Salcon Pursues Plant Construction

Preparations are underway to construct the new power plant in Naga City, Cebu.

Thus revealed by SPC Power Corp. senior manager Cesar Villegas in his appearance to the Cebu Provincial Board (PB) last Monday, adding, they have commissioned an international consulting firm to conduct a full-blown feasibility study for the construction of the coal-fired plant.

Also in a statement sent to MetroCebu News, Villegas emphasized that their company is heeding to the earlier resolution of the Naga City council regarding the construction of a new power plant in the area.

“SPC Power Corporation is proceeding with preparations to build a new coal-fired plant,” Villegas told MCN in his statement.

Earlier this year, Naga City Mayor Valdemar Chiong has led a rally of his residents to dramatize their sentiments after the city council has passed the resolution for the construction of the new power plant. Before the city council acted, separate resolutions relative to the construction of the plant were also passed by barangay (village) of Colon, Tangke and Tuyan.

Chiong incidentally also appeared before the PB, where he reiterated the stand of his constituency.

“Pasalamat ko, dili mo mu-object sa new power plant,” Chiong told the provincial legislators.

In July this year, SPC officials revealed that two Greenfield 100 megawatt power plants would be constructed as its commitment to support the sustainable economic growth of Visayas more particularly the province of Cebu.

As this developed, Villegas told the PB that they are also proceeding with the extensive maintenance activities of its Cebu Diesel Power Plant to attain its 36 megawatts full capacity by December this year to give additional power reserves in the Visayas region.

The SPC Power Corporation won the bidding for the continued operation of the Naga Power Plant Complex (NPPC) after it exercised its right to top of P1.4 billion and just awaiting the formal turn-over of the facility from the Power Sector Assets and Liabilities Management Corp. (PSALM).

According to the SPC statement, it has invited the Korea Plant Service (KPS), Doosan Heavy Industry and Guangxi Hydroelectric Construction Bureau to make a comprehensive assessment of the plants, a prelude to the construction, involving its technical, environmental, financial and commercial aspects.

Senator Serge Osmeña has earlier petitioned the Supreme Court to stop the awarding to Salcon of the NPPC but the high court has not acted on the case so far.

Therma Power Visayas Inc. (TPVI), a subsidiary of AboitizPower offered P1.1 billion to bid for the operation of NPPC but Salcon exercised its right to top, raising the amount to P1.4, which still did not sit well with Sen. Osmeña.

Apart from the pending petition of Osmeña, TPVI wrote a letter to PSALM to halt the turn over of the project citing the unresolved petition of the Cebuano senator.