Biz groups to buy generators

THE Mindanao Business Council (MBC) announced Tuesday that the private sector in Mindanao will procure the required power generators to address the power crisis in the island.

Vic Lao, MBC chairperson, said they can no longer wait for the government to address the power crisis in Mindanao.

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“The Electric Power Industry Reform Act (Epira), anyway, has sufficient provisions to allow us to solve the problem ourselves. Our power situation is already becoming very serious. We did not expect the shortage of this magnitude to hit us this early. We thought the 484 mega watts (MW) shortage will still hit us by 2014 but it’s already here. So we just have to move and try to solve our problem,” Lao said.

He said he has no choice but ask his fellow businessmen in Mindanao to invest in the emergency power generating sets that have to be procured on Lease Basis.

“There are not many suppliers in the world who can give us power within the next 30 to 60 days, but we will try our best to procure them,” Lao said.

Some members of the Mindanao business community have already started discussions with the Development Bank of the Philippines and the Land Bank of the Philippines.

“Both institutions can, together, provide Mindanao at least US$100 million for the immediate procurement of the generator sets,” Lao said.

He said allowing the government through the National Power Corporation to procure the generator sets will not only take a longer time but is also fraught with various legal technicalities.

“At the end of the day, only Mindanaoans can solve our power problem in Mindanao,” Lao said.

In a meeting in Davao City on Friday, Lao called among the different business organizations in Mindanao as they identified what needs to be done immediately.

Among the solutions they identified are that the Mindanao Electric Power Alliance (Mepa) will have to be in the forefront in solving the problem by filing a manifestation with the Energy Regulatory Commission (ERC) to accelerate the approval of the Electronic Ancillary Service Tendering (East) market previously filed by the National Grid Corporation of the Philippines (NGCP).

The Mepa is an association of different industry players and stakeholders like the Distribution Utilities, Chambers of Commerce, Industry Associations, the different electric cooperatives and major users/consumers and to identify investors and business organizations who have the ability to procure the emergency generator sets.

The MBC would also arrange financing with local banks and initiate discussions with power utilities and local industries for the emergency power sales agreements (Epsas) and start discussions with the ERC on getting a provisional authority (PA) for the Epsas.

Lao said the EAST is expected to allow all major industries and households to bid to get off and give the grid a relief on the supply pressure.

He said by getting off the grid, it can reduce the 700-MW deficit it is currently experiencing.

Pete Ilagan, president of the National Association of Electricity Consumers for Reforms (Nasecore), assured the businessmen of his organization’s support in filing for this manifestation.

He said should the ERC give its nod to the mechanism, Mindanao can expect some relief within the month of March. (MBC)