SBMA chairman Feliciano G. Salonga and administrator/chief executive officer Armand Arreza led the signing of memorandum of understanding (MOU) with Taiwan Cogeneration Corp. which will invest 300 million for the "eco-friendly" coal-fired thermal power plant.
"The power plant project is part of the SBMA’s continuing efforts to provide efficient, stable and affordable power supply for locators," Salonga told The STAR.
Taiwan Cogen will initially start with a feasibility project which would carefully detail the power requirements of freeport locators and at the same time identify a suitable area where the plant will be constructed.
"Today marks a big step to further strengthen the economic and trade relations of Taiwan and Subic," Salonga said as he welcomed Taiwan Cogen into the freeport zone.
Taiwan Cogen, a subsidiary of Taiwan Power Corp. is a specialized cogeneration company, established in 1992 with a goal of assisting the industry by providing cogeneration technology to enhance energy efficiency that will yield lower energy cost and upgrade the power supply in Taiwan.
Taiwan Cogen officials expressed their intent on setting up a power plant that would initially provide competitive and reliable power for investors inside the Subic Bay Industrial Park (SBIP) and eventually the whole freeport.
The power plant project will also allow Subic Enerzone to continue its operations as power distributor inside the Freeport.
"The entry of Taiwan Cogen into the zone would enhance its competitiveness among other economic zones not just in the country but in entire Asia Pacific region," Arreza said.
"We can entice more foreign direct investors that would mean jobs for residents in Central and Northern Luzon to boost its local economy," Arreza said.
"Investors would become more globally competitive because of huge cost reduction in operating expenses as a result of the cheap power rates that the freeport has to offer after the completion of the power plant," Arreza added.
Arreza recently visited Taiwan in a trade and investment mission that includes plant visit to Taiwan Cogen power plant projects.
"The demand for energy is a serious issue in today’s world market. Economic development is gauged by the presence of a good power supplier and distributor," Taiwan Cogen president Sung-Fou Shu told The STAR.
"I see a bright economic future ahead for SBMA and Taiwan Cogen," he explained.
Shu assured the SBMA officials that one of the major considerations in the project feasibility study would be about the environmental protection of the pristine ecological surrounding the freeport.
The Subic-Cogen power plant project will be funded by China Development Industrial Bank.