ERC gives Alson group go-signal to construct 105-MW plant

Manila Bulletin
by Nonoy E. Lacson
October 20, 2014

Zamboanga City – The Energy Regulatory Commission (ERC) has approved the Power Sales Agreement (PSA) between the Zamboanga City Electric Cooperative, Inc. (ZAMCELCO) and San Ramon Power, Inc. (SRPI) that will bring Alson Power Group closer to fulfilling its commitment to provide reliable and affordable power to this city and the rest of Mindanao.

Joseph C. Nocos, Vice President for Project Development, Alsons Power Group, yesterday said the they expect to begin construction of the SRPI plant within the second half of 2015, with actual operations expected to commence by the end of 2018.

With the approval of the PSA, Nocos said the next challenge in the development of the 105 Mega Watt (MW) SRPI plant would be the project financing phase.

Securing financing for a major power plant project requires that the distribution utility – in this case the Zamboanga City Electric Cooperative or ZAMCELCO – be financially viable.

It was also reported that several initiatives are currently being undertaken to enhance ZAMCELCO’s operating efficiency and financial viability with the entry of an experienced and professional power distribution company that will finance and manage ZAMCELCO.

“We fully support these initiatives as ZAMCELCO’s financial viability is a key prerequisite for SRPI to achieve financial closing and commence construction,” Nocos averred.

He also noted that Alsons Power Group and ZAMCELCO are now working to ensure that Zamboanga City will have access to a steady supply of interim power while awaiting the completion of the SRPI power plant. source