BASELCO AND COASTAL POWER SIGN PSA FOR SUPPLY IN BASILAN (21 August 2008)
The private sector participation program launched late last year for the supply of power in Basilan culminated in the signing of the power supply agreement (PSA) between the Basilan Electric Cooperative, Inc. (BASELCO) and Coastal Power Development Corporation the New Power Provider (NPP) held on 21August 2008 at the Garden Orchid Hotel in Zamboanga City.
The PSA was signed by BASELCO Board President Ismael Basa and Coastal Power Managing Director Manny Castro. NPC-SPUG Mindanao Operations Manager, Mr. Ahmad H. Alsree, and Ms. Lisa Go of the Department of Energy’s Investment Promotion Office witnessed the signing. Also present were BASELCO Finance Manager, Ms. Ines Diaz, BASELCO Technical Manager, Engr. Filomeno Bate, and Mr. Ruben Hermoso of Coastal Power.
The agreement calls for the installation of 11.8 MW of generating capacity in the Island of Basilan composed of two power plants to be located in Isabela City and Lamitan City. Commercial operation date is targeted not later than 18 months after the effectivity of the Power Supply Agreement. NPC-SPUG shall support the proposed system configuration by implementing a 30 kilometer 69 kV transmission line project that would interconnect Isabela City and Lamitan City.
The selection of Coastal Power was the result of successful negotiations among NPC, BASELCO and Coastal Power following two failed biddings in accordance with the Department of Energy's Department Circular No. 2004-01-001. The bidding was supervised and facilitated by the International Finance Corporation (IFC), the transaction advisor for selection of NPPs in selected SPUG areas. IFC was represented by Edgar Saravia and Julinette Bayking.
NPPs are private or third party entities that are selected through competitive selection to undertake missionary electrification pursuant to the Department of Energy's Department Circular No. 2004-01-001 seeking to optimize the countryside benefits missionary activities through the full or gradual privatization of viable islands that are currently served by SPUG.
