Alcantara firm inks power supply deals with 2 Mindanao cooperatives

GENERAL SANTOS CITY (MindaNews/20 March) – An Alcantara-led power generation company has forged separate power supply agreements (PSA) with two more electric cooperatives in Mindanao that will be sourced from its planned coal-fired plant in nearby Maasim, Sarangani.

Joseph Nocos, Conal Holdings, Inc. vice president, confirmed recently that subsidiary Sarangani Energy Corp. inked a power supply deal with the Davao del Norte Electric Cooperative (DANECO) and the Agusan del Sur Electric Cooperative (ASELCO).

“The deal with these cooperatives include a supply of 25 megawatts,” he said, adding that the agreement is still subject to the approval of the Energy Regulatory Commission (ERC).

In a separate statement, Sarangani Energy said it will supply 15 MW to DANECO and 10 MW to ASELCO.

The company, however, did not disclose the details of the agreement.

The two PSAs are the second and third of its kind that Sarangani Energy has entered into.

Last year, the power company, through its holdings company Conal Holdings, likewise agreed to supply 70 MW of electricity to the South Cotabato II Electric Cooperative (SOCOTECO II).

Rodolfo Ocat, SOCOTECO II manager, earlier said that public consultations have been conducted regarding the power sales agreement with Sarangani Energy, in line with the requirement of the ERC’s approval process.

SOCOTECO II serves this city, the entire province of Sarangani and Tupi and Polomolok in South Cotabato.

Late last year, Sarangani Energy held the groundbreaking for its $450-million power plant in Maasim town, with a generation capacity of 200 MW that was expected to help bring stability to the power situation in Mindanao in the next few years.

It will be the biggest single investment in the province since it was created in 1992, Sarangani Energy said.

The Alcantara Group is one of the emerging players in the power sector in Mindanao, which is largely dominated by the Aboitizes of Cebu.

It owns and operates the Western Mindanao Power Corporation and the Southern Philippines Power Corporation, both diesel-fired power plants.

In addition to the Maasim power plant project, the Alcantara Group has bared plans to build another 100 MW power plant in Zamboanga City.

Sarangani Energy has already acquired an environmental compliance certificate from the Department of Environment and Natural Resources for the Maasim power plant project.

The project is facing opposition from the local Catholic Church and the environmental groups on concerns over human health, pollution and the biodiversity of the Sarangani Bay.

The power plant site is located near a world-class scuba diving site frequented by local and foreign tourists.

Lately, parts of Mindanao have experienced daily rotating brownouts due to the generation deficiencies of power producers, according to the National Grid Corp. of the Philippines, the private operator of the country’s transmission network. (Bong S. Sarmiento / MindaNews)