You are currently browsing the tag archive for the ‘Global Business Power Corp.’ tag.

By Francis Allan L. Angelo

AN independent power producer in Iloilo City is reaching out to prospective investors in the metropolis to address their projected energy requirement.

Engr. Henry Alcalde, project manager of the 164-megawatt coal-fired power plant of Global Business Power Corp. (GBPC), said they expect the demand in Panay to increase once their new plant operates next year.

“If you lower the cost of power, you encourage consumption. Lower prices will also attract businesses in our area. And once these investors come in, they will gradually use up the capacities of the new coal-fired power plant and the diesel plant. How fast this demand will be, we don’t know. But once the demand gets higher than our capacity, we will try to address that,” Alcalde said.

The coal-fired power plant will be operated by the Panay Energy Development Corp. (PEDC), a subsidiary of GBPC under the Metrobank Group. It is expected to go online in the last quarter of 2010.

The construction of the coal-fired power plant has resulted in renewed interests by investors to enter Iloilo City, particularly business processes outsourcing (BPO) firms.

A major investor expected to do business in the city is giant land developer Megaworld which bought the old Iloilo airport lot in Mandurriao district for P1.2 billion.

Megaworld is planning to develop the 54.5-hectare lot into a new business district with facilities such as hotels, convention center and BPO offices.

Industry sources said Megaworld would require around 20MW of power for its initial operations which is estimated to cost P1.5 billion.

Recently, the National Grid Corporation of the Philippines (NGCP), which handles the transmission side of the energy sector, made a positive projection on the energy needs in the Visayas grid.

Without factoring in the projected huge power demand from new growth areas such as the 300-hectare South Road Properties in Cebu City and the 54-hectare Megaworld property in Iloilo City, the NGCP said the next round of power supply problems in Cebu, Negros and Panay would be felt in 2018.

Alcalde said NGCP’s projections somehow jives with their own forecast, with Iloilo City suffering a 4-MW shortfall by 2014 on an annual demand growth of 3%. This does not include Megaworld’s demand. 

Engr. Gil Altamira, GBPC commercial manager, said they are reaching out to Megaworld to find out how much power they will need.

“Power plants don’t just pop up like mushrooms. We have to know the needs of the consumers so we can plan ahead of time, whether Engr. Alcalde will put up another unit.” Altamira said.

In Negros and Panay, load growth averaged 6.1% and 5.9%, respectively, this year. Panay’s load grew nearly 50% in 2007 only because the Panay Electric Co., Inc., sole electricity distributor in Iloilo City, was synchronized to the grid that year.

Growing demand has used up power reserves in the grid, leaving Cebu, Negros and Panay vulnerable to outages whenever a plant breaks down. Rotating brownouts have been the norm in these islands since summer.

Cebu’s actual peak demand this year reached 577 MW, while those of Negros and Panay hit 226 MW and 221 MW, respectively. Including Bohol and Leyte-Samar islands, the Visayas’ actual peak demand this year reached about 1,300 MW.

The Cebu-Negros-Panay grid gets 360 MW from the geothermal fields in Leyte, boosting total dependable capacity in the Visayas to 1,466 MW. Of the 360 MW, 200 MW goes to Cebu first and the balance is divided between Negros and Panay.

Cebu, Negros and Panay are expected to continue to experience power shortage until the first quarter of 2010, when the first of three 82-MW coal plants that Cebu Energy is building in Toledo City comes onstream.  (With reports from BusinessWorld)

By Francis Allan L. Angelo

A CONSORTIUM of electric cooperatives in Panay Island will begin negotiations with an independent power producer to purchase electricity from a 164-megawatt coal-fired power plant based in Iloilo City.

The negotiation kicked off with the signing of a memorandum of agreement between the Panay Power Supply Consortium (PPSC) and Panay Energy Development Corporation (PEDC).

PEDC, a subsidiary of Global Business Power Corp. (GBPC) under the Metrobank group, will operate the coal-fired power plant being constructed at Brgy. Ingore in LaPaz, Iloilo City.

The PPSC is composed of Aklan Electric Cooperative, Antique Electric Cooperative, Capiz Electric Cooperative and Iloilo Electric Cooperatives (Ileco) 1, 2 and 3.

The negotiation is seen to culminate in a 25-year electric power purchase agreement (EPPA) between PEDC and PPSC member cooperatives.

Adrian Moncada, GBPC assistant vice president for commercial operations, said once they have concluded the negotiations, the EPPA will be submitted to the Energy Regulatory Commission for approval.

The PPSC was conceptualized in 2008 to address the worsening electricity shortage in Panay.

The looming expiration of the cooperatives’ power supply contracts with the National Power Corp., which is presently being privatized, in 2010 also prompted PPSC to look for potential suppliers.

The coal-fired power plant is expected to be operational in the last quarter of 2010. It is composed of two units each with a capacity to generate 82MW. The plant has a net production of 144MW

Engr. Wilfred Billena, Ileco 1 general manager and PPSC president, said they bidded out a total of 72MW for their power requirements starting 2011.

A total of 36MW was awarded to two renewable energy companies – Global Green Power and Asea One – while the remaining 36MW was awarded to GBPC.

GBPC has set aside 72MW, or 75% of the coal-fired power plant’s net generation for Iloilo City’s electricity needs.

The remaining 36MW of the coal plant will be allocated to 5 electric cooperatives in Negros Occidental and Oriental.

Engr. Gil Altamira, GBPC commercial operations manager, said their price per kilowatt-hour will be lower than the ERC-approved rate of P4.30/kWh in the EPPA between Central Negros Cooperative (Ceneco) and Korean Electric Power Corp., (Kepco) which will also operate a coal-fired power plant in Cebu.

“We will try to reduce our price from that of the Ceneco-Kepco deal. The advantage of the GBPC-PEDC plant is that it is embedded in Panay Island which could save us from additional transmission cost,” Altamira said.

Billena said their contract with GBPC and other suppliers might not be enough because of their unpredictable consumer growth.

“Our consumption is pegged at 30MW but sometimes we are surprised because we hit 32MW on certain days. The supply instability in the Visayas grid makes it hard for us to predict our growth. When these new capacities operate, we expect our connections to increase. Apparently, the supply that we are about to contract might not be enough,” Billena said.

Billena said an embedded power plant in Panay is advantageous compared to sources outside the island because it is “more stable and cooperatives here will be given priority.”

By Francis Allan L. Angelo


THE management of Global Business Power Corp. (GBPC) told its detractors not to drag the firm in the Iloilo Electric Cooperative (Ileco) 3 bribery mess.


Engr. Adrian Moncada, GBPC vice president for commercial operations, said the company has nothing to do with the Artech mess. He was reacting to news items that Engr. Gil Altamira, GBPC commercial business manager, had something to do with the privilege speech of Board Member Rett Rojas calling for an investigation on the Ileco 3 issue.


Moncada said Rojas and Altamira are already friends even before the latter worked for GBPC.


He said Altamira is familiar with the operations of Ileco 3 and the bidding conducted by the Panay-Guimaras power consortium reason why Rojas asked inputs from him.


Moncada also disputed the claims of Iloilo provincial administrator Manuel Mejorada that GBPC and DMCI offered P7.36 per kilowatt hour to the Panay-Guimaras power consortium.


Mejorada claimed that GBPC-DMCI’s price was higher than the P6.64 per kilowatt hour proposed by Applied Research Technologies of the Philippines (Artech), Inc.


But Moncada said their offer to the consortium was P4.60 per kWh at 75% load factor. In the electricity industry, load factor is a measure of the output of a power plant compared to the maximum output it could produce.


Moncada said they did not offer P7.36 per kWh to the consortium.


“That figure of P7.36 per kWh is the assumption of the consortium’s technical consultant, not ours. The consultant assumed that we will use Newcastle bituminous coal in producing electricity. But we will use Semirara sub-bituminous coal which is cheaper. Our offer has always been P4.60 per kWh at 75% load factor which is the ideal industry standard,” Moncada added.


Moncada said that when the consortium leveled the load factor at 100%, similar to the offers of renewable energy firms, “our price will even go down to P3.98 per kWh.”


“Computing the price of electricity is not simple arithmetic. There are factors that must be considered before we can come up with the numbers. I suggest they check their facts,” Moncada said.

By Francis Allan L. Angelo


THE Regional Development Council (RDC) in Western Visayas will take its chances in requesting the transfer of the 32-megawatt Power Barge 104 from Davao to Panay.


The RDC passed last week in Bacolod City a resolution urging President Gloria Arroyo to order the transfer of PB 104 to Panay to ease the acute power shortage in the island.


Presidential Assistant for Western Visayas Raul Banias confirmed the passage of the RDC resolution which will be endorsed to the Department of Energy.


But Banias had earlier said Davao will oppose the transfer of PB 104 to other areas “because they need it for their reserves.”


Data from the National Grid Corporation of the Philippines showed that Panay has a peak demand of 210MW but its supply is only 128MW or a shortage of 82MW.


The island draws power from the Cebu-Negros-Panay grid, Panay Power Corp. (PPC), 15MW modular generator sets in Capiz and two power barges stationed in the city and province of Iloilo.


Power supply in Panay was imperiled by the turnover of the Panay Diesel Power Plant (PDPP) in Iloilo to its new owner SPC Island Power Corp.


Power utilities raised fears of losing some 50MW if SPC does not operate the power plant because of needed rehabilitation works and lack of supply agreement contracts with electric cooperatives.


The problem was remedied when the Department of Energy agreed to subsidize the operation of PDPP for five months until SPC has signed supply contracts with Panay utilities.


Singapore-based SPC bought PDPP and the Bohol Diesel Power Plant for US$5.7 million last year. The plants were turned over to the company March 25.


Officials of distribution utilities and electric cooperatives said new power plants are needed to stabilize the energy situation of the island.


Engr. Randy Pastolero, special assistant to Panay Electric Co. (Peco) president and CEO Miguel Cacho, said the 164MW coal-fired power plant proposed by Global Business Power Corp. (GBPC) in LaPaz district will help stabilize power supply in Iloilo City and the rest of the province.


Peco is the sole power distributor in Iloilo City which has a peak demand of 75MW daily.


GBPC operates PPC which supplies 61MW to Iloilo City. The rest of the city’s energy requirement comes from the National Power Corp.

By Francis Allan L. Angelo

A BALANCE between immediate power needs and the environment must be observed in addressing the looming power shortage in Iloilo City and the rest of Western Visayas.

Senator Juan Miguel “Migz” Zubiri said he understands the immediate need of Iloilo City for additional and stable sources of power as regards the proposed coal-fired power plant in LaPaz, Iloilo City.

“We have to balance two things – energy that is needed immediately because the city is suffering from brownouts and the protection of the environment,” Zubiri said at the sidelines of the regional congress for renewable energy at Amigo Terrace Hotel Friday.

The neophyte senator, who is at the forefront of the Renewable Energy Law, said he understands “the need of the city for power now, not tomorrow.”

“No investments will come in the city without stable power,” he said.

But Zubiri is hoping that Panay will start tapping renewable sources of energy such as solar, wind, wave, geothermal and hydropower.

“We have to discover these renewable sources of energy because I believe that we have lots of potentials here. We can even transform the city’s trash into energy,” Zubiri said.

Citing the volatile oil prices in the global market, Senator Edgardo Angara, who also attended the congress, urged investors to invest in renewable energy.

Angara and Zubiri are the proponents of the Renewable Energy Act of 2008.

Angara said the Visayas region will be the first to experience power shortage in year 2009, “the Mindanao area will likewise experience power stage in 2010 and in 2011, the Luzon area and that will complete the nationwide shortage of electricity and power”.

“The Philippines is lucky to have abundant sources of renewable energy,” Angara said, clarifying that he is not against coal or other conventional sources of energy.

At the presentation of the Western Visayas Renewable Energy Source, the following are the topics and their lecturers: Wind Power by Ms. Rosario B. Venturina, SVP, Trans-Asia Power Corp.; Solar Energy-Roberto L. Puckett, President, Solar Electric Co; Hydro Power – Jose S. Natividad, CEO, Sunwest Water Electric; Bio-Energy: Waste to Energy- Ernesto V. Tan, SVP and CEO, ASEA ONE; Bio-Energy: Biomass Co-Generation-Antonio Steven L. Chan, President, Central Azucarera de San Antonio; Sustainable Biomass Power Development – Grace S. Yeneza, Preferred Energy Inc/Global Green Power, Plc Corp; and Geothermal-Agnes de Jesus, VP FirstGen Corp. (With reports from PIA)

By Francis Allan L. Angelo

THE bid of Antique Governor Salvacion Z. Perez to seek for the cancellation of the environmental compliance certificate (ECC) to the proposed coal-fired power plant in Iloilo City is too late in the day.

In an interview over the weekly cable TV talk show Serbisyo Publiko Sunday hosted by City Councilor Perla Zulueta, Engr. Adrian Moncada, assistant vice president of Global Business Power Corp. (GBPC), said Perez should have asked for the cancellation of the ECC within 15 days after it was issued by the Department of Environment and Natural Resources (DENR).

Perez and four other Western Visayas governors – Isidro Zayco of Negros Occidental, Carlito Marquez of Aklan, Victor Tanco of Capiz and Felipe Hilan Nava of Guimaras – earlier wrote President Gloria Arroyo urging her to revoke the ECC issued to GBPC’s proposed coal-fired power plant at Brgy. Ingore, LaPaz, Iloilo City.

Moncada said the ECC was issued September 1 but the letter of the five governors only came out last week.

“If we refer to the DENR procedures, any protest to the issuance of the ECC must be done within 15 days after it was issued. I don’t think that the DENR will recall it at this time,” Moncada said.

Moncada said there could be political color to the anti-coal letter of the governors “but it is up to the President to act on this.”

But DENR Secretary Lito Atienza said they will not revoke the ECC to the coal-fired power plant project.

Atienza said President Arroyo forwarded the governors’ letter to his office for his action.

The DENR chief said the issues on the project’s effects on public health and environment have already been addressed in previous consultations and studies by their experts.

Atienza said the GBPC project will use clean coal technology and will solve the acute power problem of Iloilo and the rest of Panay.

Engr. Randy Pastolero of Panay Electric Co., the sole power distributor in Iloilo City, said the proposed coal-fired power plant will help lower electricity rates in the metropolis which is now pegged at P14 per kilowatt-hour.

“With the ECC of the coal plant already approved, there is now a pending reduction of the generation cost which is the prime factor in our power rates in Iloilo City,” Pastolero said.

Recently, Governors Zayco, Tanco and Marquez told Iloilo City Mayor Jerry Treñas hat they did not intend to interfere in the city’s affair.

The three governors also said that they have no objection to the project as long as public health and the environment are protected.

ILED president Rex Drilon

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.”

By Francis Allan L. Angelo

THE Department of Environment and Natural Resources (DENR) has set several conditions for the proponents of the 164-MW coal-fired power plant in Iloilo City to mitigate any adverse effects of the project on the community.

The conditions are spelled out in the environmental compliance certificate issued by DENR Secretary Jose “Lito” Atienza to Panay Power Corp. (PPC), proponent of the power plant which will be constructed on the PPC property at Brgy. Ingore, LaPaz district.

Atienza signed the ECC September 1, almost nine months after PPC, which is a subsidiary of Global Business Power Corp. (GBPC), submitted its environmental performance report and management plan (EPRMP) and environmental management plan (EMP).

The top condition set by the DENR is the continuous conduct of an “effective information, education and communication (IEC) program to educate stakeholders of the mitigating measures of the project.”

The IEC will also inform contractors, workers and local residents on the conditions set by the ECC and the environmental and human safety features of the project “for greater awareness, understanding and sustained acceptance” of the undertaking.

The IEC program will be implemented in the form of quarterly consultation with affected residents, farmers and fishpond owners.

Environmental training for the staff, contractors and workers will also be conducted to help them understand the mitigation, monitoring safety measures of the power plant.

The DENR also directed the project proponent to continuously implement the comprehensive social development program for the affected community. The program must be submitted to the Environmental Management Bureau (EMB) central and regional offices 30 days after receiving the ECC.

The proponent was also required to establish and maintain a 5-meter buffer zone planted with appropriate local species along the plant’s periphery.

Another condition is the installation of additional automatic sensor for monitoring temperature and other relevant parameters prior to the discharge of cooling water from the coal-fired power plant while maintaining the existing one.

As a general condition, the proposed plant shall conform with the provisions of Republic Act 6969 (Toxic Substances and Hazardous and Nuclear Wastes Control Act of 1990), RA 8749 (Clean Air Act of 1999), RA 9003 (Ecological Solid Waste Management Act) and RA 9275 (Clean Water Act of 2004).

The existing memorandum of agreement on the environmental guarantee fund (EGF), environmental monitoring fund (EMF) and multipartite monitoring team (MMT) shall be revised to include the coal-fired power plant.

The revisions will include the increase in EGF and EMF for the cleanup and monitoring of the plant operations.

Also, the action/management program for the protection and enhancement of the Jaro River and the existing mangroves/aroma stands in the area shall be implemented continuously and regular monitoring of said river to include aquatic biota shall be continuously undertaken. The results of the monitoring shall be submitted to the EMB central and regional offices.

Engr. Adrian Moncada, PPC assistant vice president, said they will install the display of the continuous emission monitoring system (CEMS) at the DENR regional office “so that the public can see that we follow the standards set by the law.”

“The CEMS will operate 24 hours, seven days a week and it will be open to the public. We want our operations to be transparent to the community,” Moncada said.

Moncada said they will also continue to help rehabilitate the Maasin watershed area and plant a buffer zone around the plant to address concerns about greenhouse gases.

DENR Secretary Jose "Lito" Atienza

DENR Secretary Jose Atienza

But DENR Sec. Atienza vows to act on it pronto


By Francis Allan L. Angelo


THE Department of Environment and Natural Resources (DENR) assured Ilonggos that no foreign interests can influence its decision relative to the proposed construction of a coal-fired power plant in Iloilo City.


DENR Secretary Jose “Lito” Atienza said he has finished his personal assessment of Global Business Power Corp.’s (GBPC) application for an environmental compliance certificate (ECC) for the coal-fired power plant proposed at Brgy. Ingore in LaPaz district.


Atienza said it took his office some eight months to decide on the ECC application because “we studied very, very closely all the details and the requirements for the environmental clearance of this project.”


The DENR secretary said his decision “will be on the basis of what is good for us, not on what is being dictated from the outside.”


Ayaw ko nung pinakikialaman tayo ng mga banyaga dito sa anuman ang kailangan natin sa ating bansa. In our country, available ang coal. Tinitingnan natin papano natin magagamit ito sa ating pakinabang, but foreigners are telling us not to use them because it will pollute the world. But I say to them, they are the ones polluting the world, why don’t we look at them rather than them looking at us,” Atienza said, apparently taking a swipe at environmental groups opposing the project.


When asked on when he will act on the application, he said “immediately today.”


“I already heard all the positions. This is the last step in my own personal assessment. I will act on it as soon as I get back to Manila. Talagang strong proponent kayo for the project,” Atienza said when asked if he will approve the ECC.


The DENR chief arrived in Iloilo City Friday for the regional launching of the People’s Hour at the Department of Education Social Hall.


The People’s Hour gives the public the chance to face top DENR officials and air their problems and concerns relative to the agency’s programs and activities. 


Atienza said his office made sure that the process and technology that will be used in the proposed coal-fired power plant will not harm the environment.


“I have to make sure of the data submitted to us. I have to make sure that the process and technology will be an environment-protecting one. I have to make sure that it will be good to the economy. And I have to be doubly sure that it will be good for Iloilo residents. Lahat ng ito nagpapatagal ng desisyon,” he said.


He also cited the economic benefits of the coal-fired power plant in considering the ECC application of GBPC.


“Coal-fired power plants are technologies that have given Europe and America a big advantage in world economy. You may not know it but 500 to 600 power plants in the US are run by coal that’s why their cost of electricity is very cheap,” he said.


Atienza said he also went abroad to study coal-fired power plant technologies, particularly the type being proposed by GBPC.


“I went all the way to Taipei on my own, not on the invitation of anyone, just to make sure that the technology that they are offering here works in Taipei. What I saw was impressive. There is a coal plant in an industrial zone producing microchips. The production of microchips requires a totally pollution-free surrounding. If the coal plant is polluting, all semi-conductor and microchip plants in the surroundings will close down. In short, there is such a thing as a pollution-free coal-fired power plant. If that is the technology that we are going to use in Iloilo, definitely I will be impressed. But if the technology does not pass our judgment, then we will not approve it,” he said.


The DENR secretary said he also heard the side of anti-coal groups who raised concerns on the perceived environmental effects of the project.  


As far as protecting the environment is concerned, we are one with all the advocates for environmental protection and those who are against this project. But as far as the welfare of our people is concerned, the national economy and the welfare of the Iloilo residents are concerned we are going to be on their side all the time. We will consider both sides – environmental protection and welfare of the Iloilo residents who are in bad need of additional power source,” he said.

June 2020

Blog Stats

  • 234,929 hits

Top Clicks

  • None

Flickr Photos