Shortage, high cost of power hinder foreign investment
Screen grab from peza.gov.ph website
MANILA, Philippines—High electricity prices and lack of adequate power supply remain the biggest impediments to more foreign investments in the country, the head of the Philippine Economic Zone Authority (PEZA) said Wednesday.
Speaking at the Philippines-South Korea power plant vendors roadshow, PEZA Director General Lilia de Lima noted that such energy problems made it hard for the Philippines to position itself as a better investment hub than its neighbors in Southeast Asia.
Thus she urged South Korean companies participating in the roadshow to look at the various investment opportunities in the Philippine energy sector.
“We urge Korean companies to enter into joint venture with Filipino companies to put up power plants, to help address the country’s growing requirements and any shortfall in the future,” De Lima said, promising the investment promotions agency would extend full support to companies that decide to set up facilities in the country.
De Lima said that innovations by Korean companies in the energy sector would provide significant assistance to the country in terms of addressing the shortfall and ensuring stable and competitively priced power in the future.
Article continues after this advertisementThe Philippines will need to double the current installed capacity of 17,000 megawatts by 2030 to address the expected growth in energy requirements over the long term, said Jesus T. Tamang of the energy policy and planning bureau of the Department of Energy.
Article continues after this advertisementTwenty Korean firms participated in the roadshow, all of which were exploring potential partnerships with local energy players, despite the difficulties being faced by Korea Water Resources Development Corp. (K-Water).
The visiting companies included Samjin Metal Co. Ltd.; Turbopowertech Co. Ltd.; PNC Co. Ltd.; Enesg; Sinjungwoo Industrial Co. Ltd.; Samyoung Fil-Tech Co. Ltd.; Dongsuh Industry Co. Ltd.; Hankook Coatings Co. Ltd.; KLES Inc.; J-E Tech Co. Ltd.; and Seobo Industrial Co. Ltd.; Powernix Co. Ltd., Korea Engineering Co.; Vitzrotech Co. Ltd.; International and Industrial Electronics Co. Ltd.; Higen Motor Co. Ltd.; Hisco Inc.; KNTEC Co. Ltd.; HANA Evertech Co. Ltd.; and Duon System Co. Ltd.
One of the biggest Korean energy players in the Philippines is Korea Electric Power Corp. (Kepco), which operates among other facilities the 1,200-MW Ilijan combined cycle power plant in Batangas.
K-Water meanwhile has yet to take over the 218-megawatt Angat hydroelectric power plant in Bulacan after submitting the highest offer of $440.88 million during a bidding held in April 2010.
Min Kyong-Ho, minister and consul general at the Embassy of the Republic of Korea in the Philippines noted that the two countries have been collaborating in the energy sector since the entry of Kepco in the mid-90s. The success of such projects “enhances bilateral cooperation and contributes to steady growth of the country,” he added.
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