DMCI Power eyes contracts in Marinduque, Occidental Mindoro

Remember the misfortune of Marinduque when it comes to certain power contracts?

So convenient just to forget, eh?

But maybe this time, we'll be lucky?

Maybe this time they'll stay, not run away?

When all the odds are in our favor, 

something's bound to begin

Maybe this time, maybe this time,

Maybe this time we'll win!

(with apologies to Liza Minelli)

DMCI Power Corp. continues to be on the lookout for more power contracts in several islands in the country to improve its sales volume, after it grew by a fourth to 308 gigawatt hours (GWh) in 2018.

The off-grid electricity supplier said it has recently won the contract for a three-megawatt (MW) facility in Siargao, while also looking to participate in the bidding process for projects in Marinduque, Occidental Mindoro, and Ticao Island in Masbate this year. 

DMCI Power President Nestor D. Dadivas said they won the Siargao project at P83 million per year, on top of variable costs. The company is now in the review process for the power supply agreement. 

“Siargao is connected to the grid, so it’s an easy contract that can grow because we have big plans in Mindanao, we might need some ancillary facilities,” Mr. Dadivas told reporters during a recent media briefing.

The build-operate-transfer contract will last for 15 years, after which the facility will be turned over to the government. DMCI Power expects the facility to start running within the next four to six months.

Meanwhile, Mr. Dadivas said the local governments of Marinduque and Occidental Mindoro might be sending out bids for private electricity providers within the year. The Marinduque contract is seen to have a capacity of 12 MW to 15 MW, while the Occidental Mindoro project will have a total capacity of 22 MW.

“Right now they (Occidental Mindoro) have temporary contracts for 20 MW, that will be bid out. Wala pang existing supplier. They will still have to come up with their terms, so it depends on the technology, size,” Mr. Dadivas explained.

Electricity in Ticao Island, which Mr. Dadivas described as a tourism-oriented island, is currently being supplied by the National Power Corp. DMCI Power said the state-run firm is now asking for interested private providers in the area. 

Source: Arra B. Francia/BusinessWorld

Inaprubahan ng Bicam ang Electric Cooperatives emergency and resiliency fund

Ang naging karanasan ng lalawigan ng Marinduque noong mapanalantang Typhoon NinaPH ang isa lamang na naging dahilan sa pagsulong ng bagong batas na ito para sa mga ECs.

Si Cong Lord Allan Velasco bilang Chair ng House Committee on Energy

Sa Bicameral Conference Committee, tungkol sa Electric Cooperatives Calamity Fund, na nasa ilalim ng mahusay na pangangasiwa ng Chairman ng House Committee sa Enerhiya, Rep. Lord Allan Jay Q. Velasco, at Tagapangulo ng Senado Committee on Energy, at Sen. Sherwin "Win" T. Gatchalian, ay inaprubahan ang huling balangkas ng mga hindi magkatugmang probisyon ng mga bersyon ng House at Senado (HB No. 7054 at SB No. 1461, ayon sa pagkakabanggit) sa Emergency and Resiliency Fund (ECERF) ng Electric Cooperatives.

Kasama ang mga Kinatawan na sina Uybarreta , Roque, Batocabe, Salon at Romero (na binubuo ng panel ng Kapulungan ng mga Kinatawan) at Senador Binay at Zubiri (na binubuo ng panel ng Senado).

Suporta at tulong sa Electric Cooperatives kapag may kalamidad

Sa kaso ng Marinduque ay rumisponde naman kapagdaka sa maikling panahon sa tulong ni Cong. Velasco ang mga EC's mula sa ibat-ibang lalawigan 

Ang panukalang batas na ito ay naghahangad na magbigay ng suporta at tulong sa Electric Cooperatives (ECs), na naaapektuhan ng mga hindi inaasahang kaganapan o force majeure upang agad na maibalik ang serbisyo ng kuryente, magbigay ng isang streamlined na proseso upang makakuha ng tulong pinansiyal, at magpatupad ng iba pang mga plano na makakatulong sa ECs na maging mas nakahanda sa pagharap sa mga natural na kalamidad sa hinaharap.

Sa karaniwan, mga dalawampung (20) bagyo ang bumibisita sa Pilipinas taun-taon, bukod pa sa iba pang mga sakuna tulad ng mga lindol at pagsabog ng bulkan. Ang mga kalamidad ay nagdudulot ng pagkasira ng mga pasilidad at pagkagambala sa serbisyo sa kuryente sa mga apektadong lugar.

Habang sinusubukan ng mga distribution utilities na ayusin ang kanilang mga pasilidad upang maibalik ang elektrisidad sa pinakamalapit na posibleng panahon, kadalasang kailangan nilang umasa sa mga magastos na instrumento sa pananalapi - na sa huli ay binabalikat ng mga consumers sa mga komunidad. 

Sa pagpasa ng ECERF sa batas, positibo si Kongresista Velasco na ang mga kooperatibang apektado ay makakakuha ng mas mabilis at magpapatuloy naman ang operasyon nang walang pasanin ang mga consumers.

Mga konkretong pagkilos sa problema ng kuryente sa Marinduque inihayag na ni Cong. Lord Allan Velasco, plus breaking news!

Paghiling ni Cong. Velasco at pagkilos ni NAPOCOR President Pio Benavidez para sa upgrading ng mga linya ng kuryente at madagdagan ang kasalukuyang generators upang maayos ang voltage, supply at transmission ng kuryente sa Marinduque.

Pahayag ni Cong. Lord Allan Velasco hinggil sa Elektrisidad sa Marinduque 

Nitong nakaraang ika-13 ng Hunyo, nagtungo po ang inyong kinatawan sa NAPOCOR upang ilapit ang suliranin sa kuryente ng ating lalawigan. 

Malugod ko pong ibabalita sa ating mga mahal na Marinduqueño na tayo ay agarang pinakinggan at pinagbigyan ng NAPOCOR! Tinitiyak ni NAPOCOR President Pio Benavidez ang suportang ihahatid nila sa ating lalawigan, at ito ay ang sumusunod:

1) Upang hindi "numipis" ang daloy ng kuryente na nagmumula sa genset sa Boac, maglalagay ng isang 1.5 megawatt (mw) at isang 550 kilowatt (kw) na genset sa Torrijos ang Napocor upang lumakas ang boltahe ng kuryente sa Torrijos, Sta. Cruz at Buenavista;

2) Papalitan nila ang lumang 4mw na genset sa Boac ng limang bagong 1mw na mga genset sa Septyembre, 2017 at magdadag pa ng apat na 1mw na mga genset pagsapit ng 2018, upang masiguradong may sapat na supply ng kuryente para sa pangangailangan ng mga kabahayan, mga tanggapan, paaralan at negosyo sa Marinduque;

3) Aayusin din ang 69KV na linya ng kuryenteng tatakbo mula Boac hanggang Torrijos upang maging malakas ang daloy ng kuryente at maiwasan ang paiba-ibang boltahe na nakakasira sa ating mga kasangkapan.

4)Nangako din ang NAPOCOR na kanilang papalawigin ang serbisyo ng kuryente pará sa mga isla ng Maniwaya, Polo at Mongpong mula 8 oras hanggang 16 na oras pagsapit ng 2018. 

Dagdag nito ay sinusubaybayan ng inyong lingkod ang mga hakbang na ginagawa ng Marelco upang maresolba ang tuluyang brownout. At napasyahan nga nila na isa isahing inspeksyunan ang bawat poste sa buong probinsya na kung hindi ako nagkakamali, along sa national highway natin ay nasa 1200 na hindi pa kasama ang mga interior. 

Ginagawa na din po nila na putulin ang mga sanga ng mga puno na malapit sa mga Linya. Kukunin ko na po itong pagkakataon para makiusap sa mga kinaukulang mga Mayari ng mga lupang ito para payagan po ang Marelco na linisin ang paligid na malapit sa mga linya. Sinusuportahan ko po ang hakbangin na ginagawa nila at susuportahan nyo din po kung tuluyan na gusto natin matapos ang problema sa brownout. 

Asahan po ninyong patuloy ang inyong kinatawan na nakikipag-ugnayan sa kaukulang mga tanggapan upang maihatid ang nararapat na serbisyo pará sa ating mahal na lalawigan ng Marinduque.

Sana po ay magkaisa tayo at tigilan na ang bangayan pará sa ikauunlad ng probinsya! Maraming Salamat Po!!!!

Delivered gensets currently under test and commissioning by NPC to be operational by September 2017, additional gensets to be delivered and commissioned in Boac by 2018, delivered gensets in Torrijos will be commissioned once required control panels and cables are delivered onsite. Rehabilitation of 69 kV Boac-Torrijos transmission line with energization of said line by 2018; increased service from 8 hours to 16 hours in the islands of Maniwaya, Mongpong and Polo by 2018.

Cong LordAllan Velasco holds a meeting with Vice-Gov. Bacorro and Sangguniang Panlalawigan Board Members, together with Marinduque Electric Coop. (MARELCO), department heads and General Manager Gaudencio Sol to discuss electricity issues in Marinduque.

Breaking News! Pag-install ng solar panels sa ilang public at private buildings sa lalawigan ng Marinduque!

Pakikipagpulong sa Germany para gawing pilot province ang Marinduque para sa instllation ng solar panels sa ilang public or private buildings. Nasa larawan sina Energy Secretary Alfonso G. Cusi, Senator Sherwin Gatchalian. representante ng pribadong sektor sa Germany at Cong. Lord Allan Velasco.

Gandang gabi po sa lahat ng aking mga kababayan!!!

Bukas ko pa po sana ito ipopost subalit sa sobrang kasiyahan at excitement ko po ay hindi na ako makapagpigil. Kakatapos lang po ng inyong lingkod kasama ko po si Sec. Cusi ng DOE at ni Sen. Sherwin Gatchalian sa isang meeting dito sa Germany na napagkasunduan na gawing pilot province ng isang pribadong solar korporasyon ang probinsya natin. 

Hindi po sila magtatayo ng solar farm kundi may mga pipiliin na mga bahay o building whether private or public at ang mga bubong nila ang lalagyan ng solar panels. Paguusapan na po kung papaano ang scheme dito pero ayon sa mga napagusapan ay walang gagastusin ang kabahayan bagkus sila ay makita pa. 

Nakakataba ng puso talaga at naitulak natin ang probinsya at napili sya at nag issue na po ng order si Sec. Cusi para mapabilis ang pagpapatupad nito. Ngayong July ay maguumpisa na po ang pagassess at ang pagkilos para sa katuparan ng project na ito.

Mula dito sa Germany, Maraming maraming salamat po sa suporta!!!

To God be the Glory!!!!

- Cong. Lord Allan Velasco, Hunyo 22, 2017

Marelco: Deredetsong rehabilitasyon sa Marinduque ng mga nasirang linya dahil sa bagyo

Nagtutulungan ngayon ang lahat at nagsusumikap na ma-restore ang kuryente sa buong lalawigan bago matapos ang buwan ng Enero 2017, katulad ng hiniling ng NEA at DOE.

Marelco 

(Marinduque Electric Cooperative, Inc.)

STATUS OF POWER RESTORATION IN MARINDUQUE
AS OF JANUARY 6, 2017

Patuloy pa rin ang rehabilitation ng mga nasirang linya ng Marelco dahil sa bagyong NINA, at ito ay sabay-sabay na isinasagawa sa anim na bayan ng ating lalawigan sa pamamagitan ng mga tauhan ng Marelco. Prayoridad ang pagsasaayos ng mga nasirang service drop wires upang mapailawan na ang mga kabahayan at iba’t-ibang establisyemento sa poblaciones na 4 na bayan (Boac, Gasan, Buenavista at Mogpog) na may kuryente na. Paghahanda naman para sa pagdating ng kuryente ang layunin ng service dropping na isinasagawa naman ng mga Linemen sa Sta Cruz at Torrijos.

Sa pagdating ng assistance mula sa Central at Southern Luzon sa pamamagitan ng Task Force Kapatid na binubuo ng mga sumusunod:

Pampanga Electric Cooperative I (PELCO I), 5 crew members 
Pampanga Electric Cooperative II (PELCO II), 7 crew members 
Tarlac Electric Cooperative I (TARELCO I), 5 crew members
Tarlac Electric Cooperative II (TARELCO II), 5 crew members 
Batangas Electric Cooperative I (BATELCE I), 6 crew members
Batangas Electric Cooperative II (BATELEC II), 10 crew members 
Romblon Electric Cooperative (ROMELCO), 12 crew members

Pag-uukulan naman ng prayoridad ang backbone lines papuntang Sta Cruz at Torrijos upang makumpleto na ang restoration sa 6 anim na bayan.

Ang 4 na teams mula sa Central Luzon (PELCO I, PELCO II, TARELCO I, TARELCO II) ay nasa Sta Cruz at ang ROMELCO ay nasa Torrijos at inaasahang sa loob ng 2 araw ay mapaiilawan na ang backbone lines patungong Sta Cruz, gayundin ang patungong Torrijos.

Ang BATELEC I ay naka-assign ngayon sa pagpapailaw sa Riverside, Boac at ang BATELEC II naman ay sa papuntang Balanacan, Mogpog.

Nagtutulungan ngayon ang lahat at nagsusumikap na ma-restore ang kuryente sa buong lalawigan bago matapos ang buwan ng Enero 2017, katulad ng hiniling ng NEA at DOE.

                         - PAMUNUAN NG MARELCO

Plastic water bottle + bleach = Light

How to Use Plastic Water Bottles and Bleach to Create LIGHT!

By: Amanda Froelich,

True Activist.

The invention of electricity transformed the lives of many. No longer were work days limited to the sun’s rays, and with longer hours to work with creative inspiration, inspired dreams could become reality.

But in many areas of the world, conveniences common to the Western world are still foreign. For example, 1 billion people currently experience energy poverty and have no means of illumination during the day or after dark. Thanks to Brazilian mechanic, Alfredo Moser, however, this can be changed.

The innovative mechanic has been using plastic water bottles filled with water and a splash of bleach to light up dark rooms since 2002, and now the idea has spread across the world. It is predicted that by the end of the year, over a million homes will be fitted with the invention and be lit up – without any electricity!

Moser’s method works using refraction of the sunlight. His secret is two capfuls of Bleach added to water in normal plastic bottles, which are commonly thrown away. While some may argue that Bleach is not the most environmentally friendly product, it stops the solution from turning green with algae when exposed to sunlight. From this simple combination, millions of homes may become illuminated.

By drilling a hole in a roof tile and then pushing the filled bottle in from below, the bottle can be kept in place with plastic resin and the new ‘window’ can be made waterproof.

Alfredo, in his interview with BBC World Service, said that depending on the strength of sunlight, the light filling his home is equivalent of between 40 and 60 watts.

What inspires one to create an affordable and alternative means of lighting? Moser stated that he came up with the idea, the ‘Moser Light’, during one of the frequent blackouts in Brazil during the year of 2002. Because only factories had power in his hometown of Uberaba during blackouts, it became a necessity to create an alternative form of lighting.

According to his BBC interview, it was his boss that suggested using a plastic bottle filled with water as a lens to focus the sun’s rays. Mr. Moser then used the concept to create his inventive light.

“It’s a divine light. God gave the sun to everyone, and light is for everyone. Whoever wants it saves money. You can’t get an electric shock from it, and it doesn’t cost a penny.” Alfredo said.

It’s clear that Alfredo is not sharing his lighting method for personal gain, but to help others. He earned a few dollars installing the lights in his local supermarket and neighbors’ houses, but his invention has not made him a wealthy man.

Moser shared, “There was one man who installed the lights in his home and within a few months he had saved enough to pay for the essential things for his child, who was about to be born. Can you imagine?”

Humble and generous-hearted, Alfredo has shared the invention with those who seek an affordable way to light their house. Executive Director of MyShelter Foundation, Illac Angelo Diaz, spoke that he admires Moser’s ingenuity and is grateful to utilize the water bottle system.

The organization, which uses recycled materials to build houses, has started incorporating water bottles into roofs since learning of Moser’s method. It also trains local people to do the same so they may earn a living.

It is reported that over 140,000 homes in the Philippines have been fitted with water bottle lights. This is exceptional considering that a quarter of the population in this region lives in poverty. 15 other countries live in similar conditions, including Argentine, India, and Fiji.

Mr. Diaz believes that over 1 million Moser Lights have been installed in 2013, and credits the mechanic with transforming lives.

Similar means of creating light from water bottles have been used in Sitio Maligaya, so the invention is not a first, but it’s reach is still inspirational.

Whether or not Moser is granted the Nobel Peace Prize, many (including Diaz) want the big-hearted Brazilian to know that his contribution is greatly appreciated.

Ambitious to light his own house, Alfredo never imagined his invention would have such an impact on a global scale. He told BBC that it ‘gives him goosebumps’ if he thinks about how many people are using Moser Lights.

His example goes to show that with inspiration, pure intent, and passion, anything is possible. His lights will continue to light up dark places and transform the lives of many. TrueActivist

Power outages in Marinduque due to defective units, to be fixed

‘Defective units’ will cause Marinduque brownouts for next several days, such as ‘defective varistor’ for Unit #1, burnt main stator for Unit #2 and defective breaker for Unit #6. Marelco’s new General Manager, Engr. Gaudencio M. Sol, Jr. has today issued a tentative schedule of power interruption as follows:

Wednesday, Dec. 12 between 5:00pm to 10:00pm.:

Tampus to phase portion of Boac Poblacion, Riverside Boac, Ilaya Boac, Tampus to Maygayo, Sto. Nino, Laylay, Laon to Balanacan, Mogpog; Nangka, Mogpog to Maligaya, Boac; High-town & Danao, Mogpog; Pili, Mendez, Sayao to Guisian, Mogpog.

Thursday, Dec. 13 between 5:00pm to 10:00pm.:

Magapua, Mogpog to Sta. Cruz & Torrijos backbone line and lateral lines.

Friday, Dec. 14 between 5:00pm to 10:00pm:

Ihatub, Boac to Gasan & Buenavista backbone line and lateral lines.

Saturday, Dec. 15 between 9:00am to 12:00 noon:

Bantad, Boac to Gasan and Buenavista backbone line and lateral lines. (Reason: Pull-out of automatic circuit recloser of Feeder 2 at Bantad;  fixing of primary jumpers of Feeder 2).

Between 5:00pm to 10:00pm:

Tampus to phase portion of Boac Poblacion, Riverside Boac, Ilaya Boac, Tampus to Maygayo, Sto. Nino, Laylay, Laon to Balanacan, Mogpog; Nangka, Mogpog to Maligaya, Boac; High-town & Danao, Mogpog; Pili, Mendez, Sayao to Guisian, Mogpog.

Sunday, Dec. 16 between 5:00pm to 10:00pm:

Magapua, Mogpog to Sta. Cruz & Torrijos backbone line and lateral lines.

Monday, Dec. 17 between 5:00pm to 10:00pm:

Ihatub, Boac to Gasan  & Buenavista backbone lateral line.

Saturday , Dec. 22 between 9:00am to 5:00pm:

Magapua, Mogpog to St. Cruz & Torrijos backbone line and lateral lines. (Reason: Replacement of defective automatic oil circuit re-closer at San Vicente, Sta. Cruz; installation of sectioning fuse cutout at San Vicente.

Meanwhile, the NPC Boac Diesel Power Plant issued the following Marinduque Grid Capability Report that shows the prevailing maximum demand at 7,630 kW with grid dependable capability at 6,500 kW. This shows a power deficiency of 1,130 kW.

Pnoy's role; DBM's role on power shortages in SPUG areas

PNOY DIRECTS P1.62-B RELEASE TO NPC-SPUG TO AVERT POWER SHORTAGE IN ISLANDS;
ABAD: GOV’T PREPARING NEXT STEPS FOR STABLE, AFFORDABLE POWER IN REMOTE AREAS

Upon instruction of President Benigno S. Aquino III, the Department of Budget and Management (DBM) has released P1.62 billion to the National Power Corporation (NPC) to prevent imminent power shortages in far-flung areas across the country.

“The P1.62 billion was immediately released by the government to urgently address the NPC’s capability to provide stable power supply in off-grid areas, some of which have already experienced sporadic brownouts due to fuel supply constraints,” Budget and Management Secretary Florencio B. Abad said.

“Furthermore, the government is now preparing for its next steps in ensuring stable and affordable power supply to remote areas,” he said. He notes that a fund release for the sitio electrification project is now being processed.

Of the P1.62 billion, P1.32 billion will be used to address the fuel requirements of NPC’s Small Power Utilities Group (SPUG); P162.5 million, which is half of the NPC’s capital expenditure for 2011, for the purchase of spares for SPUG plants; and P140 million for the lease of generator sets for SPUG areas. The release has been charged against the Malampaya Fund.

A total of P3.6 billion has been released for NPC-SPUG this year, to be offset against the claims of NPC for reimbursement of its advances in the preservation and maintenance of the Bataan Nuclear Power Plant (BNPP).

In February, P2 billion was released for the fuel requirements of NPC-SPUG. NPC has claimed for the reimbursement of its advances incurred in the preservation of the BNPP starting 1986 amounting to P4.37 billion as of December 2010.

Chateau du Mer at twilight time. Lights still lit.

SPUG is the missionary electrification arm of NPC that operates 317 generating units with total rated capacity of 147.675 MW in 86 areas. This nationwide operation serves 78 island grids and 8 isolated grids catering 3,330 barangays in 192 municipalities across the country.


(Media Release from dbm.gov.ph website 9/02/11)

NPC's Tampinco gives go-signal for Marinduque power supply

With the DBM’s release of P 1.62 billion charged against the Malampaya fund to the National Power Corporation aimed at preventing imminent electricity shortages in far-flung SPUG areas, NPC president Froilan Tampinco has given the go-signal for the supply of bunker fuel for Marinduque’s power barge 120. This was the result of renewed talks made by Cong. Allan Velasco with the NPC president last week.

"NPC's target date for new bunker fuel delivery is on or before Sept. 23", Velasco said. "The NPC has likewise given the approval to extend the contract on a month-to-month basis for a 2MW genset that expired on Sept. 13."

It will be recalled that Boac DPP senior engineer, Hernan Orilla earlier announced that massive brownouts in Marinduque will occur if no bunker fuel is delivered ‘prior to its run-out date on September 14’ with only Boac DPP operating on just 2MW capacity. Orilla also stated that delivery by winning bidder of bunker fuel for PB120 could, likewise, not be undertaken ‘without an approved supplemental budget from the Congress’.

DBM Secretary Florencio Abad however had said in an earlier statement pertaining to the Malamapaya fund that the annual revenue inflow in the form of proceeds from the Malampaya project is really accounted for as part of the yearly revenue program supporting the budget proposal submitted to Congress.

On the newly released budget, Tampinco said that the amount would be used by NPC for SPUG operations up to the end of the year. About P 1.3 billion would be used for the requirements of the SPUG facilities in various areas in the country, he said, and the balance would be used to purchase ‘critical spare parts and other requirements of our generation sets’.

Shot in the arm for NPC as Marinduque and SPUG areas are threatened by new wave of outages

Repost from Philippine Daily Inquirer, Sept. 2, 2011

Napocor getting P1.6B for SPUG

By: Amy R. Remo, Philippine Daily Inquirer

National Power Corp. will receive from the government P1.6 billion to help finance the operations of small power utilities group (SPUG) in off-grid and missionary areas in the country.

At the sidelines of the Renewable Energy Leadership Roundtable on Thursday, Napocor president Froilan A. Tampinco said the power firm received last week the approval for the additional SPUG funding, which would come from the royalties paid for the Malampaya natural gas field.

“We got another shot in the arm, so to speak, from the government,” Tampico said, adding that the amount would be used by Napocor for the SPUG’s operations up to the end of the year.

Of the P1.6 billion, Tampinco said about P1.3 billion would be used for the fuel requirements of the SPUG facilities in various remote areas in the country. The balance will be used to purchase “critical spare parts and other requirements of our generation sets.”

According to Tampinco, the amount was on top of the P2 billion it received earlier from the government, which also came from the Malampaya funds.

Both the P1.6 billion and P2 billion represent reimbursements of the advances made by Napocor for the preservation of the mothballed 620-megawatt Bataan Nuclear Power Plant (BNPP).


Just last week, Napocor filed a petition with the Energy Regulatory Commission for an additional P4.3 billion in fees to enable its SPUG to continue operations, as well as prevent a fuel shortage and the consequent shutdown of power facilities.

Marinduque, Romblon and Tablas: what do they have in common?

In the light of so much finger-pointing and disinformation campaigns that, again, as expected, happens every time so-called Marinduque energy summits are organized for the consumption of the much abused seemingly powerless people of Marinduque, they who must jolt the seats of power with their complaints, it would be necessary to start at the very beginning if we must be fair to those maliciously maligned continuously.

Following is an item from IFC and the sequence of events covering October 2004 to July 2009, on the involvement of a new power provider in Marinduque that failed to deliver the power supply promised.

"Coastal Power Consortium Wins Competitive Bid To Privatize Electricity Supply in Marinduque, Romblon and Tablas"

In Manila:
Karen Villalobos

Manila, September 9, 2005 — The Philippine Department of Energy and the International Finance Corporation, the private sector arm of the World Bank Group, today announced that a consortium comprising of Coastal Power Development Corporation and Applied Research Technologies Philippines won a competitive bid to supply power to the Philippine islands of Marinduque, Romblon, and Tablas. The winning bidder proposed a hybrid diesel-wind energy solution that will improve standards and bring the generation into compliance with Philippines environmental standards.

Private sector participation was structured through a concession-type contract between the winning bidder and local electric cooperatives that take the power on these islands. The framework of this concession does not require the private supplier to buy existing generation assets of the National Power Corporation, allowing those assets to be deployed to unserved areas in the Philippines.

The winning bidder’s price will lead to a reduction of about 40% from the current cost (13.8 pesos per kilowatt hour) of generating power in the islands. The Coastal Power Consortium agreed to provide power without interruption all year long, compared with the current average interruption of 196 hours, or eight days, per month. The group bid to provide 25 megawatts of combined electric capacity to the three islands not connected to the national power grid.

IFC was charged with developing the agreements and a regulatory framework to attract private sector capital and expertise to power generation in remote islands. IFC was retained in 2004 by the Philippine government through the Department of Energy, National Power Corporation, and the Power Sector Assets and Liabilities Management Corporation to act as transaction advisor.

The Coastal Power consortium will take responsibility for power supply from the Small Power Utilities Group, which is part of the National Power Corporation. SPUG has maintained responsibility for supplying power to 74 remote offgrid islands. The annual subsidy requirement for all these islands amounts to 2.1 billion pesos. Only about 60 percent of that cost is covered by a universal service charge assessed to ongrid customers. The remaining 40 percent is passed on to the national deficit through NPC.

The Private Investor will be able to supply electricity to the 3 islands at a lower cost than the current government-managed operation and thus reduce the annual subsidy for electricity from 458 million pesos to 168 million pesos.

“IFC strategy includes support for power sector reform in the Philippines through increased private sector participation that promotes competition. The interest in this transaction provides tangible results for the ongoing power reform agenda in the Philippines,” said IFC Country Manager Vipul Bhagat.

“This model public-private partnership structure, wherein the investor achieves full cost recovery and profits from the electric cooperatives and partially through government subsidy, can be replicated for other infrastructure transactions in the Philippines and elsewhere,” said IFC Director of Advisory Services Bernie Sheahan.

SEQUENCE OF EVENTS RE: 3I POWERGEN ISSUE


PSA with 3i Powergen, Inc. was not MARELCO’s own initiative, but the government’s program of the NPC-SPUG’s privatization of assets by virtue of Republic Act No. 9136 or the EPIRA Law. Pursuant to Rule 13 of the IRR of RA 9136, Department of Energy (DOE) Circular 2004-01-001 prescribed the Rules and Procedures for Private Sector Participation. Marinduque, together with Tablas and Romblon, was selected to be a pilot project for privatization among the so called 14 WAVES ECs under the NPC-SPUG areas.

October 24, 2004 - Marelco signed a Memorandum of Agreement hiring the International Finance Corporation (IFC) as its official Transaction Advisor.

September 9, 2005 - The Competitive Selection Process was launched
and the Coastal Consortium (Incorporated as 3i Powergen, Inc.) was declared winner having offered the lowest TCGR of P7.171/kwh and will supply the power requirements of Marinduque up to 12.480 Kw for a period of fifteen (15)years.

September 27, 2005 - The Power Supply Agreement was signed at the
WESM office in Pasig City. On that same occasion, a Subsidy Agreement with 3i Powergen and NPC was executed.

January 27, 2006 - Effective Date ( four months from the date of the PSA).This was not attained as some Conditions Precedent was not complied with by 3i Powergen, such that the parties agreed to a Joint Declaration of the Realization of the Effective Date following the waiver to secure Government Consents thru the 1st Supplemental Agreement.

March 9, 2006 - 1st Supplemental Agreement was signed by both parties wherein the period to obtain the ECC and other government consents was waived.

March 2007 - The original Target Commercial Operation Date (16 months after the Effective Date –January 2006.

March 14, 2007- 3i Powergen requested for extension for six months of Target Commercial Operation Date on the ground that the PSA has not yet been approved by ERC. In effect Target Commercial Operation was moved to July 7, 2007.

March 23, 2007 - Public Hearing for the approval of Application for Power Supply Agreement (PSA) and NPP TCGR held at Marelco MCIL, Ihatub, Boac, Marinduque.

(Marelco employees submitted a Petition for Further Review of the PSA and consideration of the recommendations thereof prior to approval of the application by the ERC)

June 27, 2007 - The Second Supplemental Agreement to the PSA was
signed regarding Extension of Commercial Operation Period to 12 months or July 7, 2008.

July 2007 - Assumption into office of newly elected Congressman (Carmencita Reyes) and newly elected Governor (Jose Antonio Carrion).

August 17, 2007 - The Board passed Resolution No. 2007-044- Approving to Recall the 2nd Supplemental Agreement to the Power Supply Agreement regarding Extension of Commercial Operation Date due to following reasons:

1. The deployment of generating unit at an aggregate capacity of not less than 12 MW including transformers and necessary accessories to NPC compounds has not been concurred by NPC because of some provisions in the Agreement that are not acceptable to NPC.

2. 3i Powergen has violated Condition No. 2.1a3 of the Agreement because construction of Power Plant at Balogo Sta. Cruz has ceased and therefore Condition 2.1a4 shall now apply regarding denial to grant Extension of the Commencement of the Commercial Operation Period.

This rendered the 12 months extension invalid thereby reverting the Target Commercial Operation Date to its Original date July 7, 2007. Said turn of events gave rise to “SUPPLIER DELAY.” Based on PSA Section 4.4.2 MARELCO may already invoke the right to impose appropriate penalty to be taken from the Performance Bond.

October 3, 2007 - The Board passed Resolution No. 2007-049 - A Resolution Notifying 3i Powergen, New Power Provider for Marinduque of its Delay for the Commercial Operation Date and Approving to Claim Against its Performance Bond.

May 2008 - The Board passed Resolution No. 2008-020 - A Resolution Requiring 3i Powergen to Immediately Submit a Written Progress Report on the Status of Project in Marinduque.

July 7, 2008 - Target Commercial Operation Date:

The Target Commercial Operation Date was not attained due to the following reasons:

1. 3i Powergen was still waiting for the release of funds from their investors before they could start procurement of capital equipment

2. 3i Powergen was waiting for ERC’s approval of the PSA and TCGR in order to protect the interest of their investor.

3. Construction at the plant site has long been stopped.

4. 3i Powergen did not comply with the Government Consents.

July 17, 2009 - The Board passed Resolution No. 2009-039 – A Resolution for the
Board to Exercise its Rights Under Section 10.4 of the PSA Between Marelco and 3i Powergen Inc.

Commercial operations of 3i Powergen in the three NPC-SPUG areas of Marinduque, Romblon and Tablas in accordance with Power Supply Agreements with the relevant electric cooperatives all failed to materialize.

Power double talk

Timeline:

Sept. 27, 2005 – Power supply agreement signed with Marelco, NPC and 3i Powergen under the administration of Gov. Carmencita Reyes.
Feb. 2007 – Commercial operation was to commence (still under the administration of Gov. Reyes). This did not happen.
June 2007 – Extension of contract requested by 3i from Marelco expired.
Sept. 11, 2009 – Resolution purportedly rescinding the power supply agreement was issued by Marelco.
Oct. 12, 2009 – Rally spearheaded by the Bishop of Boac for “Truth and Transparency”.
October 25, 2009, “Final solution” with arrival of gensets from Palawan but with lease agreement between NPC and Agrekko expiring on January 7, 2010.
Jan.- Feb. 2011 - Power outages due to diesel fuel shortage directly related to the NPC's technical bancruptcy. 39 electric cooperatives in NPC-SPUG areas in the country experienced recurrent brown-outs.
June 20, 2011 – Receipt of bids from new bidders.
July 8, 2011 – Opening of bids. No official public announcement appears to have been made on bidding result.
July 20, 2011 - Power outages due to diesel fuel shortage and defective unit/s at Power Barge 12o in Balanacan.

She says, others say:

Quotes from Gov. Carmencita Reyes from her official Fb page:

"…I have already given specific instructions on what course of action we are going to take. The MARELCO problem has blown out of proportion. The provincial government has received reliable information that the perennial cause of the electricity supply problem in Marinduque is due to the gross incompetence and negligence of the management of MARELCO. Sources told that MARELCO owes around P69M for VAT payments alone. This amount is relatively small compared to how much MARELCO owes NAPOCOR. From all indications, MARELCO has been grossly mismanaged.

“I am personally not enthusiastic about tapping independent power producers/investors as a means to solve this problem. It might do us some good at the onset because normal electricity flow can be restored in a shorter period of time. However, the risk that is not clearly visible in this scenario is that after some time, there is a strong possibility that this independent power producer/investor can and may exploit us by exorbitant and unreasonable electricity bills and unnecessary fees… (Aug. 2, 2011)

“Ang MARELCO ay isang "kooperatiba" na napapasailalim ng patnubay ng National Electrification Administration (NEA). Walang autoridad ang Provincial Government sa pamamalakad ng MARELCO…”

“3i Power Gen did not go bankrupt…”

From a Sangguniang Panlalawigan media release after meeting with Marelco and NPC July 25, 2011:

"...Bagaman at alam ng buong kapulungan na ang Sangguniang Panlalawigan maging ang Gobernador o sinumang opisyal ng pamahalaang lokal ay walang papel na batayan upang makontrol o pakialaman ang anumang desisyon at pamamalakad ng MARELCO, kooperatiba, ang tunay na nagmamay-ari ay ang taong bayan na konsumidor ng kuryente.

"Gayundin ang mga local na opisyal ng pamahalaan ay walang pananagutan sa estratehiya o programa ng NEA, Department of Energy at ng NAPOCOR na may layuning missionary electrification na unti-unti na ring pinuputol ng pamahalaang nasyunal, hindi maiwasan ng SP bilang boses ng taong bayan na kundenahin ang mga namumumuno dito. Gayon pa man lahat ng paraan ay ginagawa ng SP upang makatulong at maibsan ang suliranin sa kuryente..."

Rewind to 2009:


Board member Jose Alvarez, an ally of Gov. Bong Carrion also referred to ‘mga pulitiko’, but politicians, he said, who were those "behind 3i Powergen and Marelco" (watch this video taken after the rally of Oct. 12, 2009:

Excerpts from the video:

“...Hindi po ba natin alam na kaya po naging ganyan, sinabi na rin po ni Bishop, na nasa likod ang mga pulitiko sa likod ng 3i Powergen… sino po ang nasa likod niyan, sino po ang nasa likod ng Marelco? Yan po ang dapat nating alamin, tingnan po natin kng paano natin mabubuwag ang mga pulitikong nasa likod ng 3i Powergen, nasa likod ng Marelco at nasa likod ng maraming kasinungalingang nagaganap dito sa ating lalawigan...

“Tingnan po natin kung sino talaga ang totoong nang-aapi dito sa atin sa napakatagal na panahong walang pag-angat dito sa ating lalawigan…”

Rewind further back to 2006.

In 2006, Manila-based newspapers like Malaya, Aug. 6, 2006, Manila Bulletin, Aug. 6, 2006 and Manila Standard Today, Aug. 7, 2006, ran similar articles stating:

“...The Board of Investments granted incentives to the three hybrid wind-diesel plants of 3i Powergen Inc. (in Marinduque and Romblon), with combined investments of P1.448 billion. ...

“...All three plants will start commercial operations by February 2007.”

Came February 2007, (with both mother and son team of Reyes sitting as congressman and governor), such commercial operations did not commence anywhere in the islands mentioned.

Came July 2007, there was still no 3i-produced power in Marinduque. By this time a new administration under Gov. Carrion won the election in May 2007, ran the capitol, while the older Reyes sat as Marinduque congress representative.

On 3i’s failure to deliver, 3i vice-president Lagundi reasoned thus: “Ang nangyari.... ay ang pagkakaantala ng pagpapalabas ng loan mula sa mga imbestor dahil sa nararanasang global financial crisis…" (Aug.11, 2008, SP)

One year later, 2009:

“Marelco general manager, Eduardo Bueno said: “Hindi naging makatotohanan ang 3I Powergen, hindi sila nakapag deliver. Iyang 12.48 na iyan kung saan itatayo ang power plant sa Balogo Sta. Cruz. Kung sino man po ang taga Sta. Cruz kung mapapasyal kayo doon makikita natin ay puro hukay. Hinukay nila noong October 2006. Hanggang ngayon po hindi ko alam ang kanilang natapos doon sa proyekto na iyon.” (Jul 6, 2009, SP)

Board member Eleuterio Raza, Jr. said, on the other hand: “...noong pinatawag po natin ang (vice) president ng 3I Powergen si Atty. Domingo Lagundi... he admitted in the session of the Sangguniang Panlalawigan that they are financially incapable to construct the facilities in compliance with the requirements of the obligation. In my view that would send a signal for Marelco’s board to finally decide to rescind or not to rescind the contract...” (July 6, 2009)

Board member Jose Alvarez: “...sinasabi na ni Atty. Lagundi na wala po talaga silang kakayahan at halos magmakaawa at umiyak dito. Actually ang nangyari po parang nag-speculate lang sila na may papasok. Iyon naman po ay practice na tinatanggap natin dahil meron naman silang kaugnayan sa ibat-iba pang mga negosyante subalit hindi katanggap-tanggap iyong katagalan ng proseso.” (July 6, 2009)


SP board member Querubin talked of conspiracy and economic sabotage: “...maaring may sabwatan sa pagitan ng Marelco at 3i Powergen dahil sa kabila ng katotohanan na walang kapasidad ang huli na magsuplay ng kuryente patuloy pa rin ang kontrata... kaya maituturing na economic sabotage ang ginagawa ng Marelco at 3i Powergen dahil apektado ang ekonomiya ng lalawigan”. (Sept. 30,2009)








Amoingon sunset and a silhouette dream.

Biomass Energy

Jatropha

Biomass Energy


GRARADO

Grarado Green Energy, Inc. has been inspired by small scale rural based factory producing non-food energy products based on models developed and executed in Holland and Honduras.

Studies in certain areas in Mindanao and Marinduque have been conducted by the company’s CEO, Ger Groeneveld, who is equipped with technical knowledge of the cultivation and processing of energy crops from seed to tank. Farmers are willing to plant and deliver high value energy crop with fairly cheap labor, he said. Also said to be present are an excess of other bio-waste, skills and materials for producing the needed equipment. Design, engineering and production of equipment have been found to be similar to economically comparable country like Honduras, plus the availability of land and growing conditions for the intended energy crop, Jatropha.

The jatropha tree produces seeds containing 27-40% inedible oil, which is easily convertible into bio-diesel.Widespread use of the seeds as oil has been considered in Nicaragua and other Central and South American locations as well as more distant places like Tanzania.

Initially, Grarado has tied up with FOMMCO, a local farmers cooperative in Marinduque for the production of high energy content biomass products for export to Europe and is also now eyeing his company’s potential to be part of the solution to Marinduque’s perennial power supply problem.

Biomass has achieved global acceptance as a long term renewable replacement for fossil fuels, it is a highly efficient form of energy conversion (especially relative to coal) and its use for power production contributes towards the reduction of greenhouse gasses due to its “carbon neutral” status, which due to the fossil fuel displacement, generates positive carbon emissions credits.

CLENERGEN

Recently, Clenergen Philippines Corporation, a subsidiary of Clenergen Corporation (USA) announced that it had signed a strategic partnership with PowerSource Philippines, Inc. to accelerate the installation of up to 30MW of rural “off grid “renewable electricity to both island communities over the next three years, with projected income in excess of $35 million per annum.

According to Clenergen, the majority of island communities are supplied with electricity from diesel generators at a cost of around 32 cents per KWh and continue to face up to 12 hour black outs due to inconsistent supplies of diesel. PowerSource has been granted a 15 year exclusive franchise to generate and distribute power to specified rural areas, and is reportedly the first Qualified Third Party (“QTP”) to be certified under the Electric Power Industry Reform Act (EPIRA).

The strategic partnership will combine Clenergen’s proprietary plant science for the cultivation of energy crops to supply small biomass power plants that will be financed by PowerSource and then distributed though PowerSource’s transmission network. Both parties will proportionally share in the revenues generated from the cultivation of biomass and each party’s sale of electricity to both captive end users and the Philippine Government.

From a wide variety of plants that can be converted into electricity in an environmentally friendly and sustainable matter, the potential of bamboo and melia dubia as high value energy crops are eyed by Clenergen Philippines.

Bamboo

The species of bamboo selected for energy crops is from the Bambusa Balcooa family of grasses. After 10 years of breeding and fertilization programs, this species bamboo is now cultivated from tissue culture and then micro propagated. As a result, each tissue culture sapling is identical, asexual, non evasive, non flowering and has a density of 5 times greater than any other species of bamboo. It can be cultivated in all types of soil where there is sufficient water availability or where climatic conditions such as in the equatorial regions offer a natural environment for cultivation. The bamboo has the potential as an energy crop of yielding 20 tonnes per acre year three and 35 tonnes per acre year three. By year four, the bamboo can be mechanically harvested and produce on average, up to 65 tonnes per acre per annum, with a lifespan of up to 50 years.

Melia dubia

Melia dubia originates from the Meliaceae family and is an indigenous species of tree to India, South East Asia and Australia, where it has been cultivated as a source of firewood. The tree can be cultivated in all types of soil and requiring a low supply of water on a daily basis. Melia dubia has the unique feature of growing to 40 feet within 2 years from planting and can be mechanically pruned and harvested. As an energy crop, Melia dubia has the potential of yielding in excess 40 tonnes of biomass on average per acre per annum over a 10 year period (before replanting is required). it’s high calorific value makes it a viable source of feedstock for biomass power plants.

Neighboring Romblon is 'in'.

NPC has signed memorandum of agreements (MOA's) with two foreign power firms, Clenergen and Enertine in developing biomass power. Clenergen in particular is undertaking biomass feasibility studies for the off-grid areas of Romblon, Kalinga and Apayao under a cooperation program with NPC. It was also reported that Clenergen "is also assessing possibilities in providing electricity to the mining, coconut sectors through their respective industry organizations."

At least 42 MW of power are being eyed to be generated from the proposed biomass projects in the pipeline.

Now Marelco's talking

It has taken nearly a decade for Marelco to state in black and white that its overdue accounts with NPC "stemmed from non-payment of Fuel and Purchased Power Adjustment (FPCA) in 2002". This, according to Marelco, resulted to NPC's withholding of Marelco's entitlement to Automatic Prompt Payment Discount (APPD).

This occurs after years of secrecy, non-transparency and a lot of hogwash have been fed to all Marinduque power consumers, it may not even be right to repeat the lies here.

In a resolution dated July 12, 2011, No. 2011-48 A, Marelco sought the support of the Sangguniang Panlalawigan on Marelco's appeal with the National Power Corporation for the condonation of interest on its power bill. Marelco also stated in their resolution that NPC has imposed interest charges on overdue accounts amounting to Php 12,787.750.97 as of Dec. 31, 2009.

But the above-mentioned admission is only one part of how the electric cooperative got embroiled into its current financial mess. But that's the fate of some type of electric cooperatives.

There are a lot more that our "impressionable" public should know that should be stated in black and white. For example, it appears that there hasn't been an instance when Marelco ever turned over the millions of pesos it has collected in value added taxes (VAT) to any collection agency. That's scandalous enough. But an amount of more than P 40-million from the VAT collection was unilaterally spent by Marelco as a "judgment call" for the rehabilitation of its lines and facilities damaged by super-typhoon "Reming" in 2006. Some Marelco employees insist, however, that NEA provided a grant in the amount of P 32-million for that purpose.

Now that the Marelco board is beginning to talk, they should be encouraged to tell us more, tell us more, for a much-deserved breakthrough in truth-telling to Marinduque power consumers. Will there ever arise an heroic whistle-blower from Marinduque?

"Normal power supply" for a week from August 8


Meanwhile, Marelco informs that normal power supply shall be temporarily restored for one (1) week starting Monday, August 8, 2011 due to "change in schedule of expected date of arrival of fuel from August 5, 2011 to August 7, 2011".

Role of NPC-SPUG

NPC”s Small Power Utilities Group (SPUG) is mandated by law to undertake the electrification of areas, called “missionary areas” in the Philippines not connected to the main transmission grid. SPUG is supposed to be committed to bring power “as a catalyst for development to the farthest, smallest and remotest areas and islands in furtherance of its mandate”.

Currently SPUG operates 317 generating units with total rated capacity of 147.675 megawatt in 86 areas. The operation serves 78 island grids and eight isolated grids catering to 3,330 barangays in 192 municipalities across the country.

NPC-SPUG currently supplies electricity to mainland Marinduque through the Boac Diesel Power Plant, Torrijos Diesel Power Plant and Power Barge 120 in Balanacan. There are also mini grids operating in the islands of Mongpong, Polo and Maniwaya under SPUG.

In January this year, NPC-SPUG’s mandate under the EPIRA for missionary electrification in the SPUG or off-grid areas faced a serious impediment with the government's decision to cut NPC’s corporate operating budget. It was slashed to more than half of the proposed Php 18.296 Billion, thus amounting to only Php 7.575 Billion. NPC reported that of the said amount Php 3.333 Billion was allocated to fuel and lube oil requirements which is Php 4.354 Billion shorter of the actual requirement amounting to Php 7.687 Billion.

NPC’s President Tampingco stated that based on such approved budget level, they will not be able to meet the funding requirement for fuel and lube oil supply for the year, and the amount would only ensure a five month supply until May or until June this year but with brownouts implemented in SPUG areas.