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SPC turns over power plant in Naga to Napocor, PSALM

SPC turns over power plant in Naga to Napocor, PSALM

CEBU CITY, March 28 (PNA) –- After running the Naga Power Plant Complex in Naga City in southern Cebu for almost 18 years, SPC Power Corp. turned over Sunday the facility to National Power Corp. and Power Sector Assets and Liability Management (PSALM) Corp.

SPC Power will temporary remain in control of the complex, not under the rehabilitation, operation, maintenance and management (Romm) agreement, but under the operation and maintenance service contract (OMSC) for six months starting Sunday.

SPC Power president Dennis Villareal said in his speech they are pleased to turnover the Naga Power Plant Complex to the NPC and PSALM upon the termination of the ROMM agreement at 10 a.m. Sunday.

”It has been a productive and beneficial 16 years and 10 months to both SPC and NPC/PSALM. We thank all our SPC employees, directors and stockholders who are behind our successful implementation of the ROMM agreement,” Villareal said.

Villareal also thanked NPC/PSALM for being a constructive and cordial partner.

”As the saying goes, ‘All good things come to an end.’ However, I am sure there are still good things that will come to all of us,” Villareal said.

Lawyer Beatriz “Ina” Alazas of PSALM and NPC said they formally accept the turnover of the Naga Complex.

”We commend SPC Power Corp. for its successful rehabilitation and operation of the Naga Complex. SPC Power Corp. has indeed shown to us its professionalism and dedication throughout the 18 years of ROMM agreement,” Alazas said.

Alazas said NPC and PSALM appreciate its continued support to PSALM in fulfilling their mandate, considering the crucial role of the Naga complex in the Visayas grid.

Reneirio Lastimoso, SPC Power vice president for operations, recalled that Franciso Viray, then president of NPC, said Villareal signed the ROMM agreement for the Naga complex on March 2, 1994, or 18 years ago.

That time, Lastimosa said, most of them may have had a bit of a doubtful mind and heart.

The event signaled the SPC takeover form the NPC of the full responsibility for the rehabilitation, operation, maintenance and management of the power plant for the next 15 years.

Villareal said the operation and maintenance of the Naga Complex was bidded out by NPC/PSALM last February. But nobody submitted bids. This is the reason NPC/PSALM requested SPC Power to stay for another six months under the OMSC agreement.

Alazas said another bidding will be scheduled of the Naga Complex two months before the expiration of the OMSC agreement with SPC Power.

If the next bidding will fail again, they will report to the NPC/PSALM Board.

Even if SPC Power will no longer operate and manage Naga complex, its presence in Cebu will continue because it has a joint venture with the Korean Electric Co. (Kepco) in the operation of the 200-megawatt coal fired power plant just across the Naga Complex.

SPC Power also owns prime properties at the Cebu Business Park and Cebu IT Park, plus 40 percent of Mactan Electric Co. (PNA)
LDV/EB/re

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