Delay in PSA hinders 100-MW power plant PDF Print E-mail
Thursday, 11 July 2013 11:40

The delay in the approval of the Power Sales Agreement (PSA) between the Zamboanga City Electric Cooperative (Zamcelco) and the San Ramon Power Inc. (SRPI) is holding back the construction of the P12 billion 100-megawatt (MW) coal-fired power plant in this city.

Zamcelco president Omar Sahi said both the cooperative and SRPI are awaiting the approval of the PSA by the Energy Regulatory Commission (ERC) before SRPI could start the work on the project.

The power plant will be constructed within the property of the Zamboanga City Special Economic Zone Authority and Freeport (Zamboecozone) in Barangay Talisayan, 26 kilometers west of this city.

Sahi said the ERC must give the go signal before construction works can actually start.

The construction of the power plant is set to start in September this year and to be completed within a period of three years or in 2016.

The P12-billion project will be funded through loans and equity to be secured by SRPI.

In their petition seeking approval of the PSA with the ERC, both parties agreed on the sale and purchase of electricity to be generated by the power plant upon its completion.

The PSA mandates the sale of 85 megawatts of electricity by SRPI to Zamcelco.

The PSA involve the amount of P90 billion payable in 25 years. This amount will be paid by Zamcelco to SRPI through collection of electric bills from the cooperative’s 150,000 consumers.

Meanwhile, newly-elected Councilor Josephine Pareja has vowed to continue her advocacy against the establishment of the coal-fired powered plant in Barangay Talisayan.

Pareja, who was former barangay chairman of Talisayan, has been leading demonstrations and an advocacy campaign against the establishment of coal-fired power plant in this city.

Pareja was the only oppositor, since all the other 97 barangay chairmen in this city favor the construction of the coal-fired powered plant. — LS