SBMA, SubicWater sign 20-yr. franchise agreement anew

The Subic Bay Metropolitan Authority (SBMA) and Subic Water and Sewerage Company Inc. (SubicWater) have extended their franchise agreement (FA) for another 20 years.

 

SBMA Chairman and Administrator Eduardo Jose L. Aliño welcomed this development as their partnership with the agency has been harmonious since they started here.

 

The 3rd Amendment to the franchise agreement and the 4th Amendment to the SBMA-SubicWater Lease Agreement were signed yesterday at the SBMA Corporate Boardroom at Building 229, extending their FA term until March 31, 2047.

 

The agreements were signed by Chairman Aliño, SubicWater Chairman Engr. Apollo C. Tiglao, and witnessed by Olongapo City Mayor Rolen Paulino Jr. and SubicWater CEO and General Manager Benjamin Antonio III.

 

Chairman Tiglao said that under the amendment, “The SubicWater shall conduct its operation aiming to achieve 100 percent wastewater coverage including combined sewerage and sanitation services for Subic Bay Freeport and Olongapo City.”

 

He also said that this endeavor would be more beneficial to SubicWater’s customers as Olongapo City will now have wastewater services and sewer lines.

 

Additionally, SubicWater can now expand its services to far-flung areas of Subic Freeport such as Redondo Peninsula and Tipo area as a result of the amendment.

 

Meanwhile, Mayor Paulino also expressed his gratitude to the SBMA and SubicWater for the continued services of the water company. “We wanted SubicWater to expand their services, we have been clamoring for the wastewater coverage in Olongapo City,” he added.

 

“We really appreciate that we are involved in the process. Special thanks to SBMA Senior Deputy Administrator Atty. Ramon Agregado for advocating for the benefit of Olongapo City and all other constituents,” he added. (MPD-SBMA)

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SBMA reaps ₱2.96-M savings from SPS project in 2023

The Subic Bay Metropolitan Authority (SBMA) reaped ₱2.96-million savings from using solar power energy from January to December of 2023.

SBMA Chairman and Administrator Eduardo Jose L. Aliño attributes these savings to the solar power system (SPS) project that the agency has undertaken as early as 2017.

“We are grateful that this renewable energy project saves a lot for the agency. With this, the agency could now just focus on important financial obligations,” he said.

Aliño added that the SBMA is currently reaping benefits from the solar power system projects in six areas, namely: Malawaan Park, Bldg. 229, Bldg. 255, Bldg. 662, Regulatory Bldg., and the Remy Field.

“Especially now that the weather is scorching hot, we need to protect our employees from heat stroke, and it will not cost us a single centavo because we are now harvesting from these solar power system,” Aliño added.

According to Engr. Eddie Ventura, SBMA Telecommunications Department officer-in-charge, this project was established in compliance with Republic Act 9513 or the Renewable Energy Act of 2008, an act promoting the development, utilization and commercialization of renewable energy resources and for other purposes.

Ventura shared that for Remy Field, which started only in March 2023, and consumed 76,663 KWh at 9.3882/KWh, the SBMA saved ₱719,727.58. Also, in Bldg. 255, which consumed 70,475.55 KWh from January to October 2, savings amounted to ₱661,638.56. However, the system was temporarily shut down to give way for the building’s roofing rehabilitation project.

For the Regulatory Bldg., a savings of ₱652,386.02 was reaped from the 69,490KWh consumption; while the 52,434.43KWh consumption at the Bldg. 662 translates to ₱492,264.92 savings. Also, ₱439,680.76 was also saved from 46,833.34KWh consumption at the administration building.

Ventura recalled that the SPS project started in 2017 as a result of an external seminar on SPS conducted by Institute of Electronics Engineers of the Philippines (IECEP)-Zambales Chapter that electronics engineers attended.

Then Telecommunications Department manager, the late Engr. Joey A. Lacanlale, assigned Engr. Jefferson B. Llantada of the department’s Projects and Technical Services Division (PTSD) to do a research and use solar powered lightings in Malawaan Park.

Later on, an experimental 10-Kw Grid Tied SPS at Regulatory Building was done in 2018 and was successful. Hence, the department pursued more SPS projects spearheaded by Engr. Antonio G. Rafanan.

Ventura added that the solar power system project was implemented, primarily, to save on power consumption expenses and sell its excess energy to the Electric Cooperative; to comply with the green initiative, which is an effort to reduce pollution and waste, conserve resources and maintain 

an ecological balance, and the Power Savings Program; and also to promote sustainable development.

Meanwhile, Rafanan explained that with the SPS project, the agency not only reduced the use of non-renewable resources of energy, it is also started selling unused harvested power back to the grid in 2022.

He said that the Grid-Tied and Hybrid systems were also configured and applied to use net-metering, which is another source of savings for the agency aside from consuming harvested solar power.

The SPS project cost amounted to ₱22,643,760.83 in total. This includes ₱400,892.86 Off-Grid system in Malawaan Park, which started in 2017; ₱3,493,000 Grid-Tied in Regulatory Building, which started in 2018 at 10KW, then upgraded to 50KW in March 2022; ₱6,854,000 Grid-Tied in Bldg. 229 and Bldg. 255, as well as ₱3,095,000 Grid-Tied in Bldg. 662, all of which started in March 2022; and ₱8,800,867.97 Hybrid system in Remy Field, which started only in March 2023. (MPD-SBMA)

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LOOK: Inauguration of Subicwater Waterwaste Treatment Facilities

Subic Bay Metropolitan Authority (SBMA) Chairman and Administrator Eduardo Jose L. Aliño (2nd from right) and Subicwater Chairman Apollo Tiglao lead the ceremonial cutting of ribbon to inaugurate the newly upgraded Sewage Treatment Plants (STP) for the Central Business District area of the Subic Bay Freeport zone. Also joining the ceremony are Subicwater CEO Benjamin Antonio III (extreme left), Subicwater Directors Tulsi Das Reyes and Ruben De Guzman, and SBMA Director Amable Tolentino. 

The newly upgraded Enron STP and the Cubi Lift Station were also inaugurated during the event as the company assured that all domestic and commercial customers inside the Freeport zone are connected to the sewage wastewater treatment network.

SBMA Chairman and Administrator Eduardo Jose L. Aliño (center) is given a tour of the newly upgraded Sewage Treatment Plants (STP) for the Central Business District area by Subicwater Chairman Apollo Tiglao.

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SBMA approves cashless public buses for Subic Freeport

To further promote public health safety in face of the Covid-19 pandemic, the Subic Bay Metropolitan Authority (SBMA) has approved a cashless public transportation system in this premier Freeport.

SBMA Chairman and Administrator Wilma T. Eisma said the agency has recently given its go-signal for Autokid Truck Solutions to create a line of public utility buses that will utilize an automated fare collection system (AFCS) and be compliant with social-distancing rules as well.

“This is an innovative concept that fulfills a felt need in this time of the pandemic, so we’re going for it,” Eisma said.

“With this, we can minimize the dangers of virus transmission, thus creating a better environment for workers, residents and visitors in the Subic Freeport,” she added.

According to Autokid Subic Trading Corporation CEO Kevin McHale Yao, the proposed project would provide an efficient, environment-friendly, and safe and comfortable transportation for the public.

“Public transportation services (PTS) is a vital part of modern urban economies. An efficient PTS encourages passengers to use public services instead of private vehicles,” Yao said.

“This preference reduces traffic, air and noise pollution, and accident rate in cities,” he added.

Foremost among the features of the new system is the use of loadable payment cards that would preclude the need for passengers to carry cash for their bus fare.

Yao also stressed the added advantage of predictable travel time, as the firm would regularly deploy vehicles at a certain time period so that the public would know exactly when to expect the buses.

The company has proposed three bus routes in Subic’s Central Business District. One will be from Kalaklan Terminal to Main Gate Terminal and vice versa, another from Main Gate Terminal to Royal Duty Free and vice versa, and the third from Main Gate Terminal to Kalaklan to Royal Duty Free to Main Gate.

The proposed fares will be P25 per person for the first two routes, and P30 per person for the third route, which is longer.

The SBMA and the company are already discussing a dry-run of the routes for which the buses will be fielded to see how the plans would actually work out.

Yao also pointed out that Autokid will field environment-friendly buses that are Euro IV-compliant, using Yuchai engines. He added that the units will be equipped with comfortable seats, air-conditioning, a global positioning system (GPS), and closed-circuit television camera (CCTV) to ensure the safety of the riding public.

Following the approval of Autokid’s proposal last month, the SBMA had required the firm to register its fleet of motor vehicles and have its drivers accredited by the agency.

The SBMA and the company are already discussing a dry-run of the routes for which the buses will be fielded to see how the plans would actually work out. (MPD-SBMA)

PHOTO:

Autokid public utility buses using an automated fare collection system will soon see operation in the Subic Bay Freeport Zone

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DMCI trims stake in Subic Water

DMCI Project Developers, the property arm of DMCI Holdings has trimmed its stake in Subic Water and Sewerage Co., a public-private partnership arrangement that operates the water service facilities in the Subic Bay Freeport and Olongapo City.

In a disclosure to the Philippine Stock Exchange (PSE), the Consunji-owned holding firm said DMCI Project Developers sold 915,580 of its shares in Subic Water to the City of Olongapo for a total consideration of P210.6 million.

The shares represent 10 percent of the outstanding capital stock of Subic Water.

“DMCI Project Developers still owns a total of 30 percent of Subic Water’s outstanding capital stock after the sale,” the company said in its disclosure.

Subic Water is a pioneer company formed in 1997, which introduced the first public-private partnership, build-operate-transfer model in the water and wastewater services industry.

It was formed in light of the impending water crisis in Olongapo City during the 90s, and the growing commercial water requirements of the booming Subic Bay Freeport Zone.

Other members of the consortium are Sembcorp Industries Ltd., (sembcorp) a Singaporean water utility specialist; Subic Bay Metropolitan Authority (SBMA), the agency that administers Subic Bay Freeport; and Maynilad Water Services Inc.

The company was granted the exclusive right and privilege to operate, maintain, and improve the water and sewerage systems of Olongapo City and Subic Bay Freeport under a 30-year franchise term.

DMCI Holdings reported a consolidated net income of P9.9 billion in the nine-months to September last year, up 31 percent from P7.5 billion the previous year. (Iris Gonzales, The Philippine Star)

http://www.philstar.com/business/2016/03/29/1566993/dmci-trims-stake-subic-water

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Emerging Power to upgrade Subic project

Renewable Energy (RE) company Emerging Power Inc. (EPI) is partnering with California-based tech firm Amber Kinetics for the Flywheel Battery Storage Technology in the 150 Megawatt (MW) solar and wind power project in the Subic Bay.

“Amber Kinetics’ technology will be very useful in smoothing out the energy generation of our Solar and Wind farm by taking out the variability. We are very excited to work with Amber and hopeful that this milestone deal will be replicated in future renewable energy projects in the country,” EPI Head of Marketing Alberto Guanzon said.

EPI is looking at acquiring 10-MW worth of Multi-hour Flywheel Battery Systems from Amber Kinetics for the Subic project. The company will be the first to use the technology for a utility scale power plant in the Philippines.

Flywheel energy storage works by rotating steel rotors at very high speeds, allowing the system to store energy. In effect the flywheel is a reservoir for kinetic energy which can be drawn out at any time.

Aside from dealing with the variability of solar and wind energy, Amber Kinetics’ state of the art flywheels will also provide multi-hour flexible capacity to the transmission.

Amber Kinetics’ technology has demonstrated the ability to store and release electricity for hours. It also offers unlimited cycling for a 30-year lifespan with no degradation. These attributes make it ideal for integrating utility scale renewable energy and transmission.

“We are thrilled to be partnering with Emerging Power to integrate energy storage into the 150MW solar and wind farm in Subic Bay. We believe that our multi-hour flywheels are an ideal technology solution to help EPI smooth the variability of solar and wind generation into the transmission system. The EPI team is incredibly forward thinking and we are excited to be working together,” Amber Kinetics CEO Edward Chiao said.

EPI is majority owned by Nickel Asia Corporation, one of the country’s biggest mining firms. The miner has guaranteed up to P3 billion the loan facility of EPI over three years to finance the RE projects all over the country. (Voltaire Palaña, Manila Times)

PHOTO: Image c/o EPI

http://www.manilatimes.net/emerging-power-to-upgrade-subic-project/250791/

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Subicwater sets P115-million capex projects for 2015

DM Consunji Inc. (DMCI)-led Subic Water and Sewerage Co. Inc. (Subicwater), which operates the water-service facilities in the Subic Bay Freeport and Olongapo City, has announced that it will spend a total of P115.12 million in capital expenditure (capex) projects this year to further improve its services here.

Subicwater President and CEO Apollo Tiglao said in a media briefing on Wednesday that the bulk of the expenditures will go to a P44.7-million sewerage-system project for the Boton area of the Subic Bay Freeport, and a P38.6-million water distribution rehabilitation project in Olongapo.

“The Boton project is part of our Sewerage Master Plan that was created in as early as 2006,” Tiglao said. “As we have projected long ago, businesses will thrive [in Subic], and the area will need a new sewerage system complete with a dedicated sewage treatment plant.”

Tiglao said that aside from the Boton project, the water firm will invest P8.82 million on new sewage conveyance pipes in Subic’s Central Business District; P9.8 million for the construction of two pumping stations for a newly developed well in the former Naval Magazine area; and P1.2 million for the installation of new water pipelines in the airport area.

Meanwhile, in Olongapo City, Subicwater will be investing P38.6 million on new water-distribution lines; P11 million on two new wells in Barangay New Cabalan; and P1.48 million to replace a portion of its raw-water line in Barangay Santa Rita.

Tiglao said the Olongapo investments will ensure continuous water supply to the city treatment plant, especially during summer.

“As you can see, the two wells we will start developing this year will serve the few remaining Olongapo communities without piped water, as they are located at the highest points of the mountains surrounding the city proper,” Tiglao said.

Still, he said Subicwater faces problems on the identified well sites in the remote barangay of New Cabalan, particularly on lot acquisition.

“We hope the city administration will assist Subicwater on these matters,” he said, adding that the firm wants to finish the wells as soon as possible to solve water scarcity in the hilly barangay during summer.

“We are ready to start the well-drilling anytime soon,” Tiglao said.

With the new capex schedule, Tiglao said the firm has put up more than P1.5 billion in capital expenditure since it started operations here in 1997, with about P605 million for infrastructure development in the period from 2011 to 2013 alone.

“Since Subicwater is operating under a build-operate-transfer [BOT] setup, all of our facilities, along with the improvements we have infused throughout the course of our operations, will be given back to Olongapo City and the Subic Bay Metropolitan Authority [SBMA] after our franchise term,” Tiglao said.

Subicwater, which implemented the first BOT scheme for a water-and-sewerage system in the Philippines and in Southeast Asia, was formed as a joint venture in 1996. It is now owned by Filipino construction firm DMCI, Singaporean water specialist Sembcorp Industries Ltd. (Sembcorp), SBMA and Maynilad Water Services Inc. (Henry Empeño, BusinessMirror)

http://www.businessmirror.com.ph/subicwater-sets-p115-million-capex-projects-for-2015/

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Subic Enerzone seeking higher power tariff at P1.5625/kwh

Subic Enerzone Corporation, which has been serving more industrial-dense subscribers primarily in the freeport zone, is seeking an upward adjustment in its power distribution tariff to P1.5625 per kilowatt-hour (kwh) from what was previously approved at P1.4905 per kwh.

The Energy Regulatory Commission (ERC), in its notice for publication of the SEZ’s filing, noted that the distribution firm has recomputed its maximum average price (MAP) for regulatory year 2015 and it arrived at a higher figure.

The ERC emphasized that in the rate translation, the SEZ “has recalculated the MAP for the regulatory year 2015, without taking into account side constraints, at P1.5625 per kwh.”

For residential customers of SEZ, it was laid down that the estimated distribution charge will amount to P1.8815 per kwh; supply charge will be at P0.2414 per kwh; while metering charge will be at P0.1981 per kwh.”

To the level of the industrial end-users, SEZ’s proposed pass-on rates will be: P0.6346 per kwh; P301.81 per kilowatt; supply charge at P4,919 per customer/month; and metering charge at P1,758.94 per customer/month.

The SEZ has noted that “the approval of the instant application will allow it to fulfill its obligations under the PBR (performance-based regulation)” – referring to the methodology in setting electricity tariffs for regulated power entities.

It added that an immediate regulatory approval shall also allow it to “implement in a timely manner its capex (capital expenditures) and OPEX (operating expenses) programs for the regulatory year 2015.”

If that is accomplished, the Subic utility firm stressed that it would be able to “avoid losses which may ultimately result in the deterioration of services to its customers.”

The ERC thus scheduled a public hearing on the SEZ’s recalculated tariff application on January 9, 2015 at the Subic Freeport Zone in Olongapo City.

“SEZ and all interested parties are directed to submit, at least five days before the date of the initial hearing and pre-trial conference, their respective pre-trial briefs,” the ERC has stipulated in its hearing notice.

This is already the fourth year of the utility firm’s second regulatory reset under the forward-looking approach of rate regulation via the PBR scheme. (Myrna Velasco, Manila Bulletin)

http://www.mb.com.ph/subic-enerzone-seeking-higher-power-tariff-at-p1-5625kwh/

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SBMA, Jobin sign deal for $200-M solar/wind power project in Subic Freeport

The Subic Bay Metropolitan Authority (SBMA) has signed an agreement with Jobin-SQM, Inc., an all-Filipino corporation, for the establishment here of a $200-million renewable energy facility that will produce electricity from both solar and wind power.

SBMA Chairman Roberto Garcia and Jobin-SQM, Inc. President Nancy Tan signed an agreement reserving an 800-hectare property on Mt. Sta. Rita where the firm eyes to produce 20-megawatts (MW) of solar energy and 50 megawatts of wind energy.

Garcia said the project was formally committed during President Aquino’s state visit to China in September 2011.

The proposal is in line with Republic Act No. 9513, otherwise known as the Renewable Energy Act of 2008, which aims to accelerate the exploration and development of renewable energy resources, increase utilization of such and promote their efficient and cost-effective commercial application, and effectively prevent or reduce harmful emissions protecting health and the environment.

The national government has declared the development and promotion of renewable energy as among its priority projects under the Investment Priorities Plan of 2012.

Garcia said Jobin has successfully satisfied the requirements set by the Department of Energy (DoE) in line with its intention to develop the solar and wind power project and has signed a Memorandum of Agreement (MOA) with the SBMA for the reservation of the project site prior to signing a lease agreement.

Thomas Garcia, Jobin-SQM Inc. stockholder, said the firm is keen on developing the Subic project, which is expected to turn on power by June 2016.

“Subic, we believe, is a progressive place and there’s a lot of potential. I like Subic,” Garcia added.

The renewable energy project has been in the pipeline since 2011 when Jobin entered into a joint venture agreement (JVA) with Hydrochina International Engineering Co., LTD. (HIECL) for the development of the said project.

Hydrochina Subic LTD Corp., which is the Filipino counterpart of HIECL, has been tapped to undertake the Subic project.

Meanwhile, HIECL will be in charge of the technical aspect of the project, including engineering, procurement and construction. (RFD/MPD-SBMA)

PHOTO:
SBMA Chairman Roberto V. Garcia shakes hand with Nancy G. Tan, president of Jobin SQM Inc., after signing a memorandum of agreement for the establishment of $200-million renewable energy project in the Subic Bay Freeport. With them are other SBMA officials and representatives of Jobin SQM Inc.

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Olongapo gets P54.3-M water system upgrade

OLONGAPO CITY— Two upland communities in this city which have been without piped water since time immemorial broke into celebration after private utility firm Subic Water and Sewerage Co., Inc. (SUBICWATER) activated its three water supply expansion projects worth P54.3 million on Monday.

Residents of Nagbaculao and Sibul areas of this city in their joy took a surprise shower as Olongapo City Mayor Rolen Paulino and SUBICWATER Chairman Herbert Consunji led the ceremonial opening of water valves which, they say, signifies ‘the rush of developments’ coming to the 1,000 families who rely on spring water.

Included in this water infrastructure development are three concrete reservoirs with a total capacity of 5.6 million liters, a pump station, and some 7.2 kilometers of new pipelines, according to Consunji.

“These completed projects, aside from bringing piped water service to these two areas, will also increase water pressure in barangays Asinan, Pag-asa, New Kalalake, East Tapinac, and East Bajac-bajac,” said Consunji.

Consunji explained that SUBICWATER inherited a dilapidated water system in 1997 and thus, had to concentrate first on the low-lying areas of the city, where water pressure was ‘so weak that it can’t even reach the second floor of a structure’.

“So far, SUBICWATER has spent a total of P1.5 billion to revolutionize our water system— from catchment, treatment, distribution, and even sewage treatment in the Freeport,” he added.

“Now that we have successfully boosted our raw water supply and increased our treatment and distribution capacities, SUBICWATER is resolved to bring treated water to the communities sitting along and atop the high ridges surrounding Olongapo City,” the SUBICWATER chairman said.

Mayor Paulino, on the other hand, congratulated SUBICWATER for ‘another successful project finished’.

“We must thank SUBICWATER for going the extra mile to bring water to this area, which I recall to have been without water even during the US Navy times,” said Paulino to some 300 residents gathered at Nagbaculao.

“Instead of spending hours lining up for water, you can now devote more time to your families, yourselves, and most importantly, to your livelihoods,” Paulino said.

Having learned that it takes an average of P1,500 per month to hire someone to fetch water, Paulino urged the residents to immediately apply for a water service connection as the average water bill of those consuming around 10,000 liters a month is about P263 only.

In light of those who will lose their jobs fetching water, Paulino gave assurance that his administration has enough jobs in store for them.

“The Americans are starting to go to Subic Bay. Please visit our city hall as we have numerous job opportunities in store for you; don’t be contented fetching water for your neighbors for the rest of your lives,” said Paulino.

SUBICWATER implemented the first built-operate-and-transfer (BOT) scheme for a water and sewerage system in Asia when it took over the water supply and sewerage system of the Subic Bay Freeport and Olongapo City in April 1997.

The firm, which was formed by a joint-venture agreement in 1996, is owned by Filipino construction firm DM Consunji Inc. (DMCI), Singaporean water specialist Sembcorp Industries Ltd. (Sembcorp), Subic Bay Metropolitan Authority (SBMA), and Maynilad Water Services Inc. (Hernan Habacon)

PHOTO
SHOWER OF BLESSINGS: A resident of Nagbaculao, Barangay Kalaklan gets sprayed with water as Olongapo City Mayor Rolen C. Paulino (leftmost) leads the inauguration rites of Subic Water and Sewerage Co., Inc.'s (SUBICWATER) recently-completed water supply expansion project— one of the three projects worth P54.3 that were activated on Monday. SUBICWATER Chairman Herbert Consunji (fourth from left) and company CEO Apollo C. Tiglao (in blue shirt), Barangay Kalaklan head Willie Umali (second from left) and other city officials joined the community’s celebration.

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Meralco pushes forward reparations at Subic plant site

The Subic freeport zone is likely the final plant site for the planned 600-megawatt coal fired power facility being lead-developed by the power generation arm of Manila Electric Company (Meralco) – primarily when a pending court case on the project eventually clears up.

A document from Meralco has hinted that the Subic Bay Metropolitan Authority (SBMA) is set to ratify the Lease and Development Agreement (LDA) for the proposed plant site “to reflect additional terms.” No further details were provided.

It must be culled that the original LDA was declared invalid by the Court of Appeals (CA), alongside its ruling on a Writ of Kalikasan filed by groups opposing the project.

The petition was filed before the Supreme Court, but it was subsequently remanded to the CA for hearing on the merits of the case.

The proposed 600-megawatt power facility was initially targeted for commercial operation by 2015, and it could have placed Luzon grid on ‘safe ground’ versus the feared power interruptions especially during the high-demand months of summer.

The project is to be undertaken under corporate vehicle RP Energy. Meralco PowerGen is the majority equity holder, while its partners are Therma Power, Inc. of the Aboitiz group and Taiwan Cogeneration International Corporation.

On pre-construction activities, the Meralco document indicated that “RP Energy is proceeding with certain development activities that are not hampered by the SC proceedings.”

As of March this year, it was emphasized that “site preparation work is almost complete and RP Energy has commissioned its contractor to conduct preliminary engineering works on the power plant in order to reduce the overall construction period.”

An environmental compliance certificate (ECC) was already issued by the Department of Environment and Natural Resources (DENR) for the two blocks of 300-megawatt electricity generating units designed for the facility.

Full implementation, however, could not move forward until the legal hurdle of the pending Writ of Kalikasan is resolved by the courts.

While the appellate court has initially denied the Writ of Kalikasan petition, it conversely noted “certain deficiencies in the process of the DENR in its issuance of the original ECC for the 300MW coal-fired plant” which has also affected the LDA for the project site. (Myrna Velasco, Manila Bulletin)

http://www.mb.com.ph/meralco-pushes-forward-reparations-at-subic-plant-site/

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Trans-Asia acquires Subic power plant

MANILA, Philippines - Trans-Asia Power Generation Corp. (TAPGC), a wholly-owned subsidiary of Trans-Asia Oil and Energy Development Corp. of the Phinma Group, has acquired One Subic Power Generation Corp., a power generation company that operates a diesel power plant in Subic Bay.

In a disclosure to the Philippine Stock Exchange, Trans-Asia said it has bought the entire outstanding stock of One Subic from Udenna Energy Corp.

“The acquisition of One Subic adds to Trans Asia’s growing generation portfolio, which already includes Trans-Asia’s diesel power plants in Norzagaray, Bulacan, Bacnotan, La Union and Guimaras; the Maibarara Geothermal plant, a portion of the Sem-Calaca power plant, and a 40-megawatt capacity from the Unified Leyte geothermal facilities,” Trans-Asia said.

In all, Trans-Asia Power will acquire a total of 200 million shares at P2.45 per share for a total cost of P490 million.

Trans-Asia is also constructing a 52-MW wind farm in San Lorenzo, Guimaras and a 135-MW coal power plant in Calaca, Batangas through South Luzon Thermal Energy Corp., a 50-50 joint venture with AC Energy Holdings, Inc., the energy subsidiary of Ayala Corp.

One Subic is the lessee and operator of the 116-MW diesel power plant located at the Subic Bay Freeport Zone.

Moving forward, Trans-Asia said it intends to double its power capacity to 400 MW in the next few years.

Trans-Asia has various investments in the energy sector. The company has power generation businesses by itself and through South Luzon Thermal Energy Corp., Trans-Asia Power Generation Corp. and CIP II Power Corp.

Trans-Asia is also involved in renewable energy development via, Trans-Asia Renewable Energy Corp. and Maibarara Geothermal Inc., as well as in electricity supply as a licensed retail electricity supplier and a licensed wholesale Aggregator.

The company said it is aiming to double its power capacity to 400 MW in the next few years upon completion of a new 135-MW clean coal power plant in Calaca, Batangas in partnership with the Ayala Group, an integrated 20-MW geothermal project in Sto. Tomas, Batangas with the Yuchengco Group and the Philippine National Oil Co., and the 54-MW Guimaras wind farm. (Iris C. Gonzales, The Philippine Star)

http://www.philstar.com/business/2014/05/14/1322723/trans-asia-acquires-subic-power-plant

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DENR gives go-ahead to Subic power plant

The Redondo Peninsula Energy Inc. has finally secured an environmental compliance certificate (ECC) from the Department of Environment and Natural resources for its second 300-megawatt power plant inside Subic Bay Freeport.

With the ECC, RP Energy’s coal fired power plant has formally increased its 300MW plant to a total of 600-MW power plant which is expected to start commercial operations in 2016.

In a statement, RP Energy said it was issued an “amended” ECC, which it considered a “major milestone toward the completion of the project that we hope will ease the burden of Filipino consumers who need stable, reliable, environmentally responsible and cost-efficient power in their homes and businesses.” (Manila Times)

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Enercon program saves SBMA P1.8-M in August

The Subic Bay Metropolitan Authority (SBMA) has saved a total of P1.8-million last August, its biggest power consumption savings since the agency started its energy conservation program last year.

Rani Cruz, SBMA Utilities Department manager, said that barely ten months after the implementation of the agency’s power conservation measures, significant savings have become noticeable since last July.

“From P6.98-million in July, the power consumption by SBMA departments and offices went down to P5.16-million in August, or a 26-percent reduction,” Cruz noted.

He said that in terms of kilowatt hours saved, the SBMA recorded a drop of 48,417 kWh as the agency’s power consumption decreased from 711,684 kWh in July to 663,267 kWh in August.

The power deduction in August is the biggest savings achieved so far by the agency since it introduced power conservation measures in August 2011, in line with the Government Energy Management Program of the national government and the SBMA board’s directive “to implement controls to manage and/or institute austerity measures.”

A resolution issued in July 2011 by the SBMA board of directors also enjoined SBMA officials and employees to practice conservation measures and ordered that savings from the program to be partly redirected to “increase the budget for training of personnel and other expenses.”

Under the power conservation program, Cruz said the SBMA has achieved 80 per cent replacement of 40-watt bulbs to 32-watt bulb usage as required by the government.

Cruz added that the SBMA Utilities Department is undertaking strict monitoring of power consumption of SBMA departments and offices to ensure that reduced consumption is maintained.

Records showed that the SBMA spent P6.96 million for its power bills in May, P7.02 million in June with a 0.82 per cent increase, and then P6.98 million in July or a 0.63 per cent decrease.

Cruz said that the month of May was pegged to benchmark the agency’s consumption, as it was in this month when the National Power Corporation (NPC) and the Power Sector Assets and Liabilities Management Corporation (PSALM) started charging the “Deferred Accounting Adjustment.”

Under this scheme, the newly increased generation charge will be billed for the next ten years, Cruz explained.

Aside from the generation charge, the transmission charge and system loss charge also increased during the said billing period.

Cruz also stressed the need to further cut down on power costs, but added that the SBMA has been successful in its energy conservation program because of the cooperation of employees and strict implementation by the management.

“We have to do everything that we can because the SBMA is a self-sustaining GOCC (government-owned and controlled corporation). We are not subsidized by the government. We earn what we spend,” Cruz added. (RFD/MPD-SBMA)

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ERC okays Subic firm, SMEC supply deal

THE Energy Regulatory Commission (ERC) said it has provisionally approved the extension of the interim supply agreement between Subic EnerZone Corp. (SEZ) and San Miguel Energy Corp.(SMEC).

In ERC Case 2011-167 RC, the commission said the final generation cost that can be recovered will be determined when it makes the final decision.

ERC made it clear that when the rates provisionally approved are found to be higher than the final rates, the amount corresponding to the excess shall be refunded by SEZ to its customers by crediting the same in their electric bills over a period to be determined by the Commission.

In its letter of agreement furnished to the ERC in November last year, SMEC said it will provide SEZ with 208.06 gigawatt-hours of electricity from December 26, 2011 to December 25, 2012.

SMEC will supply SEZ’s monthly contracted energy at a proposed rate of P3.8916 per kilowatt-hour.

ERC said SMEC assured in its letter that all the terms and conditions in the existing interim supply agreement shall remain in force for the duration of the extended term.

ERC said SEZ previously sourced its power needs from the National Power Corp. under a Contract for Supply of Electric Energy.

Upon the privatization of Napocor’s assets, ERC said the CSEE was assigned to SMEC as it was the assigned as the Independent Power Producer Administrator for the 1,200-megawatt Sual coal-fired power plant. (Paul Anthony A. Isla, Business Mirror)

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Subicwater activates P50-M filtration facility

Private water-utility firm Subic Water and Sewerage Co. Inc. (Subicwater) activated on Wednesday a new filtration facility for its water-distribution system in Olongapo City with a capital expenditure of P50 million.

Subicwater Chairman Herbert Consunji, who led the inauguration ceremonies at the Mabayuan Water Treatment Plant (MWTP) in Olongapo, said the project will boost the water-treatment capacity of the Mabayuan plant by 36 percent, or about 10 million liters per day (MLD).

The plant, which supplies water to more than 18,200 water concessionaires in the northern part of this city, can now operate on a maximum capacity of 38 MLD because of the new filtration facility.

The service areas that will benefit most are the villages of Kalaklan, Mabayuan, East and West Bajac-bajac, Sta. Rita, Gordon Heights and Old Cabalan.

Consunji  inaugurated the Mabayuan facility with Olongapo Mayor James Gordon Jr., Director Anne Gordon of the Subic Bay Metropolitan Authority, Subicwater Director Graham Fairclough, Subicwater General Manager Edna Canlas and Assistant General Manager Jaime Garcia.

Consunji said that with more water being channeled into the distribution network, pressure in the pipes increases.

“This allows Subicwater to reach more households and establishments in MWTP’s service area of seven barangays, which are ountainous for the most part,” he said. (Henry Empeño, Business Mirror)

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Subic firm offers renewable energy solutions

A Subic-registered company is now producing cost-efficient and environment-friendly energy and lighting solutions touted to address growing concerns of rising energy costs and degraded environment.

BandaSolar, which traces its roots to Bandacorp PI Inc. that was established here in 2006, is now offering Filipino consumers the benefits of renewable energy with its solar panels and light emitting diode (LED) lamps that could cut down power bills by more than 50 percent.

This has prompted Subic Bay Metropolitan Authority (SBMA) Chairman Roberto V. Garcia to call for a study on the installation of solar panels for all street lights in the free port and the use of 250-watt LED lamps instead of the standard 1,000-watt halogen lamps.

Bob Silvers, president of BandaSolar, said that his company addresses the concerns of consumers on the seemingly relentless power rate hikes, and seeks to meet growing demand for solar solutions in the Philippines, as well as internationally.

“The first question in the mind of Filipinos is ‘How am I going to cut on my power bills?’ And the answer is: turn to sun and use its energy,” Silvers said during an exhibit of products here. “Solar energy will cut your electric bills up to half or more,” he added.

Silvers said that historically, the use of solar power was limited only to those living in remote locations with no other choice but to device a solar power generator with a cost equivalent to P100 per watt, or P100,000 per kilowatt, enough to light a small house.

Having an average of a 25-year lifetime, solar panels are being sold mostly in China, Japan, India, Australia and South Korea, which accounted for 3.3 gigawatts of demand in 2011, with Japan and China leading in the Southeast Asian region.

“But that was before the solar panels were in mass production in such a volume where it became part of the energy economy competing with more expensive petroleum and other forms of energy,” Silvers pointed out.

He said that, as of last year, the cost of solar panel went down to P50 per watt or P50,000 per kilowatt, “that’s why people really can afford solar power in place of the regular electricity generated by the electric companies.”

Silvers said the cost of using solar power “may sound high, as the first five years after purchasing and installing the solar panel, you are like paying the cost of the solar panel. But after five years, the electricity is free within the period of 20 years or more,” he added.

Industrial users also benefit a lot from solar power because by producing some or all of the needed electricity with solar power, they can eliminate a portion of that variable cost and insulate their businesses against the inevitable rising cost per kilowatt hour of electricity, Silvers said.

He explained that a company using 100 pieces of 150-watt sodium bulbs has to pay an average of P413,870 for power consumption and maintenance cost in 4.38 years of the bulbs’ lifetime. On the other hand, if the same company uses 100 pieces of 100-watt LED lamps, it will only spend P13,699 for maintenance expenses in the 13.7 years of the lamps’ lifetime.

Silvers also said that BandaSolar is offering free consultation to those who wish to know more about solar power, and an introduction to a line of energy-saving devices ranging from air-conditioning system to solar street lights, solar water heater, and even home and industrial solar-lighting solutions.

In Subic, the company has already convinced several companies to shift to solar power or LED lamps to save on energy costs. Its clients here include the Ocean Adventure marine theme park; gastight plastic storage manufacturer GrainPro; packaging manufacturer Pactec; global testing, verification and certification firm SGS; and ink solution provider Printing Images CtC, Inc.

BandaSolar has also installed renewable energy systems for some residences at the Kalayaan and Binictican housing complexes here, as well as for other clients in Pampanga, Batangas, Ilocos Sur and Zambales. (RAV/MPD-SBMA)
PHOTO:

Bob Silvers, president of BandaSolar, explains the advantages of using a solar energy system.

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Developers to raise P39-billion loan for Subic coal project

MANILA — The project developers of the 600-megawatt Subic coal-fired power facility are preparing for loan procurement of P39 billion to bankroll the significant portion of the facility’s implementation cost.

The 70 percent debt portion of the project cost, they said, will be raised on a project finance basis. The project sponsors will be led by Meralco PowerGen Corporation, the power generation unit of Manila Electric Company (Meralco); Therma Power Inc. of the Aboitiz group and Taiwan Cogeneration Corporation.

In a briefing with reporters, Meralco PowerGen executive vice president Aaron A. Domingo disclosed that the project financing will be raised entirely from a syndicate of local banks.

“The structuring of the peso financing and selection of mandated lead arrangers are ongoing,” he said.

Meralco’s equity portion for its more than 50 percent interest in the venture will amount to P8.0 billion to P9.0 billion. Domingo said that will be infused separately through the backing of its parent firm.

From its initial foray into the 600-megawatt coal plant, Meralco is preparing for a grander venture into the power generation sector. In fact, from the 1,500 megawatts of portfolio it has initially cast on blueprint, the company is now looking at increasing that to 1,800 to 2,400 megawatts – the development timelines, of course, will depend on electricity demand expansion.

Moving forward from the signing of a shareholders’ agreement for the Subic facility last week, Domingo disclosed that they are now working next on the engineering, procurement and construction (EPC) contract.

“We are preparing for full EPC contracting strategy with major equipment (boiler and steam turbine generator) suppliers for the bidding and selection by end of December 2011,” he said.

He added that they have already sent request for proposals (RFPs) to three EPC contractors; and also solicited tenders from original equipment manufacturers (OEM) of boilers and turbines.

Based on targets set by the project sponsors, the first unit of 300 megawatts will be on-line fourth quarter of 2014; while the next unit of the same capacity will be on stream six months after. (Myrna M. Velasco, Manila Bulletin)

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$1.28B earmarked for Subic coal plant

Three energy companies signed a memorandum of agreement to put up a US$ 1.28 billion 600-megawatt (MW) coal power plant in Subic, Friday.

Meralco, Aboitiz Power and Taiwan Cogen signed the agreement to build the plant in Redondo inside Subic Bay Freeport zone.

Erramon Aboitiz said that the project aims to generate competitive priced power with least possible adverse effects on the environment.

He added that the project would become the source of competitive priced baseload power for Subic Bay Freeport and for the entire Luzon grid.

Aboitiz said the consortium has opted to use Circulating Fluidized Bed Boilers that remove sulfur oxide and control the burning temperature of coal to prevent formation of nitrous oxides that lower air emissions.

First phase of the project will be completed in 2014 while the second and final phase will be finished in 2016. (Anthony Bayarong, Manila Times)

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Meralco ready to sign supply contract for Subic coal plant

Utility giant Manila Electric Company (Meralco) is ready to ink a power purchase agreement (PPA) which may cover the entire capacity of the $1.28 billion Subic coal-fired power facility of 600 megawatts that will be due on stream by the first half of 2014.

“We should be able to accommodate the 600MW, but it is a function of what price… and there are also other interested parties,” Meralco senior executive vice president Oscar S. Reyes said.

With the signing of the Shareholders Agreement among project sponsors on Friday, the utility firm’s subsidiary Meralco PowerGen (MPG) officially became the majority shareholder in Redondo Peninsula Energy (RP Energy), with more than 50 percent equity. RP Energy is the corporate vehicle for the project.

Aboitiz Power’s wholly-owned subsidiary Therma Power Inc. and another partner Taiwan Cogeneration Corporation cornered the remaining shareholdings.

“With highly respected and well-established local and business partners, Meralco now signals its re-entry into power generation, nearly 40 years after relinquishing its power generation operations and 20 years after the ‘welcome mat’ had been laid out for private sector participation in power generation,” Reyes said.

The intent of the project developers would be mainly to offer the capacity of the baseload coal-fired plant as a cost-competitive source of power – be it for end-users already qualified under open access or those which will remain captive, mainly the residential end-users.

With Meralco’s interest in the project, it will also shoulder more than 50-percent of the equity cost portion. The 70-percent of the total project cost will be infused through project financing.

During the signing of the shareholders’ deal, several banks interested at offering financing were already hovering around the venue – including BDO Capital, RCBC, Philippine National Bank, PNB Capital, Bank of the Philippine Islands and First Metro Investment Corporation, among others.

For his part, Aboitiz Power president Erramon I. Aboitiz noted that the coal plant’s project design has been re-evaluated when Meralco came into the picture as their partner.

“As we initiated discussions with Meralco PowerGen, the configuration of the power stations was rethought again, this time using two 300-MW generating units with reheating capabilities,” Aboitiz said. (Myrna M. Velasco, Manila Bulletin)

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