Iloilo leaders ask for postponement of power plant turn-over

ILOILO CITY – Political and government leaders in the city and province of Iloilo have ask the postponement of turn-over of the National Power Corporation’s Panay Diesel Power Plant 1 and Panay Diesel Power Plant 3, both situated in Dingle, Iloilo to a later date when additional sources of power will have been identified and contracted.

In a meeting of the Regional Development Council (RDC) Infrastructure Committee here March 13, 2009 and chaired by Iloilo City Mayor Jerry P. Trenas, Iloilo Governor Niel D. Tupas moved for a resolution to ask Power Sector Asset and Liabilities Management (PSALM) and the Department of Energy to delay the privatization and hold back the turn-over of the power plants slated on March 26, 2009 to private owner Salcon Power Corporation (SPC) and for the Napocor to continue operation of the two plants.

Out of its 5 plant units generating a total of 57 megawatts power (MW) for Panay Island consumers, only 14 MW are being generated as of March 13 as several units are undergoing major restoration and rehabilitation, according to Napocor Vice President Danilo Sedillo.

Trenas said that he, Gov. Tupas and Presidential Assistant Raul Banias will personally see the President to deliver the RDC resolution and to request for her intervention in the power situation in Panay and especially Iloilo.

Napocor’s Power Barge 102 is slated for repair and upgrading and the Iloilo leaders are planning to ask for the transfer of Power Barge 104 from Davao to Panay in order to augment the power supply here.

However, Energy Regulatory Commissioner Jose Reyes cautioned the local leaders of possible bigger problems should the turn-over of the diesel plants to its new owners is not properly done.

ERC is slated to conduct a hearing on April 9, 2009 and there is always a possibility that the 15 modular generator sets earlier promised by Napocor to Iloilo will not be implemented unless the Visayas Supply Augmentation Auction (VSAA) program is implemented here.

Trenas said the concerted action of Iloilo leaders and the whole Ilonggos is badly needed at this time when the power supply is threatened. The privatization of both diesel plants in Dingle, Iloilo was already finalized since November 2008 after the national government deemed it necessary to privatize all its energy assets in the country.

The government-owned Dingle diesel power plants and Bohol diesel power plant with rated capacity of 168 megawatts were sold at US$5.86 million to Salcon at the same time.

Similarly, leaders of militant organizations here also announced their cooperation and acceptance of the delayed implementation of privatization of the two diesel power plants in Iloilo.

By Lydia C. Pendon