Malacañang says Iligan Power Plant to improve situation in Mindanao

Malacañang on Tuesday said the Iligan Power Plant will become operational pending rehabilitation and come on stream to boost the Mindanao grid that is currently experiencing a shortfall estimated at 300 megawatts (MW). The power plant is expected to feed an initial 12 MW to the Mindanao grid as early as next month. “Just to be clear, it’s not junked,” Presidential Spokesperson Edwin Lacierda told reporters in a briefing. “It’s still there... That’s the reason why there was a private company that was able to buy the Iligan power plant. It’s going to be operational,”  Lacierda said the power plant is in fact on the way to becoming fully operational. “There was a previous operator of the Iligan power plant. It was taken over by Napocor,” he said referring to the National Power Corp. “Unfortunately, for Napocor, it failed to pay the tax arrears... real property tax of Iligan City. So Iligan City foreclosed it. They sold it at auction and it required a prior approval of COA,” Lacierda said. Alsons Power Group took over the 98-MW Iligan Diesel Power Plant in 2011, after the City of Iligan offered it to investors in a bidding. “They are now going to operate it, rehabilitate it, and so hopefully it will come on stream. The situation in Mindanao will improve as the Iligan power plant is rehabilitated fully,” Lacierda said. The power plant is expected to reopen in May, which will feed the grid with 12 MW and eventually with 30 MW once its rehabilitation is completed in October. — VS, GMA News