2 foreign firms eyed to supply power to Mindanao

THE Mindanao Electric Power Alliance (MEPA) has identified two world-class power-generation companies, which can supply emergency power for Mindanao.
Mindanao Business Council (MinBC) chairman Vicente Lao said MEPA will hook up with Caterpillar Generation System based in Singapore that could bring in 20 megawatts power to Mindanao.

The other one is Hyundai generating company based in Korea, ready to generate 10 megawatts electricity, Lao said.

Caterpillar and Hyundai generating sets are running on diesel fuel, Lao said.
The two international companies have yet to sign an agreement with power distributors and power cooperatives prior to their operations, Lao said.
He said MEPA is looking for more generators in the world as it eyes to bring in at least 200 megawatts of power to keep the operation of businesses.

“By end of April, Agus-Pulangi hydro power plants will stop operating,” Lao said, adding that Mindanao’s power deficiency remains to hover at 700 megawatts.
If there are no generators coming in, he feared that Mindanao will experience brownouts during the May 10 elections, he said.

Lao said MEPA has submitted its proposals to the government during a meeting in Malacañang on Tuesday.
The meeting was attended by all directly concerned agencies, including officials from the Development Bank of the Philippines (DBP) and Land Bank of the Philippines (LBP).

Lao said all those present are “all ears” to their proposals with the seriousness of the power problem confronting Mindanao.

Executive Secretary Leandro Mendoza who represented President Arroyo in the meeting, assured a review of MEPA’s proposal, Lao said, even as he underscored the seriousness of the national government in solving the power problem in the island.

The DBP and the LBP, for their part, have asked MEPA to come up with figures in relation to the amount needed for the purchase or lease of power generators, Lao said, adding that the Philippine Long Distance Telephone Company (PLDT) has also expressed its willingness to help in the procurement of generating sets.
The DBP has earlier assured that it is ready to provide funds for the generation of at least 100 megawatts of power to Mindanao.

Lao has confirmed that power rates will surely increase once the world-class generators start to supply power for Mindanao.
Earlier, DBP president and CEO Rey David said power rates are expected to climb to as high as P21 per kilowatt hour from the current P3 per kilowatt hour once additional generation sets are procured or leased. (PNA)