Metrobank-Mirant tieup with Panay Power seen to boost power supply in the region

Claredon Towers Holdings Inc., the new owner of Panay Power Corp., is being eyed to help solve the power supply problem in Panay Island, Energy Secretary Vincent Perez said Monday.

"I call on the Claredon-Mirant joint venture to support the Department of Energy’s call for the private sector to address the looming power shortage in Panay, by investing in additional generation capacity in the region," Perez said.

Perez said the partnership of Claredon, a subsidiary of the Metrobank group, with US-based Mirant Corp.’s subsidiary Mirant Philippines Toledo Holdings Corp.’ to jointly own the 72-megawatt Panay Power plant is an indication of the continued optimism of investors in the country’s power industry.

Late last week, Claredon announced its acquisition of the P2.329-billion Panay Power from Lopez-controlled power firms, First Philippine Holdings Corp. and First Generation Holdings Corp.

Mirant Philippines is the largest private producer of electricity in the country, generating more than 2,000 MW of installed capacity nationwide. Mirant also owns a stake in the natural gas-fired 1,200 MW Ilijan power plant.

Last year, President Arroyo ordered the creation of a Panay Power Contingency Task Force, composed of the Department of Energy (DOE), National Power Corp. (Napocor), National Electrification Administration (NEA), the local government units and other stakeholders, to coordinate a solution to the imminent objectives of the Electric Power Industry Reform Act (EPIRA).

Mirant Philippines also concluded negotiations for a 20-year build- operate-and-own (BOO) energy supply contract with the Iloilo-1 Electric Cooperative Inc. (ILECO-1).

Under the agreement, Mirant will finance, construct, operate and maintain a 10-MW diesel generating power station in Iloilo as well as rehabilitate and upgrade ILECO-1’s 13.2kV distribution lines in the municipalities of Sta. Barbara and Pavia.

Paul Flake, Mirant’s vice president for External Affairs and Business Development stressed that the completion of the contract is Mirant’s response to the call of government for the private sector to participate in addressing the power shortage in the island of Panay.

"This gives us the opportunity to provide reliable and affordable energy in the Visayas region towards addressing its developmental needs as we know that reliable power supply is one of the pre-requisites for progress," Flake said.

Flake said Panay has experienced power shortages in certain areas due to power undercapacity. ILECO-1 provides power to the municipalities of Alimodian, Cabatuan, Guimbal, Igbaras, Leganes, Leon, Maasin, Miag-ao, Oton, Pavia, San Joaquin, Sta. Barbara, San Miguel, Tigbauan and Tubungan, all located in the province of Iloilo.