A BROWN Company Inc. has unveiled plans to build a bunker-fired power plant in South Cotabato in cooperation with the electric cooperative serving the area.
The planned power plant is expected to alleviate the worsening electricity supply shortfall in southern Mindanao.
In a statement, the publicly listed firm said it had signed a memorandum of understanding with South Cotabato II Electric Cooperative Inc. (Socoteco II), paving the way for the installation of a 9.6-megawatt bunker-fired power plant.
Both parties agreed to negotiate within a 90-day period the final terms of the supply, installation and operation of the said bunker-fired power generation plant.
A Brown and Socoteco II said the proposed power project was “timely” because of the critical power situation on the entire island of Mindanao.
The Mindanao power shortage is most acute during daytime when demand is at its peak.
Socoteco II distributes electricity to General Santos City and the provinces of South Cotabato and Sarangani. It is among the cooperatives that are suffering from the power supply deficiency on the island.
Within its franchise areas, Socoteco II has to implement load dropping or rotating blackouts, resulting in large opportunity losses for businesses in the area.
“Both parties also see the urgency of setting up a new power facility as there is no new large generating capacity scheduled to come online in the Mindanao grid in the next three years,” A Brown said in the statement.
The deal between the two parties was signed by Socoteco II president Elenito C. Senit and A Brown vice president for business development Roel Z. Castro.
In a meeting on Oct. 20, 2012, the board of Socoteco II passed Resolution No. 53, Series of 2012 to accept A Brown’s proposal, subject to review by its technical working group and legal departments, and to the guidelines of the Energy Regulatory Commission.
Socoteco was organized and registered with the National Electrification Administration on May 7, 1977 as the 84th electric cooperative by virtue of Presidential Decree No. 269. Its primary objective is to make electric service available throughout its coverage area in the least costly manner.
A Brown, meanwhile, was established in 1994 with major interests in real estate, infrastructure development, agribusiness and investments in listed companies.
The company, through subsidiary Palm Thermal Consolidated Holdings, is the developer of the 135-MW coal fired power plant project in the province of Iloilo.