|Salcon, Kepco to invest in Cebu
CITY - Two
power producers will invest US$270 million to construct
two 100-megawatt (MW) coal-fired power plants
that are expected to augment power supply in
the Philippine province of Cebu by 2008.
Lastimoso, Salcon Power Corp vice president for
group power operation, said Salcon and Korean
Electric Philippines Co (Kephilco) will put up a
coal power plant project that will use the
circulating fluidized-bed combustion (CFBC)
Lastimoso said of the $270
million, 60% will be invested by Kephilco while
40% will come from Salcon.
addressing Cebu's power supply shortage, the
coal-fired power plant will help revive the
domestic coal mining industry, he noted.
"According to the Coal Miners Association,
there will be about 10,000 more jobs in the
country's coal mining industry once the coal-fired
power plants operate," Lastimoso said.
Kephilco, an independent power producer
operating the 650MW Malaya Power Complex in Rizal
province on a
management basis with the National Power Corp
(Napocor), is a wholly owned subsidiary of Korean
power generation and distribution company Korea
Electric Power Corp (Kepco).
the other hand, is 53.7% owned by Salcon
Philippines Inc, a Philippine subsidiary of Salcon
Ltd of Singapore. It has a 15-year contract with
Napocor to rehabilitate, operate and manage
Napocor's power plant in Cebu.
said the two 100MW CFBC power plants, which will
be located on a reclaimed area right across from
the Naga power plant, will adopt proven
environment-compliant technology. There are now
about 500 operating CFBC units around the world.
He said the coal-fired power plants using
the CFBC technology will have reasonable
operational and maintenance costs because they
will accept even medium-quality coal, unlike the
existing coal-fired power plant in Salcon, which
accepts only high-quality coal.
president Antonio Corpuz urged coal miners in the
country, especially in Cebu, to begin developing
their mining operations so they can supply the
coal needs of the two power plants by 2008.
He said once fully operational, the two
power plants will need about 3,000 metric tons of
coal per day.
"Right now, the supply of
coal in Cebu cannot meet the demand. Because of
the shortage in supply, the prices of coal in Cebu
are high compared with the prices of imported coal
and the coal from Panay," Corpuz said.
Panay is the biggest supplier of coal in
the country, he said.
Corpuz said Salcon
is now urging coal miners in Cebu - those from
Dalaguete, Argao and Uling, Naga, to group
together, improve their operations, and sell their
products as a group to Salcon.
encouraging them to sell coal at reasonable and
competitive rates. The cost per metric ton of coal
today is high. The people of Cebu will suffer if
this will continue," he said.
year, members of the Philippine Chamber of Coal
Mines Inc and the Cebu Coal Alliance Cooperative
expressed support for the construction of the two
coal-fired power plants in Naga, saying it would
revive the local coal industry.
only three mining companies left in Cebu. Some 24
mining firms shut down when the importation of
cheap Indonesian coal by local cement and electric
plants years back caused the price of coal to
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