PSALM turns over Naga power plant to SPC

CEBU, Philippines - The Power Sector Assets and Liabilities Management Corporation has formally turned over the Naga Power Plant Complex to SPC Power Corporation.

Led by SPC president Dennis Villareal, the ceremonial turnover program yesterday signals the company’s commitment to build new power plants that would soon add 200 megawatts to the Visayas grid to replace the existing thermal plants inside the complex in Colon, City of Naga.

 City of Naga Mayor Valdemar Chiong assured his support to all endeavors of SPC which he said has established a very good relationship with the local government unit.

 Chiong earlier led a protest rally against the rehabilitation of the NPPC while the City Council passed a resolution expressing their strong opposition to the rehabilitation of the plant.

 He explained the resolution was passed before SPC won the bidding and the latter’s announcement that it would build a new plant.

 “ON THIS SITE WILL RISE A NEW CLEAN COAL POWER PLANT. SPC Power Corporation with KEPCO are one with Nagahanons in the march to realize the Vision And Leadership program of the City of Naga, Cebu,” read the huge tarpaulin posted at the main entrance of the complex.

Villareal said the company is engaging with a reputable international engineering firm to conduct a comprehensive feasibility study that shall cover the technical, environmental, financial, and commercial aspects of a new coal-fired power plant.

 SPC has invited contractors Korean Plant Service, Doosan Heavy Industry, and Guangxi Hydroelectric Construction Bureau to make a full-scale assessment of the plants’ integrity and equipment conditions.

 While under an Operate and Manage Service Contract, the SPC has conducted an internal study as part of its due diligence. The study focused on the technical aspects of the thermal plants.  

 The power plant complex in Naga was built way back in the ‘70s to address power needs of Cebu and neighboring provinces under the management of the National Power Corporation.

 When SPC took over operations in 1994 under a contract to Rehabilitate, Operate, Maintain, and Manage the complex, the 22-hectare Naga complex already had thermal plants, two gas turbines, and six diesel plants.  (FREEMAN)