In a press briefing over the weekend, SPI plant manager Peter Just said they expect to complete the construction of the coal-fired power facility by the end of this year. Once completed, the thermal plant would be able to supply 15 percent of Mindanao’s power demand.
He said they are already operating one 105 megawatt (MW) unit while the other unit is undergoing test and will be ready by yearend.
The SPI facility is located in a 55-hectare lot inside the Phividec Industrial Estate in Villanueva, Misamis Oriental. It currently sources coal requirement from Indonesia but eventually expects to source at least 15 percent of its coal requirement from the local market.
As the biggest single investment in Northern Mindanao for the past 20 years, SPI reportedly helped the local government double its revenues to P2.1 billion in 2005 from P1.04 billion in 2004.
Germany’s STEAG AG owns a controlling stake of 89 percent in the project while its local partner, State Investment Trust Inc., holds 11 percent equity.
The German power firm is tasked to operate and maintain the power facility.
The $305-million SPI plant uses a flue gas desulfurizer (FGD), enhanced with quicklime-based flame-gas cleaning technology to guarantee its compliance to environmental regulations.
SPI has 25-year build-operate-transfer contract with the National Power Corp. (Napocor). Under a power purchase agreement (PPA) with Napocor, SPI has to complete the construction of the facility by the end of 2006.
A fixed-price turnkey engineering, procurement and construction (EPC) contract was awarded to Kawasaki Heavy Industries Ltd. of Japan.
Of the 210 MW total capacity, SPI has contracted 200 MW to Napocor and the remaining 10 MW could be sold to direct offtakers or through the wholesale electricity spot market (WESM).
Among the big industries that SPI is eyeing for the excess 10 MW capacity include Del Monte Processing and Mega Center Mall.