Napocor raises budget for transfer of Pinamucan plant

The National Power Corp. (Napocor) has increased the budget for the transfer of the 100-megawatt (MW) Pinamucan power plant from Batangas to Ilo-ilo to over P600 million from the previously-approved P535 million.

Napocor president Rogelio Murga told reporters yesterday that the increase will cover the additional costs which are not incorporated in the earlier-approved budget.

"There is an existing tank in Pinamucan that we can not transfer so we have to build a new tank in the new site. There are also additional transportation costs," he said.

Murga said the National Economic and Development Authority (NEDA) and the Department of Justice (DOJ) have approved the request of Napocor to conduct a negotiated deal for the Pinamucan transfer.

"We have cited the urgency of the project. NEDA and DOJ have granted our request," he said.

He said they are currently evaluating the two proposals from a sealed bidding conducted last week from two interested consortia.

The Napocor chief said he expects to award it to the winning consortium by the first week of January 2004.

With the awarding of the contract by early next month, he said they hope to commence the operation of first four units of Iloilo-based Pinamucan by August or September next year.

The transfer of Pinamucan is crucial as this is deemed to be one of the fastest solutions to the impending power crisis in the Visayas.

While waiting for the actual transfer of Pinamucan, Murga said they are working out the transfer of some Napocor power barges from Palawan and Mindoro to the Visayas province. The state-owned power firm, on the other hand, is planning to replace these relocated power barges with land-based power facilities for environmental reasons.

He said negotiations for the transfer of the power barges are ongoing and is targeted to be completed by end-March.

These power barges, he said, will temporarily augment any possible power shortage in the Visayas.

"We will transfer the power barges to other islands in the Visayas or Mindanao as soon as the Pinamucan power plant is relocated," he said.

After the first failed bidding, Napocor decided to seek the approval of NEDA and DOJ for a negotiated deal for Pinamucan.