POTENTIAL investors, particularly those engaged in manufacturing, are now looking at Mindanao as possible area for expanding their business with the projected stable power supply on the island.
This is brought by the start of commercial operation of large power plants this year, an official of the Mindanao Development Authority said.
"By this year, with the entry of large capacities, we are expecting a better shape [for Mindanao] in terms of power supply," Romeo Montenegro, Minda director of investment promotions and public affairs, said in Monday's edition of Kapehan sa Dabaw at SM City Davao.
Based on a recent report from the Mindanao Power Monitoring Committee (MPMC), some 580 megawatts (MW) of additional power are expected to boost the Mindanao Grid this year, the bulk of which will be coming from Therma South Inc.'s 300 MW Coal-fired Energy Project in Barangay Binugao, Toril in Davao City and barangay Inawayan in Sta. Cruz, Davao del Sur, which is expected to begin operations within the first half of this year.
Other power plants that are expected to go online this year include the first 100 MW unit of Sarangani Energy Corporation's 200 MW Southern Mindanao Coal-fired Power Station in Maasim, Sarangani; the 30MW Puyo Hydroelectric Power Project of the First Gen Mindanao Hydropower Corp. in Jabonga, Agusan del Norte; and the first 150 MW unit of the 300MW SMC Davao Power Plant Project of the San Miguel Consolidated (SMC) Power Corp. in Malita, Davao del Sur.
Montenegro said in the last quarter of this year, they are expecting a surplus in Mindanao's power supply, which means the supply is higher than the demand.
"Apart from giving us a better supply scenario, a better power situation is also an indicator for business interest because the first question that potential investors would ask, whether local or foreign, would be about the power situation," he said.
Montenegro said with the improved power situation, they are expecting big companies to set up manufacturing plants or logistics projects here in Mindanao.
For example, he said the start of operations of Steel Asia Manufacturing Corp. in the last quarter of 2014 is a testament of the growing confidence of investors for Mindanao with the improved power situation for 2015.