DMCI Power eyes off-grid Napocor areas

MANILA, Philippines - DMCI Power Corp., the power generation unit of the Consunji Group, is eyeing to participate in the privatization of the National Power Corp.’s Small Power Utilities Group (SPUG) this year, a company official said.

DMCI Power chairman Isidro Consunji said the company intends to help in energizing the SPUG areas.

“Our focus this year is on [Napocor] SPUG areas. We will bid as much as possible,” he said.

Napocor is targeting to intensify its privatization efforts starting the first quarter of this year, with the two areas being eyed for privatization to include parts of Mindoro and Palawan.

Napocor-SPUG is mandated by the Electric Power Industry Reform Act to provide electricity to remote islands and far-flung, inland barangays that are not connected to any of the main grids, after around 90 percent of its generating assets have been privatized.

The competitive selection process for Napocor-SPUG’s off-grid areas is part of the major reforms in the power sector.

It provides an opportunity for private investors to build, own and operate generation facilities to supply missionary or far-flung areas.

Earlier, Napocor president Froilan Tampinco said they would offer to power generation investors the remaining 12 SPUG areas.

There were 14 SPUG areas previously offered for private sector participation: Occidental Mindoro, Oriental Mindoro, Marinduque, mainland Palawan, Catanduanes, Bantayan, Masbate, Tablas, Romblon, Camotes, Siquijor, Tawi-Tawi, Basilan and Sulu.

Tampinco said they would also privatize the SPUG areas in Catanduanes, Romblon, Tablas and Siquijor after the Palawan and Mindoro bidding.

But the Napocor executive admitted that they would have to put the least priority to “more difficult areas” such as Sulu, Tawi-Tawi and Basilan.

According to Tampinco, they would be coordinating closely with the National Electrification Administration and the Department of Energy for the smooth conduct of the privatization of these SPUG areas.

“NEA is there to make sure that the participation and cooperation of electric cooperative is there. DOE will be there to make sure that when the competitive bidding process is done, the participating parties will know what their obligations will be,” he said.

This year, Napocor would be needing about P15 billion for its SPUG operations.

Napocor-SPUG currently operates over 110 power plants with a rated capacity of close to 200 megawatt nationwide.

Earlier, DMCI president Nestor Dadivas said they are looking at participating in three areas for privatization, namely Palawan, Mindoro and Catanduanes.

It would be noted that DMCI participated in the SPUG power privatization when it signed in 2007 a supply agreement with the Masbate Electric Cooperative to provide a more reliable and affordable supply of electricity to more than half a million residents of Masbate. The company put up a 24.4-MW diesel power plant in Brgy. Tugbo, Mobo, Masbate.