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Concepcion Plant

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THE PROPOSED 200-megawatt coal-fired power plant in Concepcion, Iloilo is on track in time for calls to put up additional electricity sources in the light of the acute power shortage in Mindanao.
Iloilo Provincial Administrator Raul N. Banias said he met with top officials of Palm Concepcion Power Corp. (PCPC) in Metro Manila to discuss development status of the proposed coal-fired power plant project.
A former mayor of Concepcion, Banias was instrumental in helping DM Consunji, Inc. (DMCI) Power Corp., the original proponent of the plant, in getting public acceptance for the power plant.
Although the Department of Environment and Natural Resources already issued and environmental compliance certificate (ECC) to the project sometime in 2007, DMCI did not initiate construction after failing to secure power supple agreements with distribution utilities in Western Visayas.
In November 2010, A. Brown Co., Inc. (ABCI), through subsidiaries Palm Thermal Consolidated Holdings Corp. and Panay Consolidated Holdings Corp., bought DMCI Power Corp.’s proposed coal-fired power plant in Concepcion. The new owners then formed subsidiary PCPC to spearhead the future construction and operation of the plant.
ABCI is the investment arm of businessman Walter Brown which is primarily engaged in the business of real estate development but has interests in power, property development and investments in other companies.
In February 2012, A. Brown announced that it has tapped BDO Capital and Investment Corp. to arrange the project debt financing requirements of the Concepcion coal plant.
ABCI said it plans to spend $200 million or roughly P8.5 billion for the project. Phase one of the power plant will be commissioned in the third quarter of 2015 while the second phase will go online in the fourth quarter of 2016.
With this development, the Department of Energy (DOE) has reclassified the Concepcion project from “indicative” to “committed”, which allows the proposed plant to be listed among the projects that will be constructed next year.
The energy department said the PCPC project will be finished in time for the projected power supply shortage in Visayas in 2015 “given the target commissioning of your project are by 3rd quarter of 2015 (phase I) and November 2016 (phase II).”
Banias said PCPC is set to have its financial closure next month aside from evaluating the Engineering Procurement and Conception (EPC) proposals of firms that bid for the construction of the project.
ABCI also tapped Canadian construction firm SNC-Lavalin Inc. for the plant’s engineering works.
SNC-Lavalin is global leader in engineering and construction in the fields of hydroelectric, nuclear and thermal power generation, power system studies, power sector reform, transmission and distribution projects.
SNC-Lavalin will provide detailed engineering that will include review and evaluation of EPC specifications, system’s design parameters and operating features and development of conceptual layouts, among others.
Palm Concepcion starts building P12.5-b coal plant

Palm Concepcion Power Corp., the joint venture of A Brown Co. Inc.’s Palm Thermal Consolidated Holdings Corp. and Jin Navitas Resource Inc., said Monday it started construction works on the P12.5-billion coal-fired power plant in Iloilo.
“We are pushing through with the project as planned and committed because we know and understand the power needs in Panay and the whole of Visayas, especially by year 2016 when most of the newly constructed hotel chains, real estate complex and business hubs as well as other establishments are already operational,” Palm Concepcion president and chief executive Roel Castro said in a statement.
The 135-megawatt Concepcion project is expected to be the most advanced and most fuel-efficient plant in the Visayas, as it will use the Alstom Europe technology for steam turbine and generator under the project management of the American-Canadian company SNC-Lavalin.
Palm Concepcion said it signed a coal supply contract with PT Pevensey Indonesia in order to secure the coal supply requirements of the plant.
A Brown acquired Palm Concepcion in November 2010 from DMCI Power Corp., marking its first major venture in the power generation industry.
The company issued the notice to proceed with the construction of the coal plant to NLSC, the consortium of First Northeast Electric Power Engineering Corp. of China, Liaoning Electric Power Survey & Design Institute and Shenyang Electric Power Design Institute Co. Ltd. on Friday.
Palm Concepcion commissioned NLSC as the engineering, procurement and construction contractor for the project.
Palm Concepcion held a cocktail ceremony on June 6 at Hotel Del Rio in Iloilo City to announce the start of the first coal-fired power plant in Visayas. The event was attended by Iloilo Gov. Arthur Defensor Sr., Concepcion Mayor Milliard Villanueva, key officers from the different electric cooperatives in Panay and officials from different government agencies.
“The Concepcion power plant will be ready to supply the needed power by then [2016],” Castro said.
New power plant rising in Iloilo town as demand seen to rise

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ILOILO CITY—Construction of a 135-megawatt coal-fired power plant in Concepcion, Iloilo, has started and proponents expect it to produce more electricity to address growing demand in the Panay and Visayas grids.
Roel Castro, president of project proponent Palm Concepcion Power Corp. (PCPC), said the company has started construction of the first phase of the P13-billion power plant. It is expected to be completed by 2015 and will start commercial operation by the first quarter of 2016.
The PCPC has issued a notice to proceed to its contractors, Castro said.
The company also tapped Alstom Power as supplier of steam turbines and generator for the project.
“The coal plant would be able to provide additional power supply needed with the boom of economic activities in Panay, Negros, and the whole of the Visayas,” Castro said.
Castro said 2015 would be a critical period for the Visayas grid as it would need an additional 100 MW of electricity.
Dr. Walter W. Brown, Palm Thermal Consolidated Holdings Corp. president, said transmission facilities are needed to bring the electricity generated by new plants to consumers.
Concepcion Mayor Millard Villanueva said some 1,000 jobs would be generated by the project for his town. The mayor said Concepcion residents would be given priority in job opportunities for the project.

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Concepcion plant to prioritize hiring of local workers
Thousands of jobs will be available for local workers as the construction of the first phase of the 135-megawatt coal-fired power plant in Barangay Nipa in Concepcion, Iloilo starts.
Palm Concepcion Power Corporation President Roel Castro said the local workers will be prioritized for the construction of the P13 billion-project, especially for engineering works.
“Priority will be given to qualified residents of the host barangays and municipalities,” said Castro during his presentation before the officials of the Iloilo Province, headed by Governor Arthur Defensor Sr. and Vice Gov. Raul Tupas, Regional Director Ro-Ann Bacal of the National Economic Development Authority, Environment and Management Bureau-6 Director Jonathan Bulos Monday afternoon.
Castro said a manpower committee shall be created with members from PCPC, engineering, procurement and construction (EPC) contractor and the local government unit (LGU) that will handle manpower-related concerns and issues.
From July to December this year, approximately 174 local workers composed of laborers, carpenters, steelman, equipment operator and security personnel will be hired.
Castro however clarified that as the work progresses, “it could reach to thousands,” he said.
The project is expected to be completed by June 2016.
As a host province, Iloilo will benefit through the 30 percent of the development and livelihood and the reforestation, watershed management, health and or environment enhancement fund, real property tax and special education fund from PCPC.
Due to more secure and reliable power in the island, it is also expected to attract more investments for new projects for Iloilo.
Castro added that the project is expected to attract back local skilled labor from abroad, including engineers.
Local industries could also benefit from the project for they can provide materials and services during construction and operations.*

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