Power firm secures ECC to build coal-fired plant

CEBU, Philippines – The North Negros Energy Power Corporation  announced that it will officially start the construction of the P14 billion coal-fired power plant in Cadiz City, Negros Occidental, following the release of its Environmental Compliant Certificate by the Department of Environment and Natural Resources.

The completion of the plant, which is capable of providing 1x150 megawatt to the Visayas grid, is expected to aid the thinning supply of power in the region, said NNEPC president and chief executive officer Ceasar Ibañez Lao-as in a press conference.

Now majority owned by French company through Sparkling Capital Limited Hongkong, and the Asia Pacific Energy Resources Ventures Inc., the project is currently doing the detailed engineering of the project and the documentation of the invitation to bid for Equipment Procurement and Construction providers.

At present, Lao-as said there are 14 interested bidders vying to provide the services of procurement and engineering, but the company is set to award the winning bidder by May or June this year.

The power plant is expected to be completed by the first quarter of 2017, Lao-as said.

With the entry of the French company, Lao-as said they will be able to address the shortage of coal supply in the country and most significantly aid the looming power supply problem in the Visayas region.

At present, Negros Occidental is importing 80 percent of its power requirement from different power plants in Cebu. While the whole Visayas grid is short of 300 mega-watt supply.

The entire grid’s current demand for power is at P1,900 megawatt, while power plants supply within the grid can only produce 1,700 MW.

Currently, Lao-as said Negros is importing its power requirement from Cebu-based power plant KEPCO, making the cost of energy in Negros more expensive.

With the new power plant, Lao-as said energy cost in Negros will be at par with Cebu.

In the construction phase, the project expects to employ over 3,000 workers in the expected three-year construction time-table.

According to Lao-as the Electric De France in Paris is coordinating with the technical group of NNEPC, as well as the Sparkling Commodities of France for the finalization of the details for its ITB (Invitation to Bid).

"We are on track with the schedule," said Lao-as, adding that the company even hopes to finish the project ahead of targeted time to expedite the provision of more power supply in the Visayas grid.