SRPI ready to undertake Zambo power project PDF Print E-mail
Friday, 07 November 2014 11:33

The Alsons Power Group’s San Ramon Power, Inc.  (SRPI)  has reasserted its firm commitment  to the people of  this city to provide safe reliable, and affordable power to the people of Zamboanga City.

Alsons Power’s vice president for Project Development Joseph C. Nocos reiterated the commitment Tuesday  during  a  hearing conducted by the Zamboanga City Council.

The hearing was aimed at determining when SRPI could commence the construction of its 105-MW base load coal-fired power plant in the village of Talisayan in this city and begin its operation.

Nocos assured the council that SRPI has the capability to build and operate the 105-MW coal-fired power plant, citing Alsons Power’s track record as the first and most experienced independent power producer in Mindanao, having been in operation since 1993.

Nocos  also disclosed that more than adequate financial resources have been allocated to the project with US$ 5.7 million (P250 million) having already been spent in development costs since 2010.

At the hearing, the Alsons VP also explained that interveners from the Energy Regulatory Commission (ERC) who were supposed to review the Power Sales Agreement (PSA) were frequently unavailable, resulting in their failure to meet key deadlines set by the ERC.

SRPI has committed to supply up to 85-MW to the Zamboanga City Electric Cooperative Inc. (Zamcelco) from the 105-MW coal project.

The frequent absences plus the September 2013 Zamboanga siege resulted in a lengthy 17-month review process, Nocos disclosed.

But even before the SRPI plant could operate, Nocos disclosed that interim power supply could still be provided by the other existing power plants of Alsons to ensure that Zamboanga City does not suffer from power outages.

The Alsons power facilities that can provide interim power are: the Western Mindanao Power Corporation plant in Sangali, Zamboanga City; the Mapalad power plant in Iligan City (which is already supplying Zamboanga with interim power) and the Sarangani Energy coal-fired power plant in Sarangani province.

He noted that one of the key components for an infrastructure project of such magnitude was funding and it is standard practice to achieve financial closing before construction is commenced.

However, Zamcelco must successfully complete the ongoing enhancement program to fortify its financial standing and, thereby, satisfy lending institutions.