NEA eyes to start bidding process for ZAMCELCO this year

• Source:http://www.pna.gov.ph/index.php?nid=3&rid=876618
• Thursday, April 14, 2016

(PNA), BNB/JLD

MANILA, April 14 (PNA) – The National Electrification Administration expects to start the bidding process for the Zamboanga City Electric Cooperatives Inc.’s investment and management contract this year.

”The terms of reference for ZAMCELCO's IMC is still being done by its consultant. Once formalized, the same will be submitted to NEA by the Cooperative Board for approval. Once approved, the process will begin -- we expect this to be done before the year ends,” NEA administrator Edith Bueno said in a statement.

The National Electrification Administration is an attached agency of the Energy Department, mandated to strengthen the electric cooperatives by ensuring efficiency, reliability and global competitiveness.

Alsons Consolidated Resources Inc., which has a power supply agreement with the EC, disclosed Aboitiz Power Corp. and the Manila Electric Co. is keen on bidding for the contract.

”We're getting an IMC, which is somebody else will manage. There are two interested parties Aboitiz (Power) and MERALCO, if that happens the accreditors will be confident,” ACR executive vice president and chief operating officer Tirso Santillan told reporters.

He pointed out ACR will not supply ZAMCELCO with a capacity of 85 megawatts, under their power supply agreement, if it does not reduce its 20-percent systems loss.

”The problem is ZAMCELCO – we want it fixed – we want them to improve their operations. The accreditors will not allow us to sell 85 MW to a company that runs inefficiently,” Santillan said.

ACR is planning to start the construction of a 105-MW coal fired power plant through San Ramon Power Inc. in Zamboanga by the second half of 2016.

ACR earlier said the technical and financial issues with ZAMCELCO delayed the project financing for SRPI.

The Energy Regulatory Commission approved the PSA between ZAMCELCO and ACR in 2014.