RDC panel grills Salcon over project concerns

The infrastructure development committee of the Regional Development Council yesterday questioned Salcon over issues that have so far been raised by other sectors over the firm's proposed P15-billion expansion project.

The RDC panel, headed by Emmanuel Rabacal, invited Salcon to present the details and updates of the firm's project, a necessary process before it is granted an environmental compliance certificate by the Department of Environment and Natural Resources.

Among the issues RDC scrutinized after Salcon's presentation were on the kind of technology of the new power plants, some environmental questions, side claims on power crisis that purportedly necessitates the project, and possible increase of power costs as a result.

Point by point, Salcon Vice President Renerio Lastimoso answered the panel's questions but Rabacal hit the firm management for the delay in telling RDC about the expansion project involving the construction of two more coal-fired power plants, which will have a 200-megawatt total capacity.

Lastimoso said Salcon did not give RDC updates on the project because it is still on the pre-construction stage. But he said the firm complied with other requirements such as the conduct of public hearings and environmental impact assessment.

Lastimoso further said Cebu 1st district Rep. Eduardo Gullas and majority of Naga town officials and residents already endorsed the project. A public hearing will also be held at the Capitol by September 16 to enlighten the public more about it, he said.

Rabacal asked if Salcon's proposed project in Naga is similar to the one in Iloilo that was junked by the residents of Region 6 due to some environmental issues. Lastimoso answered that both projects are joint ventures with the Korea Electric Philippines Company Inc. but have different capacity.

Lastimoso also allayed fears of the negative effect of coal power technology to the environment citing the more than 1,000 coal-fired plants worldwide without reports of environmental disaster.

"Based on performance of coal-fired power plants around the world, there is nothing to fear. This is not a new technology but a proven technology," he said.

But Salcon was assailed for presenting confusing data when it claimed that a power crisis will hit Cebu in 2008, as Rabacal noted the recent declaration of the National Transmission Commission that the Leyte-Cebu Interconnection Uprating Project assures Cebu will enjoy ample power until 2014.

"Who is telling the truth now?" Rabacal asked while he pressed Salcon to make an assurance that consumers would not be burdened by high electricity costs when the project materializes.

Lastimoso explained the firm projections were based on the Department of Energy's forecasts, and the fast pace of Cebu's economic growth rate hitting at least 5.7 percent every year.

But he assured Naga residents that the environment is protected because the proposed plants would use fluidized combustion bed and a clean and efficient technology.

Consumers would pay less because power will be transmitted power directly to the Visayas Electric Company, thus eliminating transmission charges, said Lastimoso.

Salcon's existing 105-mW coal-fired power plant in Colon, Naga supplies power to VECO via the transmission lines of TRANSCO, entailing transmission charges. - Wenna A. Berondo