DoE calls for counterproposals to PSPI’s Balut Island project

Business World Online
Posted on October 21, 2014 10:51:00 PM

THE DEPARTMENT of Energy (DoE) is seeking counterproposals to a power company’s expression of interest in providing electricity to an island in Davao Occidental.

In a public notice, the department declared Balut Island -- which covers barangays Mabila, Batuganding, Tucal, Konel, Lipol, Tinina, Gomtago and Tagen -- as a remote and unviable area.

The declaration of a service area as “remote and unviable” opens up the prospect of supply contracts being opened up to qualified third parties (QTPs) under the provisions of the Electric Power Industry Reform Act of 2001 (EPIRA).

The department said PowerSource Philippines, Inc. (PSPI) submitted an expression of interest and a project proposal for Balut Island.

“PSPI offers to undertake the design, construction and operation of integrated diesel generation and distribution micro-grid system to provide electric service to the above-mentioned remote and unviable areas as QTP,” the notice read.

The proposal involves a 24-hour supply of electricity using a diesel generator.

A total of 2,190 households are expected to benefit from the project starting November 2015.

The Energy department said “private entities, local government units, cooperatives and nongovernment organizations are enjoined to submit a counterproposal to match the offer of PSPI.”

Interested parties should submit an official letter of intent and a technical and financial proposal on or before Oct. 25.

This project is part of the government’s goal to achieve 90% off-grid household electrification across the country by 2017.

Last week, the National Power Corp. (Napocor) awarded a P252-million contract to develop a transmission line in Catanduanes to Saint Lucy Development Construction Corp.

Napocor President Ma. Gladys Cruz-Sta. Rita said in the same statement that the project is one of the government’s priorities under its Missionary Electrification Development Plan.

Napocor -- through its Small Power Utilities Group -- is mandated by the EPIRA to provide electricity to remote barangays and or areas not connected to the country’s power grid.

Areas considered off-grid include Mindoro, Marinduque, Palawan, Romblon, Masbate, Siquijor, Zamboanga, Sulu and Tawi-Tawi. -- Claire-Ann Marie C. Feliciano   source