SPC Power to join bidding for Naga power plant

MANILA, Philippines - Publicly-listed SPC Power Corp. (formerly Salcon Power Corp.) has expressed interest in the bidding for the management of the contracted capacity of the 149-megawatt (MW) Naga power plant complex in Cebu.

SPC senior vice president Antonio Corpuz said they are likely to submit a bid for the Naga contracts on Aug. 18. Aside from SPC four other companies have signified interest on the independent power producer (IPP) contracts of Naga.

The power plant complex in Naga, Cebu consists of the Cebu power plant complex 1 and 2 each with an installed capacity of 55 MW and the Cebu diesel power plant with installed capacity of 39 MW. The entire complex has a capacity of 149 MW.

SPC is a 60-40 joint venture between local investors and Korea Electric Power Co. (Kepco).

Kepco Philippines general manager Rolando Bacani earlier confirmed that the company will participate in the bidding through SPC.

SPC operates the Naga complex under a rehabilitation, operation, maintenance and management agreement with state-owned National Power Corp. (Napocor).

Aside from the Naga power plant, SPC owns a separate power facility in Cebu, the 55-MW Naga land-based gas turbine power plant, after paying government $1.008 million, matching the reserve price set by the Power Sector Assets and Liabilities Managementr Corp. (PSALM).

SPC is also the new owner of the 146.5-MW Panay and 22-MW Bohol diesel power plants, which PSALM also bid out in November last year.

Corpuz said the power firm is also nearing the completion of its 200-MW coal-fired power plant also in Naga, Cebu.

He said they expect to complete the first unit of 100 MW by February next year and the second 100 MW unit in May 2011.

Doosan Heavy Industries of South Korea is undertaking the engineering, procurement and construction of the coal power plant, which is seen to significantly address the power requirements of the region.

The Cebu coal-fired power plant is estimated to cost $490.671 million. Seventy percent of the total project cost was sourced from lenders, including the Asian Development Bank.