Kepco plans to convert PDPP to coal-fired plant

By Francis Allan L. Angelo

A KOREAN power firm is still keen on putting up a coal-fired power plant in Panay despite stiff opposition it met nine years ago.

Presidential Assistant for Western Visayas Raul Banias said Korean Electric Power Corp. (Kepco) plans to convert the Panay Diesel Power Plant (PDPP) in Dingle, Iloilo into a coal-fired power plant.

In an interview with the weekly cable TV talk show Serbisyo Publiko hosted by Councilor Perla Zulueta Sunday, Banias said Kepco has not lost interest in putting up a power plant in Panay.

Kepco is part owner of SPC Power Corp., the mother unit of SPC Island Power Corp. which bought PDPP and Bohol diesel fired power plant early this year for US$5 million.

“In fact, they told me that their main plan after buying the plant is to convert the PDPP into a coal-fired power plant. They are still interested in investing in the energy sector here in Panay,” Banias said.

Kepco first proposed to put up a 100-megawatt coal-fired power plant in Tibiao, Antique but moved to Iloilo due to poor soil stability in the area.

The Korean power firm then planned to locate the project in the towns of Ajuy and later to Banate but it ultimately transferred to Cebu due to stiff opposition from environmental groups and the Catholic Church.

Kepco is now operating a US$270-million coal-fired power plant in Cebu.

‘EVIL HAND’

ILED president Rex Drilon

Biz group slam guvs’ anti-coal letter

By Francis Allan L. Angelo

AN umbrella group of business organizations here slammed the five Western Visayas governors who called for the revocation of the environmental compliance certificate (ECC) of the proposed coal-fired power plant of Global Business Power Corp. (GBPC) in LaPaz, Iloilo City.

Ilonggo business executive Rex Drilon, Iloilo Economic Development Foundation, Inc. (ILEDF) president, said the actions of the five governors led by Salvacion Perez of Antique are “deplorable” and the “work of an evil hand.”

ILEDF is an umbrella organization of 14 major business and professional associations tasked with promoting business, investments and tourism in the city and province of Iloilo.

The Iloilo City mayor, Iloilo provincial governor and provincial DTI director are ex-officio members of the ILEDF board of directors. The group represents more than 350 small, medium and large businesses employing thousands in Iloilo.

The proposed coal power plant is a joint project of GBPC with the Formosa Group of Taiwan and will cost P18 billion, the biggest investment ever in Iloilo City and Panay Island.

“The actions of the Western Visayas governors, save for Iloilo Governor Niel Tupas who did not sign the petition, are mysterious, defy logic, border on interference on the affairs of other independent local government units and are anti-business and anti-investment. It is as if an evil hand is at work,” Drilon said.

Drilon, chief operating officer of Ortigas and Company Limited Partnership, expressed disbelief at Gov. Perez’s position “particularly because five years ago, she signed a memorandum of understanding with KEPCO, a Korean power company, to set up a 100-MW coal plant in Antique.”

“And today, Antique has a 15-MW coal power plant, which uses an older technology, operating in her province. If a coal plant was good enough for Gov. Perez in Antique why is she now objecting to a coal plant in Iloilo City?” Drilon said.

The ILEDF president also debunked the claims of the five governors that GBPC’s coal-fired power plant will pose danger to their constituents staying in Iloilo City

“That is hilarious and shallow. All the concerned parties went through a long, rigorous process to assure that the coal plant will be ideally situated and pose minimal adverse impact on residents and the environment. We went through another protracted process to secure the ECC. The benefits to our communities are undeniable and unquestionable,” he said.

Revoking the ECC issued to the project proponent will result in investor flight, straining Iloilo City’s economic development, Drilon added.

“With the ECC approval, contractual and supply commitments had been finalized by the investors. If the ECC is cancelled as proposed by Gov. Perez, the investors will be left holding the proverbial bag – this is no way to promote investments in our country and will only confirm the perception that, indeed, in this country, we change the rules of the game in the middle of the game,” Drilon added.

Drilon said the 164-MW coal power plant of GBPC, “together with the 100-MW coal power plant of DMCI Power in Concepcion, Iloilo, were designed to assure adequate, reliable, quality and cheaper electricity for the whole island of Panay in many years to come.”

“Ilonggos were banking on these power plants to solve their perennial brownout problems and high cost of electricity – obstacles to the attractiveness of Iloilo as an investment and tourism destination.”

Sally likes coal plants, too

Perez: Is she pro- or anti-coal?

By Francis Allan L. Angelo

ANTIQUE Governor Salvacion Perez claims she is against coal-fired power plants but she is open to having one in her own province.

Perez expressed her willingness to allow the construction of a coal-fired power plant in Semirara Island in Caluya town in her most recent interview with Aksyon Radyo-Iloilo Saturday.

Perez led four other governors in Western Visayas in signing a petition letter to President Gloria Arroyo asking her to revoke the environmental compliance certificate issued to the proposed coal-fired power plant in LaPaz, Iloilo City.

The other governors who signed the letter are Isidro Zayco of Negros, Victor Tanco of Capiz, Carlito Marquez of Aklan and Felipe Nava of Guimaras.

The five governors said the power plant poses health and environmental risks, particularly in thickly populated areas like Iloilo City.

But the statements of the governors, particularly Perez’s, in the letter petition contradict their pronouncements over the media.

In the radio interview, Perez said she has been against coal-fired power plants “a long time ago” because of their perceived ill effects on the environment and public health.

But in April 2003, Perez was a signatory to a memorandum of understanding on the coal-fired power plant in Antique.

President Arroyo even announced the signing during a meeting at Sarabia Manor Hotel and Convention Center April 1, 2003.

Perez said they are willing to compromise with Iloilo City Mayor Jerry Treñas by moving the proposed power plant of Global Business Power Corp. (GBPC) outside the city.

And if the proponent wants, Perez said she will allow the project in Semirara Island where coal is being mined.

The lady governor said it would be better to put up the coal-fired power plant in Semirara Island because it is the source of coal.

“But they are saying that it would be expensive to install the transmission lines but in the long term power will be cheaper if it’s near the source,” she said.

Perez said she is also proud of the coal-fired power plant used by DM Consunji, Inc. which mines coal from Semirara Island.

The action of the five governors has earned the ire of Iloilo City leaders, particularly Treñas who said he was disappointed and insulted by the petition letter.

Treñas said not one of the governors informed him about the letter even if they met in several meetings.

The mayor went to Manila in a bid to convince President Arroyo not to heed the petition letter.

ANTIQUE GUV FIRST TO EMBRACE COAL

By Francis Allan L. Angelo

WAS Antique Governor Salvacion Perez suffering from amnesia when she wrote and signed a petition letter urging President Gloria Arroyo to revoke the environmental compliance certificate issued to the coal-fired power plant proposed by Global Business Power Corp. in Iloilo City?

Defending the petition letter, Perez said over Aksyon Radyo-Iloilo that she has been against the establishment of coal-fired power plant “a long time ago.”

“It is not correct to say that we are opposing this project only now. We have been against this for a long time now. We need to develop renewable sources of energy because no matter what we say, coal is coal,” Perez said.

Perez said they could come up with a compromise with Iloilo City Mayor Jerry Treñas not to allow the coal power plant to be established in the city but in a place far from thickly populated areas.

The lady-governor said she and the four other governors in Region 6 are concerned with the effects of the plant on their constituents who are working and studying in Iloilo City.

Perez also cautioned Treñas not to be “onion-skinned and arrogant” over the issue lest he earns the ire of the five governors.

She also denied that they are after political mileage and popularity in coming up with the anti-coal letter.

The four other governors who signed the petition letter were Felipe Nava of Guimaras, Carlito Marquez of Aklan, Victor Tanco Sr. of Capiz, Isidro Zayco of Negros Occidental.

KEPCO PROJECT

Apparently, Perez forgot that she signed a document endorsing a coal-fired power plant in her home province.

Sometime in 2003, Korean Electric Power Corp. (Kepco) proposed to build a 100-megawatt coal-fired power plant in Tibiao, Antique.

Five years ago, President Gloria Arroyo announced that Perez, in behalf of the Antique provincial government, signed a memorandum of understanding with Kepco Philippines Corp.

President Arroyo made the announcement in her speech before a meeting with rice farmers, irrigators associations, and the trade and agri-business sector in Panay April 1, 2003 at the Kalantiaw Hall of Sarabia Manor Hotel and Convention Center in Iloilo City.

“So I am very pleased to let you know that this morning a memorandum of understanding was signed into… by and between the provincial government of Antique led by Sally Perez and Kepco Philippines, our representatives from Korea, Mr. Lee Gilbo, President and Chief Executive Officer of Kepco Philippines Corporation, with the presence of Korean Ambassador Son Sang Ha, to construct and set up a 100-megawatt circulating, fluidized bed combustion power plant using the Semirara coal of Caluya in Antique.

The President’s speech can be downloaded from this link: (http://www.op.gov.ph/speeches.asp?iid=314&iyear=2003&imonth=4)

But the Kepco project did not push through as the proposed location did not pass the soil stability test even as environmentalists opposed the project.

Kepco later transferred to Ajuy then to Banate, Iloilo.

Iloilo provincial administrator Manuel Mejorada told this paper that Governor Perez “even lobbied for the Iloilo provincial government to reject coal so that Kepco will be forced to invest in Antique.”

But opposition from environmentalists forced the Korean firm to move to Cebu where it finally established two 50-MW coal-fired power plants in Naga, Cebu.