Capitol inks pact for solar energy source

CEBU, Philippines —  To address the increasing energy demand in Cebu, the Capitol yesterday entered into a partnership with a private consortium to develop a 150-megawatt solar power plant in Daanbantayan town in northern Cebu.

The Capitol. represented by Cebu Gov. Gwendolyn Garcia, signed a memorandum of agreement (MOA) with Acciona Energia Global and Freya Renewables Inc.

 Acciona Energia Global was represented by its business development director of Southeast Asia Ignacio Domecq while Freya Renewables Inc. was represented by its general manager Fermín Álvarez.

Under the said agreement, the consortium will build a solar power plant in a 180-hectare land in Barangay Talisay, Daanbantayan, which will be acquired by the Capitol from the lot owners in the area.

During the signing yesterday, Garcia said the partnership will benefit the province in terms of revenue generation.

"We now have this partnership, a partnership that can only bring more benefit to the Province of Cebu in terms of revenues... but more importantly in terms of bringing down the price of electricity for many of our constituents,” Garcia said.

 Daanbantayan Mayor Sun Shimura, on the other hand, said he was elated with the project as it would benefit his constituents, expecting cheaper electricity cost compared to that produced by coal-powered plants.

"At least we can anticipate, atong gilauman nga barato ang kuryente sa province of Cebu ilabi na sa Daanbantayan," he said.

"Aside from making electricity cheaper in the district and in the town of Daanbantayan, it will also add local income sa ato," he added, since the barangay, the town, and the province have a share in the income through local taxes.

 Department of Energy (DOE) Secretary Raphael Lotilla, who attended the event, lauded Cebu Province in taking initiatives in partnering with private investors for the realization of its major projects.

He said DOE will also make its best effort to speed up the implementation of the said project.

Domecq, on the other hand, promised that the Province of Cebu will be their "most important hub for investment for the development in the country", and "most important hub for investment in whole of Asia."

 It was on Sept. 27 last year when the consortium submitted an unsolicited proposal to the Capitol's Economic Enterprise Council (ECC) for the development of the 150-megawatt solar power plant project in Daanbantayan, under a Build, Operate, Transfer scheme, at no cost to the Province of Cebu.

"The project will not require any direct government guarantee, subsidy or equity, and shall be undertaken at no cost to the Provincial Government; and once implemented will provide income to the Province from a percentage share of Consortium's revenues from electricity sales," read part of the agreement.

Once the project is completed, the consortium will have the right to operate and maintain the solar power plant for 25 years. (CEBU NEWS)