SRPI welcomes Council resolution on Zamcelco enhancement program PDF Print E-mail
Tuesday, 11 November 2014 11:07

The Alsons Power Group’s San Ramon Power, Inc.  (SRPI) hailed Councilor Charlie Mariano’s resolution to have the City Council’s energy committee (chaired by Mariano) regularly monitor the progress of an enhancement program for the Zamboanga City Electric Cooperative, Inc. (ZAMCELCO). The enhancement program is meant to improve the financial and technical viability of ZAMCELCO in order to improve the electrical cooperative’s credit rating from “C” to “A” – a key prerequisite to the survival and long-term viability of ZAMCELCO and to the effectiveness of ZAMCELCO’s power sales agreement with SRPI.

SRPI will be able to complete the project financing phase and commence construction of its prospective 105 MW baseload coal-fired power plant in Talisayan, Zamboanga City once ZAMCELCO signs a binding agreement with an experienced power distribution company that will act as the power cooperative’s investment management contractor (IMC).  Under the enhancement program, ZAMCELCO will select an IMC via a competitive bid among qualified power distribution utilities. The selected IMC will then provide ZAMCELCO with financing, technical expertise, and management services that will help ensure that the coop achieves a credit rating of “A”.  Under the program, ZAMCELCO is expected to complete the bidding and selection process and sign up with its chosen IMC within the first quarter of 2015.

“Councilor Mariano’s resolution as passed by the City Council is a clear signal of the Council’s direct hands-on approach to helping resolve the power shortage in Zamboanga City,” said Joseph C. Nocos, Alsons Power vice president for Project Development. Nocos added, “The Zamboanga City Council’s Committee on Energy thru its regular monitoring of the progress of ZAMCELCO’s enhancement program will help ensure that a qualified investment management contractor will be selected to help finance and manage ZAMCELCO before the end of the first quarter of 2015 and put it on track towards technical and financial viability and credit worthiness. This will pave the way for the start of the construction of our power plant and have the plant operating earlier within 2018. We thank Councilor Mariano and the Zamboanga City Council for helping ensure the success of ZAMCELCO’s enhancement program.”

The Alsons Power Group is Mindanao’s first and most experienced independent power producer. Alsons Power currently operates three diesel power plants with an aggregate capacity of 258 MW: the 100 MW Western Mindanao Power Corporation plant in Sangali, Zamboanga City; the 55 MW Southern Philippines Power Corporation plant in Alabel, Sarangani Province; and the 103 MW Mapalad Power Corporation power plant in Iligan City. Apart from the SRPI plant, the Alsons Power is developing the 210 MW Sarangani Energy Corporation (SEC) baseload coal-fired power plant in Maasim, Sarangani Province. The SEC plant will being operating in October of 2015 with an initial capacity of 105 MW and is expected to reach its full 210 MW capacity in the fourth quarter of 2016.