Tuesday, November 23, 2010

‘DON’T STOP COAL PLANT’

Drilon: New capacity key to solving acute power shortage

By Francis Allan L. Angelo

AN Ilonggo senator quelled calls to shut down the coal-fired power plant in LaPaz, Iloilo City despite the foul odor being blamed on the facility.

Speaking before business and government leaders, Senator Franklin M. Drilon said the power plant of Global Business Power Corp. (GBPC) is the key in solving the acute power crisis in Iloilo City and the rest of Panay.

Drilon was one of the keynote speakers of the 1st Western Visayas Business Forum mounted by the University of Iloilo-Phinma in tandem with the Iloilo Business Club and Iloilo Economic Development Council at Hotel del Rio.

"Please, let's not stop it. We should work on stopping the causes of foul odors and other environmental issues being complained about, but the project must go on," Drilon said.

Drilon said GBPC and its subsidiary Panay Energy Development Corp. (PEDC), which will operate the plant, are capable of solving the odor problem.

The senator said he is aware of the power crisis in the city through information relayed to him by Ilonggos.

Drilon said power and water shortages are the main stumbling blocks to Iloilo’s rise to economic prominence.

Drilon said the prospects are good in the BPO industry for the country, which now ranks second to India in the world in call centers.

With its seven universities and dozens of colleges, Iloilo City has a distinct advantage in terms of good English-speaking graduates, Drilon said.

The only handicap for Iloilo City is power – the expensive rates and unstable supply, he said.

Both issues, he said, can be resolved with the start of the coal-plant project.

Consumers can expect a reduction of at least P1.85 per kilowatt hour and the supply will be adequate for the medium term, he said.

Drilon said another company, A. Brown and Co., will also be breaking ground for a 200-megawatt coal plant in Concepcion, Iloilo before the end of the year. This plant is projected to begin operations by 2013, thereby assuring Iloilo of a stable supply in the long term.

As regards the turmoil besetting Metro Iloilo Water District, Drilon said he is aware of the recent developments particularly the ouster of the board of directors through the instigation of the management team and Local Water Utilities Administration.

Drilon said he welcomes legal actions that may arise in order to settle the issue.

Synchronization

Brownouts ceased around 4pm Thursday after the coal-fired power plant was synchronized with the grid and Panay Electric Co. (PECO), the sole power distributor in Iloilo City.

The synchronization is part of the testing and commissioning tests en route to the plant’s full commercial operations early next year.

PECO operations manager Randy Pastolero said the power plant infused around 12 megawatts in their system, easing outages around the city.

“So far, so good. No more outages,” Pastolero said.

GBPC assistant vice president Adrian Moncada said the plant is running on 25% capacity and confirmed it supplies 12MW to the PECO.

Moncada said they will gradually increase the load as they test the coal-feeding system so that the plant can run on coal fuel instead of diesel.

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