Napocor, Mitsubishi sign P700-M MakBan rehab deal

The National Power Corp. and Mitsubishi Corp. signed recently a ¥1.49-billion (roughly P700 million) agreement covering additional supply and rehabilitation works on the MakBan (Makiling-Banahaw) geothermal power plant in Laguna.

Under the supplemental contract, Mitsubishi will supply the equipment and services for the project.

Specifically, Mitsubishi will provide the steam supply system; steam turbine and auxiliary equipment; gas extraction system; cooling water system; cleaning and repair of cooling tower basin; generator and excitation system; motor control system; and a direct current system.

The funding for the additional rehabilitation works will be provided by the Japan Bank for International Cooperation (JBIC).

JBIC had earlier extended a ¥3.38 billion (about P1.47 billion) loan for the rehabilitation of Units 1-4 of the MakBan complex.

The MakBan rehabilitation project aims to extend the life of the geothermal complex by another 15 to 20 years.

The rehab works will also increase the rated capacity of four of its units of MakBan from 55 megawatts each to 63 MW.

As of Jan., 2004, the rehabilitation project was already 44.53-percent complete.

The supplemental agreement was signed by Napocor president Rogelio M. Murga and Mitsubishi Corp. general manager (Manila branch) Masakazu Okabayashi at the Napocor head office.

MakBan is jointly operated by Napocor and Philippine Geothermal Inc., the local unit of US energy firm Unocal.

Aside from MakBan, PGI and Napocor are also working on the rehabilitation of Tiwi, another joint venture geothermal facility of the two power firms.