Panay electric coops sign supply deal with Global Power

by Myrna Velasco, 13 April 2015
from Manila Bulletin

To guarantee the short-to-medium-term power supply of the Panay-Guimaras areas, including the island paradise of Boracay, the electric cooperatives servicing such domains have collaborated into signing up a power supply deal with the 150-megawatt Panay power project of Ty-led Global Business Power Corporation.

According to Panay Energy Development Corporation (PEDC), the members of the Panay-Guimaras Power Supply Consortium (PPSC) have inked a deal for 24 megawatts of supply procurement from the expanded Panay plant.

The supply pact provides for a tariff of P5.05 per kilowatt hour (kWh), which Global Power vouched to be “the lowest offered price of electricity in the Visayas.”

The PPSC listed Iloilo Electric Cooperatives I, II and III, Antique Electric Cooperative and Guimaras Electric Cooperative as members.

“The purchase agreement will take effect starting July, 2016 and will be sourced from Panay Energy’s 150-MW expansion project,” the Ty group has noted.

The consortium of electric cooperatives reportedly employed the Swiss challenge process “to secure the best offer for (their) power supply procurement.”

It has been explained that under that tendering process, “Panay Energy’s proposal went through the competitive bidding process which allowed other power generators to challenge its offer.”

The Panay Energy expansion plant just recently secured the loan portion of its financing from syndicate of banks. That fraction of the project funding amounted to P11 billion.

Engineer Wilfred Billena, general manager of the Iloilo Electric Cooperative I and PPSC president has indicated that “no other supplier matched Panay Energy’s P5.05 per kWh offer.”

For his part, Global Business Power executive vice president Jaime Azurin has emphasized that their technology use for the facility will enable them to achieve efficiencies in their operations.

“We can expect efficient use of fuel from a single larger plant of 150MW that is equipped with the latest circulating fluidized bed boiler technology…likewise, we were able to reduce the project’s development cost for there are existing facilities, like the jetty port, that can be shared with the expansion plant,” he stressed.