By Lenie Lectura - November 9, 2018
THERMA Power Visayas Inc. (TPVI), a
subsidiary of Aboitiz Power Corp., is setting aside P892 million for the
rehabilitation of the Naga Power Plant Complex (NPPC) in Cebu.
“We’ve done audits on
environmental, safety and we’re doing structural repairs already on the
facility,” AboitizPower Chief Operating Officer Emmanuel Rubio said citing
board approval of the capital expenditure.
The power facility, which was once
the subject of a legal dispute, was physically turned over and accepted by TPVI
in July this year.
The NPPC is composed of diesel and
coal power units with a combined capacity of 153.1 megawatt. However, there was
no more coal plant when TPVI took over the facility; thus its capacity was
reduced to 40 MW.
“The nameplate capacity is actually
40.5 MW. It was providing ancillary service for 25 MW,” said Rubio
adding that TPVI had expected the coal plant would still be included in the
sale.
“We were expecting that and
considered that in our offer given the condition of the coal plant when it was
offered for sale,” he said. “The value is really on the land and the engines
that can provide ancillary service.”
With the rehabilitation, TPVI
expects two units to be operational by February 2019 and the remaining units by
the second half of next year.
“My goal is to have one available by
December but safely two units by February 2019 and then middle of 2019 all six
units operational,” Rubio said.
There are no immediate plans to
expand the NPPC capacity since another power facility of the company, also in
Cebu, will be operational soon.
“I want to make sure that we service
the ancillary service requirements and I am commissioning a 300-MW
plant down the road. So, I want to make sure that NPPC serves a different
purpose than the one in Toledo,” explained Rubio, who was referring to the
340-MW Therma Visayas baseload power plant in Toledo City, Cebu.
NPPC was turned over to TPVI after
it offered a bid of P1.088 billion. However, SPC Power Corp. exercised its
right to top and matched the bid with an additional P54 million or a total of
P1.143 billion.
The government, through the Power
Sector Assets and Liabilities Management Corp. (PSALM), awarded
the contract to SPC Power despite TPVI’s objections.
A petition with the Supreme Court
was then filed seeking to enjoin PSALM from awarding the Naga plant on the
grounds that SPC’s right to top was void. The High Tribunal reinstated the
notice of award to TPVI.
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