Napocor mancom okays P1.4-B power project

A P1.4-billion power project involving eight islands from Luzon to Mindanao has been approved by the management committee (mancom) of the National Power Corp. (Napocor).

The project still needs the approval of the Napocor board before residents and commercial establishments of the eight islands can start to enjoy consistent energy for electricity.

The P1.4-billion project was awarded to Salcon Power Corp. under a build-operate-own (BOO) scheme. It involves the establishment of eight power plants or one power plant for every island identified.

The eight power plants will have a combined capacity of 50-megawatts (MW) with the lowest power capacity of five MW to a high of 15-MW.

According to Federico G. Guerrero, pre-construction and servicing engineering group manager/Special Power Utilities Group (SPUG), the contract allows for a 15-year recuperation period.

Guerrero said Napocor would be purchasing power from the different power plants at rates ranging from P2.28 to P2.69 per kilowatthour (kwh). "The rates will vary depending on the location of the power plants aside from other variables like foreign currency adjustment and currency fees."

Salcon Power is required to complete the project within 300 calendar days after the signing of a power purchase agreement (PPA) between Napocor (buyer) and Salcon Power as power provider or independent power producer (IPP).