion.

The first part of the rehab program is expected to be completed soon.

Napocor senior vice president for generation Pio Benavidez said the first leg of the rehab program started last June. Benavidez said the last unit, scheduled for rehab in the first semester of 2004, is expected to be completed by June 2005.

He said Napocor and the Philippine Geothermal Inc. (PGI), the proponents running these power facilities, have already firmed up the financing for the rehabilitation program.

The group of Marubeni-Toshiba Corp. of Japan bagged the contract to undertake repair of the 330-megawatt Tiwi geothermal plant in Albay.

Due to wear and tear, the Tiwi plant is no longer generating electricity as per its installed capacity. As present, Tiwi is only capable of producing around 100 MW.

The 410-megawatt Makban geothermal plant, on the other hand, is currently producing only around 200 MW.

Mitsubishi Corp. will undertake the rehabilitation needed for Makban to bring its performance back to rated capacity.

PGI, a wholly-owned subsidiary of Unocal of US, operates geothermal fields Makban in Quezon and Tiwi in Albay with total installed capacity of 756 MW.

For the period 1979-2002, Tiwi and Makban produced energy equivalent to 88,500 gigawatthours or 153 million barrels of oil. This translated to foreign exchange savings of $3.21 billion for the 23-year period.