Ilocos wind power project
Sunday, March 05, 2006
Manila Bulletin
JBIC reevaluates its financing package
The Japan Bank for International Cooperation (JBIC) is reevaluating the financing package for the 40-megawatt wind power project of the Philippine National Oil Company-Energy Development Corporation (PNOC-EDC) due to some noted cost overruns.
"We’re reviewing the (project’s) funding for some cost adjustments…like we have seen that the price of steel has gone up, so there would be some cost overruns," said JBIC manager Floro O. Adviento.
Adviento cannot say for now up to what amount the financing will be increased; but he noted the project review is due within the month, so things are expected to get moving from thereon.
The original project cost was estimated by the Japanese lending firm at ¥5.857 billion to be extended from its special yen loan package. The surge in steel prices, it was noted, will have an impact on the funding because it is a key component in putting up wind farms.
PNOC-EDC made previous announcement that six Japanese firms were prequalified to bid for the turnkey contract of the planned wind facility, setting in the list Itochu Corporation with Neg Micon, Sumitomo Corporation with GE Wind, Marubeni Corporation with Mitsubushi Heavy Industries and Kanematsu Corporation with Nordex.
Those vying for the transmission line’s turnkey contract are Sumitomo Corporation and Marubeni Corporation.
The turnkey contract covers the construction of a 42-kilometer transmission line connecting the facility to Transco’s substation in Laoag; the construction of a switchyard at Burgos and the interconnection works at the Laoag substation to accommodate the power facility’s output.
The entire North Luzon wind power project (NLWPP) was planned to have an aggregate capacity of 120 megawatts; to be implemented in three phases at 40 megawatts each.
For the company’s next wind farm projects, it has tapped Spanish firm Elecnor, S. A. to carry out feasibility study to assess viability of potential wind power projects in Camiguin island and Taytay, Palawan. (MMV)
Such an initiative comes with a financing from Spanish FEV (Linea de Financiacion de Estudios de Viabilidad) granted through the Spanish government through its (Instituto de Credito Oficial (ICO) lending unit.
The proposed study covers 18-month duration and shall include site identification, wind resource assessment, and feasibility study of the wind farm sites.
PNOC-EDC’s foray into wind facility development is in line with the government’s thrust to shore up the country’s energy selfsufficiency, by enhancing utilization of renewable and indigenous energy resources.
The Department of Energy (DOE) recently opened for tenders at least 17 wind farm sites that are viable to bring in additional 500 megawatts in total capacity that shall add up to the country’s power supply.
In the first wind contracting round, the department has offered 16 wind sites; and this culminated in the signing of pre-commercial contracts (PCC) for five areas with private investors. (MMV)
posted by philpower @ 6:31 AM,
