DMCI bags Mindoro power contract

CALAPAN CITY, Philippines – After months of delay and hearing public demand for “full transparency” of its power contract negotiations, the Oriental Mindoro Electric Cooperative, Inc. (ORMECO) has finally awarded to Manila-based DMCI Power Corp. the contract to construct, operate and maintain a 15-megawatt bunker-fired diesel power plant in this city.

In a simple ceremony held at the ORMECO office in Brgy. Sta. Isabel last Monday (Oct. 14), both officials of the lone electric cooperative in Oriental Mindoro and DMCI signed the notice of award and other documents that would start the construction of the power plant at the soonest possible time. The power plant would partially supply the power requirements of the province for a period of 20 years.

During the signing ceremony, ORMECO president Audel A. Arago and general manager Romeo Cuasay both expressed optimism that with the award of the power contract to DMCI and upon operation of the power plant, the situation of electric supply in Oriental Mindoro would improve.

Accordingly, the construction and the subsequent operation of the power plant would help stabilize power supply for Oriental Mindoro.  There is a need for an additional supply of power to the province because its energy and capacity demand is continuously rising. Based on ORMECO’s estimate, the compound annual growth rate, or power demand for the last five years was at 6.5 percent and the province’s peak demand is said to be close to breaching dependable capacity.

DMCI representatives during the ceremony, led by its president Nestor Dadivas, said that the construction and operation of the project raise hopes of solving the almost daily power outages in the island province.

The awarding of the power contract was delayed repeatedly after DMCI’s three competing bidders questioned and scrutinized the former’s financial bid which was made public following the ORMECO-implemented competitive selection process (CSP). The CSP was managed by the cooperative’s Special Bids and Awards Committee (SBAC).

“We would like to assure that the bidding (and the eventual award of the project to DMCI) was fair and square,” Arago assured.

Also present during the awarding ceremony was former Oriental Mindoro Rep. Rodolfo G. Valencia who played a key role during the long process of selection. Valencia is also the chairman of Oriental Mindoro Investment (ORMINVEST) office.