MANILA, Philippines - Yuchengco-led construction firm EEI Corp. is scheduled to provide additional power to the electricity-starved Mindanao grid late this year.
The new P610-million diesel-fired power plant will cater to the needs of an electric cooperative in Davao, an official said.
“Our 15-megawatt (MW) peaking plant in Tagum City for Davao del Norte Electric Cooperative, Inc. (DANECO) is in full swing, slated for commercial operation end of this year,” said Armando Diaz, project development head of EEI.
The Tagum bunker diesel-fired power plant, which will be dispatched to meet peak demand, is 100-percent owned by EEI.
“We chose bunker/diesel since it is the type that could be put up in the shortest period, say less than a year,” Diaz added.
Mindanao has been reeling from supply shortage and rotating brownouts since early this year.
Transmission service provider National Grid Corp. of the Philippines (NGCP) has already issued the grid impact study (GIS) for the power plant to determine if the electricity to be generated by planned power projects can be absorbed by the grid.
“We also got our [environmental compliance certificate]. Incidentally, we already have programs to ensure that operations conform to environmental standards,” Diaz said.
The Compostela Valley-based DANECO is the exclusive franchise holder for the operation of a power distribution service in the provinces of Davao del Norte and Compostela Valley, and cities of Tagum and Island Garden City of Samal.
It also distributes electricity to the municipalities like Monkayo, Montevista, Nabunturan, Compostela, New Bataan, Mawab, Maco, Pantukan and San Isidro.
EEI, for its part, is a listed construction firm of the Yuchengco Group.
Its first half profit surged by 29.5 percent to P453.1 million on the back of robust revenues from work contracts and services.
Aside from the Tagum power plant, the Yuchengco Group is also one of the top shareholders in upstream oil firm Petroenergy Resources Corp.
PetroEnergy also holds Service Contract (SC) 14-C2 in West Linapacan, Northwest Palawan and SC 51 East Visayas. It is also into power production through Maibarara Geothermal Inc., the proponent of the 20-MW Maibarara geothermal project in Laguna and Batangas.