Kepco-SPC Power eyes loan from Asian Development Bank

MANILA, Philippines - The Korea Electric Power Co. (Kepco)-SPC Power Corp. is expected secure a loan from the Asian Development Bank (ADB) by July this year.

Kepco-SPC Power is developing a 200-megawatt base load power project in Naga, Cebu.

The group said the power plant will utilize the latest clean coal called circulating fluidized bed combustion (CFBC) technology.

According to Kepco-SPC Power, the emissions of this plant will be within the limits set by the World Bank and the Department of Environment and Natural Resources (DENR).

“The proposed power plant, by adopting CFBC technologies and other emission and pollution control measures, does not expect to create significant environmental impacts,” the assessment said.

The group said a coal-fired power plant would be the most appropriate plant in Cebu, with accessibility to coal suppliers (through sea ports), availability of coal supplies (both imported and locally), low capital cost and availability of clean coal technology.

There are about 1,300 units of CFBC technology operating worldwide. Another similar plant using CFBC is being constructed by Conal Holdings Corp. of the Alcantara group in Sarangani.

The plant will consist of two 100-MW units which will utilize coals from PT Kasih Industri and PT Surya Sakti Darma Kencana (both in Indonesia) and qualified local suppliers.

They noted that pulverized coal, also known as conventional coal technology, is one of the most widely used power generation technologies worldwide. However, because of the availability of new coal technology, most new coal-fired power plants are adopting CFBC.

The group has signed an engineering, procurement and construction (EPC) contract with Doosan Heavy Industries and Construction in December 2007. As of December 2008, the construction of the power plant is 31.5-percent complete.

The target commercial operation is February 2011 for the first 100-MW and May 2011 for the second 100-MW unit.

The primary economic benefit of the project, based on the assessment, will be the generation of 1,489 gigawatthours of electricity per annum. The generated power will be used to cope with the increasing power demand of the Visayas grid, which is essential for the growing economy.