Meralco names builder of Subic plant

Manila Electric Co. (Meralco) said Redondo Peninsula Energy Inc. (RP Energy) consortium has signed a construction contract with Azul Torre Construction Inc. and a supply contract with Doosan Heavy Industries & Construction Co. Ltd. for the construction of the 600 megawatts (MW) coal-fired power plant it is developing in Subic.

RP Energy which is currently composed of Therma Power, Inc., a subsidiary of Aboitiz Power Corp. and Taiwan Cogeneration International Corp. each owns 25 percent equity interest while Meralco PowerGen Corp. (MGen), a subsidiary of Meralco holds 47 percent equity interest in the plant projected to go online by mid-2020.

Construction of the Subic coal plant estimated to cost $1.2 billion was halted when a Writ of Kalikasan was filed against it in 2012 but which was later junked by the Supreme Court (SC) for insufficiency of evidence.

Meralco also recently filed a power supply agreement application with the Energy Regulatory Commission to draw 225 MW from RP Energy once it is completed but is still pending for a decision.

Aside from RP Energy, other coal plant developments where MGen is involved in include the 455 MW San Buenaventura project and the 1,200 MW Atimonan both located in the Quezon province. (Malaya Business Insight)

PHOTO:
Artist's rendition of the power plant located at the REdondo Peninsula. RP Energy is building a $1.2Bn 600MW power plant within the Subic Bay Freeport Zone (SBFZ) using circulating-fluidized-bed technology.

http://www.malaya.com.ph/business-news/business/meralco-names-builder-subic-plant

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BoI approves Subic power plant

Redondo Peninsula Energy Inc., led by Meralco PowerGen Corp., received a certificate of registration from the Board of Investments for its 600-megawatt coal-fired power plant in Subic, Zambales costing P63 billion.

“The registration entitles RPE to duty-free importation of equipment, materials and spares used for the power plant for a period of five years from date of registration. Also income tax holiday for four years from commercial operation,” RP Energy project development manager Joselito Lantin said Friday.

Lantin said RP Energy would build the project in phases. The company is currently negotiating for the engineering, procurement and construction contract covering the first 300-MW phase of the project.

He said the EPC contract would include an option for a second 300-MW unit.

“Targeted to start construction for phase one is fourth quarter 2016. Expected commercial operation is late 2019/early 2020,” Lantin said in a recent briefing.

Electricity generated by the project is covered under a separate power supply agreement with Manila Electric Co. accounting for 225 MW and Aboitiz Energy Solutions contracting 75 MW.

The company signed an amendment to the power plant site lease and transmission line right-of-way lease agreements with the Subic Bay Metropolitan Authority in February.

“We will do 300 MW and then [expand to] 600 MW, depending on our capability to interconnect with NGCP [National Grid Corporation of the Philippines]. It just takes a few months before you can start the phase two,” Meralco PowerGen chairman Manuel Pangilinan said earlier.

Meralco PowerGen is the power generation arm of Meralco, the country’s biggest power distributor, and owns a majority stake in RP Energy. (Alena Mae S. Flores, Manila Standard)

Full story: http://thestandard.com.ph/business/211878/boi-approves-subic-coal-plant.html

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SBMA to institutionalize consultations on environment-sensitive projects

The Subic Bay Metropolitan Authority (SBMA) will institutionalize public consultations for environmentally sensitive projects to give stakeholders a voice in determining development directions and ensure transparency in the Subic Bay Freeport.

SBMA officials made this announcement last week, as they concluded the three-day Social Acceptability Process (SAP) public forum on the prospects of putting up a coal-fired thermal power plant here.

Angel Bagaloyos, chief of the policy and monitoring division of the SBMA Ecology Center, said the public consultations initiated by the SBMA board of directors will be institutionalized for environmentally sensitive projects, in particular.

“This is just a start. In the future, all projects that will be identified by the board as environmentally sensitive will have to go through this process of consulting with the different stakeholders. So this process will be institutionalized,” Bagaloyos clarified.

SBMA director Norberto Sosa said in the same forum that the consultation for the proposed coal power plant was just the first implementation of the SAP, a policy that the new SBMA board had recently approved.

“It happens that this coal-fired power plant project has been declared as one of these environmentally sensitive projects. So it has to undergo SAP so that we can hear out the stakeholders, employees, and the local government units regarding this,” Sosa said.

He added that a project would have to be declared as environmentally sensitive before the SAP could be conducted.

“If there is any project regarded as environmentally sensitive, then it must be declared that it is so, and if it is declared so, then this process will be carried out, similar to what we have been conducting during the last three days,” he stressed.

Sosa said that the SBMA board decided to conduct public consultations to reach out to various stakeholders in the Subic Bay Freeport, since they are the ones being directly affected. “We have to reach out, to listen, so we can have some basis for a decision,” he added.

Sosa also noted that the SAP will be a way to ensure transparency in the projects being developed in the Freeport. “It’s difficult for the SBMA, or for the business locators and project proponents to be perceived as hiding something,” he said.

In the said forum, Sosa, along with director Philip Camara, met with different stakeholders around the Freeport to discuss the 600-megawatt coal-fired power plant that is proposed to be built by the Redondo Peninsula Energy, Inc., a business consortium formed by Meralco, Aboitiz Power Corp., and Taiwan Cogen Corp.

The consultation was attended by representatives from concerned local government units, business locators, socio-civic groups, and leaders of Aeta communities in the free port zone.

Also present during the forum were resource speakers Andre Jon Uchiaoco, a marine biologist; Dr. Visitacion Antonio, a noted toxicologist; and Dr. Rex Cruz, chancellor of the University of the Philippines in Los Baños, who discussed potential risks to health, marine life and the environment, in general, that may result from the coal plant. (SBMA Corporate Communications)

PHOTO:
SBMA Directors Norberto Sosa and Philip Camara (center) answer queries from participants of the Social Acceptability Process (SAP) public forum on the proposed coal-fired thermal power plant at the Redondo Peninsula in the Subic Bay Freeport Zone.

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SBMA consults stakeholders on proposed coal power plant project

The Subic Bay Metropolitan Authority (SBMA) started a stakeholders’ consultation process in a bid to consolidate the opinion of various concerned sectors on the coal-fired thermal power plant being proposed for construction at the Redondo Peninsula here.

The agency formally launched the Social Acceptability Process Stakeholders’ Consultation last week under a policy to strictly review all environmentally-sensitive projects (ESPs) proposed for implementation in the Subic Bay Freeport.

SBMA Chairman-Administrator Roberto Garcia said the agency wanted to ensure that projects to be put up in the zone which the SBMA board had been declared environmentally sensitive, are acceptable to stakeholders.

“This way, the stakeholders are given a sense of participation in preserving and protecting the environment of the Freeport which is a mandated function of the SBMA,” Garcia said.

Facilitated by SBMA directors Philip Camara and Norberto Sosa, the stakeholders’ consultations drew the participation of local government officials from Olongapo City, the municipality of Subic, and Bataan province, as well as local businessmen, residents of the free port and neighboring communities, Ayta tribal leaders, and socio-civic groups.

Camara noted, however, that project proponent Redondo Peninsula Energy, Inc. (RPEI) declined the invitation to attend the consultation.

“They (RPEI officials) said that they are not going to participate because their (investment) contract was approved in June 2010 and the policy (on environmentally-sensitive projects) was approved only in 2011. So they feel that they are not bound by these proceedings,” said Camara, who chairs the SBMA board’s committee on good governance.

Camara said this was the first time for the SBMA board to implement a social-acceptability process that was aimed at getting organized inputs from different stakeholders.

“What we want from the chartered associations are formal resolutions stating their position, and more importantly, why and what specific issues and concerns (they have) after having heard from the resource persons. In the end they will be translated to conditions (that should be met) prior to the issuance of the permit,” he said.

Citing an example, Camara explained that in June 2011, the RPEI requested for a site development permit, which the SBMA Board disapproved because of some unfulfilled provisions in the memorandum of understanding (MOU) between SBMA and RPEI.

Because of this, the SBMA issued only a site preparation permit to RPEI, Camara said.

Meanwhile, Freeport residents and locators lauded the new members of the SBMA board of directors for initiating the consultation in a bid to promote good governance and transparency.

“We really appreciate that for the first time, residents can approach and have open communication with SBMA directors. This is something we never had before, in particular before any project that may affect our community was started,” said Josephine Floresca, a real estate developer.

Floresca also said that one of the reasons why her company was able to convince their clients to locate in Subic was because of the eco-tourism attractions that that the SBMA has been promoting in the free port.

Olongapo City councilor Jong Cortez said that the consultation is a big boost to the government’s thrust of prioritizing the interests of the citizenry, whom President Aquino has described as “the true bosses” of public officials.

Zambales Vice-Gov. Ramon Lacbain II, former Olongapo City councilor JC Delos Reyes, and Greater Subic Bay Tourism Bureau chairman Jorge Lorenzana, among others, also thanked the SBMA for initiating the unprecedented process of consulting stakeholders for coal plant project. (SBMA Corporate Communications)

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