Marubeni to put up power facility in Negros

Marubeni Philippines Inc. will put up power generation facilities in Central Negros capable of producing up to 400 gigawatt-hours of electricity in the area.

The local arm of the Japanese trading giant has entered into a power supply agreement with the Central Negros Electric Cooperative Inc. (Ceneco) to provide stable and reliable supply of electricity in the area and avert the occurrence of power shortages.

In 2003, Marubeni likewise entered into a similar agreement with the Zambales II Electric Cooperative to provide at least 12 megawatts of power over a period of 10 years.

The Marubeni-Ceneco deal was forged under Philippine Power Distributors Investments Corp.’s proposed management tie-up with the rural electric cooperative.

In line with its commitment to help electric cooperatives (ECs) revolutionize their operations, PPDIC has helped them not just to comply with, but in fact to take advantage of some new-found opportunities under the Electric Power Industry Reform Act (EPIRA) such as going into a power supply agreement (PSA) with an independent power producer (IPP).

PPDIC Holdings president Roberto Guevara said the MOU signing is a positive development for electric cooperatives in the country as it paves the way for electric cooperatives to purchase power not just from the National Power Corp. (Napocor) but from major IPPs as well.

He added that a supply contract would be concluded within three months from start of formal negotiations.

"Ceneco and PPDIC are optimistic over the long-term prospects of the agreement. As the province of Negros Occidental continues to experience frequent power shortages, this MOU will be a good response to help alleviate the situation and address the future need for a more stable power supply," Guevara said.

He added that the MOU strategically positions Ceneco to operate and compete under a deregulated electricity market.

"The new rules under this deregulated environment will enable Ceneco to adjust to specific customer needs and provide significant reductions in costs for both the cooperative members and other consumers," Guevara said.