ILOILO will have its second coal-fired power plant by May 30, 2016.

Groundbreaking rites held on Friday will pave the way for the start of the construction on July 2014.

The second power plant will be able to produce an additional 150 megawatts (MW) on top of the 164MW currently generated by the first plan.

The completion of the second plant will address the growing power needs of Iloilo and the rest of Panay Island.

The first power plant costs some P20 billion while the second plant is at P15.6 billion. The Panay Energy Development Corporation (PEDC) is now the biggest power investor in Iloilo City and Panay Island with a total paid-up capital of P35.6 billion.

Global Business Chairman Sebastian assured that Iloilo and the rest of consumers in Panay will have a much reduced power rate once the two plants deliver more than 300 MW of power, which is more than enough for Panay consumers. The power generator is also eyeing to sell power in nearby Negros Island.

Construction of the plant will start by July this year and Formosa Heavy Industries has been commissioned to provide the design, engineering, procurement and construction of the expansion facility.

The project is expected to create 1,500 job opportunities during the construction phase and commercial operation is targeted on July 2016.

The energy department is preparing for an imminent power supply shortfall in the Visayas grid by 2015 due to the increasing economic activity in Panay, particularly in Iloilo, Capiz and Aklan. (Lydia C. Pendon)