Efficient distributors solution to Mindanao power woes

Malacañang’s admission that power supply in Mindanao will be tight has not exactly assuaged the anxiety of businessmen considering the island-wide blackout that occurred last February. Severe power shortages have afflicted Mindanao for the past five years, and experts point to the lack of base load power plants to meet the growing demand as a cause of the chronic power shortage, not to mention the aging hydroelectric sources that are buckling down under the weight of water level fluctuations and plain mechanical stress.

Aside from enough base load power plants, Mindanao also needs efficient and viable power distributors with the capacity to deliver a steady supply to consumers – at reasonable costs. One of the areas that continues to suffer from the power shortage is Zamboanga City, whose economy is still reeling from the floods and the siege by MILF renegades last year.

Unfortunately, the Zamboanga City Electric Cooperative or Zamcelco, which is the city’s prime power distributor, is heavily in debt and hemorrhaging cash. Industry insiders say the coop was unable to pay one of its independent power producer suppliers, reducing its access to only one-sixth of the capacity which it originally contracted. Insider sources say the cash-strapped Zamcelco is in need of a “white knight” that could readily infuse the needed resources and management to the debt-ridden coop – and one of them has a very good chance of landing the deal due to its extensive experience in power distribution.

Those in the know say Mindanao is suffering from a deficit of 240 megawatts, but there are various untapped sources that can readily provide additional capacity to help reduce the shortfall, like the Southern Philippines Power Corporation in Alabel, Sarangani which currently generates about 50 MW for the Mindanao power grid. We’re told the SPPC has offered to operate an extra engine that can provide another 5 MW to the grid. But for some reason, the National Power Corporation and the Power Sector Assets and Liabilities Management Corp. (PSALM) refused the offer, saying that the extra 5 MW is not covered by the energy conversion agreement between NPC/PSALM and SPPC – which was for 50 MW only.

At this time when the power-starved island needs every single megawatt of power it can get, why is the NPC/PSALM thumbing down the offer? According to sources, the Energy Regulatory Commission has ruled in favor of SPPC’s offer to supply the additional 5 MW of power during an arbitration proceeding, but these government agencies have appealed the decision, in effect saying “thanks, but no thanks” to the additional capacity. We can only wonder why these officials seem to enjoy inflicting misery on the people by refusing to consider options that could help assuage the power problems in Mindanao.

PPA should develop smaller container ports

Opinion is definitely divided over the imposition of the truck ban in Manila. Some business groups are appealing to Manila Mayor Joseph Estrada to reconsider the truck ban while other groups have indicated their support, citing the high cost of traffic congestion estimated at P2.4 billion per day, aside from the health hazards due to air pollution. Mayor Estrada and vice mayor Isko Moreno are standing pat on their decision, saying Manila residents have long suffered in silence due to the horrible congestion and the arrogance of undisciplined truck drivers who have turned many streets in the city as their personal parking spaces.

One of our readers, Manuel Go, is suggesting the creation of a smaller container port in Pasig River near the Makati, Pasig or Taguig areas. The containers can be delivered by barge and can be unloaded up the river port, he explained, adding that trucks can then pick up the cargo and deliver them to Pasig, Marikina and the Calabarzon area. That way, fuel can be saved and the number of trucks plying Metro Manila will be significantly reduced.

Another viable option is to utilize trains for delivering the containers to Calabarzon, considering that South Harbor and the Manila International Container Port is just several blocks away from the Tutuban station. There is also a container depot in Cabuyao  and years ago, trains were being used to deliver goods, Mr. Go said, disclosing that ICTSI (International Container Terminal Services Inc.) is developing a river port in Nigeria and so there is no reason why we cannot do the same thing here in the Philippines.

ICTSI recently inked a 21-year build, operate and transfer deal worth $1.3 billion for the container terminal located in Lagos, Nigeria. The project, which is expected for completion by 2016, is under a public-private partnership arrangement under a concession basis for 45 years.

US ‘Iron Chef’ gets a taste of Filipino cuisine

 PLDT chief Manny V. Pangilinan gave “The Next Iron Chef” Season 4 winner Geoffrey Zakarian a taste of Filipino cuisine during a private lunch catered by restaurateur Gaita Fores at the PLDT offices yesterday. The Michelin-starred chef will be the featured chef for the gala dinner for 700 guests tonight at the Sofitel. Dubbed the “Feast of Colours,” the dinner is a fundraiser initiated by the Philippine Disaster Recovery Foundation (co-chaired by MVP, Jaime Augusto Zobel and Cardinal Luis Antonio Tagle) to help raise funds for the rehabilitation of areas devastated by Typhoon Yolanda.  

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