Ilijan power plant to start comm’l operations in June

The Power Assets and Liabilities Management Corp. (PSALM) said the Ilijan natural gas combined cycle power plant will start commercial operations in June this year, six months behind the original schedule.

PSALM president Edgardo Del Fonso, who visited the Ilijan site over the weekend, said the June schedule is a revised target and the proponents seem to be on track.

The proponents of the Ilijan natural gas power plant project include Kepco (Korea Electric Corp.)-Ilijan Corp. (Keilco), a consortium composed of Kepco, National Power Corp. and other power firms like Mitsubishi Corp., Southern Energy of the US and Kyushu Electric of Japan.

The United Engineers International Inc., Raytheon-Ebasco Overseas Limited and Mitsubishi Heavy Industries were hired by Keilco to build the power plant.

According to Del Fonso, the Ilijan project has reached the finishing stage. "At least four of six to seven major activities at the site are 100-percent complete. Taken all together, there are still some tests that need to be done such as testing turbine generators if they are properly running," he said.

Keilco is currently negotiating with Napocor on the $400,000 a day penalty imposed by the state-owned power firm as liquidation damages.

"Napocor is looking at that separately. But there are some contract provisions that have to be observed so we are not ruling that out. But this is already a separate issue, which was turned over to Napocor. It went there to see how the progress was picking up," he said.

The $800-million 1,200-MW Ilijan project is one of the downstream power plants that would be fueled by the Malampaya natural gas. The National Government is expected to earn P28 billion over the 25-year life of the project.

Malampaya gas will be sold to Santa Rita, San Lorenzo and Ilijan power plants located in Batangas. But of the three, only Santa Rita is operating commercially since October. San Lorenzo will go on full commercial operation this month while Ilijan is scheduled in June. — Donnabelle Gatdula