DOE more concerned about oversupply of power in Mindanao

Mindanaoans may be worried about having enough power supply now and in the future but the Department of Energy (DOE) seems to be more worried about the oversupply rather than shortage of power in Mindanao once all the power plants are completed and operating by 2015.

“The companies, when they see an oversupply of power and lesser demand then they will delay the implementation of the projects,” Energy Secretary Carlos Jericho Petilla said in a press conference at SM Convention Center in the city Friday.

Even President Benigno S. Aquino III was confident when he announced Thursday during the opening of the 22^nd Mindanao Business Conference that “Right now, we are on track to end the energy deficit by 2015—during which we foresee Mindanao to already have a surplus.”

The recurring power problem in Mindanao is one of the main concerns of the business sector which confirmed that this is one of the issues that has always been included in the annual business conference. Minbizcon conference director John Gaisano said that “unless the national government addresses this concern this will be a recurring theme in the next business conferences.”

Petilla said unless the power investors delay their projects when they see an oversupply, Mindanao will definitely have a power supply surplus by 2015.  Most of the power projects eyed by the government to solve Mindanao’s power woes are reliant on coal.

Among the major projects being eyed by the government to provide surplus power supply in Mindanao is the 300-megawatt Aboitiz (Therma South) owned coal-power plant in Davao City. First phase of the project, with a 150-MW output, is expected to be completed by third quarter of 2014.

Coal power plant

Petilla also mentioned the 200-MW power plant being built by the Sarangani Energy Corps (Alsons Group of Companies) in Maasim, Sarangani Province which can supply the power demands General Santos City, South Cotabato, Sarangani and other Mindanao areas.

“Filinvest is also set to come up with a 270-MW plant but we are not counting them yet until they submit their papers,” he said. Filinvest Development Corporation (FDC) is set to construct a P30-billion coal power plant at the Phividec Industrial Estate in Misamis Oriental which is expected to initially general 270 MW of power by 2016. The second phase of the project eyes the production of 135 MW by 2018.

The government owned and controlled corporation Phividec Industrial Authority has signed a 28-year contract with the FDC in April this year for the lease of 84.4 hectares of land where the coal power plant will be located.

Petilla said SMC Global Power Holdings Corporation (San Miguel Corp) is also set to build a 600-MW coal power plant in Malita, Davao del Sur but will start with an initial output of 150MW by 2015. SMC president Ramon S. Ang informed the Philippine Stock Exchange last month (July) that SMC Global project just broke ground in time for the completion of the plant by 2015. Petilla however said SMC has not really started out full-blast.

He suggested the setting up of a smart and effective forecasting system taking into consideration the behavior of the people and their electricity consumption considering that power plants are big investments and they take some time to build.

Coal production in the Philippines

When asked about the possibility of the ban on open pit mining affecting the coal power plant projects, Petilla said that the ban is more of a local government unit policy than a DOE policy.

“We are not banning open pit coal mining,” Mindanao Development Authority (MinDA) Chairperson Lualhati R. Antonino said. She added that Semirara (Semirara Mining Corporation) is an open pit mine and supplies a huge percentage the total coal production in the country.

The country has scattered coal deposits in Cebu, Surigao and Zamboanga but the largest is in Semirara Island in Antique. As such, Semirara has been identified by the DOE as the largest coal producer contributing up to 92 percent of the local coal production. The Philippine Energy Plan (PEP) reported in 2006 that coal production has increased by 34 percent the 2003 level of 2.0 MMMT (million metric tons) to 2003 level of 2.7 MMMT.

The DOE website pegged the country’s coal consumption at 9.5 MMT in 2006, 73 percent went to power generation, 22.5 percent used in cement production and 3.75 percent for other industries.

While the coal power plants are facing opposition not only from environmentalists but also even from the LGUs with local legislations banning open pit mining, Mr. Petilla said that “if there is a national significance then the national government can step in.”

Pnoy’s presence in Minbizcon spells Renewed confidence for Mindanao

The presence of President Benigno S. Aquino III, as well as 10 Cabinet Secretaries during the opening of the 22^nd Mindanao Business Conference at SMX Convention Center in Davao City Thursday (Aug 8) spelled renewed confidence to Mindanao after the series of bombing in Cagayan de Oro City (CDO) on July 26 in Cotabato City on August 5 and Datu Piang, Maguindanao on August 7.

The President, who arrived almost on time for his 10:30 AM keynote address to the over 1,000 business and government delegates to the Minbizcon, did not waste time and immediately addressed the top concerns of Mindanao today--peace and security as well as the power problem.

“We gather today at a turning point in the history of Mindanao—where this region’s complete transformation from the Land of Promise to the Land of Promises Fulfilled is close at hand,” Mr. Aquino said. However, he enumerated three reasons why this promise has remained elusive to Mindanao: greed over land which has led to the cycle of violence, lack of foresight which led to the power problem and adherence to old solutions which led to the “vicious cycle of impunity and corruption.”

peace and order

While he proudly announced the milestones achieved by his administration in addressing the peace and security issues in Mindanao including the signing of the Framework Agreement on the Bangsamoro (FAB) and the signing of the second annex of the agreement last month, he also admitted the existence of “challenges to our stability”. He was referring to the CDO bombing.

“This is a desperate act by a small sector dead set against the attainment of peace in Mindanao,” he said. The government, he added, have been working for a long time to neutralize these elements and have had quite a few successes.

While the President refused to reveal more information about the ongoing investigation on the CDO and Cotabato bombings until he has conferred with his security group, he took a hard stand against the culprits.

“To those willing to partner with us for peace, we welcome you as brothers; but to those who want to challenge the authority of the State, you will feel the full brunt, depth, and might of the State’s response. You will not get in the way of the peace and the stability that will help fulfill the potential of Mindanao.

During the press conference held immediately after his Keynote Speech, Mr. Aquino said the initial assessment of the security group on the bombings is that “three small and loose groups have joined forces and are now desperate to block the Mindanao peace process.”

He said the country’s security groups have been tasked to implement a “hard stand” against these threats. “We are a democratic country but we have many freedoms that they can exploit,” he said.

Mr. Aquino said even Davao has received reports of the intention of these threat groups to sow terror “pero umiiwas sila ditto dahil sa magandang pamamalakad ni Mayor Duterte (they are avoiding Davao because of Duterte). They are now looking for areas that are easy to target.

“I am calling on greater citizen involvement to act as force multiplier to our security services,” he said, He said greater involvement from the people will discourage terrorism.

power crisis

While he admitted that some parts of Mindanao were experiencing eight-hour brownouts a few months ago, he said the government did everything, from rehabilitating existing power plants to purchasing or renting generator sets and setting up a loan facility for electric cooperatives, to tide Mindanao over until 2015 when the government will be able to address the power deficit.

“Right now, we are on track to end the energy deficit by 2015—during which we foresee Mindanao to already have a surplus,” he said. However, he chided those who are opposing the generator sets, saying that they are either too expensive or harmful to the environment now that it is the rainy season. “Come the dry season, will we expect the litany of complaints about brownouts to resume?” he asked.

Mr. Aquino blamed Mindanao’s power problems to “the years of complacency and short-sightedness” which came as a result of the island having the best of both worlds.

“As much as we wanted to, we could not solve this problem overnight. 200 megawatts of power cannot be bought in a corner hardware store. It takes a minimum of three years to build a coal power plant, which is why the moment we stepped into office, we worked to enact the structural changes necessary to attract more investors in the power sector in Mindanao,” he said.

Sebastian Angliongto, another pillar in Davao and Mindanao’s business sector, said he is very confident that all the peace and security problems will be addressed in due time. However, he said, Mindanao has many concerns including power which should be addressed by the Aquino administration in preparation for the Asean economic integration.

Former Davao Chamber of Commerce and Industry, Inc. President Joji Ilagan Bian said Aquino’s presence in the Minbizcon is a boost to the confidence of Mindanao’s business sector. She said most Presidents have attended the Conference during their first year in office but Aquino failed to do that. However, she added, he made up for it by being here during his third year.

“The President addressed Mindanao’s economy, infrastructure problems and logistics and these are very important issues for business people in Mindanao,” she said. If you are doing business here in Mindanao, she added, then power is a very serious concern and he has managed to focus on that. However, she said, “I wished he also mentioned the aquaculture and marine industries since we are very rich with this.”

By being here today, she said, the President managed to tell Mindanaoans that “Mindanao is on top of the list.” 

Mixed reactions in Davao for Pnoy’s SONA

The State of the Nation Address (SoNA) of President Benigno S. Aquino III got mixed reactions from the Dabawenyos but these reactions were generally favorable to the President.

“I like the SONA. Its straight forward and at least this time the President discussed the accomplishments of the administration,”  Al Qalam Institute of Ateneo de Davao University director Mussolini Sinsuat Lidasan said.

Lidasan said the whole speech talks about social transformation. “How we must mature as a nation,” he added.

Glan municipal councilor Atty. Cyril John Gido Yap said Aquino’s SoNA was just like all the other SoNAs. “Fair lang its always been rhetorics sa SoNA,” he said.

On the other hand, Davao city councilor Danilo Dayanghirang, who is chair of the council committee on Finance, Ways and Means and Appropriation, said the President’s speech was so far okay.

“So far the President’s has specific example on his campaign against corruption such as the syjuco and pagcor case,” he said.

The President slammed former Technical Education and Skills Development Authority (TESDA) Secretary Augusto "Boboy" Syjuco Jr. for the disbursement irregularities during his stint at TESDA. Aquino specifically mentioned several overpriced items as cited by the Commission on Audit including a P14-incubator jar which was priced at P15,375 and a P120-dough cutter which was priced at P48,507.

Dayanghirang however said “what is lacking was the policy direction on how to curb the increase of prices on commodities., fuel, water etc and the salary adjustment for the labor sector.”

Pnoy's 4th State of the Nation Address: SONA or SANA?

The country will be at a standstill for most of the day as the people wait for the 4th State of the Nation Address (SoNA) of President Benigno S. Aquino III at around 3:30 today.

Pnoy's past SONAs have been well-applauded primarily for his choice of the Filipino language. However, the past SoNAs have been much criticized because he always found a way to blame the past administration for how the government worked.

With Pnoy halfway towards his Presidency, it is time he stands up for all the faults and successes of his administration. No more finger-pointing this time Mr. President!

MinDA has new chair---Dureza out; Antonino in

After weeks of speculation whether Mindanao Development Authority (MinDA) chair Jesus Dureza will be replaced or will stay on, the people of Mindanao finally got an answer.

MinDA, which used to be known as the Mindanao Economic Development Council, was an offshoot of Republic Act 9996.

MinDA has a new chairperson after President Benigno Aquino III has accepted the resignation of Dureza, who would have been guaranteed a six-year term had he not resigned as MinDA chair.

Dureza handed in his resignation voluntarily to give Pnoy a chance to appoint a Chair of his own choice.

Former South Cotabato Representative Lualhati Antonino, mother of new General Santos Mayor Darlene Antonino-Custodio, has been formally designated by Pnoy as the new MinDA head during the opening of the 12th National Tuna Congress last Friday. The appointment was announced by former Senator Manuel Roxas who delivered the keynote speech for the Congress.

During an earlier interview and prior to his resignation, Dureza revealed his plans to relocate the MinDA office somewhere in Maramag to make it easily accessible to the other Mindanao cities and provinces.