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MANILA, Philippines - Aboitiz Power Corp. (APC), the power generation unit of the Aboitiz Group, will invest P25 billion for the construction of a 300-megawatt (MW) coal-fired power facility in Davao, a ranking company official said.
“APC assures that it is ready to do its part to help solve the problem through a long-term solution: Investing its funds in constructing a proposed 300-MW circulating fluidized-bed coal-fired power plant in southern Davao. To save time, APC is ready to invest its own funds, amounting to P25 billion, instead of seeking financing from other institutions, to fasttrack construction,” said Manuel Orig, APC first vice-president for Mindanao.
Orig said the project, which will be undertaken by APC’s subsidiary Therma South Inc., is part of the company’s commitment to supply the region’s power needs as its communities, industries, investments and commercial establishments grow - especially in Davao, which has the biggest power supply need in the region.
“APC has been in Davao for 50 years. Throughout that time and until the present, the company considers Davao its home. As a member of the community, APC is committed to being a partner in the growth of Davao and Mindanao,” he said.
Orig said they would want to be part of the development in Mindanao.
“The region needs a steady supply of power to fuel its growth as industries, investments and businesses expand. This, in turn, will provide livelihood and development to communities. As communities and households increase, so will their demand for electrical power as well,” Orig said.
The demand for electricity for Davao and the rest of Mindanao is growing steadily but supply, unfortunately, has been lagging behind the needed baseload capacity.
Government estimates show that unless power supply generation is increased soon, Mindanao will face a power shortage.
By 2014, the shortage will be around 480 MW - enough to cut off the entire power supply to the cities of Davao, Cagayan de Oro, Gen. Santos, Zamboanga and Butuan.
Orig said unless the proposed power plant is constructed soon, the energy supply situation in Mindanao will become more precarious, especially as it enters the dry summer season.
Dry months usually bring down the water level in Lake Lanao, which lowers the energy-generating capacity of the Agus-Pulangi hydropower complex - the lifeblood of Mindanao’s power supply.
The APC official also assured residents and the local government units that the proposed 300-MW circulating fluidized-bed coal-fired power plant in southern Davao is safe, and will not harm the environment or the communities surrounding it.
APC has an excellent track record of human safety and environmental protection in its power-generation facilities. We guarantee that the proposed power plant will not cause harmful effects on the water supply, the health of the communities and the environment,” he said.
The official also pointed out that the wrong notion about coal is a thing of the past.
“Dirty coal power plants are those that used the technologies of the 1950s, 1960s and 1970s. New coal-fired power plants are proven to be safe, clean and reliable. APC’s modern, high-technology coal-fired power plants meet international standards that keep them safe and environment-friendly,” he said.
“The people of Davao have known the Aboitiz Group for more than 50 years and we consider Davao as our home. We will not do anything that will harm our own community.”
He noted that there are already clean coal-fired power plants operating in the Philippines and in Mindanao, like the Steag State power plant in Villanueva, Misamis Oriental and Cebu Energy Development Corp. in Cebu.
“These facilities continue to meet environmental standards and there has been no recorded incident that negatively affected the health and livelihood of the communities around it,” Orig said.
At present, APC operates hydro-electric power plants in Davao and Benguet as well. The company is set to build even more hydro-electric power plants in the next two years. Five hydropower projects have been started in 2011.
In Davao, APC is set to construct the hydropower plants Tudaya 1 (6.6-MW, upstream of Sibulan A) and Tudaya 2 (seven-MW, downstream of Sibulan B) in August 2011, which are expected to be finished by December 2012.
Two other hydropower plants in Kitawtaw, Bukidnon, the 18-MW Sita and 12-MW Simod, are due for completion in 2013. In Benguet, the Irisan 3.8-MW hydropower facility is set to be completed by September 2011.
However, these hydropower plants are dependent on ideal water levels - something that is affected during dry months. Low water levels result in low power-generation. “This is why together with these hydro-electric plants, clean coal-fired plants must also be ready to use. We need to get the right mix of power from different sources so that even in the summer or during El Niño, Mindanao will have reliable power,” Orig said.
The proposed clean coal-fired power plant, if approved, will be one of the biggest single investments in Mindanao. No less than 1,000 people will be needed for the 40-month construction of the facility and 200 people will be employed during the regular operations of the plant. It is proposed for construction in a 52-hectare property in Binugao in Toril, Davao City and Inawayan in the municipality of Sta. Cruz - depending on the approval of local governments concerned.
“APC assures that it is ready to do its part to help solve the problem through a long-term solution: Investing its funds in constructing a proposed 300-MW circulating fluidized-bed coal-fired power plant in southern Davao. To save time, APC is ready to invest its own funds, amounting to P25 billion, instead of seeking financing from other institutions, to fasttrack construction,” said Manuel Orig, APC first vice-president for Mindanao.
Orig said the project, which will be undertaken by APC’s subsidiary Therma South Inc., is part of the company’s commitment to supply the region’s power needs as its communities, industries, investments and commercial establishments grow - especially in Davao, which has the biggest power supply need in the region.
“APC has been in Davao for 50 years. Throughout that time and until the present, the company considers Davao its home. As a member of the community, APC is committed to being a partner in the growth of Davao and Mindanao,” he said.
Orig said they would want to be part of the development in Mindanao.
“The region needs a steady supply of power to fuel its growth as industries, investments and businesses expand. This, in turn, will provide livelihood and development to communities. As communities and households increase, so will their demand for electrical power as well,” Orig said.
The demand for electricity for Davao and the rest of Mindanao is growing steadily but supply, unfortunately, has been lagging behind the needed baseload capacity.
Government estimates show that unless power supply generation is increased soon, Mindanao will face a power shortage.
By 2014, the shortage will be around 480 MW - enough to cut off the entire power supply to the cities of Davao, Cagayan de Oro, Gen. Santos, Zamboanga and Butuan.
Orig said unless the proposed power plant is constructed soon, the energy supply situation in Mindanao will become more precarious, especially as it enters the dry summer season.
Dry months usually bring down the water level in Lake Lanao, which lowers the energy-generating capacity of the Agus-Pulangi hydropower complex - the lifeblood of Mindanao’s power supply.
The APC official also assured residents and the local government units that the proposed 300-MW circulating fluidized-bed coal-fired power plant in southern Davao is safe, and will not harm the environment or the communities surrounding it.
APC has an excellent track record of human safety and environmental protection in its power-generation facilities. We guarantee that the proposed power plant will not cause harmful effects on the water supply, the health of the communities and the environment,” he said.
The official also pointed out that the wrong notion about coal is a thing of the past.
“Dirty coal power plants are those that used the technologies of the 1950s, 1960s and 1970s. New coal-fired power plants are proven to be safe, clean and reliable. APC’s modern, high-technology coal-fired power plants meet international standards that keep them safe and environment-friendly,” he said.
“The people of Davao have known the Aboitiz Group for more than 50 years and we consider Davao as our home. We will not do anything that will harm our own community.”
He noted that there are already clean coal-fired power plants operating in the Philippines and in Mindanao, like the Steag State power plant in Villanueva, Misamis Oriental and Cebu Energy Development Corp. in Cebu.
“These facilities continue to meet environmental standards and there has been no recorded incident that negatively affected the health and livelihood of the communities around it,” Orig said.
At present, APC operates hydro-electric power plants in Davao and Benguet as well. The company is set to build even more hydro-electric power plants in the next two years. Five hydropower projects have been started in 2011.
In Davao, APC is set to construct the hydropower plants Tudaya 1 (6.6-MW, upstream of Sibulan A) and Tudaya 2 (seven-MW, downstream of Sibulan B) in August 2011, which are expected to be finished by December 2012.
Two other hydropower plants in Kitawtaw, Bukidnon, the 18-MW Sita and 12-MW Simod, are due for completion in 2013. In Benguet, the Irisan 3.8-MW hydropower facility is set to be completed by September 2011.
However, these hydropower plants are dependent on ideal water levels - something that is affected during dry months. Low water levels result in low power-generation. “This is why together with these hydro-electric plants, clean coal-fired plants must also be ready to use. We need to get the right mix of power from different sources so that even in the summer or during El Niño, Mindanao will have reliable power,” Orig said.
The proposed clean coal-fired power plant, if approved, will be one of the biggest single investments in Mindanao. No less than 1,000 people will be needed for the 40-month construction of the facility and 200 people will be employed during the regular operations of the plant. It is proposed for construction in a 52-hectare property in Binugao in Toril, Davao City and Inawayan in the municipality of Sta. Cruz - depending on the approval of local governments concerned.
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