Monthly Archives: July 2014

Two Energy Giants break ground in Misamis Oriental

BusinessWeek Mindanao Online
July 23, 2014

TWO of the country’s leading power companies have joined hands to bring a new level of excellence in power distribution in Mindanao.

“The Cagayan Electric Power and Light Company (CEPALCO) has contracted MERALCO Industrial Engineering Services Corporation (MIESCOR) to undertake the Engineering, Procurement, Construction and Commissioning (EPCC) of its 138 kV/69 kV Substation in Tagoloan, Misamis Oriental with two (2) 150 MVA power transformers,” said Ms. Marilyn A. Chavez, senior manager, CEPALCO Customer & Community Relations Department.

“The Scope of Work for this component of the EPCC contract includes the detailed design, manufacturing, supply, delivery, erection, installation, system integration and testing and commissioning of the 138/69kV Substation, plus associated telecommunication and protection facilities,” she added.

MIESCOR is a wholly owned subsidiary of the Philippines’ largest electric utility, the Manila Electric Company (MERALCO) while CEPALCO is the country’s fourth, and second largest in Mindanao.

Since its incorporation in December 1973, MIESCOR has chalked up an exemplary record of engineering performance backed up by a pool of highly competent technical manpower. The company has amassed a wealth of experience in power generation, transmission and distribution, petrochemical/chemical and industrial plants, water resources, transportation and telecommunication system and building services.

The project is expected to take 427 Calendar days. By June 30, 2014 the substation is expected to be capable of transmitting back-feed power supply and completed by July 31, 2015.

Ms. Chavez said the project was spurred by CEPALCO’s load growth in the 69 kV and below systems which have substantially increased over the past three years due to recent developments in large industrial and commercial loads.

“Critical to these developments is the assurance that these locators will be provided with adequate and reliable power supply,” she noted.

Currently, majority of the CEPALCO’s residential, commercial and industrial customers in the entire franchise area are being indirectly served by the 69 kV backbone sub -transmission system before they are stepped-down to the medium-voltage (34.5 kV and 13.8 kV) and low-voltage (230 volts) distribution systems.

“The ground breaking for the construction of CEPALCO’s first ever 138 kV substation is another milestone and confirmation of our commitment to meet the growing needs of our valued customers, especially with the remarkable business boom within CEPALCO’s service area,” said Consuelo G. Tion, CEPALCO President and Chief Operating Officer during the ground breaking rites held 22 July 2014 at the project site in Tagoloan, Misamis Oriental.

“It is with joy and pride that I welcome all of you to this momentous event because I have been a witness to how much CEPALCO has grown over the years, and our accomplishments in terms of continuously improving the quality of our services to customers show how strong and committed we are as a service company,” she added.

“We are proud to be CEPALCO’s partner in its first 138kV substation,” said Engr. Angelito D. Bermudo, MIESCOR President and CEO, “However, we are convinced Mindanao has a vast potential beyond this initial engagement and we look forward to undertake more projects in this region soon.”

Aside from the new substation, MIESCOR is also building the Tagoloan-Balingasag 138kV sub-transmission line for Minergy Coal Corporation, another wholly-owned affiliate of CEPALCO.

The sub-transmission line will interconnect the 110MW coal fired power plant of Minergy Coal in Balingasag, Misamis Oriental to the distribution system of CEPALCO. Rated at 138 kV and configured as a double-circuit in steel pole structures, the 37-km line will be constructed using 785 MCM ACSR conductors with 3/8 inch diameter Optical Fiber Ground Wire (OFGW) as its neutral. Its route will be along the National highway.

Besides the two ancillary projects for Minergy’s coal fired power plant, MIESCOR is also concurrently constructing a new substation for the National Grid Corporation of the Philippines (NGCP) in Opol, Misamis Oriental on a four-hectare site along the national highway in Barangay Awang, Opol some 15.5 kilometers west of its Carmen substation.

NGCP said in an earlier statement the planned Opol substation would reinforce the 60-kilometer Lugait-Carmen 69-kilovolt (kV) line constructed in 1966 which has already been experiencing a 90 percent peak load of its rated capacity. The grid operator estimates peak load could reach 103 percent this year hence the urgent need to replace it with the Opol 138-kv line.

“Rapid progress in Misamis Oriental necessitates the construction of a new, strategically-located substation to accommodate customers’ loads and eliminate possible line overloading and voltage problem,” the NGCP said. “With the projected economic progress and load growth, both the line and substation would no longer meet the increasing demand requirements in the next few years.”

The three projects together represent a PhP 2.2-billion investment in the Misamis Oriental towns of Tagoloan, Villanueva, Jasaan and Balingasag in the province’s east coast and Opol in the West.

Mr. Bermudo said the three projects proximity to each other in terms of area and timeline will enable MIESCOR to leverage its strategic advantages for the benefit of its clients, especially its newly acquired state-of-the-art software. By Mike Banos, Editor-at-large.

WB support for Mindanao

BusinessWorld Online
July 16, 2014

THE WORLD BANK Group has proposed a $119-million (P5.17 billion) funding for infrastructure projects in Mindanao, in support of the peace process between the Philippine Government and the Moro Islamic Liberation Front.
The World Bank Group, in a press release, said the funding will support farm-to-market roads, bridges, communal irrigation systems and potable water in the region, including areas in the Autonomous Region in Mindanao (ARMM).

World Bank President Jim Yong Kim said in a press conference the funding is part of the Washington-based multilateral’s support of the peace process in Mindanao.

“When there’s no peace, there’s no prosperity,” Mr. Kim said.

“We think these are the kinds of investments that are critical in moving forward,” he added.

The $119-million grant forms part of the $508 million earmarked under the proposed Philippines Rural Development Program (PRDP), a six-year program for infrastructure projects and livelihood programs.

The PRDP will be presented to the World Bank Group’s Board of Executive Directors next month for approval.

The International Finance Corp. (IFC), the WB’s private sector arm, is also looking at proposing investments that will generate at least 6,000 jobs in Mindanao.

The WB has formed a new country partnership strategy (CPS) in the Philippines where the multilateral has committed to provide $3.2 billion in assistance from 2015 to 2018 and another $1 billion for investments in business and industry. — Mikhail Franz E. Flores