Friday, July 27, 2007 Government takes over 2 power plants in Leyte
THE Philippine National Oil Company-Energy Development Corporation (PNOC-EDC) has assumed operation of the 232.5-megawatt (MW) Malitbog and 180-MW Mahanagdong A and B plants located in the province of Leyte.
The two power plants were turned over by CalEnergy International Ltd. to PNOC-EDC after the completion of the 10-year cooperation period under an Energy Conversion Agreement (ECA).
PNOC president Paul Aquino and CalEnergy International Ltd. president Joseph Sullivan signed the deeds of transfer in Malacanang Wednesday in the presence of President Gloria Macapagal-Arroyo.
The Malitbog power plant was constructed and operated by Visayas Geothermal Power Company, an affiliate of CalEnergy International Ltd. It consists of three 77.5-MW turbine generator units for a total installed capacity of 232.5-MW, making it the world's largest capacity geothermal power plant.
Unit I of the project provides power to the National Power Corporation (NPC) for distribution to Cebu through the Leyte-Cebu transmission interconnection project while Units II and III provide power to Napocor for distribution to Luzon through the Leyte-Luzon transmission interconnection project.
The Mahanagdong plants, on the other hand, were built and operated by CE Luzon Geothermal Power Company, also an affiliate CalEnergy International Ltd. Output from the Mahanagdong A and B geothermal plants is transmitted to Luzon via a submarine cable from Samar.
Malitbog and Mahanagdong, together with the Upper Mahiao geothermal power plant, are the geothermal power plants operated by BOT contractors utilizing steam supplied by PNOC EDC's Leyte Geothermal Production Field (LGPF).
CalEnergy turned over operations of the Upper Mahiao power plant to PNOC-EDC last year. Aside from the three plants, PNOC-EDC also supplies steam to the 112.5-MW Tongonan 1 and the 50-MW Leyte Optimization plants.
"The PNOC-EDC experience shows that with careful planning and proper execution, the BOT (build-operate-transfer) scheme is a creative and practical development tool for vital infrastructure projects. The company's track record in doing business with private entities has made it a top government corporation capably implementing the country's energy development policies," says Aquino.
With the turnover the power plants in Leyte, Aquino said "PNOC-EDC is poised to become a global company with its successful IPO (initial public offering) last December 2006 and the follow-on offering last July 2007. Our vision in the next five to 10 years is to be a major producer of clean energy on a global basis. We intend to develop in the medium-term an additional 350 MW of geothermal energy and look into prospects in renewable energy and other clean fuels, here and abroad."
LGPF is PNOC-EDC's biggest geothermal steam field as it accounts for 84% or 4,244 GWh of PNOC-EDC's total electricity sales volume in 2006.
Besides LGPF, PNOC-EDC operates geothermal fields in Southern Negros, Northern Negros, Bicol and North Cotabato.
The company remains as the country's largest producer of geothermal energy with an installed capacity of 1,198 MW. (MSN/Sunnex)
