CEBU, Philippines - The Visayan Electric Company (VECO) has signed an agreement with the Cebu Energy Development Corporation (CEDC) for the purchase of 105 megawatt power under a twenty-five-year cooperation period.
The agreement is subject to the approval of the Energy Regulatory Commission (ERC).
Construction is ongoing for CEDC’s 246-megawatt clean coal-fired power plant in Toledo City costing over $450 million with VECO intends to get 35MW per unit.
The plant’s first unit is expected to be online by the first quarter of 2010. The next two units will be online in the second quarter and towards the end of 2010.
The plant, which involves one of the biggest single syndicated peso-denominated loans amounting to P16 billion, will ensure that electricity prices will have more stability reducing the exposure to foreign exchange volatility, said CEDC president Jesus Alcordo.
Jaime Jose Aboitiz, VECO executive vice president and chief operating officer, said “with the addition of CEDC’s capacity, VECO’s supply requirement for the medium-term would be sufficiently addressed. This is VECO’s step towards alleviating Cebu’s current power deficit and seeking more competitively priced power.”
Alcordo said that while “renewable energy sources are being strengthened and identified, we are here to make sure we continuously help improve our economy, create more jobs and help Cebu move forward with a clear sense of environmental management.” — /LPM (FREEMAN NEWS)