ILOILO CITY, Philippines—A South Korean power company is eyeing to build a $22-million (P895.84 million) biomass power plant in Iloilo that is expected to boost the supply of energy on Panay Island.
The Korea Environment Corp. (Keco), a state-run company focusing on eco-friendly energy projects, has signed a memorandum of agreement with the Iloilo provincial government and the International Builders Corp. (IBC) for the project.
The agreement covers the conduct of a feasibility study, acquisition of licenses and other legal requirements, sourcing of funds and obtaining land and bioresources. It was signed on March 13 by Iloilo Governor Arthur Defensor, IBC chief executive officer Alfonso Tan and KEC executive director Choi Kyu Jin.
If completed, the project will boost energy supply in Iloilo and Panay Island.
The power supply in the Visayas grid is expected to become critical by 2016, with an additional supply of 50-megawatt needed to cope with the increasing power needs, according to projections of the Department of Energy.
Among the sources of additional power supply are the P12.5-billion 135-megawatt coal plant of the Palm Concepcion Corp. in Concepcion town in Iloilo which is expected to be completed in 2015.
The coal plants of the Panay Energy Development Corp. in Iloilo City and the Cebu Energy Development Corp. in Cebu are expected to expand their capacities before 2016.
A 50-megawatt wind farm project of Trans-Asia is also expected to be completed within the period.