Negotiated deal eyed for repair of Agus 1 power plant

The National Power Corp. (Napocor) has decided to negotiate with Voss Alpine Technology (VA Tech) for the rehabilitation of the damaged control room of Agus I instead of bidding it out.

In an interview, Napocor president Federico E. Puno said the board realized that it is more economical to have the damage repaired by VA Tech, the original designer and manufacturer of the control panel.

Puno said a bidding needs to go through several stages before it is awarded, repaired and made operational. During that period, Napocor must re-commission the diesel-fired power barges in Zamboanga and General Santos City to augment the temporary loss of power from the Agus I hydro power plant.

"That would be double jeopardy since we would be spending for the repairs of the control panel as well as spending for the operation of the power bargers. We would be burning expensive fossil fuel to substitute for inexpensive hydro power for a long period like six to nine months," the Napocor president pointed out.

By negotiating with the original designer on a price agreeable to both parties, the repair and commissioning of the panel would take a shorter route, he said.

"For every day delay, we are losing money because we have water flowing down from Agus I not generating any power. Meanwhile, we are spending precious money to utilize the diesel plants in Zamboanga and GenSan," he added.

The board decided to set Dec. 15 as the deadline for the Napocor management and VA Tech to finish all negotiation. – Ted Torres