Business Mirror
WEDNESDAY, 04 JANUARY 2012 22:31 MAX V. DE LEON / REPORTER
FILIPINO businessmen expect the economy to withstand external shocks and perform better this year as long as the government adopts more flexible policies responsive to the needs of investors and help them rise through challenges.
They cited the high cost of power and red tape.
The Philippine Chamber of Commerce and Industry (PCCI), the country’s biggest business association consisting of more than 35,000 enterprises, said the government must be more supportive of business to cushion the domino effect of the European debts crisis and sluggish growth in the American economy.
“While we have developed a relatively strong domestic base for our economy to be less affected by the global financial crisis, the fact remains that we are still dependent on our trade partners to sustain our economic growth and develop our industries. The way to make us more competitive is for government to adopt flexible policies promoting long-term investments and economic stability,” Miguel Varela, newly elected PCCI president, said in a statement.
Varela said a lot of work must be done so the country can attract more investors just like Southeast Asian giants Thailand, Vietnam and Indonesia.
He said the government should do away with regulations and practices “that tend as disincentive [to] investors rather than promote industry development.”
“We need to look deeper on how we can adopt a more flexible environment for these investments to thrive. Power is a major obstacle and we need to work significantly hard in reforming our power sector and opening it up to more competition. We also need to look into how government regulations, especially the ones related to labor, environment, taxation and trade facilitation affect the flow and expansion of investments,” he said.
Varela noted that the country is doing its best to improve its competitiveness rankings, with the cost and ease of doing business—from opening an enterprise to closing one—remains significantly challenging.
Improvements, he said, are still needed in the areas of lowering the transaction costs and time involved in opening and closing a business.
“We also need to encourage greater coordination between our national government agencies and local government units to harmonize their process benefiting small and large enterprises alike. Part of PCCI’s engagement will involve greater participation by our local chamber and industry associations in the creation of one-stop as well as helpdesks and assistance centers for investors,” Varela said.
On the legislative side, Varela said the PCCI and foreign and local business chambers have been keenly awaiting the passage of several laws that are important for the private sector.
Among these are the rationalization of the fiscal incentives; anti-smuggling and customs modernization bills; amendments to the build-operate-transfer law; creation of the departments of Information Technology and Housing; competition policy and antitrust; amendments to the common carriers tax; land use and land administration reform; fiscal Responsibility; and freedom of information.
“PCCI vows to engage both the House of Representative and Senate in enacting business-friendly laws that support our common drive for economic advancement while taking advantage of the benefits of trade liberalization. These set of legislation, as we have already discussed with Congress, will serve as an important step in attraction new investments into the country,” he said.
The group, under its “PCCI Invest 2012,” aims to mainstream reform programs on significant and critical investment drivers that need public-private collaboration.
It is also pushing its “Investment Dozen Drivers” program where it seeks to help the government in attracting investments to 12 priority sectors, such as: agribusiness, business-process outsourcing, mining, tourism, home decor and lifestyle, shipbuilding, housing, construction and infrastructure, education, research and development and training, creative industries, electronics, transport equipment, and logistics.
“In these sectors, I also note our strong comparative advantage within the realm of Asean integration and inflow of foreign direct investments. PCCI Invest 2012 aims to cultivate PCCI’s rich and longstanding legacy and expertise in economic policy, trade and business services, and public-private partnership mechanisms. As an evolving theme, we will proactively seek government’s attention, proposals and input to strengthen collaboration and actively promote the readiness of the economy for more investments and trade,” Varela said.
Wednesday, January 4, 2012
Rotating power outage to hit SW Mindanao
By Bong S. Sarmiento | Thursday| January 5, 2012
GENERAL SANTOS CITY (MindaNews/04 January)—With the power situation in Mindanao under “Red Alert” status, a rotating power interruption is expected to hit this city and neighboring provinces as the projected supply deficiency continues to worsen on Wednesday.
Joy Celeste Alora, information officer of the South Cotabato Electric Cooperative II, said the Mindanao grid has insufficient supply due to the reduced generation capacity of the National Power Corp.
NPC operates hydropower plants that provide over half of the island’s power supply.
“SOCOTECO II will implement rotating brownouts lasting for 45 minutes to an hour in its franchise area,” Alora said in a radio interview.
“Unless there will be new power producers, supply won’t become stable. Our power supply is now in a precarious situation because of ageing power plants,” she added.
SOCOTECO II serves this city, the whole of Sarangani province (seven towns) and Polomolok and Tupi in South Cotabato, or SOCSARGEN.
The power generation deficiency in Mindanao has prompted the National Grid Corp. of the Philippines (NGCP) to resort to load curtailment in the last few days.
Based on the NGCP outlook as of 6 a.m. Wednesday, the island’s system capacity stood at 1192 megawatts (MW).
The projected peak load was pegged at 1269 MW, hence a deficiency of 77 MW or a 92% increase from Tuesday’s shortfall of only 6 MW.
In effect, the deficiency puts Mindanao’s power system condition under “Red Alert” status.
“Red Alert” refers to the system condition where the contingency reserve is zero or a generation deficiency exists, NGCP explained in an earlier statement.
Mindanao was placed last November under “Yellow Alert,” a system condition where the total of all reserves is less than 13.2% of the required capacity.
When system reserves are more than sufficient to meet the reserve requirements of the grid, the system is considered to be under normal condition.
The system alert, and the corresponding power curtailment, if any, is lifted once demand recedes or once there is enough available capacity coming into the grid from the power plants.
In a phone interview, Milfrance Capulong, NGCP communications officer for Mindanao, said the generation deficiency experienced in the Southern Philippines started last January 1.
However, she declined to give details when asked for the reasons of the generation deficiency reportedly from the NPC, saying she’s not privy to such matters.
But Capulong noted that power demand in Mindanao is on a rising trend, thus helping strain the supply.
She could not say until when the NGCP, the private operator of the country’s power transmission network, would implement the load curtailment on electric distributors across the island.
Capulong also stressed the need to put in place additional power generation facilities to serve the growing needs of the island.
To date at least, three companies—Aboitiz Power Corp., Sarangani Energy Corp., and San Miguel Corp.—have bared plans to put up coal power plants in different locations in Mindanao.
These coal-fired power plant projects, however, have been facing resistance on concerns over human health and the environment. (Bong Sarmiento/MindaNews)
GENERAL SANTOS CITY (MindaNews/04 January)—With the power situation in Mindanao under “Red Alert” status, a rotating power interruption is expected to hit this city and neighboring provinces as the projected supply deficiency continues to worsen on Wednesday.
Joy Celeste Alora, information officer of the South Cotabato Electric Cooperative II, said the Mindanao grid has insufficient supply due to the reduced generation capacity of the National Power Corp.
NPC operates hydropower plants that provide over half of the island’s power supply.
“SOCOTECO II will implement rotating brownouts lasting for 45 minutes to an hour in its franchise area,” Alora said in a radio interview.
“Unless there will be new power producers, supply won’t become stable. Our power supply is now in a precarious situation because of ageing power plants,” she added.
SOCOTECO II serves this city, the whole of Sarangani province (seven towns) and Polomolok and Tupi in South Cotabato, or SOCSARGEN.
The power generation deficiency in Mindanao has prompted the National Grid Corp. of the Philippines (NGCP) to resort to load curtailment in the last few days.
Based on the NGCP outlook as of 6 a.m. Wednesday, the island’s system capacity stood at 1192 megawatts (MW).
The projected peak load was pegged at 1269 MW, hence a deficiency of 77 MW or a 92% increase from Tuesday’s shortfall of only 6 MW.
In effect, the deficiency puts Mindanao’s power system condition under “Red Alert” status.
“Red Alert” refers to the system condition where the contingency reserve is zero or a generation deficiency exists, NGCP explained in an earlier statement.
Mindanao was placed last November under “Yellow Alert,” a system condition where the total of all reserves is less than 13.2% of the required capacity.
When system reserves are more than sufficient to meet the reserve requirements of the grid, the system is considered to be under normal condition.
The system alert, and the corresponding power curtailment, if any, is lifted once demand recedes or once there is enough available capacity coming into the grid from the power plants.
In a phone interview, Milfrance Capulong, NGCP communications officer for Mindanao, said the generation deficiency experienced in the Southern Philippines started last January 1.
However, she declined to give details when asked for the reasons of the generation deficiency reportedly from the NPC, saying she’s not privy to such matters.
But Capulong noted that power demand in Mindanao is on a rising trend, thus helping strain the supply.
She could not say until when the NGCP, the private operator of the country’s power transmission network, would implement the load curtailment on electric distributors across the island.
Capulong also stressed the need to put in place additional power generation facilities to serve the growing needs of the island.
To date at least, three companies—Aboitiz Power Corp., Sarangani Energy Corp., and San Miguel Corp.—have bared plans to put up coal power plants in different locations in Mindanao.
These coal-fired power plant projects, however, have been facing resistance on concerns over human health and the environment. (Bong Sarmiento/MindaNews)
Mindanao short of 100 MW of power
Business Mirror
WEDNESDAY, 04 JANUARY 2012 19:46 BUTCH D. ENERIO / REPORTER
CAGAYAN DE ORO CITY—The Mindanao power grid will be short by about 100 Megawatts (MW) in the next few days owing to increasing consumer demand and low production coming from the Agus-Pulangi hydro power complex.
System operator National Grid Corp. of the Philippines (NGCP) on Wednesday issued a “red alert” notice for the grid, advising distribution utilities to expect as much as 100 MW power curtailment Mindanao-wide, especially during peak hours.
Mindanao consumes around 1,400 MW of power during peak hours.
The diesel power plants of Therma Marine Inc. in Nasipit, Agusan del Sur and Maco, Compostela Valley are expected to fill in the shortage especially for distribution utilities that signed with the facility for backup power.
Aboitiz Power (AP) said in a statement that other distribution companies like Davao Light and Power Co. will not be much affected since its embedded power plants like its diesel complex in Bajada, Davao City and the Sibulan run-of-river hydropower plant of Hedcor Inc. in Sta Cruz, Davao del Sur, provide much-needed energy for its customers.
Production from the Agus-Pulangi complex in Lanao and Bukidnon continued to be affected by low rainfall and lack of maintenance of the facility resulting to “generation deficiency.”
According to the NGCP, while the installed capacity of the seven power plants in the complex is 982 MW, the peak capacity is only 725 MW.
AP is proposing to build a 300-MW coal-fired power plant in southern Davao City to address the current shortage and the future needs for power in Mindanao.
Manuel Orig, first vice president for Mindanao Affairs of AP, said the facility is aimed at providing reliable and affordable power to the grid without being climate- and weather-dependent.
WEDNESDAY, 04 JANUARY 2012 19:46 BUTCH D. ENERIO / REPORTER
CAGAYAN DE ORO CITY—The Mindanao power grid will be short by about 100 Megawatts (MW) in the next few days owing to increasing consumer demand and low production coming from the Agus-Pulangi hydro power complex.
System operator National Grid Corp. of the Philippines (NGCP) on Wednesday issued a “red alert” notice for the grid, advising distribution utilities to expect as much as 100 MW power curtailment Mindanao-wide, especially during peak hours.
Mindanao consumes around 1,400 MW of power during peak hours.
The diesel power plants of Therma Marine Inc. in Nasipit, Agusan del Sur and Maco, Compostela Valley are expected to fill in the shortage especially for distribution utilities that signed with the facility for backup power.
Aboitiz Power (AP) said in a statement that other distribution companies like Davao Light and Power Co. will not be much affected since its embedded power plants like its diesel complex in Bajada, Davao City and the Sibulan run-of-river hydropower plant of Hedcor Inc. in Sta Cruz, Davao del Sur, provide much-needed energy for its customers.
Production from the Agus-Pulangi complex in Lanao and Bukidnon continued to be affected by low rainfall and lack of maintenance of the facility resulting to “generation deficiency.”
According to the NGCP, while the installed capacity of the seven power plants in the complex is 982 MW, the peak capacity is only 725 MW.
AP is proposing to build a 300-MW coal-fired power plant in southern Davao City to address the current shortage and the future needs for power in Mindanao.
Manuel Orig, first vice president for Mindanao Affairs of AP, said the facility is aimed at providing reliable and affordable power to the grid without being climate- and weather-dependent.
Aboitiz inks power supply deal with steel company
Manila Times.net
Published : Wednesday, January 04, 2012 00:00 Written by : Euan Paulo C. Añonuevo
Aboitiz Power Corp. (AP) has signed a long-term power supply deal with Melters Steel Corp. (MSC).
In a statement, AP said that the company, through wholly owned Therma Luzon Inc. (TLI) and MSC inked a 20-year power supply agreement.
“We are confident that through this long term partnership, [MSC] will be in a better position to compete in the steel manufacturing industry,” Ricardo Lim, MSC general manager, said.
Under the deal, TLI will provide 40 megawatts of power to MSC’s smelting plant in San Simon, Pampanga at an undisclosed rate. MSC is a steel smelting company that produces steel billets from recycled metals.
TLI, on the other hand, administers the output of the 700-megawatt Pagbila coal-fired power plant, which is operated by TeaM Energy Corp.
The former acquired the contracted ouput of the generating facility through the government auction block.
“[AP] is pleased to partner with [MSC] to provide [the company] with the reliable energy that will power up and grow their business,” Luis Miguel Aboitiz, AP senior vice president for trading and marketing, said.
AP is the holding company for the Aboitiz Group’s investments in power generation, distribution, retail and power services.
Published : Wednesday, January 04, 2012 00:00 Written by : Euan Paulo C. Añonuevo
Aboitiz Power Corp. (AP) has signed a long-term power supply deal with Melters Steel Corp. (MSC).
In a statement, AP said that the company, through wholly owned Therma Luzon Inc. (TLI) and MSC inked a 20-year power supply agreement.
“We are confident that through this long term partnership, [MSC] will be in a better position to compete in the steel manufacturing industry,” Ricardo Lim, MSC general manager, said.
Under the deal, TLI will provide 40 megawatts of power to MSC’s smelting plant in San Simon, Pampanga at an undisclosed rate. MSC is a steel smelting company that produces steel billets from recycled metals.
TLI, on the other hand, administers the output of the 700-megawatt Pagbila coal-fired power plant, which is operated by TeaM Energy Corp.
The former acquired the contracted ouput of the generating facility through the government auction block.
“[AP] is pleased to partner with [MSC] to provide [the company] with the reliable energy that will power up and grow their business,” Luis Miguel Aboitiz, AP senior vice president for trading and marketing, said.
AP is the holding company for the Aboitiz Group’s investments in power generation, distribution, retail and power services.
Aboitiz unit inks deal with smelter
By Donnabelle L. Gatdula (The Philippine Star) Updated January 04, 2012 12:00 AM
MANILA, Philippines - Therma Luzon Inc. (TLI), a wholly-owned subsidiary of Aboitiz Power Corp. (APC), has entered into a 20-year power supply agreement with Pampanga-based Melters Steel Corp. (MSC).
The contract, which took effect last Dec. 26, involves.
TLI’s provision of 40 megawatts (MW) of reliable, stable and affordable power to MSC’s smelting plant in San Simon, Pampanga.
MSC is a steel smelting company that produces steel billets from recycled metals.
APC senior vice president for trading and marketing Luis Miguel Aboitiz said their partnership with MSC will provide it with the reliable energy that will power up and grow its business.
MSC is looking forward to a long and mutually beneficial partnership with APC. We are confident that through this long term partnership, MSC will be in a better position to compete in the steel manufacturing industry,” MSC general manager Ricardo Lim said.
APC is the holding company for the Aboitiz Group’s investments in power generation, distribution, retail and power services.
It is a major producer of Cleanergy, its brand for clean and renewable energy in the Philippines with several hydroelectric and geothermal assets in its generation portfolio, and also has non-renewable power plants located across the country.
The company owns distribution utilities that operate in high-growth areas in Luzon, Visayas and Mindanao.
MANILA, Philippines - Therma Luzon Inc. (TLI), a wholly-owned subsidiary of Aboitiz Power Corp. (APC), has entered into a 20-year power supply agreement with Pampanga-based Melters Steel Corp. (MSC).
The contract, which took effect last Dec. 26, involves.
TLI’s provision of 40 megawatts (MW) of reliable, stable and affordable power to MSC’s smelting plant in San Simon, Pampanga.
MSC is a steel smelting company that produces steel billets from recycled metals.
APC senior vice president for trading and marketing Luis Miguel Aboitiz said their partnership with MSC will provide it with the reliable energy that will power up and grow its business.
MSC is looking forward to a long and mutually beneficial partnership with APC. We are confident that through this long term partnership, MSC will be in a better position to compete in the steel manufacturing industry,” MSC general manager Ricardo Lim said.
APC is the holding company for the Aboitiz Group’s investments in power generation, distribution, retail and power services.
It is a major producer of Cleanergy, its brand for clean and renewable energy in the Philippines with several hydroelectric and geothermal assets in its generation portfolio, and also has non-renewable power plants located across the country.
The company owns distribution utilities that operate in high-growth areas in Luzon, Visayas and Mindanao.
Tuesday, January 3, 2012
Mindanao suffers from load curtailment due to supply shortfall
By Bong S. Sarmiento | Wednesday| January 4, 2012
KORONADAL CITY (MindaNews/3 Jan) – Power supply in Mindanao have fallen below the system capacity due to generation deficiency for two days already, an official from the National Grid Corp. of the Philippines said on Tuesday.
Milfrance Capulong, NGCP communications officer for Mindanao, said that lack of supply during the system peak in the island would lead to a load curtailment.
“Load curtailment grid-wide is 50 MW [megatwatts] based on the December 2011 load to maintain matrix of NPC/PSALM [National Power Corp./ Power Sector Assets and Liabilities Management(PSALM) Corp.,” she said in a text advisory.
Capulong said the Mindanao grid would have experienced load curtailment from 2 to 5:30 p.m. Tuesday due to insufficient contingency reserve caused by the generation deficiency.
However, she did not say what was the reason for the generation deficiency; whether it was caused by maintenance shutdown of plants of power companies, reduced capacities of others, or rising demand these days.
NGCP does not produce power supply but is the private operator of the nation’s power transmission network.
Based on the NGCP website, the power outlook for Mindanao as of 6 a.m. Tuesday showed that it has a system capacity of 1235 MW.
But the system peak was pegged 1241 MW, or a deficiency of 6 MW, it added.
Such figures basically put Mindanao’s power system condition under “Red Alert” status.
“Red Alert” refers to the system condition when the contingency reserve is zero or a generation deficiency exists, NGCP explained in an earlier statement.
Mindanao was placed last November under “Yellow Alert,” a system condition where total of all reserves is less than 13.2 percent of the required capacity.
When system reserves are more than sufficient to meet the reserve requirements of the grid, the system is considered to be under normal condition.
The system alert, and the corresponding power curtailment, if any, is lifted once demand recedes or once there is enough available capacity coming into the grid from the power plants.
On Monday, Capulong said the Mindanao grid also suffered a load curtailment for the evening peak from 5:30 p.m. to 8 p.m.
The load curtailment grid-wide was also 50 MW due to insufficient contingency reserve caused by a generation deficiency, she said.
In this city, the seat of government of Region 12, a power outage occurred for a brief period Monday evening.
During periods of generation deficiency, NGCP implements the Mindanao grid-wide power load curtailment to maintain the power grid’s security and reliability.
“It is NGCP’s obligation under the law and its franchise to ensure that the grid operates at an optimum level with due consideration for safety, security and reliability,” NGCP spokesperson Cynthia Perez-Alabanza said in an earlier statement. (Bong S. Sarmiento / MindaNews)
KORONADAL CITY (MindaNews/3 Jan) – Power supply in Mindanao have fallen below the system capacity due to generation deficiency for two days already, an official from the National Grid Corp. of the Philippines said on Tuesday.
Milfrance Capulong, NGCP communications officer for Mindanao, said that lack of supply during the system peak in the island would lead to a load curtailment.
“Load curtailment grid-wide is 50 MW [megatwatts] based on the December 2011 load to maintain matrix of NPC/PSALM [National Power Corp./ Power Sector Assets and Liabilities Management(PSALM) Corp.,” she said in a text advisory.
Capulong said the Mindanao grid would have experienced load curtailment from 2 to 5:30 p.m. Tuesday due to insufficient contingency reserve caused by the generation deficiency.
However, she did not say what was the reason for the generation deficiency; whether it was caused by maintenance shutdown of plants of power companies, reduced capacities of others, or rising demand these days.
NGCP does not produce power supply but is the private operator of the nation’s power transmission network.
Based on the NGCP website, the power outlook for Mindanao as of 6 a.m. Tuesday showed that it has a system capacity of 1235 MW.
But the system peak was pegged 1241 MW, or a deficiency of 6 MW, it added.
Such figures basically put Mindanao’s power system condition under “Red Alert” status.
“Red Alert” refers to the system condition when the contingency reserve is zero or a generation deficiency exists, NGCP explained in an earlier statement.
Mindanao was placed last November under “Yellow Alert,” a system condition where total of all reserves is less than 13.2 percent of the required capacity.
When system reserves are more than sufficient to meet the reserve requirements of the grid, the system is considered to be under normal condition.
The system alert, and the corresponding power curtailment, if any, is lifted once demand recedes or once there is enough available capacity coming into the grid from the power plants.
On Monday, Capulong said the Mindanao grid also suffered a load curtailment for the evening peak from 5:30 p.m. to 8 p.m.
The load curtailment grid-wide was also 50 MW due to insufficient contingency reserve caused by a generation deficiency, she said.
In this city, the seat of government of Region 12, a power outage occurred for a brief period Monday evening.
During periods of generation deficiency, NGCP implements the Mindanao grid-wide power load curtailment to maintain the power grid’s security and reliability.
“It is NGCP’s obligation under the law and its franchise to ensure that the grid operates at an optimum level with due consideration for safety, security and reliability,” NGCP spokesperson Cynthia Perez-Alabanza said in an earlier statement. (Bong S. Sarmiento / MindaNews)
Consunji eyes remote power grids of Napocor
Manila Standard Today
by Alena Mae S. Flores
DMCI Power Corp. has expressed interest in the privatization of power generation in some areas covered by National Power Corp.’s Small Power Utilities Group, a company official said Monday.
“Our focus this year is on [Napocor] SPUG areas. We will bid as much as possible,” DMCI Power chairman Isidro Consunji said.
Napocor, through its SPUG division, is looking at privatizing the power requirements of Mindoro and Palawan in the first quarter of the year.
The competitive selection process for Napocor-SPUG’s off-grid areas is part of the major reforms in the power sector. It gives private investors an opportunity to build, own and operate generation facilities to supply the missionary or far-flung areas not covered by major grids.
The Electric Power Industry Reform Act has tasked Napocor-SPUG to provide electricity to remote islands and far-flung, inland barangays that are not connected to any of the main grids after around 90 percent of its generating assets have been privatized.
Napocor president Froilan Tampinco said earlier the agency planned to offer the remaining 12 SPUG areas to private power companies.
There were 14 SPUG areas previously offered for private sector participation, namely Occidental Mindoro, Oriental Mindoro, Marinduque, Palawan, Catanduanes, Bantayan, Masbate, Tablas, Romblon, Camotes, Siquijor, Tawi-Tawi, Basilan and Sulu.
“Out of the 14, actually our concentration is on 12 areas only. Two areas are relatively successful and that’s Bantayan and Masbate. So we will offer the remaining 12, and our first thrust will be Mindoro and Palawan,” Tampinco said.
DMCI president Nestor Dadivas said the company would look at three areas up for privatization, namely Palawan, Mindoro and Catanduanes.
by Alena Mae S. Flores
DMCI Power Corp. has expressed interest in the privatization of power generation in some areas covered by National Power Corp.’s Small Power Utilities Group, a company official said Monday.
“Our focus this year is on [Napocor] SPUG areas. We will bid as much as possible,” DMCI Power chairman Isidro Consunji said.
Napocor, through its SPUG division, is looking at privatizing the power requirements of Mindoro and Palawan in the first quarter of the year.
The competitive selection process for Napocor-SPUG’s off-grid areas is part of the major reforms in the power sector. It gives private investors an opportunity to build, own and operate generation facilities to supply the missionary or far-flung areas not covered by major grids.
The Electric Power Industry Reform Act has tasked Napocor-SPUG to provide electricity to remote islands and far-flung, inland barangays that are not connected to any of the main grids after around 90 percent of its generating assets have been privatized.
Napocor president Froilan Tampinco said earlier the agency planned to offer the remaining 12 SPUG areas to private power companies.
There were 14 SPUG areas previously offered for private sector participation, namely Occidental Mindoro, Oriental Mindoro, Marinduque, Palawan, Catanduanes, Bantayan, Masbate, Tablas, Romblon, Camotes, Siquijor, Tawi-Tawi, Basilan and Sulu.
“Out of the 14, actually our concentration is on 12 areas only. Two areas are relatively successful and that’s Bantayan and Masbate. So we will offer the remaining 12, and our first thrust will be Mindoro and Palawan,” Tampinco said.
DMCI president Nestor Dadivas said the company would look at three areas up for privatization, namely Palawan, Mindoro and Catanduanes.
Privatization of Mindanao hydro-power plants feared
By Lady Opada Philippine Star Updated January 03, 2012 03:12 PM
ILIGAN CITY, Philippines – Power consumers in Mindanao feared the looming privatization of the major hydro-power plants in southern Philippines, the source of the more than 50 percent energy requirement in the area.
This after Republic Act No. 9136, also known as The Electric Power Industry Reform Act (EPIRA), provided that all power generation assets of the government operated by the National Power Corporation shall be disposed and privatized after 10 years of the law’s effectivity.
The EPIRA law was enacted in June 2001 and its first 10-year implementation expired in June 2011, rendering Mindanao’s major power plants – the Pulangi (Bukidon) and Agus (Lanao) Complexes – into the verge of privatization.
LANECO launches no-to-privatization drive
For its part, the Lanao del Norte Electric Cooperative (LANECO) spearheaded a campaign since 2010 opposing the looming privatization, citing that the move will aggravate hostility among the people within the affected communities.
Several municipalities within LANECO’s service areas, which included the towns of Kauswagan, Bacolod, Maigo, Lala, Kapatagan and Sultan Naga Dimaporo, issued resolutions opposing the privatization of the Agus hydropower plants in Lanao areas.
The entire Mindanao power stakeholders also expressed strong opposition on the privatization move during a consultation dialogue in Cagayan de Oro City in May last year. At the event, the Joint Congressional Power Commission headed by Senator Chiz Escudero and Batanes Rep. Hemedina Abad assured that the issue will be properly addressed in Congress.
In a position paper, the Association of Mindanao Rural Electric Cooperatives, Inc. (AMRECO) said the move will result to the loss of economic competitiveness of the Mindanao power supply sector, citing that companies that are energy-intensive will suffer the biggest consequences.
“Keeping the status quo of the hydro-power plants will provide a healthy competition in the power generation sector,” the group added, while citing that privatization will only promote monopoly and will discourage other players to participate in the energy investment arena.
Worse, the primary benefactors of the development of the natural resources will suffer instead, which will probably magnify the problems on security and peace and order in Mindanao, the group pointed out.
While present administration remained silent on the issue, the group called on President Benigno Aquino III for the deferment of the privatization of the NPC-operated hydro-power plants in Mindanao.
ILIGAN CITY, Philippines – Power consumers in Mindanao feared the looming privatization of the major hydro-power plants in southern Philippines, the source of the more than 50 percent energy requirement in the area.
This after Republic Act No. 9136, also known as The Electric Power Industry Reform Act (EPIRA), provided that all power generation assets of the government operated by the National Power Corporation shall be disposed and privatized after 10 years of the law’s effectivity.
The EPIRA law was enacted in June 2001 and its first 10-year implementation expired in June 2011, rendering Mindanao’s major power plants – the Pulangi (Bukidon) and Agus (Lanao) Complexes – into the verge of privatization.
LANECO launches no-to-privatization drive
For its part, the Lanao del Norte Electric Cooperative (LANECO) spearheaded a campaign since 2010 opposing the looming privatization, citing that the move will aggravate hostility among the people within the affected communities.
Several municipalities within LANECO’s service areas, which included the towns of Kauswagan, Bacolod, Maigo, Lala, Kapatagan and Sultan Naga Dimaporo, issued resolutions opposing the privatization of the Agus hydropower plants in Lanao areas.
The entire Mindanao power stakeholders also expressed strong opposition on the privatization move during a consultation dialogue in Cagayan de Oro City in May last year. At the event, the Joint Congressional Power Commission headed by Senator Chiz Escudero and Batanes Rep. Hemedina Abad assured that the issue will be properly addressed in Congress.
In a position paper, the Association of Mindanao Rural Electric Cooperatives, Inc. (AMRECO) said the move will result to the loss of economic competitiveness of the Mindanao power supply sector, citing that companies that are energy-intensive will suffer the biggest consequences.
“Keeping the status quo of the hydro-power plants will provide a healthy competition in the power generation sector,” the group added, while citing that privatization will only promote monopoly and will discourage other players to participate in the energy investment arena.
Worse, the primary benefactors of the development of the natural resources will suffer instead, which will probably magnify the problems on security and peace and order in Mindanao, the group pointed out.
While present administration remained silent on the issue, the group called on President Benigno Aquino III for the deferment of the privatization of the NPC-operated hydro-power plants in Mindanao.
SouthCot to accept P25M donation for hospital project from SMC
By Bong S. Sarmiento | Tuesday| January 3, 2012
KORONADAL CITY (MindaNews/2 Jan) – Despite the ban on open-pit mining, the Sangguniang Panlalawigan of South Cotabato has granted Gov. Arthur Pingoy Jr. an authority to accept a P25-million donation from San Miguel Corp. for a hospital project even as San Miguel is eyeing a massive coal deposit in Lake Sebu town that can likely be done only using the open-pit mining method.
Vice Gov. Elmo Tolosa said the donation for the construction of a provincial hospital annex “won’t have a bearing” on the implementation of the controversial environment code that prohibits open-pit mining.
“There will be no special favors to the company even with their donation,” Tolosa said, adding the contribution was in line with the firm’s corporate social responsibility.
Pingoy was expected to sign with officials of San Miguel the agreement for the donation within the month.
In a statement, he said the provincial hospital annex in Surallah town is targeted to initially open late in 2012.
San Miguel, Pingoy added, had raised its donation from P15 million to P25 million, and that the firm will be responsible for the construction works for that amount of money instead of the provincial government.
The provincial government has solicited an initial P53 million to jumpstart the hospital, with the P28 million coming from the Department of Health under its Health Facilities Enhancement program.
The Surallah government offered the lot for the medical facility, which would serve patients from the upper valley portions of the province such as Lake Sebu, T’boli, Sto. Niño, Norala and Banga.
It is expected to ease the load of the long-existing provincial hospital in this city serving indigent patients.
Pingoy said the total project cost for the provincial hospital annex could reach P145 million, and that the province will look for more funding for its completion.
Earlier, the governor repeatedly vowed to implement the open-pit ban unless the court nullifies it or the Sangguniang Panlalawigan lifts it.
Requests to lift the ban from pro-mining groups remained pending before the provincial legislative body.
Aside from San Miguel’s coal mining project, the open pit ban poses a risk to the $5.9-billion Tampakan copper-gold project of Sagittarius Mines, Inc., which is controlled by Xstrata Copper, the world’s fourth largest copper producer.
In 2010, San Miguel president Ramon S. Ang announced the company’s plan to venture in a 300-megawatt coal-fired power plant in Region 12.
In line with that, the giant company has acquired the tenements of three coal mining companies, namely, Daguma Agro Minerals Inc., Bonanza Energy Resources Inc. and Sultan Energy Philippines Corp.
Studies showed that Daguma Mountain Range has a coal reserve of 426 million metric tons. Initial exploration and drilling have blocked 55 million metric tons of minable reserves in 526 hectares of the mountain range in Barangay Ned.
Barangay Ned, reportedly a watershed area, is a government-designated relocation site. (Bong S. Sarmiento / MindaNews)
KORONADAL CITY (MindaNews/2 Jan) – Despite the ban on open-pit mining, the Sangguniang Panlalawigan of South Cotabato has granted Gov. Arthur Pingoy Jr. an authority to accept a P25-million donation from San Miguel Corp. for a hospital project even as San Miguel is eyeing a massive coal deposit in Lake Sebu town that can likely be done only using the open-pit mining method.
Vice Gov. Elmo Tolosa said the donation for the construction of a provincial hospital annex “won’t have a bearing” on the implementation of the controversial environment code that prohibits open-pit mining.
“There will be no special favors to the company even with their donation,” Tolosa said, adding the contribution was in line with the firm’s corporate social responsibility.
Pingoy was expected to sign with officials of San Miguel the agreement for the donation within the month.
In a statement, he said the provincial hospital annex in Surallah town is targeted to initially open late in 2012.
San Miguel, Pingoy added, had raised its donation from P15 million to P25 million, and that the firm will be responsible for the construction works for that amount of money instead of the provincial government.
The provincial government has solicited an initial P53 million to jumpstart the hospital, with the P28 million coming from the Department of Health under its Health Facilities Enhancement program.
The Surallah government offered the lot for the medical facility, which would serve patients from the upper valley portions of the province such as Lake Sebu, T’boli, Sto. Niño, Norala and Banga.
It is expected to ease the load of the long-existing provincial hospital in this city serving indigent patients.
Pingoy said the total project cost for the provincial hospital annex could reach P145 million, and that the province will look for more funding for its completion.
Earlier, the governor repeatedly vowed to implement the open-pit ban unless the court nullifies it or the Sangguniang Panlalawigan lifts it.
Requests to lift the ban from pro-mining groups remained pending before the provincial legislative body.
Aside from San Miguel’s coal mining project, the open pit ban poses a risk to the $5.9-billion Tampakan copper-gold project of Sagittarius Mines, Inc., which is controlled by Xstrata Copper, the world’s fourth largest copper producer.
In 2010, San Miguel president Ramon S. Ang announced the company’s plan to venture in a 300-megawatt coal-fired power plant in Region 12.
In line with that, the giant company has acquired the tenements of three coal mining companies, namely, Daguma Agro Minerals Inc., Bonanza Energy Resources Inc. and Sultan Energy Philippines Corp.
Studies showed that Daguma Mountain Range has a coal reserve of 426 million metric tons. Initial exploration and drilling have blocked 55 million metric tons of minable reserves in 526 hectares of the mountain range in Barangay Ned.
Barangay Ned, reportedly a watershed area, is a government-designated relocation site. (Bong S. Sarmiento / MindaNews)
Continuing roadblocks in energy sector: Policy delays, unresolved rate increases (Yearend Report)
Manila Bulletin
By MYRNA M. VELASCO
January 3, 2012, 8:00am
MANILA, Philippines — A deeper look at the Aquino administration’s score card in the energy sector will reveal delays – and missed targets – when it comes to policy implementations.
Think of the Renewable Energy Law, the introduction of open access and retail competition as well as the appointment of an independent market operator (IMO) for and in the setting up of reserve market at the Wholesale Electricity Spot Market (WESM). Even the most basic of all mandates bestowed unto the Department of Energy – the Philippine Energy Plan (PEP), is still conspicuously missing.
To be fair, the department and its attached agencies may already have some modest gains for now. There are myriads of circulars that have been issued and feasibility studies consigned with various multinational firms. It’s about time though to test the viability of everything that was ‘put on paper’ to assess if they can really translate into investment dollars (or billions of pesos capital flow, if you will).
UC-induced rate hikes
Energy officials have been rocked with criticisms and questions if the current administration has any determined policy to bring down electricity rates.
The answer given by Energy Secretary Rene D. Almendras rests more on long-term perspectives and on the private sector’s willingness to stake more capital for new power projects – so when supply will be abundant, it is hoped that electricity rate offers will also thrive lower, especially with the much-anticipated advent of competition in the restructured power industry.
The more worrisome prospect for consumers at this point though is the P140 billion filing of the Power Sector Assets and Liabilities Management Corporation (PSALM) on its bid to recover universal charges (UC) for its stranded debts and stranded contract costs. When approved by the regulator and reflected in the bills, it will redound to an added cost of P0.39 per kilowatt hour.
The sad scenario is, the consumers will just be made to swallow the bitter pill of paying those liabilities without them getting properly apprised of what kind of financial mess PSALM has really gotten into – or to be more exact, what really happened to the privatization proceeds on the disposal of the National Power Corporation’s assets and contracts.
A review of PSALM’s financial status was previously mandated, yet there’s really nothing that came out of that process. No one can blame the Filipino people then if they feel that they have fallen victims to the faulty promise of industry reforms – if corruption, by practice or design, is not really part of the equation.
“The good news is we have options,” Mr. Almendras would say, as he bared plans of tugging their way into getting the approval of the Joint Congressional Power Commission (JCPC) to exempt lifeline rate users (or marginalized consumers just within the zero to 50 kilowatt hour consumption brackets) from paying the PSALM-UC charges. That solution though will just transfer the bigger burden to the pocket of the higher-volume consumers.
The DoE milestones
Certainly, the energy secretary and his team can latch on to a number of milestone accomplishments – such as the launching of the Philippine Energy Contracting Round (PECR-4) for coal; and soon, for upstream oil and gas investments. And during the era of soaring oil prices as an aftermath of the nuclear incident-triggered energy crisis in Japan, the DoE came up with its own “Pantawid Pasada Program” (or the Public Transport Assistance Program), as a subsidy scheme which intended to aid financially-ailing drivers cope with the run-up in prices at the gas pumps.
These are core components of the department’s self-designed Energy Reform Agenda (ERA) which has been anchored on six key thrusts: expanding the use of renewable energy, accelerating petroleum and coal explorations; making energy efficiency a way of life for Filipinos; strict monitoring of oil prices and supply; promoting the use of clean alternative fuels and technologies; and improving transport sector efficiency.
‘Energy efficiency’ has so far been vaulting ahead as a ‘buzzword’ given the sharp focus that Mr. Almendras has been giving in advancing the policy – primarily in the ‘retrofit’ of government buildings so they can pare peso payments in their electric bills. However, for energy efficiency to actually reach the doorsteps of every household, the DoE may need to accomplish more on the sphere of ‘information dissemination and consumer education.’
A renewed push on alternative fuels, such as the pilot deployment of electric tricycles and other e-vehicles as well as the aggressive investment push on natural gas investments, are also etching their mark in the Aquino administration’s energy policies.
For all these, the bonus of course, will be the benefit for the environment. Less energy consumed and/ or a switch to cleaner alternatives will redound to improvements in the country’s carbon footprints.
The energy chief is similarly keeping eye on the goal to bring household electricity connection to a hundred-percent level by 2017. For this, the annual allotment being programmed by the department through the National Electrification Administration (NEA) will be P2 billion or up to P12 billion throughout the six-year stretch of the program. It is also to the energy chief’s credit that he has been taking all the ‘harsh criticisms’ for embracing coal technology as an option to solve the country’s current baseload problems in power supply.
“DoE’s recent accomplishments ensure that the country has enough energy to support the creation of jobs, increase economic growth and improve the quality of life of the Filipinos in the coming years,” had been the re-assuring statement of the department. Quite good to see in print, but how does that translate to real-life benefits for the Filipinos remain a daunting question.
Without offense to the energy secretary, but he must also know too well that without the tangible flow of investments, any policy can just plainly be rendered a failure. And pretty sure, he will not want to leave ‘lackluster investment’ as the ultimate trace of his reign at the department.
Roadblocks in RE investments
When it comes to RE investments, there are still roadblocks at every turn. Deliberations of the feed-in-tariff (FIT) application at the Energy Regulatory Commission are still reeling from fledgling startup. No one knows exactly when the FIT charges will pass through the maze of regulatory approval, despite the fact that it is the most-awaited policy turning point by most investors.
“The government strengthened its efforts in promoting renewable energy in the country,” the energy department claims, hinging that primarily on the June 14, 2011 unveiling of the National Renewable Energy Plan.
It also wants to corner credit that it already presented the governing rules on Renewable Portfolio Standards (RPS). But has that been well-received or has it satisfactorily provided the policy frameworks that investors have been looking for? The chorus so far: it has not!
Also, investors are still fretting over ‘disconnects’ in the pronouncements of the Aquino administration’s economic team as to how policies in renewable energy investments shall be shaped. Call it a dysfunctional form of leadership, but the sharp differences in the policy declarations of other agencies, such as the Board of Investments (BoI) to that of the DoE, often suggests gap in policy support – if not lack of expertise of some policymakers. Still, these are appetite-losing propositions to investors.
Recent pronouncements on the supposed readiness of the Renewable Energy Market (REM) this year have similarly raised more questions than answers. In the first place, what capacity will be traded in the RE market when there are no investments coming in yet? Secondly, how will RE capacity be priced, since in other markets globally, they normally come with a premium or what they call the “green energy pricing”– and where are the rules? Thirdly, the procurement process (as in all government undertakings) to set up the infrastructure as well as in securing regulatory approvals will also take time. And which entity will take charge of the market – will it just be an added layer of the Wholesale Electricity Spot Market? In the other energy markets, RE capacity takes the form of added algorithms in commodity trading that can be integrated as a sub-set of the spot market. Certainly, it will be a chicken-and-egg dilemma, and the least that must happen here is for policymakers to give realistic and doable assumptions.
A gradual pace in RE investments so they will not unduly burden the consumers with sudden hike in electricity bills or technically strain the power grid would be an understandable precept. Ultimately, however, what the energy department must be careful about is letting the policy totally go down the drain – either due to flip-flopping or unresolved policy conflicts.
An assessment given by the Asian Development Bank (ADB) is quite prescriptive: “the potential increase in electricity price from this tariff (FIT) could potentially further harm the investment climate.” It added that “although high electricity prices in the Philippines make clean energy projects financially attractive, but without broad market transformation, the desired objectives of the Renewable Energy Law will be difficult to achieve. The transformation would involve adoption of large-scale new technology, more responsive regulation and consumer acceptance.”
Not so ‘open access’ to market competition
Another policy delay that has been causing a lot of consternation to energy stakeholders is the introduction of open access and retail competition – it should have been the last stretch that can advance the privatized power sector into a truly-competitive regime.
The expectation of consumers is that, they can finally exercise their “power of choice” when it comes to patronizing specific electricity suppliers. When that happens, it is also hoped that power rates will become cheaper and the offer of products and services will be of better quality and more innovative.
The promise of the energy secretary is for the department to work on the remaining issues (primarily the setting up of the required infrastructure and the contentious concerns of accounts, billing and settlements) to be resolved in the coming months so they can finally recommend to the ERC the re-declaration of open access kick-off around October this year.
The case of the missing ‘energy plan’
If there is really one thing that this administration has to be thankful for – it is coming at a time when the power sector has already been restructured – and the burden of capacity planning and investments have already been shifted to the private sector.
Otherwise, the sheer lack of planning may have already plunged this country into a new round of power crisis. Remember that the California power crisis of the past decade was partly due to poor planning of its Department of Energy? Or one that is closer to experience, the energy planning failure of the Aquino regime then which triggered the worst Philippine power crisis of the 1990s.
The current administration came into power in June 2010 – it was already given a leeway of 18 months from then. But unfortunately, there’s no updated PEP or Power Development Plan (PDP) yet that the sector can lean on to guide them with their investment plans. The PEP and PDP, in particular, are critically needed from ‘yesterday’, especially so since the country is already hanging in the balance when it comes to its power supply. It’s almost a cliché, but sometimes really, the only way to find out that there is a problem is to stumble over it.
What happened there exactly? A letter signed by 70-percent of the DOE’s Energy Policy and Planning Bureau (EPPB) and sent to Executive Secretary Paquito Ochoa Jr., which was leaked to media, may partly provide an explanation.
The EPPB rank-and-file rapped that the lack of PEP publication until now, has been primarily due to “mismanagement” and “lack of leadership” of the people who have been tasked to oversee that particular unit in the energy department. It seems though that no one gets punished or reprimanded, so it must have been an incentive for people to commit violations.
As it already reached Malacanang’s doors, the DoE attempts to soften the ‘brewing scuffle’ with this statement: “the smooth continuity of the country’s energy programs and projects are indicated in the soon-to-be published PEP which will unlock the full potential of the country’s energy resources and technologies in the next 20 years.” Oh by the way, the global trend in energy planning now is for 30 to 50 years, and must be updated annually, not when a concerned agency just feels convenient to do so.
The accomplishments of the past year, to say the least, may just have been the tip of the iceberg. Much more – and the more important ones – have to be done and be addressed squarely yet in the policy domain. It is only then that this administration can claim that it was able to lay the cornerstone of an energy-secure future.
The ‘wish list’ of the industry then is for energy officials to work and re-focus priorities on policy reforms that are critically needed now. The ‘waiting game’ has long been overdue.
By MYRNA M. VELASCO
January 3, 2012, 8:00am
MANILA, Philippines — A deeper look at the Aquino administration’s score card in the energy sector will reveal delays – and missed targets – when it comes to policy implementations.
Think of the Renewable Energy Law, the introduction of open access and retail competition as well as the appointment of an independent market operator (IMO) for and in the setting up of reserve market at the Wholesale Electricity Spot Market (WESM). Even the most basic of all mandates bestowed unto the Department of Energy – the Philippine Energy Plan (PEP), is still conspicuously missing.
To be fair, the department and its attached agencies may already have some modest gains for now. There are myriads of circulars that have been issued and feasibility studies consigned with various multinational firms. It’s about time though to test the viability of everything that was ‘put on paper’ to assess if they can really translate into investment dollars (or billions of pesos capital flow, if you will).
UC-induced rate hikes
Energy officials have been rocked with criticisms and questions if the current administration has any determined policy to bring down electricity rates.
The answer given by Energy Secretary Rene D. Almendras rests more on long-term perspectives and on the private sector’s willingness to stake more capital for new power projects – so when supply will be abundant, it is hoped that electricity rate offers will also thrive lower, especially with the much-anticipated advent of competition in the restructured power industry.
The more worrisome prospect for consumers at this point though is the P140 billion filing of the Power Sector Assets and Liabilities Management Corporation (PSALM) on its bid to recover universal charges (UC) for its stranded debts and stranded contract costs. When approved by the regulator and reflected in the bills, it will redound to an added cost of P0.39 per kilowatt hour.
The sad scenario is, the consumers will just be made to swallow the bitter pill of paying those liabilities without them getting properly apprised of what kind of financial mess PSALM has really gotten into – or to be more exact, what really happened to the privatization proceeds on the disposal of the National Power Corporation’s assets and contracts.
A review of PSALM’s financial status was previously mandated, yet there’s really nothing that came out of that process. No one can blame the Filipino people then if they feel that they have fallen victims to the faulty promise of industry reforms – if corruption, by practice or design, is not really part of the equation.
“The good news is we have options,” Mr. Almendras would say, as he bared plans of tugging their way into getting the approval of the Joint Congressional Power Commission (JCPC) to exempt lifeline rate users (or marginalized consumers just within the zero to 50 kilowatt hour consumption brackets) from paying the PSALM-UC charges. That solution though will just transfer the bigger burden to the pocket of the higher-volume consumers.
The DoE milestones
Certainly, the energy secretary and his team can latch on to a number of milestone accomplishments – such as the launching of the Philippine Energy Contracting Round (PECR-4) for coal; and soon, for upstream oil and gas investments. And during the era of soaring oil prices as an aftermath of the nuclear incident-triggered energy crisis in Japan, the DoE came up with its own “Pantawid Pasada Program” (or the Public Transport Assistance Program), as a subsidy scheme which intended to aid financially-ailing drivers cope with the run-up in prices at the gas pumps.
These are core components of the department’s self-designed Energy Reform Agenda (ERA) which has been anchored on six key thrusts: expanding the use of renewable energy, accelerating petroleum and coal explorations; making energy efficiency a way of life for Filipinos; strict monitoring of oil prices and supply; promoting the use of clean alternative fuels and technologies; and improving transport sector efficiency.
‘Energy efficiency’ has so far been vaulting ahead as a ‘buzzword’ given the sharp focus that Mr. Almendras has been giving in advancing the policy – primarily in the ‘retrofit’ of government buildings so they can pare peso payments in their electric bills. However, for energy efficiency to actually reach the doorsteps of every household, the DoE may need to accomplish more on the sphere of ‘information dissemination and consumer education.’
A renewed push on alternative fuels, such as the pilot deployment of electric tricycles and other e-vehicles as well as the aggressive investment push on natural gas investments, are also etching their mark in the Aquino administration’s energy policies.
For all these, the bonus of course, will be the benefit for the environment. Less energy consumed and/ or a switch to cleaner alternatives will redound to improvements in the country’s carbon footprints.
The energy chief is similarly keeping eye on the goal to bring household electricity connection to a hundred-percent level by 2017. For this, the annual allotment being programmed by the department through the National Electrification Administration (NEA) will be P2 billion or up to P12 billion throughout the six-year stretch of the program. It is also to the energy chief’s credit that he has been taking all the ‘harsh criticisms’ for embracing coal technology as an option to solve the country’s current baseload problems in power supply.
“DoE’s recent accomplishments ensure that the country has enough energy to support the creation of jobs, increase economic growth and improve the quality of life of the Filipinos in the coming years,” had been the re-assuring statement of the department. Quite good to see in print, but how does that translate to real-life benefits for the Filipinos remain a daunting question.
Without offense to the energy secretary, but he must also know too well that without the tangible flow of investments, any policy can just plainly be rendered a failure. And pretty sure, he will not want to leave ‘lackluster investment’ as the ultimate trace of his reign at the department.
Roadblocks in RE investments
When it comes to RE investments, there are still roadblocks at every turn. Deliberations of the feed-in-tariff (FIT) application at the Energy Regulatory Commission are still reeling from fledgling startup. No one knows exactly when the FIT charges will pass through the maze of regulatory approval, despite the fact that it is the most-awaited policy turning point by most investors.
“The government strengthened its efforts in promoting renewable energy in the country,” the energy department claims, hinging that primarily on the June 14, 2011 unveiling of the National Renewable Energy Plan.
It also wants to corner credit that it already presented the governing rules on Renewable Portfolio Standards (RPS). But has that been well-received or has it satisfactorily provided the policy frameworks that investors have been looking for? The chorus so far: it has not!
Also, investors are still fretting over ‘disconnects’ in the pronouncements of the Aquino administration’s economic team as to how policies in renewable energy investments shall be shaped. Call it a dysfunctional form of leadership, but the sharp differences in the policy declarations of other agencies, such as the Board of Investments (BoI) to that of the DoE, often suggests gap in policy support – if not lack of expertise of some policymakers. Still, these are appetite-losing propositions to investors.
Recent pronouncements on the supposed readiness of the Renewable Energy Market (REM) this year have similarly raised more questions than answers. In the first place, what capacity will be traded in the RE market when there are no investments coming in yet? Secondly, how will RE capacity be priced, since in other markets globally, they normally come with a premium or what they call the “green energy pricing”– and where are the rules? Thirdly, the procurement process (as in all government undertakings) to set up the infrastructure as well as in securing regulatory approvals will also take time. And which entity will take charge of the market – will it just be an added layer of the Wholesale Electricity Spot Market? In the other energy markets, RE capacity takes the form of added algorithms in commodity trading that can be integrated as a sub-set of the spot market. Certainly, it will be a chicken-and-egg dilemma, and the least that must happen here is for policymakers to give realistic and doable assumptions.
A gradual pace in RE investments so they will not unduly burden the consumers with sudden hike in electricity bills or technically strain the power grid would be an understandable precept. Ultimately, however, what the energy department must be careful about is letting the policy totally go down the drain – either due to flip-flopping or unresolved policy conflicts.
An assessment given by the Asian Development Bank (ADB) is quite prescriptive: “the potential increase in electricity price from this tariff (FIT) could potentially further harm the investment climate.” It added that “although high electricity prices in the Philippines make clean energy projects financially attractive, but without broad market transformation, the desired objectives of the Renewable Energy Law will be difficult to achieve. The transformation would involve adoption of large-scale new technology, more responsive regulation and consumer acceptance.”
Not so ‘open access’ to market competition
Another policy delay that has been causing a lot of consternation to energy stakeholders is the introduction of open access and retail competition – it should have been the last stretch that can advance the privatized power sector into a truly-competitive regime.
The expectation of consumers is that, they can finally exercise their “power of choice” when it comes to patronizing specific electricity suppliers. When that happens, it is also hoped that power rates will become cheaper and the offer of products and services will be of better quality and more innovative.
The promise of the energy secretary is for the department to work on the remaining issues (primarily the setting up of the required infrastructure and the contentious concerns of accounts, billing and settlements) to be resolved in the coming months so they can finally recommend to the ERC the re-declaration of open access kick-off around October this year.
The case of the missing ‘energy plan’
If there is really one thing that this administration has to be thankful for – it is coming at a time when the power sector has already been restructured – and the burden of capacity planning and investments have already been shifted to the private sector.
Otherwise, the sheer lack of planning may have already plunged this country into a new round of power crisis. Remember that the California power crisis of the past decade was partly due to poor planning of its Department of Energy? Or one that is closer to experience, the energy planning failure of the Aquino regime then which triggered the worst Philippine power crisis of the 1990s.
The current administration came into power in June 2010 – it was already given a leeway of 18 months from then. But unfortunately, there’s no updated PEP or Power Development Plan (PDP) yet that the sector can lean on to guide them with their investment plans. The PEP and PDP, in particular, are critically needed from ‘yesterday’, especially so since the country is already hanging in the balance when it comes to its power supply. It’s almost a cliché, but sometimes really, the only way to find out that there is a problem is to stumble over it.
What happened there exactly? A letter signed by 70-percent of the DOE’s Energy Policy and Planning Bureau (EPPB) and sent to Executive Secretary Paquito Ochoa Jr., which was leaked to media, may partly provide an explanation.
The EPPB rank-and-file rapped that the lack of PEP publication until now, has been primarily due to “mismanagement” and “lack of leadership” of the people who have been tasked to oversee that particular unit in the energy department. It seems though that no one gets punished or reprimanded, so it must have been an incentive for people to commit violations.
As it already reached Malacanang’s doors, the DoE attempts to soften the ‘brewing scuffle’ with this statement: “the smooth continuity of the country’s energy programs and projects are indicated in the soon-to-be published PEP which will unlock the full potential of the country’s energy resources and technologies in the next 20 years.” Oh by the way, the global trend in energy planning now is for 30 to 50 years, and must be updated annually, not when a concerned agency just feels convenient to do so.
The accomplishments of the past year, to say the least, may just have been the tip of the iceberg. Much more – and the more important ones – have to be done and be addressed squarely yet in the policy domain. It is only then that this administration can claim that it was able to lay the cornerstone of an energy-secure future.
The ‘wish list’ of the industry then is for energy officials to work and re-focus priorities on policy reforms that are critically needed now. The ‘waiting game’ has long been overdue.
Calaca expansion requires transmission upgrade
Manila Bulletin
By MYRNA M. VELASCO
January 3, 2012, 8:00am
MANILA, Philippines — The planned expansion of the 600-megawatt Calaca coal-fired power facility will warrant upgrade of transmission facilities to ensure smooth wheeling of the added capacity to the load networks, especially to Metro Manila.
The project blueprint drawn up by owner Sem-Calaca Power calls for the expansion of the privatized facility by another 600 megawatts, comprising of four units which will have 150-MW capacity each.
Based on document, the National Grid Corporation of the Philippines (NGCP) indicated that it will have to line up additional investments for the expansion of the Calaca substation as well as an uprating of the New Calaca-Dasmariñas 230-kilovolt (kV) transmission line.
Apart from the expansion of the Calaca plant, the upgraded transmission facilities shall also underpin the proposed 270-megawatt Puting Bato coal plant of Trans-Asia Oil and Energy Development Corporation. It will be a two-unit generation plant with 135-MW capacity each, targeted to be on stream between 2013 to 2015.
“This project was triggered by the proposed expansion of the Calaca coal plant and Trans-Asia’s Putting Bato coal plant within 2013-2015,” NGCP stressed.
The concessionaire firm noted that since the transmission uprating venture has not been included in its capital expenditure (capex) program under its ongoing regulatory reset, it may need to file a separate application for project funding with the Energy Regulatory Commission (ERC).
Under established rules, regulated power utilities like the NGCP, shall seek regulatory approvals on their capex allocations before any project can be implemented because such costs will eventually be passed on in the consumers’ electric bills.
When the Calaca plant was privatized by the Power Sector Assets and Liabilities Management Corporation (PSALM), the commitment of the buyer does not only include uprating the capacity of the existing units, but also to expand the plant at a magnitude that will double its installed capacity.
Meanwhile, the Trans-Asia coal project shall be pursued in partnership with Ayala group’s power arm AC Energy Holdings Inc. The facility will command a total investment of P12 billion.
The expansion of the Calaca facility as well as the greenfield plant of the Trans-Asia and Ayala venture will prop capacity in the Luzon grid, especially during the critical periods of 2015 and 2016.
The only firm capacity addition for the Luzon grid will be the 600-MW plant of GNPower by 2013. Most of the power projects lined up are still either struggling with securing financing or in ensuring public acceptance on the siting of the facilities.
By MYRNA M. VELASCO
January 3, 2012, 8:00am
MANILA, Philippines — The planned expansion of the 600-megawatt Calaca coal-fired power facility will warrant upgrade of transmission facilities to ensure smooth wheeling of the added capacity to the load networks, especially to Metro Manila.
The project blueprint drawn up by owner Sem-Calaca Power calls for the expansion of the privatized facility by another 600 megawatts, comprising of four units which will have 150-MW capacity each.
Based on document, the National Grid Corporation of the Philippines (NGCP) indicated that it will have to line up additional investments for the expansion of the Calaca substation as well as an uprating of the New Calaca-Dasmariñas 230-kilovolt (kV) transmission line.
Apart from the expansion of the Calaca plant, the upgraded transmission facilities shall also underpin the proposed 270-megawatt Puting Bato coal plant of Trans-Asia Oil and Energy Development Corporation. It will be a two-unit generation plant with 135-MW capacity each, targeted to be on stream between 2013 to 2015.
“This project was triggered by the proposed expansion of the Calaca coal plant and Trans-Asia’s Putting Bato coal plant within 2013-2015,” NGCP stressed.
The concessionaire firm noted that since the transmission uprating venture has not been included in its capital expenditure (capex) program under its ongoing regulatory reset, it may need to file a separate application for project funding with the Energy Regulatory Commission (ERC).
Under established rules, regulated power utilities like the NGCP, shall seek regulatory approvals on their capex allocations before any project can be implemented because such costs will eventually be passed on in the consumers’ electric bills.
When the Calaca plant was privatized by the Power Sector Assets and Liabilities Management Corporation (PSALM), the commitment of the buyer does not only include uprating the capacity of the existing units, but also to expand the plant at a magnitude that will double its installed capacity.
Meanwhile, the Trans-Asia coal project shall be pursued in partnership with Ayala group’s power arm AC Energy Holdings Inc. The facility will command a total investment of P12 billion.
The expansion of the Calaca facility as well as the greenfield plant of the Trans-Asia and Ayala venture will prop capacity in the Luzon grid, especially during the critical periods of 2015 and 2016.
The only firm capacity addition for the Luzon grid will be the 600-MW plant of GNPower by 2013. Most of the power projects lined up are still either struggling with securing financing or in ensuring public acceptance on the siting of the facilities.
DMCI Power eyes off-grid Napocor areas
By Donnabelle L. Gatdula (The Philippine Star) Updated January 03, 2012 12:00 AM
MANILA, Philippines - DMCI Power Corp., the power generation unit of the Consunji Group, is eyeing to participate in the privatization of the National Power Corp.’s Small Power Utilities Group (SPUG) this year, a company official said.
DMCI Power chairman Isidro Consunji said the company intends to help in energizing the SPUG areas.
“Our focus this year is on [Napocor] SPUG areas. We will bid as much as possible,” he said.
Napocor is targeting to intensify its privatization efforts starting the first quarter of this year, with the two areas being eyed for privatization to include parts of Mindoro and Palawan.
Napocor-SPUG is mandated by the Electric Power Industry Reform Act to provide electricity to remote islands and far-flung, inland barangays that are not connected to any of the main grids, after around 90 percent of its generating assets have been privatized.
The competitive selection process for Napocor-SPUG’s off-grid areas is part of the major reforms in the power sector.
It provides an opportunity for private investors to build, own and operate generation facilities to supply missionary or far-flung areas.
Earlier, Napocor president Froilan Tampinco said they would offer to power generation investors the remaining 12 SPUG areas.
There were 14 SPUG areas previously offered for private sector participation: Occidental Mindoro, Oriental Mindoro, Marinduque, mainland Palawan, Catanduanes, Bantayan, Masbate, Tablas, Romblon, Camotes, Siquijor, Tawi-Tawi, Basilan and Sulu.
Tampinco said they would also privatize the SPUG areas in Catanduanes, Romblon, Tablas and Siquijor after the Palawan and Mindoro bidding.
But the Napocor executive admitted that they would have to put the least priority to “more difficult areas” such as Sulu, Tawi-Tawi and Basilan.
According to Tampinco, they would be coordinating closely with the National Electrification Administration and the Department of Energy for the smooth conduct of the privatization of these SPUG areas.
“NEA is there to make sure that the participation and cooperation of electric cooperative is there. DOE will be there to make sure that when the competitive bidding process is done, the participating parties will know what their obligations will be,” he said.
This year, Napocor would be needing about P15 billion for its SPUG operations.
Napocor-SPUG currently operates over 110 power plants with a rated capacity of close to 200 megawatt nationwide.
Earlier, DMCI president Nestor Dadivas said they are looking at participating in three areas for privatization, namely Palawan, Mindoro and Catanduanes.
It would be noted that DMCI participated in the SPUG power privatization when it signed in 2007 a supply agreement with the Masbate Electric Cooperative to provide a more reliable and affordable supply of electricity to more than half a million residents of Masbate. The company put up a 24.4-MW diesel power plant in Brgy. Tugbo, Mobo, Masbate.
MANILA, Philippines - DMCI Power Corp., the power generation unit of the Consunji Group, is eyeing to participate in the privatization of the National Power Corp.’s Small Power Utilities Group (SPUG) this year, a company official said.
DMCI Power chairman Isidro Consunji said the company intends to help in energizing the SPUG areas.
“Our focus this year is on [Napocor] SPUG areas. We will bid as much as possible,” he said.
Napocor is targeting to intensify its privatization efforts starting the first quarter of this year, with the two areas being eyed for privatization to include parts of Mindoro and Palawan.
Napocor-SPUG is mandated by the Electric Power Industry Reform Act to provide electricity to remote islands and far-flung, inland barangays that are not connected to any of the main grids, after around 90 percent of its generating assets have been privatized.
The competitive selection process for Napocor-SPUG’s off-grid areas is part of the major reforms in the power sector.
It provides an opportunity for private investors to build, own and operate generation facilities to supply missionary or far-flung areas.
Earlier, Napocor president Froilan Tampinco said they would offer to power generation investors the remaining 12 SPUG areas.
There were 14 SPUG areas previously offered for private sector participation: Occidental Mindoro, Oriental Mindoro, Marinduque, mainland Palawan, Catanduanes, Bantayan, Masbate, Tablas, Romblon, Camotes, Siquijor, Tawi-Tawi, Basilan and Sulu.
Tampinco said they would also privatize the SPUG areas in Catanduanes, Romblon, Tablas and Siquijor after the Palawan and Mindoro bidding.
But the Napocor executive admitted that they would have to put the least priority to “more difficult areas” such as Sulu, Tawi-Tawi and Basilan.
According to Tampinco, they would be coordinating closely with the National Electrification Administration and the Department of Energy for the smooth conduct of the privatization of these SPUG areas.
“NEA is there to make sure that the participation and cooperation of electric cooperative is there. DOE will be there to make sure that when the competitive bidding process is done, the participating parties will know what their obligations will be,” he said.
This year, Napocor would be needing about P15 billion for its SPUG operations.
Napocor-SPUG currently operates over 110 power plants with a rated capacity of close to 200 megawatt nationwide.
Earlier, DMCI president Nestor Dadivas said they are looking at participating in three areas for privatization, namely Palawan, Mindoro and Catanduanes.
It would be noted that DMCI participated in the SPUG power privatization when it signed in 2007 a supply agreement with the Masbate Electric Cooperative to provide a more reliable and affordable supply of electricity to more than half a million residents of Masbate. The company put up a 24.4-MW diesel power plant in Brgy. Tugbo, Mobo, Masbate.
DMCI eyes chunk of Napocor’s small power utilities group
Manila Times.net
Published : Tuesday, January 03, 2012 00:00 Written by : Euan Paulo C. Añonuevo
DMCI Power Corp., the power generation arm of the Consunji Group, is keen on bidding for off-grid areas served by state-owned National Power Corp. (Napocor).
Isidro Consunji, DMCI Power chairman, said that the power firm plans to bid for areas under Napocor’s Small Power Utilities Group (SPUG) that will be lined up in the auction block.
“Our focus this year is on SPUG areas. We will bid as much as possible,” he added.
SPUG provides power in remote areas and off-grid islands that are not connected to the country’s main power grid.
The areas served by SPUG mostly have limited markets to attract private power producers. Napocor is also barred from incurring additional debt by the national government. As such, the latter has had to rely on adjustments to the universal charge component of consumers’ electricity bills for the former’s operations.
To help ease the financial strain on the company, Napocor president Froilan Tampinco said that they plan to privatize some of SPUG’s service areas.
There were 14 SPUG areas previously offered for private sector participation, namely, Occidental Mindoro, Oriental Mindoro, Marinduque, Mainland Palawan, Catanduanes, Bantayan, Masbate, Tablas, Romblon, Camotes, Siquijor, Tawi-Tawi, Basila and Sulu.
“Out of the 14, actually our concentration is on 12 areas only. Two areas are relatively successful and that’s Bantayan and Masbate. So we will offer the remaining 12, and our first thrust will be Mindoro and Palawan,” the Napocor official said.
Of these areas, DMCI Power plans to vie for SPUG’s operations in Palawan, Mindoro and Catanduanes.
“Mindoro and Palawan will be [offered] within first quarter. We will do competitive bidding. This time different agencies are working closely together,” Tampinco said.
SPUG’s operations in Catanduanes, Romblon, Tablas and Siquijor, the Napocor official said, will likely follow the Palawan bidding. On the other hand, “the more difficult areas” will be privatized last including Sulu, Tawi-Tawi and Basilan.
Published : Tuesday, January 03, 2012 00:00 Written by : Euan Paulo C. Añonuevo
DMCI Power Corp., the power generation arm of the Consunji Group, is keen on bidding for off-grid areas served by state-owned National Power Corp. (Napocor).
Isidro Consunji, DMCI Power chairman, said that the power firm plans to bid for areas under Napocor’s Small Power Utilities Group (SPUG) that will be lined up in the auction block.
“Our focus this year is on SPUG areas. We will bid as much as possible,” he added.
SPUG provides power in remote areas and off-grid islands that are not connected to the country’s main power grid.
The areas served by SPUG mostly have limited markets to attract private power producers. Napocor is also barred from incurring additional debt by the national government. As such, the latter has had to rely on adjustments to the universal charge component of consumers’ electricity bills for the former’s operations.
To help ease the financial strain on the company, Napocor president Froilan Tampinco said that they plan to privatize some of SPUG’s service areas.
There were 14 SPUG areas previously offered for private sector participation, namely, Occidental Mindoro, Oriental Mindoro, Marinduque, Mainland Palawan, Catanduanes, Bantayan, Masbate, Tablas, Romblon, Camotes, Siquijor, Tawi-Tawi, Basila and Sulu.
“Out of the 14, actually our concentration is on 12 areas only. Two areas are relatively successful and that’s Bantayan and Masbate. So we will offer the remaining 12, and our first thrust will be Mindoro and Palawan,” the Napocor official said.
Of these areas, DMCI Power plans to vie for SPUG’s operations in Palawan, Mindoro and Catanduanes.
“Mindoro and Palawan will be [offered] within first quarter. We will do competitive bidding. This time different agencies are working closely together,” Tampinco said.
SPUG’s operations in Catanduanes, Romblon, Tablas and Siquijor, the Napocor official said, will likely follow the Palawan bidding. On the other hand, “the more difficult areas” will be privatized last including Sulu, Tawi-Tawi and Basilan.
Monday, January 2, 2012
Yearender: DoE managed the unmanageable in 2011
By: Amy R. Remo
Philippine Daily Inquirer
11:09 pm | Monday, January 2nd, 2012
The Philippine energy sector in 2011, as in years past, was plagued with problems such as unwarranted price spikes, shortages and, consequently, protests from concerned groups.
But in 2011, unlike the years before it, the local energy sector seemed to have emerged from the challenges almost unscathed, with the Philippine Department of Energy looking as if it merely breezed through all the local and global troubles, allegations and controversies—a considerable feat since oil and electricity are deemed highly sensitive political commodities in this side of the world.
Of course, it’s not as easy as it looks. All the achievements of the DoE last year were rooted in hard work and the political will to put in place all the critical groundwork needed to ensure that energy would be accessible and affordable down to the grassroots level, said Energy Secretary Jose Rene D. Almendras.
And the DoE’s effort is quite evident. Last year, reports of long hours of rotating brownouts stemming from acute power supply shortfalls were few and far between. Unwarranted surges in electricity prices were tempered while fuel supply shortages had been successfully worked out.
Also, the government managed to cushion the effects of the socio-political tension in the Middle East and North Africa, as well as the earthquake and its aftermath in Japan, which directly threatened the country’s supply of oil and other petroleum products.
Almendras admitted it was a “truly challenging year,” and reckoned that it wasn’t over yet, particularly where fuel prices were concerned.
Cleaner alternatives
Yet he believes that the government, through the DoE, has tried its best to mitigate the increases in global oil prices.
One of the short-term measures implemented was the P450-million Pantawid Pasada program, under which jeepney drivers were given cards loaded with P1,050, which they could use to buy fuel.
Medium- and long-term measures included promoting the use of natural gas (compressed or liquefied) and electricity as cheaper and cleaner transport fuel alternatives. The DoE has tapped both local and foreign investors, as well as multilateral agencies, to roll out the Alternative Fuels Roadmap that will serve as the policy framework on diversifying fuels for transport use in the Philippines.
Almendras proudly pointed out that in 2011, Filipinos did not experience major brownouts as in the past.
“We’ve been able to keep supply levels good, without building a new power plant. We were able to augment power supply in all three grids and we’ve made the market more efficient. Noting the cost considerations, prices at the wholesale electricity spot market have even gone down,” Almendras explained.
To further secure the country’s energy supply in the future, the DoE launched the Philippine Energy Contracting Rounds for petroleum and coal, offering to investors highly prospective resource blocks (30 for coal and 15 for oil and gas) for exploration and development.
Harnessing local resources will help the country meet its daily demand and reduce the importation of costly and price-volatile petroleum products.
Other notable achievements by the DoE included the 10-year extension of the Lifeline Rate Subsidy Program, which provides discounts for low-income electricity consumers. This program benefits 4.53 million lifeline customers with total electricity consumption of 158 million kilowatt-hours. Total subsidies provided to them amounted to P355.28 million as of end-December 2010, which were funded by around 28.14 million non-lifeline customers.
Donors’ forum
The DoE likewise conducted a donors’ forum to promote potential investments in the Philippine energy sector, which would need over P1 trillion in fresh capital over the next 20 years to tap indigenous resources.
Almendras also launched the National Renewable Energy Program (NREP), or the “green energy” roadmap of the Philippines, as part of efforts to ensure national energy security, as well as highlight the need for energy efficiency and conservation measures.
Some stakeholders, meanwhile, lauded certain key officials from the DoE and other attached and related energy agencies, who were described as “accommodating,” “accessible” and “transparent” enough—true to the mantra of the Aquino administration.
Proactive
“Quite objectively, the government has been quite proactive and positive. I’d (give them a rating of) 8.5 to 9 out of 10,” said Oscar Reyes, chief operating officer of power distributor Manila Electric Co. (Meralco).
Similar to sentiments aired by a number of stakeholders across various energy sectors, Reyes pointed out that this batch of energy officials knew what they were doing, what the issues and challenges were, and what actions would need to be implemented to solve problems.
This administration, he further said, had the guts to do what should rightfully be done.
But critics of this administration pointed out that the DoE was not able to deliver the goods last year, failing to implement the law to the letter, much to the detriment of certain sectors.
Dissenting quarters noted that, for one, the renewable energy sector seemed to take a backseat, with the energy chief being branded as a “coal boy” among hushed discussions—but still much to the knowledge of the Energy secretary.
‘He-said, she-said’
Discussions on feed-in-tariff (FIT) rates for renewable energy sources have been taken to media as various opinions have been thrown about, without, in reality, having achieved much to actually resolve the issue.
As one observer puts it, the FIT debate has been reduced to “a he-said, she-said” discussion of sorts.
It was also only in the last month of 2011 did the government issue the much-awaited circular that contained the guidelines on the priority utilization of locally produced ethanol as well as on its importation—a move awaited for more than a year by stakeholders because this would help boost the ailing ethanol industry.
Already, a number of investors had backed out of their proposed ethanol projects for lack of clear direction from the government.
On power-supply issues, Mindanao continued to suffer rotating brownouts throughout the year—although still not as dreadful as experienced in 2010—as its heavy reliance on the Agus and Pulangi hydropower complexes continued to render its supply unstable.
The problem, however, is that Mindanao is torn between wanting to secure adequate supply and shunning the construction of new coal-fired facilities that could have served as their baseload source of electricity.
Some groups in Mindanao are looking at renewable energy sources as their hope to securing supply, but developers refuse to budge as FIT rates have yet to be approved.
A number of investors under the government’s natural gas for transport program had also urged the DoE to act on the inability of Shell companies in the Philippines to provide adequate supply of compressed natural gas. The bus operators’ losses reach millions of pesos monthly.
Good and bad
While there is now a move to take over the operations of Shell, bus operators have yet to see whether the participation of largely state-owned PNOC Exploration Corp. will truly boost the local natural gas industry as promised to them by the previous administration.
There are still many other issues left untouched—good and bad. But all things considered, the DoE has, in fact, managed to “settle down” and nitpick on each concern, however slowly.
More importantly, the deep understanding of the issues in the energy sector by new officials on board has also impressed industry observers and investors worldwide, who are now hoping to see fruition of the development plans outlined in what the DoE calls Philippine Energy Plan (PEP).
The PEP, which is targeted to ensure the smooth continuity of the country’s energy programs and projects until 2030, is expected to unlock the full potential of the country’s energy resources and technologies in the next 20 years.
Aside from identifying the major energy plans and programs, the Plan boasts of specific strategies to address challenges, such as energy-supply disruptions, volatility of oil prices in the world market, and increasing electricity rates.
The point to all the DoE’s achievements for 2011 alone is that these had, at least initially, assured many stakeholders that the Aquino administration has the ability to pursue its energy security plans, as it was able to lay down the critical groundwork, policies, programs and other necessary measures, following months of intensive reviews and consultations.
New beginnings
The year 2011 was in fact dubbed as the year of “new beginnings,” as Almendras had put it, given the new programs and policies implemented and instilled within such a short period.
The question now is whether the DoE will be able to consistently follow through and actually implement over the next several years all the projects as promised—amid the forthcoming challenges and controversies that may be hurled its way—and live up to the high expectations it has now built.
Deliver or bust, stakeholders are awaiting eagerly.
Philippine Daily Inquirer
11:09 pm | Monday, January 2nd, 2012
The Philippine energy sector in 2011, as in years past, was plagued with problems such as unwarranted price spikes, shortages and, consequently, protests from concerned groups.
But in 2011, unlike the years before it, the local energy sector seemed to have emerged from the challenges almost unscathed, with the Philippine Department of Energy looking as if it merely breezed through all the local and global troubles, allegations and controversies—a considerable feat since oil and electricity are deemed highly sensitive political commodities in this side of the world.
Of course, it’s not as easy as it looks. All the achievements of the DoE last year were rooted in hard work and the political will to put in place all the critical groundwork needed to ensure that energy would be accessible and affordable down to the grassroots level, said Energy Secretary Jose Rene D. Almendras.
And the DoE’s effort is quite evident. Last year, reports of long hours of rotating brownouts stemming from acute power supply shortfalls were few and far between. Unwarranted surges in electricity prices were tempered while fuel supply shortages had been successfully worked out.
Also, the government managed to cushion the effects of the socio-political tension in the Middle East and North Africa, as well as the earthquake and its aftermath in Japan, which directly threatened the country’s supply of oil and other petroleum products.
Almendras admitted it was a “truly challenging year,” and reckoned that it wasn’t over yet, particularly where fuel prices were concerned.
Cleaner alternatives
Yet he believes that the government, through the DoE, has tried its best to mitigate the increases in global oil prices.
One of the short-term measures implemented was the P450-million Pantawid Pasada program, under which jeepney drivers were given cards loaded with P1,050, which they could use to buy fuel.
Medium- and long-term measures included promoting the use of natural gas (compressed or liquefied) and electricity as cheaper and cleaner transport fuel alternatives. The DoE has tapped both local and foreign investors, as well as multilateral agencies, to roll out the Alternative Fuels Roadmap that will serve as the policy framework on diversifying fuels for transport use in the Philippines.
Almendras proudly pointed out that in 2011, Filipinos did not experience major brownouts as in the past.
“We’ve been able to keep supply levels good, without building a new power plant. We were able to augment power supply in all three grids and we’ve made the market more efficient. Noting the cost considerations, prices at the wholesale electricity spot market have even gone down,” Almendras explained.
To further secure the country’s energy supply in the future, the DoE launched the Philippine Energy Contracting Rounds for petroleum and coal, offering to investors highly prospective resource blocks (30 for coal and 15 for oil and gas) for exploration and development.
Harnessing local resources will help the country meet its daily demand and reduce the importation of costly and price-volatile petroleum products.
Other notable achievements by the DoE included the 10-year extension of the Lifeline Rate Subsidy Program, which provides discounts for low-income electricity consumers. This program benefits 4.53 million lifeline customers with total electricity consumption of 158 million kilowatt-hours. Total subsidies provided to them amounted to P355.28 million as of end-December 2010, which were funded by around 28.14 million non-lifeline customers.
Donors’ forum
The DoE likewise conducted a donors’ forum to promote potential investments in the Philippine energy sector, which would need over P1 trillion in fresh capital over the next 20 years to tap indigenous resources.
Almendras also launched the National Renewable Energy Program (NREP), or the “green energy” roadmap of the Philippines, as part of efforts to ensure national energy security, as well as highlight the need for energy efficiency and conservation measures.
Some stakeholders, meanwhile, lauded certain key officials from the DoE and other attached and related energy agencies, who were described as “accommodating,” “accessible” and “transparent” enough—true to the mantra of the Aquino administration.
Proactive
“Quite objectively, the government has been quite proactive and positive. I’d (give them a rating of) 8.5 to 9 out of 10,” said Oscar Reyes, chief operating officer of power distributor Manila Electric Co. (Meralco).
Similar to sentiments aired by a number of stakeholders across various energy sectors, Reyes pointed out that this batch of energy officials knew what they were doing, what the issues and challenges were, and what actions would need to be implemented to solve problems.
This administration, he further said, had the guts to do what should rightfully be done.
But critics of this administration pointed out that the DoE was not able to deliver the goods last year, failing to implement the law to the letter, much to the detriment of certain sectors.
Dissenting quarters noted that, for one, the renewable energy sector seemed to take a backseat, with the energy chief being branded as a “coal boy” among hushed discussions—but still much to the knowledge of the Energy secretary.
‘He-said, she-said’
Discussions on feed-in-tariff (FIT) rates for renewable energy sources have been taken to media as various opinions have been thrown about, without, in reality, having achieved much to actually resolve the issue.
As one observer puts it, the FIT debate has been reduced to “a he-said, she-said” discussion of sorts.
It was also only in the last month of 2011 did the government issue the much-awaited circular that contained the guidelines on the priority utilization of locally produced ethanol as well as on its importation—a move awaited for more than a year by stakeholders because this would help boost the ailing ethanol industry.
Already, a number of investors had backed out of their proposed ethanol projects for lack of clear direction from the government.
On power-supply issues, Mindanao continued to suffer rotating brownouts throughout the year—although still not as dreadful as experienced in 2010—as its heavy reliance on the Agus and Pulangi hydropower complexes continued to render its supply unstable.
The problem, however, is that Mindanao is torn between wanting to secure adequate supply and shunning the construction of new coal-fired facilities that could have served as their baseload source of electricity.
Some groups in Mindanao are looking at renewable energy sources as their hope to securing supply, but developers refuse to budge as FIT rates have yet to be approved.
A number of investors under the government’s natural gas for transport program had also urged the DoE to act on the inability of Shell companies in the Philippines to provide adequate supply of compressed natural gas. The bus operators’ losses reach millions of pesos monthly.
Good and bad
While there is now a move to take over the operations of Shell, bus operators have yet to see whether the participation of largely state-owned PNOC Exploration Corp. will truly boost the local natural gas industry as promised to them by the previous administration.
There are still many other issues left untouched—good and bad. But all things considered, the DoE has, in fact, managed to “settle down” and nitpick on each concern, however slowly.
More importantly, the deep understanding of the issues in the energy sector by new officials on board has also impressed industry observers and investors worldwide, who are now hoping to see fruition of the development plans outlined in what the DoE calls Philippine Energy Plan (PEP).
The PEP, which is targeted to ensure the smooth continuity of the country’s energy programs and projects until 2030, is expected to unlock the full potential of the country’s energy resources and technologies in the next 20 years.
Aside from identifying the major energy plans and programs, the Plan boasts of specific strategies to address challenges, such as energy-supply disruptions, volatility of oil prices in the world market, and increasing electricity rates.
The point to all the DoE’s achievements for 2011 alone is that these had, at least initially, assured many stakeholders that the Aquino administration has the ability to pursue its energy security plans, as it was able to lay down the critical groundwork, policies, programs and other necessary measures, following months of intensive reviews and consultations.
New beginnings
The year 2011 was in fact dubbed as the year of “new beginnings,” as Almendras had put it, given the new programs and policies implemented and instilled within such a short period.
The question now is whether the DoE will be able to consistently follow through and actually implement over the next several years all the projects as promised—amid the forthcoming challenges and controversies that may be hurled its way—and live up to the high expectations it has now built.
Deliver or bust, stakeholders are awaiting eagerly.
PNOC-Exploration plans power plants
Manila Standard Today
by Alena Mae S. Flores
State-owned PNOC-Exploration Corp. will pursue the construction of two 100-megawatt coal-fired power plants this year costing an estimated $400 million, a company official said over the weekend.
Joseph Omar Castillo, PNOC Exploration vice president, told reporters the company would select a joint venture partner for the mine-mouth power plants in Zamboanga Sibugay and Isabela provinces next year.
Castillo said the company would conduct a competitive bidding process and select the partner under the 2008 guidelines of the National Economic and Development Authority.
“The power plants are at 100 MW each. It will be coal-fired from PNOC Exploration’s coal mines, the first in the country. It will reduce logistics cost of transporting coal. Isabela and Zamboanga Sibugay are underserved provinces and the plants will hopefully boost business climate and generate needed employment,” the official said.
PNOC Exploration chairman Gemiliano Lopez earlier said the company was pursuing coal and oil and gas projects and “play a decisive role in our country’s quest for energy independence and sustainability.”
“PNOC Exploration is keen to provide material support for the power plants in the province of Isabela and Zamboanga Sibugay. These power plants will improve the electricity generation in these underserved provinces,” Lopez said.
Castillo, meanwhile, PNOC Exploration would also focus next year on drilling service contract 63 (East Sabina) in partnership with Nido Petroluem Ltd. of Australia. The drilling is estimated to cost around P900 million.
“On SC 63, in partnership with Nido, we are choosing a drill prospect in the area, target time for drill is third quarter,” he said.
Castillo said the company expects first coal production from the Lumbog coal mine this year. The Lumbog area in Zamboanga Sibugay has an estimated mineable coal reserve of at least 1.4 million metric tons.
Engineering and development plans for the Lumbog area were completed in 2010 and development started last March.
Castillo said PNOC Exploration would also start the construction of compressed natural gas stations next year.
PNOC Exploration will initially construct a CNG station at the Philippine Port Authority in Batangas and refurbish the existing Shell daughter station in Mamplasan, Laguna at a cost of P100 million.
The CNG stations project aims to support deployment of 200 CNG-fed buses in Metro Manila as part of the government’s alternative fuels program.
by Alena Mae S. Flores
State-owned PNOC-Exploration Corp. will pursue the construction of two 100-megawatt coal-fired power plants this year costing an estimated $400 million, a company official said over the weekend.
Joseph Omar Castillo, PNOC Exploration vice president, told reporters the company would select a joint venture partner for the mine-mouth power plants in Zamboanga Sibugay and Isabela provinces next year.
Castillo said the company would conduct a competitive bidding process and select the partner under the 2008 guidelines of the National Economic and Development Authority.
“The power plants are at 100 MW each. It will be coal-fired from PNOC Exploration’s coal mines, the first in the country. It will reduce logistics cost of transporting coal. Isabela and Zamboanga Sibugay are underserved provinces and the plants will hopefully boost business climate and generate needed employment,” the official said.
PNOC Exploration chairman Gemiliano Lopez earlier said the company was pursuing coal and oil and gas projects and “play a decisive role in our country’s quest for energy independence and sustainability.”
“PNOC Exploration is keen to provide material support for the power plants in the province of Isabela and Zamboanga Sibugay. These power plants will improve the electricity generation in these underserved provinces,” Lopez said.
Castillo, meanwhile, PNOC Exploration would also focus next year on drilling service contract 63 (East Sabina) in partnership with Nido Petroluem Ltd. of Australia. The drilling is estimated to cost around P900 million.
“On SC 63, in partnership with Nido, we are choosing a drill prospect in the area, target time for drill is third quarter,” he said.
Castillo said the company expects first coal production from the Lumbog coal mine this year. The Lumbog area in Zamboanga Sibugay has an estimated mineable coal reserve of at least 1.4 million metric tons.
Engineering and development plans for the Lumbog area were completed in 2010 and development started last March.
Castillo said PNOC Exploration would also start the construction of compressed natural gas stations next year.
PNOC Exploration will initially construct a CNG station at the Philippine Port Authority in Batangas and refurbish the existing Shell daughter station in Mamplasan, Laguna at a cost of P100 million.
The CNG stations project aims to support deployment of 200 CNG-fed buses in Metro Manila as part of the government’s alternative fuels program.
PNOC-EC to pursue coal mine-mouth projects
By Donnabelle L. Gatdula (The Philippine Star) Updated January 02, 2012 12:00 AM
MANILA, Philippines - PNOC-Exploration Corp., the gas and oil exploration arm of the state-owned Philippine National Oil Co. (PNOC), will actively pursue its coal mine-mouth projects in Mindanao this year.
Joseph Omar Castillo, PNOC-EC vice president, said they would be seeking joint venture partners for these projects.
“We will be putting priority to joint venture selection for our mine-mouth power plants,” he said, when asked what will be the company’s priorities for 2012.
The power plants, he said, would have a capacity of 100 MW each and estimated to cost $200 million each.
He said once completed, these projects, to be located in Zamboanga Sibugay and Isabela, would be first of their kinds in the country.
“(It would be) the first in the country. It will reduce logistics cost of transporting coal. Isabela and Zamboang Sibugay are underserved provinces and the plants will hopefully boost business climate and generate needed employment,” he said.
Aside from the two power plant projects, Castillo said they would also be looking into the construction of compressed natural gas (CNG) daughter stations within Luzon.
He said they would also be pushing for the more exploratory drilling at Service Contract (SC) 63.
“On SC 63, in partnership with Nido, we are choosing a drill prospect in the area target time for drill is third quarter of 2012,” he said.
PNOC-EC chairman Gemiliano Lopez Jr. said the mine-mouth projects are expected to further improve the company’s earning.
He said they would also explore for petroleum reserves in various parts of the country; and start coal production in Zamboanga Sibugay this year.
“In the remaining months of this year and in the years to come, we will intensify our efforts in fulfilling our company’s primary-mandate the exploration of petroleum and coal resources in order to secure a stable and bigger supply of indigenous-based energy,” Lopez said.
The company has proposed budget of P5.25 billion this year. This includes a total capital investment of P4.55 billion, P167.81 million for capital expenditures and P572.70 million for operating expenditures.
The PNOC-EC executive said they may also tap a standby credit facility from numerous banks of about P12 to P20 billion to fund portion of its financing requirements.
MANILA, Philippines - PNOC-Exploration Corp., the gas and oil exploration arm of the state-owned Philippine National Oil Co. (PNOC), will actively pursue its coal mine-mouth projects in Mindanao this year.
Joseph Omar Castillo, PNOC-EC vice president, said they would be seeking joint venture partners for these projects.
“We will be putting priority to joint venture selection for our mine-mouth power plants,” he said, when asked what will be the company’s priorities for 2012.
The power plants, he said, would have a capacity of 100 MW each and estimated to cost $200 million each.
He said once completed, these projects, to be located in Zamboanga Sibugay and Isabela, would be first of their kinds in the country.
“(It would be) the first in the country. It will reduce logistics cost of transporting coal. Isabela and Zamboang Sibugay are underserved provinces and the plants will hopefully boost business climate and generate needed employment,” he said.
Aside from the two power plant projects, Castillo said they would also be looking into the construction of compressed natural gas (CNG) daughter stations within Luzon.
He said they would also be pushing for the more exploratory drilling at Service Contract (SC) 63.
“On SC 63, in partnership with Nido, we are choosing a drill prospect in the area target time for drill is third quarter of 2012,” he said.
PNOC-EC chairman Gemiliano Lopez Jr. said the mine-mouth projects are expected to further improve the company’s earning.
He said they would also explore for petroleum reserves in various parts of the country; and start coal production in Zamboanga Sibugay this year.
“In the remaining months of this year and in the years to come, we will intensify our efforts in fulfilling our company’s primary-mandate the exploration of petroleum and coal resources in order to secure a stable and bigger supply of indigenous-based energy,” Lopez said.
The company has proposed budget of P5.25 billion this year. This includes a total capital investment of P4.55 billion, P167.81 million for capital expenditures and P572.70 million for operating expenditures.
The PNOC-EC executive said they may also tap a standby credit facility from numerous banks of about P12 to P20 billion to fund portion of its financing requirements.
Sagittarius Mines plans own power plant
By Donnabelle L. Gatdula (The Philippine Star) Updated January 02, 2012 12:00 AM
MANILA, Philippines - Sagittarius Mines Inc. (SMI) is planning to put up its own coal-fired power plant with targeted capacity of 250 megawatt (MW) within the Tampakan Copper-Gold project.
The SMI power plant project is contained in the National Grid Corp. of the Philippines (NGCP) Transmission Development Plant (TDP) for the next 10 years.
“The proposed Tampakan Copper-Gold Project (Tampakan Project) intends to construct its own power station to meet its mine power requirements of more than 250MW,” the TDP said.
Based on the plan, apart from meeting the mine’s power demand, excess power will be exported to the Mindanao grid.
The power station, according to the TDP, is expected to be operational in 2014.
The connection of the mine and the power plant will be via a new 230/138 kV substation, to be located in Rizal town and will bus-in along NGCP’s Matanao-Gen. Santos (Klinan) 138 kV transmission line.
The Tampakan Copper-Gold Project, located in the southern Philippines, is among the most attractive undeveloped long life, large-scale and low-cost copper deposits in the world.
The project is estimated to require $5.9 billion capital investment, with first production expected in 2016.
The Tampakan deposit contains a 2.4 billion ton mineral resource with an estimated 13.9 million tons of copper and 16.2 million ounces of gold.
Tampakan is projected to produce 375,000 tons of copper and 360,000 ounces of gold per year in the initial mine-life of 17 years, with considerable and realistic potential for mine-life extension.
To date, more than A$300 million has been spent on exploration and development of Tampakan. Its direct contribution to the Philippine economy over the known mine-life is estimated at $37 billion with an estimated $8 billion being paid in Philippine taxes and royalties.
Estimated direct employment during construction is 10,000 people, with a workforce of 2,000 during operational period.
MANILA, Philippines - Sagittarius Mines Inc. (SMI) is planning to put up its own coal-fired power plant with targeted capacity of 250 megawatt (MW) within the Tampakan Copper-Gold project.
The SMI power plant project is contained in the National Grid Corp. of the Philippines (NGCP) Transmission Development Plant (TDP) for the next 10 years.
“The proposed Tampakan Copper-Gold Project (Tampakan Project) intends to construct its own power station to meet its mine power requirements of more than 250MW,” the TDP said.
Based on the plan, apart from meeting the mine’s power demand, excess power will be exported to the Mindanao grid.
The power station, according to the TDP, is expected to be operational in 2014.
The connection of the mine and the power plant will be via a new 230/138 kV substation, to be located in Rizal town and will bus-in along NGCP’s Matanao-Gen. Santos (Klinan) 138 kV transmission line.
The Tampakan Copper-Gold Project, located in the southern Philippines, is among the most attractive undeveloped long life, large-scale and low-cost copper deposits in the world.
The project is estimated to require $5.9 billion capital investment, with first production expected in 2016.
The Tampakan deposit contains a 2.4 billion ton mineral resource with an estimated 13.9 million tons of copper and 16.2 million ounces of gold.
Tampakan is projected to produce 375,000 tons of copper and 360,000 ounces of gold per year in the initial mine-life of 17 years, with considerable and realistic potential for mine-life extension.
To date, more than A$300 million has been spent on exploration and development of Tampakan. Its direct contribution to the Philippine economy over the known mine-life is estimated at $37 billion with an estimated $8 billion being paid in Philippine taxes and royalties.
Estimated direct employment during construction is 10,000 people, with a workforce of 2,000 during operational period.
PNOC-EC to develop coal-fired power plant
Manila Times.net
Published : Monday, January 02, 2012 00:00 Written by : Euan Paulo C. Añonuevo REPORTER
Philippine National Oil Co.-Exploration Corp. (PNOC-EC) would jumpstart the development of its coal-fired power projects this year.
Joseph Omar Castillo, PNOC-EC vice president, said that the company would pursue the selection of partners for coal power projects in Isabela and Zamboanga Sibugay province.
“We will be putting priority to joint venture selection for our mine-mouth power plants,” he said.
Mine-mouth plants are generating facilities located beside mines. Because of the proximity to their fuel source, such plants generally cost less than conventional coal plants because of reduced logistics costs.
In PNOC-EC’s case, the company plans to put up coalmines in Isabela and Zamboanga Sibugay province also this year.
“Isabela and Zamboang Sibugay are underserved provinces and the plants will hopefully boost business climate and generate needed employment,” Castillo said.
Besides the two power plant projects, Castillo said they would also be looking into the construction of compressed natural gas refilling stations within Luzon.
The company would also be pushing for the more exploratory drilling at Service Contract (SC) 63.
“On SC 63, in partnership with Nido Petroleum Ltd., we are choosing a drill prospect in the area. The target time for drill is third quarter of 2012,” he said.
PNOC-EC is the petroleum and coal subsidiary of state-owned PNOC. The former’s shares of stock are 99.78 percent owned by the government through the latter, while the remaining 0.22 percent are held by public shareholders.
Published : Monday, January 02, 2012 00:00 Written by : Euan Paulo C. Añonuevo REPORTER
Philippine National Oil Co.-Exploration Corp. (PNOC-EC) would jumpstart the development of its coal-fired power projects this year.
Joseph Omar Castillo, PNOC-EC vice president, said that the company would pursue the selection of partners for coal power projects in Isabela and Zamboanga Sibugay province.
“We will be putting priority to joint venture selection for our mine-mouth power plants,” he said.
Mine-mouth plants are generating facilities located beside mines. Because of the proximity to their fuel source, such plants generally cost less than conventional coal plants because of reduced logistics costs.
In PNOC-EC’s case, the company plans to put up coalmines in Isabela and Zamboanga Sibugay province also this year.
“Isabela and Zamboang Sibugay are underserved provinces and the plants will hopefully boost business climate and generate needed employment,” Castillo said.
Besides the two power plant projects, Castillo said they would also be looking into the construction of compressed natural gas refilling stations within Luzon.
The company would also be pushing for the more exploratory drilling at Service Contract (SC) 63.
“On SC 63, in partnership with Nido Petroleum Ltd., we are choosing a drill prospect in the area. The target time for drill is third quarter of 2012,” he said.
PNOC-EC is the petroleum and coal subsidiary of state-owned PNOC. The former’s shares of stock are 99.78 percent owned by the government through the latter, while the remaining 0.22 percent are held by public shareholders.
Sagittarius Mines to suport Tampakan project
Manila Times.net
Published : Monday, January 02, 2012 00:00 Written by : Euan Paulo C. Añonuevo
Sagittarius Mines Inc. (SMI) is planning to put up a coal-fired coal power plant to support the operations of the Tampakan copper-gold project in South Cotabato.
Based on the draft transmission development plan of the National Grid Corp. of the Philippines (NGCP), SMI intends to construct a 250-megawatt coal plant for the Tampakan mine’s power requirements.
The power plant is targeted to be operational by 2014.
NGCP is the operator of the country’s transmission lines, or the facilities that bring power from generating plants to utilities for distribution to consumers.
NCGP’s transmission development plan is a 10-year blueprint of the capital projects it plans to undertake, such as a new 230/138 kilovolt substation it would have to put up to connect the proposed Tampakan coal plant to the grid.
The Tampakan copper-gold project, which is being deve?loped by SMI, is among the most attractive undeveloped long life, large-scale and low-cost copper deposits in the world.
The Tampakan deposit is projected to contain a 2.4 billion ton mineral resource with an estimated 13.9 million tons of copper and 16.2 million ounces of gold.
Its direct contribution to the Philippine economy over the known mine-life is estimated at $37 billion with an estimated $8 billion being paid in Philippine taxes and royalties.
SMI targets the first production from the mine by 2016. Estimated direct employment during construction is 10,000 people, with a workforce of 2,000 during operational period.
Published : Monday, January 02, 2012 00:00 Written by : Euan Paulo C. Añonuevo
Sagittarius Mines Inc. (SMI) is planning to put up a coal-fired coal power plant to support the operations of the Tampakan copper-gold project in South Cotabato.
Based on the draft transmission development plan of the National Grid Corp. of the Philippines (NGCP), SMI intends to construct a 250-megawatt coal plant for the Tampakan mine’s power requirements.
The power plant is targeted to be operational by 2014.
NGCP is the operator of the country’s transmission lines, or the facilities that bring power from generating plants to utilities for distribution to consumers.
NCGP’s transmission development plan is a 10-year blueprint of the capital projects it plans to undertake, such as a new 230/138 kilovolt substation it would have to put up to connect the proposed Tampakan coal plant to the grid.
The Tampakan copper-gold project, which is being deve?loped by SMI, is among the most attractive undeveloped long life, large-scale and low-cost copper deposits in the world.
The Tampakan deposit is projected to contain a 2.4 billion ton mineral resource with an estimated 13.9 million tons of copper and 16.2 million ounces of gold.
Its direct contribution to the Philippine economy over the known mine-life is estimated at $37 billion with an estimated $8 billion being paid in Philippine taxes and royalties.
SMI targets the first production from the mine by 2016. Estimated direct employment during construction is 10,000 people, with a workforce of 2,000 during operational period.
Sunday, January 1, 2012
Mine-mouth coal plants priority of PNOC-EC in ’12
Business World Online
Posted on January 01, 2012 11:21:37 PM
GOVERNMENT-LED PHILIPPINE National Oil Co.-Exploration Corp. (PNOC-EC) is focused on selecting a joint-venture partner for its 100-megawatt (MW) coal-fired power plant in Mindanao, an official said in an interview.
The company will also construct compressed natural gas (CNG) stations and drill exploration wells in one of its service contracts.
“PNOC-EC’s focus next year [is the] joint-venture selection for our mine-mouth power plants, CNG station construction, exploration drilling on service contract 63 and first production in the Lumbog coal mine, ” vice-president for business operations Joseph Omar A. Castillo said in a text message.
The company is looking to develop two 100-MW coal-fired power plants near its coal mines in northern Luzon and Mindanao. A mine-mouth plant located near a coal mine limits the transportation cost of fuel.
Last year, PNOC-EC prioritized development of coal mines in Mindanao over the construction of the mine-mouth plant.
“The power plants are at 100 MW each. It will be coal-fired from PNOC-EC’s coal mines and will be the first in the country. It will reduce the logistics cost of transporting coal, ” Mr. Castillo said.
“Isabela and Zamboanga Sibugay, where our mines are located, are underserved provinces so the plants will hopefully boost business climate and generate needed employment, ” he added, saying the plants are “estimated to cost $200 million each.”
The selection of a joint-venture partner for the power plant will be done through a bidding.
Mr. Castillo said the company is also in the process of “choosing a drill prospect in the service contract 63 with partner Nido [Petroleum Ltd.]. Target time for drill is third quarter of 2012.”
Service contract 63, East Sabina block, covers 10, 560 square kilometers in southwest Palawan. PNOC-EC holds a 50% interest in the area and is the operator of the block. Australian firm Nido Petroleum owns 50%.
PNOC-EC holds several service contracts mostly in the Palawan area and is one of the consortium members in the Malampaya natural gas field.
The company is also tasked to construct more CNG stations to service the planned increase of CNG buses plying the roads by the Energy department.
PNOC-EC saw its net income for the nine-month period ending September grow 55% to P2.46 billion from P1.7 billion in the same period previous year.
The company was able to remit P4.997 billion to the national government through dividends of P5 billion it declared within the year.
PNOC-EC’s “A” shares, which can only be traded by local investors, were last traded in October 2010 and closed at P24 a piece.
Its “B” shares, which are traded by both local and foreign shareholders, closed at P65 apiece. -- Emilia Narni J. David
Posted on January 01, 2012 11:21:37 PM
GOVERNMENT-LED PHILIPPINE National Oil Co.-Exploration Corp. (PNOC-EC) is focused on selecting a joint-venture partner for its 100-megawatt (MW) coal-fired power plant in Mindanao, an official said in an interview.
The company will also construct compressed natural gas (CNG) stations and drill exploration wells in one of its service contracts.
“PNOC-EC’s focus next year [is the] joint-venture selection for our mine-mouth power plants, CNG station construction, exploration drilling on service contract 63 and first production in the Lumbog coal mine, ” vice-president for business operations Joseph Omar A. Castillo said in a text message.
The company is looking to develop two 100-MW coal-fired power plants near its coal mines in northern Luzon and Mindanao. A mine-mouth plant located near a coal mine limits the transportation cost of fuel.
Last year, PNOC-EC prioritized development of coal mines in Mindanao over the construction of the mine-mouth plant.
“The power plants are at 100 MW each. It will be coal-fired from PNOC-EC’s coal mines and will be the first in the country. It will reduce the logistics cost of transporting coal, ” Mr. Castillo said.
“Isabela and Zamboanga Sibugay, where our mines are located, are underserved provinces so the plants will hopefully boost business climate and generate needed employment, ” he added, saying the plants are “estimated to cost $200 million each.”
The selection of a joint-venture partner for the power plant will be done through a bidding.
Mr. Castillo said the company is also in the process of “choosing a drill prospect in the service contract 63 with partner Nido [Petroleum Ltd.]. Target time for drill is third quarter of 2012.”
Service contract 63, East Sabina block, covers 10, 560 square kilometers in southwest Palawan. PNOC-EC holds a 50% interest in the area and is the operator of the block. Australian firm Nido Petroleum owns 50%.
PNOC-EC holds several service contracts mostly in the Palawan area and is one of the consortium members in the Malampaya natural gas field.
The company is also tasked to construct more CNG stations to service the planned increase of CNG buses plying the roads by the Energy department.
PNOC-EC saw its net income for the nine-month period ending September grow 55% to P2.46 billion from P1.7 billion in the same period previous year.
The company was able to remit P4.997 billion to the national government through dividends of P5 billion it declared within the year.
PNOC-EC’s “A” shares, which can only be traded by local investors, were last traded in October 2010 and closed at P24 a piece.
Its “B” shares, which are traded by both local and foreign shareholders, closed at P65 apiece. -- Emilia Narni J. David
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