Monday, December 1, 2014

Work on 100MW coal-powered plant starts only after Zamcelco starts “enhancement”



ZAMBOANGA CITY (ZNS) -  The San Ramon Power Incorporated (SRPI) will start work on its P12 Billion peso 100MW coal fired power plant only after the Zamboanga City Electric Cooperative will start work on its P900 million enhancement project.
The SRPI wants to be sure that Zamcelco will be “viable” following its enhancement project and thus will be able to pay back part of the money invested in the plant by way of payment of power bills from energy generated in the plant.
Once operational, the SRPI will be  80%  dependent on the Zamboanga City Electric Cooperative (Zamcelco) for its income and recover its investment of P12 billion in the Coal Fired Power plant to be established at the  Economic Zone and Free Port Authority or Ecozone .
This status of the project came to light during a dialogue held Tuesday at the City Council where officials of the SRPI and Zamcelco‘s General Manager were invited to shed light on the matter.
The city council wanted to find out when SRPI will start work on the project.
Joseph Nocuz of SRPI cannot give any exact date as to when they are going to start the project pending Zamcelco’s implementation of its enhancement project.
This enhancement project to cost some 900 million will include repair of power lines, connections, transformers and other electrical equipment of the cooperative.
The tentative date for the enhancement project is said to be March 2015.
Nocuz said that this enhancement program is to ensure the long term viability of their investment wherein the recovery is about 80 % dependent on Zamcelco’s ability to pay its bills.
On record, Nocuz said that Zamcelco needs about P 900 million bigger than what was earlier predicted by Zamcelco at P 700 million.
On the other hand Zamcelco General Manager George Ledesma does not agree on the P900 million enhancement cost.
To accept this figure would mean that mean that Zamcelco is not doing anything to enhance its viability.
“I don’t agree-accept the P900 million .It would mean we are not doing anything, “ Ledesma said .
Moreover, aside from the availability of Zamcelco to pay its bill ,  there is another problem over the 32 hectare site that will be used to construct the power plant.
The Department of Agrarian Reform and the Zamboanga Ecozone cannot agree on the status of the area to be used for the project.
Ecozone Chairman Christopher Arnuco said that all lands in the Ecozone are automatically converted from agricultural to industrial use.
On the other hand, the DAR said that conversion of the area for use of RCPI must pass through the process of conversion from agricultural to industrial.
 “We are Ecozone tenants. We rely on Ecozone, “ Nocuz said saying that  the two government agencies rely on  conflicting with  laws. 
DAR  can say that SRPI will violate the  Agrarian Reform  Law if it sets up its (industrial) facility on land that is still classified as agricultural.
Arnuco said that under the Ecozone Charter   R.A. No. 7903  that there is no need to convert the  lot from  Agricultural to Industrial as they have the  authority to declare the area from Agricultural to Industrial
However, Nocuz said  that it is a matter of compliance  with DAR.
As this developed,  there is no  clear result as  to when  SRPI  will implement the Coal Fired Power Plant at Ecozone .
At the same time, the business sector is complaining about their extra operating cost incurred with the reimposition of blackouts in the city.
The President of the Zamboanga City Chamber of Commerce Edwin To  told the city council that they have to operate generators during blackout.

A certain hospital that use to spend an average of P800,000 a month in electric bills must now spend over a million , because the generators must also be operated to provide electricity during blackouts.  (Letty M. Militante)  (110714)

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