Sunday, October 26, 2014

Navotas plant repair delayed

Manila Standard Today
By Alena Mae S. Flores | Oct. 26, 2014 at 11:30pm

Power producer Millennium Energy Inc. stopped the rehabilitation of the Navotas diesel power plant, which is designed to add 100 megawatts during the dry months next year, pending approval from the government agency managing the Navotas fish port complex.

Energy Secretary Carlos Jericho Petilla told reporters Millennium encountered problems with the Philippine Fisheries Development Authority, the agency in charge of the fish port complex in Navotas.

“[Millennium’s] Navotas power plant is situated in a property under the [PFDA]. Millennium is sub-leasing the property from Petron who has given us a contract of lease,” Petilla said.

Petilla said PFDA “has not given us permission to start the rehab project as, according to them, this would still require a board approval.”

Petilla said for the “meantime, all our deliveries and activities are now put on hold order.”

“The critical deliveries are due next week. Millennium is very concerned that if [PFDA] will disallow these, our timetable will be delayed,” he said.

The Navotas fish port complex is under the exclusive jurisdiction, control and supervision of PFDA, an attached agency of the Agriculture Department. The agency is undertaking a P2.7-billion modernization of the Navotas fish port complex, which is the largest in the country.

Millennium Energy owns the 310-MW Navotas I and II gas turbine power plant at the Navotas fish port complex and the 620-MW Bataan combined cycle power plant in Limay, Bataan.

Petilla earlier said the rehabilitation of the Navotas plant would take about six months.

The government is looking for additional power capacity to avert the anticipated power shortage next year. It listed Millennium Energy’s 100-MW additional capacity as one of the projects that could alleviate the shortage next year.

The department warned of an impending energy shortage starting March 2015, which it said could be resolved by Section 71 of the Electric Power Industry Reform Act of 2001.

Energy Undersecretary Raul Aguilos said there would be a shortage of electricity supply next year, due to the lack of available capacities coming from potential interruptible load program participants and delayed entrance of new energy capacities.   source

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