DMCI Power plans Palawan plant

Posted on November 15, 2016
http://www.bworldonline.com/content.php?section=Corporate&title=dmci-power-plans-palawan-plant-&id=136373

DMCI POWER Corp. is planning to build three identical units of 6.3-megawatt (MW) bunker-fired power plant in Irawan, Puerto Princesa City, the parent firm of the off-grid energy producer told the stock exchange on Monday.

In disclosure, DMCI Holdings, Inc. said the construction of the P900-million power plant was upon the request of Palawan Electric Cooperative, Inc. (Paleco), which in a board resolution dated Aug. 6, 2016 requested DMCI Power to replace existing high-speed diesel generator sets.

The replacement is “a more reliable bunker-fired plant to assist in alleviating the power interruptions in the main grid of Palawan,” the holding firm said.

“We believe that this is a good investment because of the benefits it will bring to the people of Palawan,” said DMCI Power President Nestor D. Dadivas.

He added that with the more stable power supply, Paleco could support more businesses and economic activity in the area.

DMCI Power expects the three-unit plant, with a combined capacity of 18.9 MW, to start its commercial run by the last quarter of 2017. It recommended the installation of the generating sets in Puerto Princesa City, which serves as the load center of the cooperative.

“Constructing the new plant on the said location will expectedly lessen transmission line constraints in the delivery of power,” DMCI Holdings said.

The planned power plant comes three months after the holding firm disclosed that the subsidiary is building a two-unit, 4.95-MW bunker-fired power plant in Aborlan, Palawan to stabilize electricity supply in the franchise area of Paleco. The plant is expected to start operations by yearend.

Mr. Dadivas said in August that DMCI Power was investing around P600 million in the project “to address the continuing increase in electricity demand in the province due to the rise of local tourism and commercial establishments.”

Aborlan is a first class municipality 69 kilometers south of Puerto Princesa City. Its population is estimated at more than 32,000.

DMCI Power was set up in 2006 to provide sufficient and reliable electricity to areas that are not connected to the main transmission grid.

Aside from Palawan, it also provides power to Masbate province in Bicol, Calapan City in Oriental Mindoro and Sultan Kudarat in Mindanao through supply contracts with electric cooperatives. As of August, it has a total contracted capacity of about 56 MW.

On Monday, shares in DMCI Holdings rose by 0.99% to P12.22 each. -- Victor V. Saulon