PCPC Wattsnew 2014 Issue No. 2

March – May 2014 The o fficial E -­‐Newsletter o n t he Latest U pdates o f t he 135MW Coal-­‐Fired Power P lant P roject Issue No. 2, Volume I In this Issue . . .
March 2014
• ERC Issued Decision on
PCPC power rates
L to R: PCP
C President
/CEO, Mr. R
Villanueva,
oel
PCPC’s Mr.
Jun Ng, Con Castr o, Concepcion M
Petilla of D
OE, Senate
ayor Milliard
President Fr gressman Niel Tupas,
PCPC Cha
Jr.,
an
irman Dr. W
alter Brown, klin Drilon, Iloilo Gover Sec. Jericho
Congressm
Gov. Joeben
nor, Art Def
an Arcadio
ensor,
Gorriceta fro
Miraflores of
m the 2 nd di
strict of Iloilo Aklan and
.
• PCPC seals deal Frey-Fil
Corporation
• Signing of MOA with
NGCP
• Partnership with TESDA
and IVPD
April 2014
• First Concrete Pour in
the Project Site
Plus more photos on the
Time Capsule Ceremony…
Palm Concepcion Power Corporation (PCPC) headed by Chairman,
Dr. Walter Brown and JNRI Principal, Mr. Jacinto Ng, Jr. together with
President/CEO, Mr. Roel Castro reaffirms the power plant project’s
commitment to complete the power plant project as scheduled and
ensure that the plant’s generation capacities gets to the grid on or
before the middle of 2016. In an activity entitiled, “Celebration of the
Visayan Heritage through the Edge of Time: A Dedication and Time
Capsule Placement Ceremony”, PCPC gave tribute to all their
stakeholders.
The event brought together key leaders and officials in the
government and the power industry headed by Senate President
Franklin and Energy Secretary, Carlos Jericho L. Petilla.
Co n t. o n p ag e 2
WATTSNEW PRESIDENT’S
MESSAGE
To Our Valued Partners,
The time capsule placement ceremony is a very
significant development for the company because
it signals that we are setting down the foundation
of our future.
For us, it means that with the construction peaking
up, there’s no turning back and that very soon
PCPC will be able to deliver a more reliable and
stable power at competitive prices for Panay and
Visayas consumers.
Many sectors are waiting for the generation
capacities that this power plant will deliver in 2016
and because of this, we cannot fail in this project.
It is our commitment that we will make this a model
project - state of the art, efficient and at the same
time attuned to the environment and will offer
affordable electricity to all.
May this time capsule placement activity be our
first journey towards many more milestones in the
future.
ROEL Z. CASTRO
March -­‐ May 2014 Time Capsule…
Also present are Governor Arthurth Defensor Sr.,
Congressman Niel Tupas, Jr. of the 5 district of Iloilo,
nd
Congressman Arcadio Gorriceta of the 2 district of Iloilo,
Governor Florencio Miraflores of Aklan and the Municipal
Mayor of Concepcion, Milliard Villanueva, government
officials from the Province of Iloilo, LGU officials and all
other stakeholders of PCPC. The ceremony also gave
tribute to the people of the Visayas who have
collaborated with PCPC to make the project possible.
Secretary Petilla stated that he is pleased to see that the
target completion date of the project, which is by early
2016, is right on schedule. He added that this will just be
in time to meet the additional power supply requirements
of the Visayas region. He also mentioned that although
the project is a coal fired power facility, PCPC will be
using the most advanced technology that makes its
impact less detrimental to the environment.
In his keynote speech, Senate President Drilon stated
that he is proud of the progress of Iloilo City and the
Province of Iloilo. He emphasized that this has been
possible only because of the aligned vision of the leaders
in his hometown. He added that he is “truly grateful for
this P13.5B project as it aims to ensure a stable power
supply for the major property development projects and
the increasing power demand in Iloilo and Visayas.”
Congressman Tupas echoed the sentiments of Senate
President Drilon. He commended PCPC for opening
more developmentthand business opportunities for people
not only in the 5 District of Iloilo but also the entire
Visayas region.
Before the leaders laid down the symbolic time capsule,
Dr. Brown, Chairman of PCPC, highlighted in the
dedication ceremony that the “event was structured to
give tribute to the Visayan culture and its rich heritage
and to further remind everyone how the project was
made possible through the help and collaboration of all of
our stakeholders in the Visayan region.”
In his response message, Governor Arthur Defensor Sr.
congratulated and expressed his gratitude to PCPC for
actively pursuing this project. “The project will help
answer the power needs of the city and province of Iloilo
with the advent of new businesses and development
projects both from the public and private sector”, he said
in his speech.
Concepcion Mayor Milliard Villanueva was very happy
and optimistic in his message as he knows the
developments that the project will bring to his town. He
said that “aside from the jobs that will be generated
during construction, the municipality will also have many
opportunities in terms of attracting additional investors
because it is host to the power plant facility”.
Guests coming from various sectors graced this momentous
activity of the company.
Around 400 guests were present in this event hosted by
PCPC at Sitio Puntales, Brgy. Nipa, Municipality of
Concepcion. The first unit of the 2 x 135MW coal-fired
facility is expected to address the anticipated tight power
supply situation in the Visayas grid by 2016. PCPC is a
joint venture between Palm Thermal Consolidated
Holdings Corporation, a wholly owned subsidiary of A.
Brown Company, Inc., and Jin Navitas Resource Inc.
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WATTSNEW March -­‐ May 2014 Pushed Through in PCPC Project Site
A significant development unfolded in the PCPC
project site as the first concrete pouring ceremony
happened last April 29, 2014 in Brgy. Nipa,
Concepcion, Iloilo.
cooperation that even with the difference in
nationality and culture, everyone is able to work
together toward a common goal – that is to
build and complete the PCPC power plant.
For PCPC President and CEO, Mr. Roel Z. Castro, the
first concrete pouring means two things: First, that
there’s no more stopping to the construction of the
power plant and second that in due time, the project
will be finished.
Project Manager from NEPC, Mr. Wang
Hongen, in his message during the event,
committed that they will exert all effort to finish
the project on time. He added that they will
make sure that the power plant will be ready to
deliver power to the grid by 2016.
“I believe that the success of this project greatly
depends on the fulfillment of the company’s
responsibility and commitment to deliver this project on
time.” He added.
Mr. Castro also thanked the EPC contractor and
sub-contractors for their diligence, hard work, and
As the company proceeds with the
construction, PCPC management reiterated to
the EPC contractor and its sub-contractors to
be
always
conscious
on
the
strict
implementation of safety regulations and
procedures.
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WATTSNEW March -­‐ May 2014 PCPC SEALS D EAL WITH
F REY-F IL C ORPORATION
As construction intensifies in Barangay Nipa,
Concepcion, Iloilo, the location of the coal-fired power
plant project of Palm Concepcion Power Corporation
(PCPC), another development was revealed last
week.
PCPC signed with the Engineering, Procurement and
Construction (EPC) Contractor of the Coal Unloading
Facility (Jettyport) for the project which will service the
coal cargo vessel and contain the conveyor for the
coal handling system.
PCPC inked the agreement with Frey-Fil Corporation
(formerly Freyssinet-Filipinas Corporation) who was
represented by its President, Mr. Eric A. Cruz.
Witnesses to the signing are PCPC’s Senior Vice
President, Mr. Winifredo Pangilinan and Frey-Fil
Corp.’s Vice President for Infrastructure, Mr. Ricardo
A. Deypalan.
“We are very pleased to partner with Frey-Fil in this
project for they are known to be one of the best in the
industry. As our contractor, they will also be covering
both civil and electro-mechanical works for this
project. With their expertise, we are confident that
everything will be completed in time for the arrival of
the first coal shipment from PT Pevensey of
Indonesia,” Mr. Castro said in a statement.
PCPC President and CEO, Mr. Roel Z. Castro (seated on left) and FreyFil Corp. President, Mr. Eric A. Cruz (seated on right) recently signed
the EPC Contract for the Coal Unloading Facility (Jettyport) and Coal
Handling System of the Concepcion Coal-Fired Power Plant Project in
Concepcion, Iloilo
Frey-Fil Corporation is the country’s leader in the precast and pre-stressing industry. For more than a quarter
of a century, they have been known for their high level of
competence and expertise in the field of pre-cast and
pre-stressed concrete. They are currently operating
business offices and plant facilities nationwide to better
serve the needs of the ever-growing construction
industry.
Construction will commence this May and will be
completed by October 2015.
SIGNING OF MOA WITH NGCP
The National Grid Corporation of the Philippines (NGCP), the country's transmission operator, recently inked a
Memorandum of Agreement with Palm Concepcion Power Corporation (PCPC), the owner and operator of the
135 MW Coal-Fired Power Plant (CFPP) being constructed now in Concepcion, Iloilo.
The agreement sets forth the terms and conditions for the construction, installation and expansion of the
Transmission Assets necessary for the connection of PCPC’s generation facility to NGCP’s transmission
system, which PCPC will implement in advance.
The system operator was represented by its Chief Administrative Officer, Mr. Anthony L. Almeda, in the said
agreement.
NGCP’s assures PCPC of its full support in the implementation of this agreement, and they shall be working
closely with the company to ensure that the Transmission and Connection Assets will be in place prior to the
Back Feed Power requirement of the Project.
NGCP needs to connect the said generation facility to the transmission network to allow delivery of the power
plant’s output to its customers and off-takers. The generation capacity output will be available not only to
Panay customers but to the whole of the Visayas Grid via the Negros-Panay and Cebu-Negros submarine
cables.
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WATTSNEW PCPC tapped IVPD
March -­‐ May 2014 Partnership with TESDA
In its continuous efforts to help uplift the lives of the
residents of its host municipality, Palm Concepcion
Power Corporation (PCPC) recently signed a
Memorandum of Agreement (MOA) with the Regional
Training Center (RTC) Iloilo, a Technical Education
and Skills Development Authority (TESDA) Training
Institute and the Municipality of Concepcion.
The agreement, which was signed last month,
highlights the construction skills training program for
qualified local residents for them to be skilled
workers, who can be considered for employment
during the construction phase of the coal-fired power
plant project.
From L to R: SVP of PCPC, Mr. Winnie Pangilinan, President/CEO, Roel
Z. Castro, IVPD Executive Director, Mr. Paul Argamosa, and IVPD
Manager, Mr. Rex Trugo
The company tapped the services of the Institute for Values and
Professional Development (IVPD) office to give talks and
workshop to those who are undergoing construction skills
training course.
IVPD is a training and coordinating center for values formation
and development with a view to harnessing the productive
energies of the working citizens of the Visayan region.
IVPD’s mission is to help workers in all professional field and
levels to exercise their social conscience and professional
responsibility for the development of the Visayas. IVPD
provides educational programs on development education, work
values, family ethics and other values-related programs for the
public. IVPD also serves as a policy advocacy center that offers
advice and resources to both public and private institutions.
The workshop was conducted last March 2014 and it covered
topics on professionalism, integrity and productivity in the
workplace.
The beneficiaries, under the MOA, would undergo
construction skills training course and would be given
the necessary tools and materials. This is to upgrade
the level of skills and knowledge and enhance the
competencies and productiveness of the participants.
The main goal of this program is to help improve the
livelihood of the families in PCPC’s host community
through gainful employment and other income
generating opportunities, after they successfully
completed their training.
Ms. Yolanda C. Porschwitz, OIC Regional Director of
RTC Iloilo represented TESDA Region 6 while
Honorable Milliard S. Villanueva, Mayor of
Concepcion represented the Municipality
of
Concepcion.
The training program, which started 4th week of
February 2014, was implemented by RTC Iloilo –
TESDA 6, in coordination with PCPC and Concepcion
LGU, in Barangay Nipa, Concepcion, Iloilo with initial
training on Carpentry and Masonry.
After the participants completed the training, they will
be undergoing competency assessment, which will be
the basis in awarding the National Certificate in
Carpentry and Masonry. TESDA 6 will recommend
all successful candidates, who earn the National
Certificate, to the Public Employment Service Office
(PESO) of the Municipality of Concepcion for possible
job placement in the construction of PCPC’s power
plant.
From L to R: (Seated) Mayor Milliard Villanueva of Concepcion, OIC
Regional Director of RTC Iloilo, Yolanda C. Porschwitz and PCPC
President/CEO, Roel Z. Castro (Standing) Mr. Norberto Nuñal, Training
Center Administrator of RTC Iloilo, Assistant Regional Director of RTC
Iloilo, Toni June Tamayo and Atty. Mark Gorriceta, PCPC Spokesperson.
With the construction activities increasing in
momentum, PCPC is ensuring that the company’s
community programs and environmental projects are
all running parallel with the construction activities of
the power plant.
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WATTSNEW March -­‐ May 2014 Snapshots…
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WATTSNEW March -­‐ May 2014 ERC Issued Decision on PCPC’s power rates
The Energy Regulatory Commission (ERC) issued its
decision on the application for the approval of the Electric
Power Purchase Agreement (EPPA) between Negros
Oriental I Electric Cooperative, Inc. (NORECO I) and the
company dated March 17, 2014.
The decision was based on the accounts of both parties
that were presented during the jurisdictional hearing,
expository
presentation,
pre-trial
conference
and
evidentiary hearing on December 4, 2013.
During the hearing, the witnesses were Engineer Alvin A.
Dennoyo, NORECO I’s
Technical Services Manager,
Engineer Winifredo S.M. Pangilinan, PCPC’s Senior Vice
President and Mr. Joel A. Bañares, PCPC’s Senior
Financial Consultant, who all testified in support of the
application.
To validate the reasonableness of the Capital Recovery
Fee (CRF) and Operations and Maintenance (O&M) rates
reflected in the EPPA, the Commission made a comparison
between the Commission’s calculated rates and actual
rates applied by the Independent Power Producers
operating a coal power plant.
From the said comparison, the Commission deemed it
appropriate to use its calculated CRF and O&M rate of
PCPC, which is one of the lowest among the recently
approved rates for coal power plants in the Philippines.
The approved CRF of Php 2.55/kWh in the EPPA is
actually lower by Php0.0133/kWh than the calculated
CRF by the Commission hence, this was deemed as
being more advantageous to the electric consumers of
NORECO I
NORECO I signed a 10-year EPPA with PCPC for the
supply of 2 MW capacity of electricity from the coal-fired
power plant being constructed now in Barangay Nipa,
Concepcion, Iloilo.
Initial delivery date of the contracted capacity is by June
26, 2016.
For comments, suggestions and inquiries about the topics covered in this issue,
please email PCPC’s Corporate Affairs Office c/o [email protected]
Palm Concepcion Power Corporation
3rd Floor, Joy-Nostalg Center, No. 17 ADB Avenue,
Ortigas Center, Pasig City, 1605
Trunk Line: +632-5846706
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