Sarangani Power receives two bids from potential contractors

by Lenie Lectura – March 21, 2016

from Business Mirror

SARANGANI Energy Corp. (SEC) of the Alsons Power Group has received bids from two prospective contractors for the engineering procurement and construction (EPC) of the 105-megawatt (MW) second section of the SEC’s 210-MW Sarangani Energy baseload coal-fired power plant in Maasim, Sarangani province.

The company did not identify the bidders, but Alsons Power Vice President for Business Development Joseph Nocos described the two bidders as “global companies with extensive experience in providing turnkey EPC services for power-generation projects in different countries.”

Awarding of the EPC contract for SEC Section 2 is scheduled in May. SEC Section 2 is expected to commence construction by the second half of 2016, and is aiming to commence operating in 2018.

The first 105 MW is currently undergoing testing, and will begin commercial operations by the end of this month. Once it pushes through, the first unit of the coal plant will help ensure an ample supply of power during the May 2016 elections and beyond to more than 3 million residents from the provinces of Sarangani, Compostela Valley, Agusan del Norte and Agusan del Sur; the cities of General Santos, Iligan, Bayugan, Butuan, Samal and Tagum; as well as key municipalities in Davao del Norte and South Cotabato.

When power facility reaches its full 210-MW capacity in 2018, the SEC plant’s coverage area will include the entire province of South Cotabato and the provinces of Davao del Sur, Zamboanga del Norte and Zamboanga del Sur, and key areas in Misamis Oriental and North Cotabato. Major population centers serviced by the plant when it reaches full capacity will also include the cities of Cagayan de Oro, Dapitan, Digos, Dipolog, Koronadal, Kidapawan and Pagadian.

Upon reaching full capacity, the SEC power facility will be able to provide access to safe, reliable and affordable electricity to more than 6 million people.

The $570-million SEC power plant is the single largest investment in Sarangani province and in the entire Region 12.

Aside from the SEC plant, Alsons Power is developing the 105-MW San Ramon Power Inc. coal-fired power plant in Zamboanga City, with construction slated to commence on the second half of 2016 and commercial operations beginning in 2019. The group is also entering the renewable-energy segment with the development of a 15-MW run-of-river hydroelectric power plant at the Siguil River in Maasim, Sarangani.

Alsons Power currently operates three diesel plants in Mindanao: Mapalad Power Corp.’s 103-MW plant in Iligan City; the 55-MW Southern Philippines Power Corp. facility in Alabel, Sarangani; and the 100-MW power plant of the Western Mindanao Power Corp. in Zamboanga City.

By 2019, the Alsons Power Group is expected to generate a total of 588 MW, a little over 25 percent of Mindanao’s projected peak-power demand.