Mirant Philippines lights up Subic’s Grande Island

SUBIC BAY FREEPORT – Mirant Philippines has lighted up Grande Island following a switch-on ceremony led by Subic Bay Metropolitan Authority (SBMA) Chairman Feliciano Salonga and Administrator Armand Arreza.

"This ceremony highlights the commitments not only of the private sector, but the government sector in the development of this part of the Philippines. It is indeed gratifying that we are viewing today a step forward by providing power to a facility that will give comfort and pleasure to many of our visitors," Salonga said.

The 44-hectare Grande Island, which was once a heavily fortified outpost of the US military, is being developed by GFTG Holdings Corp. into a world-class tourist destination.

"As we switch on this submarine cable, we are also beckoning the golden age of electricity that would light up Grande Island," Arreza told The STAR.

"Without this submarine cable, Grande Island will not only be in the dark, but SBMA as well. Hopefully, this will be just one of the first of the many investments to make Subic more investor-friendly and more tourist-friendly," he added.

In a press statement, Mirant Philippines president JR Harris said, "We believe that the completion and energization of the new 2.5-kilometer cable goes far beyond its use to deliver electrons from the Camayan Point to power the lights and facilities of Grande Island resort."

He added, "The completion of this project underscores our commitment not only to Subic, but to the country as well."

The flow of electricity from Grande Island is made possible through a 2.5-kilometer submarine cable that stretches out from Camayan Point in Subic Mainland up to Grande Island. The cable is protected with installed switch gears at both ends.

Some two years ago, the SBMA signed a tripartite memorandum of agreements (TMOA) with the National Power Corp. and Mirant Philippines for the power cost reduction adjustments that would guarantee its locators the cheapest power rates in the country.

This will ensure SBMA locators a bulk electricity rate of a minimum of P0.15/kwh less than the current market price.

The power reduction scheme may be achieved with a 50/50 sourcing of power supply from Mirant and Napocor. As electricity accounts for a higher share of manufacturing costs compared to water, which accounts for less than one percent of production cost, this power cost reduction will more than offset the effect of the water rate increase.

The power will be sourced out with a 50/50 sharing from the Napocor-contracted independent power producers (IPPs) and the excess capacity of Mirant’s Sual Power Station in Pangasinan.

Mirant Philippines is a competitive international company that is in the power generating business. It produces and sells electricity in the United States, the Caribbean and the Philippines, and owns or leases more than 18,000 megawatts of electric generating capacity globally.