Friday, November 10, 2006
Pact mulled on coal project
By Lizanilla J. Amarga
AN AGREEMENT is now being eyed by government officials to have the $305 million 210-megawatt Mindanao Coal-Fired Power Plant power up the $750 million smelting plant at a more competitive rate than that compared to the power rates offered by Vietnam, an official said Thursday.
Misamis Oriental Governor Oscar Moreno and Vice Governor Julio Uy both welcomed the efforts exerted by Cagayan de Oro City Mayor Vicente Emano, Oro Chamber led by its president Ruben Vegafria, and other traders in convincing Pohang Iron and Steel Company (Posco) to put up this smelting plant in Misamis Oriental.
"This is a very good development," Moreno told Sun.Star.
He added that this Posco smelting plant would bring in not only hundreds of job opportunities and a boost in the economy of the province, but also bring back the confidence of investors in pouring their investment in Mindanao.
Uy for his part said Emano is showcasing not only Cagayan de Oro, but also Misamis Oriental to investors during their trade missions.
"Emano is still exerting all his efforts to really help out Misamis Oriental as whatever progress it will bring will also translate to progress for all," he said.
Emano earlier said Posco, which is listed as the third largest steel maker in the world by Wikipedia.com, is eyeing the putting up of a US$750 million smelting plant at Phivedec, Villanueva, Misamis Oriental.
He disclosed that this Korean company has already completed the needed study for the opening of a smelting plant at the Province of Misamis Oriental.
Emano said Posco is looking into whether there will be enough power supply for their smelting plant and at a cheaper price.
"I am hoping that we can ask that the prices for their power supply would be at a more competitive amount than that offered by the other countries particularly Vietnam that is offering a lesser power price," he said.
Uy said there are now negotiations with the National Power Corporatin (Napocor), Steag State Power, Inc. for the coal plant and even Cagayan Electric Power and Light Co. (Cepalco) on where to get cheaper power for Posco's smelting plant.
He said government officials and other concerned private firms are now building up for the inking of an agreement for the 210-megawatt Mindanao Coal Fired-Power Plant to sell power supply to Posco's smelting plant at a cheaper rate than that of Vietnam.
"There is now an agreement that is now being studied on Posco buying electricity directly from the Steag coal plant)," he said.
He added that this agreement will obligate Steag AG State Power, Inc. to sell power supply to the smelting plant at a cheaper rate without passing through Napocor and the National Transmission Corp. (Transco), cutting cost and bureaucracy.
Uy was then the mayor of Villanueva when the Mindanao Coal Fired Power Plant was still being negotiated with its project proponent Steag AG State Power, Inc.
He was also among those who went to Germany to personally check out the coal plants and confer with Steag AG regarding their coal plant project in his town.
Uy said the direct selling of power supply to the smelting plant is called "Spot Market."
"But this agreement has to be looked into as what power supply Posco can buy should only be that of the excess produced by the power plant as the coal plant has already an agreement with the government to augment the Mindanao Power Grid," said Uy.
For more Philippine news, visit Sun.Star Cagayan de Oro. (November 10, 2006 issue)
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