Business Mirror
22 Apr 2014 Written by Lenie Lectura
RISK advisor and insurance broker Jardine Lloyd Thompson (JLT) strongly urged private companies in the power sector to expand their capacities and probably develop more power plants to narrow the gap between demand and supply.
JLT, with Merritt Partners, said it would host a first-of-its-kind energy seminar to highlight common risk issues confronting power-plant developers and operators, and to share best practice solutions.
Dubbed as “Empowering Power Developers,” the seminar will discuss several topics covering issues such as the “bankability” of projects, real-life examples of what can go wrong during power-plant construction and operation, and how these losses can be reduced or avoided via insurance or risk management.
There are more than 100 confirmed attendees from all of the country’s major power developers, investors, finance institutions and law firms.
“JLT is already making a very significant contribution to the Philippine power sector through our insurance and risk management services, but we wanted to make a more general contribution to the power industry as a whole, and after talking to Merritt Partners, we agreed that hosting a free seminar provided the best opportunity to do so,” said JLT Philippines President and Chief Executive Officer Graham Edwards.
JLT works with power-plant developers and financiers in the Philippines and all over the world, bringing energy projects to realization by ensuring project and operational risks are effectively mitigated through a combination of insurance and risk management solutions.
It currently has operational power clients that make up more than 3,770 megawatts (MW) of the on-grid installed capacity in the country and is currently advising and insuring clients in the insurance of eight power projects currently under development.
The keynote speaker is Energy Secretary Jericho Petilla, who gave an update on the power situation in the Philippines. Former Energy Secretary Vince Perez is also part of the program as the moderator for the roundtable discussion on bankability of power plant projects.
“The number of confirmed attendees indicates that the issue of risk mitigation is one of considerable importance to the power sector, and has wider implications for the country’s economic development,” Edwards added.
JLT cited Luzon’s thin power reserve which is meant to cover the projected peak demand plus a certain factor to secure electricity supply in case of an unexpected interruption in the operation of a power plant or a sudden increase in power demand. This situation in Luzon is not much different in the Visayas and Mindanao, it added.
Peak demand in the country grows at an annual average of more than four percent and the development of power plants for additional capacity is not yet keeping pace, JLT noted.
It added that concerns over a consistent and stable power supply are seen as a major barrier to foreign direct investment in the Philippines, especially for the heavily power dependent manufacturing sector which both ADB and the World Bank have identified as the sector that can have the most positive impact on job creation.
JLT stressed that this is a challenge that is not the sole responsibility of the government but needs participation from the private sector as well. source
No comments:
Post a Comment