SBMA signs deal with Taiwanese firm for $300-M power plant

SUBIC BAY FREEPORT — The Subic Bay Metropolitan Authority (SBMA) yesterday signed a memorandum of understanding (MOU) with Taiwan Cogeneration Corp. for the setting up of a 300-megawatt power plant worth $300 million.

"Today marks a big step for us. Both the SBMA and Taiwan Cogen have sat down to come up with a good package that will definitely afford investors competitive rates," SBMA Chairman Feliciano Salonga said as he welcomed Taiwan Cogen into Subic.

Salonga explained that Taiwan Cogen will initially start with a feasibility project which would carefully detail the power requirements of locators in Subic and at the same time define a suitable place where the future plant will be located.

Taiwan Cogen, a subsidiary of Taiwan Power Corp., is a specialized cogeneration company established in 1992 to provide cogeneration technology and upgrade the power supply in Taiwan.

Under the agreement, both parties have expressed their intent to set up a power plant that would initially provide competitive and reliable power for investors inside the Subic Bay Industrial Park (SBIP) and eventually the whole Freeport.

The $300-million project is intended to supply power directly to Subic Enerzone, the current power provider for both the Freeport and Olongapo City.

"Not only will Taiwan Cogen help make power supply here more affordable and efficient but it will also enhance our competitiveness among other economic zones and eventually offer the cheapest rates in the Philippines," SBMA Administrator Armand Arreza stated.

He added that investors have something to be happy about — a possible P1 per kilowatt reduction of current power rates — when Taiwan Cogen sets up the power plant.

Arreza, who had initially met with Taiwan Cogen president Shu Sung-Fou in Taiwan last October, stressed how fortunate locators are with the setting up of the power plant.

"The demand for energy is a serious issue in today’s world market. Economic development is gauged by the presence of a good power supplier and distributor," Shu explained.

"I see a bright economic future ahead for SBMA and Taiwan Cogen," he added.

Signing for the SBMA were Salonga and Arreza while Taiwan Cogen was represented by Shu. Subic Bay Development Management Corp. (SBDMC) president Jeff Lin and Gong Shen-Yu, vice president for the China Development Industrial Bank (CDIB) also witnessed the signing of the MOU.