Monday, September 27, 2010

Aquino draws US interest for power sector

The government was able to draw commitments to the power sector from President Benigno Aquino 3rd’s ongoing visit to the US, the country’s Energy chief said Sunday. Energy Secretary Jose Rene Almendras said in a text message to reporters that the government was able to secure energy investments from undisclosed parties.

”Yes, there are energy deals but President [Benigno Aquino 3rd] will make the announcements,” he said.

The country’s is currently faced with tight power supply because of insufficient power generating capacity, transmission line constraints and growing demand.

By 2030, government projects that the country’s power generating needs, would grow from over 8,000 megawatts as of September 26 by another 16,550 megawatts. Bulk of this figure, around 11,900 megawatts, would be needed in Luzon by then.

Despite this looming need, government is barred from contracting new capacity since it is privatizing National Power Corp.’s generating assets.

Because of this, wooing the private sector to pour investments in power facilities has been one of the government’s top priorities.

Almendras earlier said that to draw investors to invest in power projects, the Department of Energy would put energy contracts under review to help even the playing field in the power sector.

He has also approached and appealed to banks and multilateral lenders to support long-term financing of renewable energy projects to help secure long term power supply and electricity prices.

”The idea is to be able to make the necessary investments to come in and encourage the necessary investments without necessarily having spike the prices that will cause social unrest,” he added.

Meeting with Schwarzenegger
President Aquino had met with Gov. Arnold Schwarzenegger of California, a Palace official confirmed Sunday.

Deputy spokesman Abigail Valte said the President, who is now in California, met Governor Schwarzenegger.

Valte, however, refused to discuss details of the meeting between Mr. Aquino and the Hollywood actor, saying it would be better to wait for the President himself to discuss the matter.

Schwarzenegger, famous for starring in blockbuster films like Terminator and True Lies, has been California governor since 2003.

“Antayin na lang po natin si Pangulong Aquino ang mag-share ng mga meetings niya with the other world leaders kapag nakabalik na po siya [Let’s just wait for President Aquino to share the details of his meeting with other world leaders, when he comes back to the Philippines],” Valte told government-run radio station dzRB on Sunday.

She said that President Aquino is currently in San Francisco, California. He is scheduled to attend a Mass at the Basilica Parish Church and a meeting with Filipino communities.

Mr. Aquino is expected to return to Manila from a week-long visit in the United States at 3 a.m. Tuesday, Valte said. 
EUAN PAOLO C. ANONUEVO AND CRIS G. ODRONIA

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