Japanese group bags $68.5-M power proj

The National Transmission Corp. (Transco) has provisionally awarded the $68.50 million Leyte-Cebu Interconnection Uprating Project to Japanese consortium Kanematsu-J Power Systems following a successful electronic bidding last July 30.

The Leyte-Cebu project, which is expected to be completed in February 2005 aims to transmit an additional 200 megawatts (MW) from Leyte’s geothermal power plants to the Cebu-Negros-Panay area.

The project will also entail the installation of a second underwater transmission line between Leyte and Cebu and will consist of submarine cables spanning approximately 32.5 kilometers.

Transco is also in the process of preparing for the link-up of Cebu-Mactan, Panay-Boracay, Cebu-Bantayan transmission lines.

The firm is also uprating the Leyte-Bohol Interconnection to ensure the adequacy of transmission lines in the Visayas region.

At present, the Japanese consortium is tapping various financial groups to raise the funds needed for the project.

In a letter to Transco, Kanematsu general manager Toshio Satoh said the Standard Chartered-led loan syndication has expressed intention to provide co-financing for the project.

Transco special bids and awards committee chairman Winifredo SM Pangilinan, in an interview with The STAR, confirmed that the Kanematsu group has submitted a proposal to finance the project.

"They have submitted proposed lenders for the project. This proposal will be looked at by the government soon," Pangilinan said.

Based on the approved process, the winning bidder for Leyte-Cebu will look for the fund to finance the project, and submit the financial/loan proposal to the government. A government team composed of the Department of Finance, the National Economic Development Authority and the Transco will then evaluate the financing scheme submitted by the consortium.

Leyte-Cebu interconnection is the biggest infrastructure project to use the e-bidding system. Transco was the first agency in the public sector to utilize the system.