NEA okays ‘supply deal guarantee’ for Occidental Mindoro electric coop

by Myrna Velasco January 18, 2016
www.mb.com.ph/nea-okays-supply-deal-guarantee-for-occidental-mindoro-electric-coop/

The power supply agreement (PSA) to be sealed by Occidental Mindoro Electric Cooperative, Inc. (OMECO) with power providers Mindoro Geothermal Power Corporation (MGPC) and Occidental Mindoro Consolidated Power Corporation (OCMPC) will be underpinned by a guarantee of the National Electrification Administration (NEA).

Emerging Power, Inc. (EPI), the parent firm of MGPC has affirmed the state-run’s approval of its bid for guarantee on their supply deal.

‘The PSA guarantee for OMECO is the first that NEA released under its new Charter,” the Zamora-led firm has noted. NEA’s revised charter is under Republic Act 10531 also known as the National Electrification Administration Reform Act of 2013.”

OMCPC is constructing a 20-megawatt diesel-fired facility; while MGPC is now advancing its planned 40MW geothermal plant in Oriental Mindoro with a targeted commercial operation date in 2017. It has been part of the electrification agency’s mandate not just to set traction on the government’s electrification program, but also to “act as guarantor for the electric cooperatives’ power purchase transactions with independent power suppliers.”

NEA Administrator Edita S. Bueno qualified that their approval of the guarantee for OMECO has all been aimed at providing “stable power supply” and improve the economic opportunities for the island-province of Occidental Mindoro.

The development path of a new power facility is considerably well documented in media, as sponsor Emerging Power, Inc. constantly notifies on every milestone of its project.

Upon completion of the blueprinted 40MW geothermal power plant, the Zamora group is intending to finally end the brownout predicaments of end-users in the area – fundamentally for Occidental Mindoro that has been labeled “the blackout capital of the Philippines.” As noted, the power interruptions distressing consumers in that domain for years typically last for 6-12 hours in a day.

“The entire province has endured power outages over the past few years due to inadequate power supply and disconnection from the main grid,” MGPC said.

With the propounded power facility, it is not only Occidental Mindoro that will be “seeing the light at the end of the tunnel,” but even its neighbor Oriental Mindoro.