PRIVATE SECTOR TO PARTICIPATE IN THE BIDDING
FOR THE SUPPLY OF POWER IN SIQUIJOR



 

   “The development of a 6 MW power plant in Siquijor has recently been opened by the government and its transaction advisor, the International Finance Corporation (IFC) to interested private companies.” This is according to a report in the Business Mirror on 03 May 2010.


    The report further indicated that, “the competitive selection process for the area is part of the major reforms in the power sector, which provides an opportunity for private investors to build, own and operate generation facilities to supply the entire province.” Deadline for the submission of bids was actually set for May and award of contract by the end of June 2010.


    Eleven companies have so far expressed interest to bid to provide power to the island of Siquijor, which is one of NPC-SPUG’s missionary areas, namely: Aggreko International Power Projects; Altergy Power Solutions, Inc.; Asea One Power Corporation; Bantayan Island Power Corporation; Global Business Power Corporation; Structured Financial Group, Inc.; Sunwest Water and Electric Co., Inc.; The PowerSource Group LLC; Trans-Asia Oil and Energy Development Corporation; TruGreen Energy; and, Vivant Corporation.


    The IFC was quoted in the report as saying that in addition to providing business opportunity for investors, the Private Sector Participation (PSP) program for Siquijor is targeted to benefit the national government and the Province of Siquijor Island Electric Cooperative, Inc. (PROSIELCO). Among the benefits mentioned were:

  • reduce NPC-SPUG’s deficit and impact on the national budget;
  • redeployment of expected decrease in subsidy requirements to unenergized areas;
  • 24/7 supply of electricity;
  • improved quality and reliability of power supply; and,
  • secure future power supply demand.


    NPC, PSALM and the DOE have retained IFC as its transaction advisor for the program in 2004, which has been extended to encourage PSP in the remaining 14 - First Wave Areas operated by NPC-SPUG. Under Section 70 of the EPIRA, NPC shall remain as a government-owned and controlled Corporation to perform the missionary electrification function through its SPUG.