CBK Power, a joint venture between Industrias Metallurgicas Percarmona S.A. (IMPSA) of Argentina and Edison Mission Energy of California, is the operator of the $470-million build-rehabilitate-operate-transfer (BROT) hydropower plant along Caliraya-Botocan-Kalayaan in Laguna.
CBK Power president and CEO Gerald Katz told The STAR that the company is willing to undertake the next two phases of the rehabilitation program.
" I guess it is logical for us to undertake the rehabilitation because it is our project. But we only have the contract until Phase II. At present, we have no plans yet to continue the rehab, we want to look at the political situation first," Katz said.
He said they have completed Phase II of project in November last year, adding 180 megawatts (MW) of power supply to the Luzon grid. The CBK project is expected to run on a total capacity of about 790 MW.
The CBK executive said, however, that undertaking the next two phases of the project is part of the company’s long-term plan. "We have a 25-year contract with the government. We will be here for a long time," he said.
Energy officials said the CBK complex is considered a critical and indispensable component of the Luzon grid. Given its start up capability, the CBK pumped-storage power plant can help reduce occurrences of prolonged power blackouts.
The hydropower plant also serves to regulate the frequency of the entire system and can quickly adapt to surges in demand over the course of the day.
Katz said they are also aware of the additional power demand in Luzon in 2008. "We will likely do it. It is important because of the demand for power in the next few years," he said.
The National Power Corp. (Napocor) awarded to CBK Power the 25-year BROT project in 1998. However, the project only commenced in 2001 due to controversies with the government, particularly during the time of President Estrada.
These controversies, however, did not deter CBK Power from considering the Philippines as an attractive investment site.
Last year, the government successfully renegotiated its contract with CBK Power that was expected to result to a savings of $96 million or approximately P5 billion.
Under the agreement, CBK Power agreed to waive part of its claims for capital recovery fees as well as the operation and maintenance fees on Kalayaan Stage II until December 2003.
CBK Power, on the other hand, agreed to provide Napocor free of charge for any electricity delivered above the minimum guaranteed power supply for a period of 30 months.