CBK to continue power plant rehab

KALAYAAN, Laguna – CBK Power Co. Ltd. – a local company formed by IMPSA of Argentina and Edison Mission Energy of the US – remains committed to continue its $486-million Caliraya-Botocan-Kalayaan (CBK) build-rehabilitate-operate-transfer (BROT) project with the govenment despite the issues that have been raised against it.

"Though we are really quite discouraged by several issues that have been floating in the media for the past days, we still believe that the CBK project is a good investment," Edison Mission director for Business Development Asia Pacific Tony C. Hsun said in a press conference here.

Hsun said they also welcome the review of their contract by the government. "The country has the right to review its contracts with the independent power producers (IPPs), but this has somewhat brought a CBK power… From B-1

wrong signal to other investors. But we, for our part, welcome it. We have no investment concern. This contract has gone through a thorough review before it was approved," the Edison Mission official added.

Hsun said he was unaware of where the issues are coming from. "We are bothered by the issues but we will continue to invest in the Philippines," he said.

CBK chief executive officer Gerald L. Katz said the allegations of "over-charging" are baseless. "We are charging based on the same rate under the BROT contract," he said.

Katz also belied reports that they have not done anything since the turn-over in 2001. "We have invested some $365 million to date. All of the project under the BROT are being done," he added.

As of July 31, 2002, Katz said the Kalayaan I project of CBK had become fully operational, while the remaining unit such as the Caliraya is now 96 percent complete. The status of other projects are as follows: Botocan (88 percent complete); Kalayaan II (59 percent complete); civil structures, 62 percent complete. Katz said the status of the entire CBK project is now 76 percent complete.

Citng the importance of the project, CBK project director John Harrison noted that CBK is not only th pumping storage facility in the Philippines but also the closest to the demand centers, particularly in Metro Manila.

Harrison said the project also provides black-start capabilities. Once completed, capacity will increase from 367 megawatt (MW) to over 728 MW.