DOE steps up roadshows to attract investments

The Department of Energy (DOE) will hold a series of roadshows in Luzon starting next week in an effort to encourage investors to put up power plants in this part of the country.

The activity will be patterned after similar roadshows earlier undertaken in Visayas and Mindanao. Joining the DOE in the roadshow presentations are the National Transmission Corp. (Transco), Power Sector Assets and Liabilities Management Corp., PNOC-Energy Development Corp. (EDC), National Power Corp. (Napocor) and National Electrification Administration (NEA).

The Luzonwide roadshow will particularly be held in 12 cities mostly in the North and South Luzon areas such as Nueva Ecija, Zambales, Legaspi, Naga, Laguna, Laoag, Pampanga, and Cagayan.

An energy official said the thrust of the activity is to invite more investors to put in place all the necessary projects lined-up under the Philippine Development Plan (PDP).

Based on the DOE assumptions, Luzon will incur massive power shortage by 2008 if no additional power facilities are put up in the grid.

Another purpose of the roadshow, the official said, is to update investors on the ongoing privatization of Napocor’s transmission and generation assets.

One of the crucial projects in Luzon is Transco’s Batangas transmission reinforcement project (BTRP), which aims to remove the transmission bottlenecks in South Luzon particularly those involving the Lopez-owned natural gas power plants – Sta. Rita and San Lorenzo.

The $76.6-million BTRP, which will expand the transmission line by 80 kilometers, is expected to run from January 2004 up to December 2005. Aside from setting up of the transmission lines, the project will also involve putting up of substations within the Batangas area.

Specifically, the San Lorenzo-to-Batangas transmission lines are expected to be completed in the first quarter of this year.

Also included in the BTRP and their projected time of completion are: Batangas-to-New Makban (December 2004); New Makban to Calamba Tower (June 2004); Calamba Tower-to-Biñan (August 2004).

The substation projects under the BTRP, on the other hand, include: the Batangas substation which will be completed by February 2005; New Makban (May 2005) and Binan (December 2005).

Among the Luzon-based generating assets that will be sold by PSALM and may interest investors include diesel-fired power plants which are likely to be converted into natural gas facilities such as the Sucat, Limay and Bataan thermal plants.