600MW Subic power plant project given environmental certificate

Redondo Peninsula Energy Inc., developer of the 600 megawatt coal-fired power plant at the Subic Freeport Zone on Monday announced that it has been granted an environmental compliance certificate for its coal project. "The issuance of the amended ECC is a major milestone towards the completion of the project that we hope will ease the burden of Filipino consumers who need stable, reliable, environmentally-responsible and cost-efficient power in their homes and businesses," RP Energy president Aaron Domingo said in a statement. RP Energy is a joint venture between Manila Electric Co.'s wholly-owned subsidiary Meralco PowerGen Corp., Therma Power Inc., a subsidiary of Aboitiz Power Corp. and Taiwan Cogeneration Corp.'s subsidiary Taiwan Cogeneration International Corp. Meralco PowerGen is the majority shareholder of the joint venture. The coal project was previously granted an ECC for a 300 MW plant but with the formation of the RP Energy venture, the shareholders decided to expand the project which necessitated an amendment to include an additional 300 MW. Domingo said RP Energy is completing negotiations with the selected engineering, procurement and construction contractor for the Subic project. "We are also completing discussions with the banks. RP Energy is finalizing the amended and restated Lease and Development Agreement with the SBMA and we are hopeful to get conclusion by middle of the month," he added. Meralco president Oscar Reyes, for his part, said they expect the project to be completed in 2016 "in time for the power need of Luzon for additional power especially now with the continuing growth in the country's economy. Reyes said Meralco PowerGen is now in talks with three banks to raise about P45 billion of the P60 billion total project cost by the first quarter next year. The Subic coal project uses two single, high-efficiency 300 MW units in lieu of two 150 MW units, for a total net generating capacity of 600 MW. The Supreme Court had earlier issued a Writ of Kalikasan against RP Energy, the Subic Bay Metropolitan Authority and Environment Secretary Ramon Paje last July based on the petition filed by Rep. Teodoro Casino and other petitioners of the case. The Supreme Court resolution, however, held in abeyance the issuance of a Temporary Environmental Protection Order against RP Energy, thereby allowing them to proceed with the project. Domingo said the issuance of the environmental compliance certificate and the pending Writ "are two separate processes" that the company has to resolve. "RP Energy is addressing the Writ of Kalikasan case and we are committed to completing the process towards a final and speedy resolution in order for the project to be online and meet the much-needed capacity by 2016," Domingo said. — DVM, GMA News