MANILA, Philippines - A Brown Co. Inc. (ABCI), through its wholly owned subsidiary Peakpower Energy Inc., has signed a power supply agreement with Zamboanga del Sur II Electric Cooperative (Zamsureco II).
Based on the agreement, Peakpower would install and operate a five-megawatt bunker-fired power plant within the franchise area of Zamsureco II, to be funded under the build-operate-maintain-transfer scheme.
The deal is still subject to the approval of the Energy Regulatory Commission (ERC).
Peakpower president Roel Castro said the agreement would help ease the current power shortage in the island.
“We are very happy for the enthusiastic support and cooperation of Zamsureco II with regard to this project. Their acceptance of our proposal takes us one step closer towards overcoming the ongoing power shortage in the region,†he said.
Registered in the National Electrification Administration (NEA) in May 1980, the cooperative has the exclusive franchise to own and operate an electricity distribution system. Its area covers the Vitali district in Zamboanga City and 23 municipalities in the province.
A Brown, meanwhile, is a publicly-listed company primarily engaged in real estate and agribusiness but has recently ventured into the utilities sector, particularly in power and renewable energy.
Aside from the Zamboanga plant, Peakpower has started the construction of two bunker-fired power plants, the 20-MW Peakpower Socsargen in Gen. Santos City and the five-MW Peakpower San Francisco in Agusan del Sur.
A. Brown’s foray into the energy business also includes a 135-MW coal-fired power plant in Concepcion, Iloilo through its subsidiary Palm Thermal Consolidated Holdings Corp. (PTCHC) and a 25-MW hydroelectric project in Surigao under another subsidiary Hydrolink Projects Corp. (HLPC) that signed a hydropower service contract with the Department of Energy in July 2013.