Year: 2016

PEAKPOWER Energy, Inc. expects its plant expansion in General Santos City to start operating by yearend, while it targets another plant in Bukidnon to launch by end-April 2017, its parent firm said.

A Brown Co., Inc., which owns 20% of Peakpower Energy, also disclosed in its financial report that a third plant in Agusan del Sur will start commercial operations for a new unit by the end of May 2017.

The listed diversified company houses its investments in bunker-fired power projects under Peakpower Energy, which was formed in 2013 to generate peaking power for electric cooperatives in Mindanao.

Peakpower Energy has three wholly owned subsidiaries on the island, each holding build-operate-maintain-and-transfer agreements for new plants that will last for 15 years through its subsidiaries.

PeakPower Soccsargen, Inc., which has a 20.9-megawatt (MW) diesel/bunder-fired power plant in General Santos City, has started its 13.9-MW expansion and is awaiting the delivery of two units of Wartsila engines by next month.

“Target commercial operations for the new units will be end of December 2016,” the parent company said.

The subsidiary has a 15-year agreement with the South Cotabato II Electric Cooperative, the largest distribution utility in Mindanao with a franchise area covering General Santos City, the municipalities of Polomolok and Tupi in South Cotabato. It launched in January last year.

Peakpower San Francisco, Inc., with a 5.2-MW diesel/bunder-fired power plant in San Francisco, Agusan del Sur, is also awaiting the delivery next month of a single unit Wartsila engine.

The plant has a 15-year agreement with Agusan del Sur Electric Cooperative, Inc. whose franchise area covers 13 municipalities including Bayugan City. The new unit is expected to start operating by May 2017.

“San Francisco serves as the primary commercial and service center in the province of Agusan del Sur, being situated at the crossroads leading to other production centers in the region,” A Brown said.

The subsidiary in Manolo Fortich, Peakpower Bukidnon, Inc., will be the first to start commercial operation, by the end of April 2017. Its 10.4-MW diesel/bunker-fired power plant has a 15-year agreement with Bukidnon II Electric Cooperative, Inc., which serves the highlands of the province.

A Brown said another unit, Palm Concepcion Power Corp. (PCPC), is in the initial stage of pre-construction activities of the second 135-MW coal-fired power plant in Concepcion, Iloilo.

“Construction is estimated to take two to three years after commissioning of the first unit,” A Brown said.

PCPC’s plant site and support units are programmed for two units of power generators. The first unit has been synchronized with the Visayas grid as of May 2016.

“Full commercial operations are slated on the last week of August 2016, delivering power supply to Panay, Negros, and the rest of Visayas,” the parent firm said.

It added that 10 distribution utilities and electric cooperatives have signed up with PCPC for their baseload power capacity needs.

For its power generation outlook, A Brown said that even with the additional 135 MW of supply PCPC’s second unit, a deficit still looms from November 2017 onwards.

“By 2020, projections are showing a shortfall of about 700 MW with no power projects projected to start operations after September 2016. With a supply deficit for the projected demand growth of the region, there is plenty of room to invest in the Visayas power market,” it said. —Victor V. Saulon, BusinessWorld

OPOL, Misamis Oriental—A simple yet historic groundbreaking ceremony for the P500-million investment for the bulk water supply project of Opol was held last Wednesday, April 20 by the Lumayagan River in Barangay Tingalan.

AB Bulk Water Company Inc, a new subsidiary of A Brown Company, Inc. (ABCI), will undertake the bulk water supply project in partnership with the local government of Opol under the Private-Public Partnership scheme.

ABCI Executive Chairman Dr. Walter Brown and Pesident Robertino Pizarro led the groundbreaking ceremony.

“Mr. Pizarro and I are delighted to be able to participate in the first truly Private-Public venture, of huge importance—the development of water resources,” said Dr. Brown in a press statement. “We are very pleased with the level of cooperation of the local government of Opol. By working together, we would be able to improve the welfare of the local community and the province.”

Dr. Brown expressed hope that the project will be an example for other local communities. “Potable water is an essential and central ingredient in the life of any community, especially in light of the ongoing El Niño,” he said. “Let this groundbreaking be a reaffirmation of our commitment to seeing this project to completion.”

Meanwhile, Opol town mayor Max Seno expressed thanks to ABCI for its work in choosing Opol town as their partner in this latest endeavor. “The development of a bulk water project will trigger inclusive growth for the municipality,” he said.

A flagship project of Mayor Seno, the water system is expected to benefit some 25,000 residents of Opol and nearby areas like El Salvador City and Laguindingan, Misamis Oriental.

The landmark event was attended by municipal officials of Opol led by Mayor Seno, Vice Mayor Thatsie Ortigosa, members of the Sangguniang Bayan, and bank representatives. Also on hand were barangay officials from Opol poblacion, Awang, Bagocboc and host barangay Tingalan.

Palm Concepcion Power Corporation (PCPC), the owner of the 2 X 135 MW Coal Fired Power Plant Project in Concepcion, Iloilo confirmed that the Concepcion-Barotac 138 kV Transmission Line (TL) including the new Concepcion 138kV GIS Substation and the expansion of Barotac Viejo Substation constructed by PCPC are now energized.

“The immediate completion of the associated transmission facilities can be attributed to the hard work of the whole Transmission Line team of PCPC and the dedicated effort and full support that NGCP extended to us,” Mr. Roel Z. Castro, PCPC President and Chief Executive Officer said.

Mr. Castro also mentioned that another factor that contributed to the fast completion of the transmission lines is the early settlement of the Transmission Line Right-of-Way (ROW).

“We made sure that all those affected by the construction of the transmission facilities were compensated accordingly and that all documentary requirements are in place for the proper turn-over of these transmission assets to NGCP,” he added.

Palm Concepcion held the groundbreaking ceremony on the first phase in January 15, 2013. PCPC’s power plant will be synchronized with the Visayas grid by last week of April 2016, and will be delivering power supply to its customers in Panay, Negros and the rest of Visayas. Synchronization will be done in coordination with NGCP.

The company is scheduled to have its reliability tests run in the next couple of months and once this is completed, the first unit of the 2 X 135-MW plant will be up for full commercial operations.

“The schedule of the commercial operations is just right on track as what we have committed to our customers,” Mr. Winifredo Pangilinan, SVP for Project Development Group said.

Ten (10) distribution utilities and electric cooperatives have signed up with PCPC for their baseload power capacity requirements, who also need to deliver reliable and stable power generation supply to their individual customers (industrial, commercial and residential consumers).

PCPC is a joint venture of Palm Thermal Consolidated Holdings Corp. and Jin Navitas Resource, Inc. Palm Thermal is a subsidiary of A Brown Company, Inc. (ABCI), a listed company primarily engaged in real estate, agribusiness and has ventured into the utilities and energy industry in recent years. ABCI’s other investments are: Hydrolink, which recently signed a hydropower service contract with the Department of Energy (DOE); and Peakpower Energy, Inc. (PEI), owner of bunker-fired power plants in Mindanao for the peaking power supply requirements in the area.