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Montelago project receives state guarantee for power supply contract

Oriental Mindoro, Philippines (source: flickr/ Welcome to my B&B, creative commons)
Alexander Richter 20 Jan 2016

The Montelago geothermal project in Occidental Mindoro, Philippines has secured a state guarantee for its power supply contract with local utilities.

The Montelago geothermal project in Occidental Mindoro, Philippines has secured a state guarantee for its power supply contract with local utilities.

The power supply agreement (PSA) to be sealed by Occidental Mindoro Electric Cooperative, Inc. (OMECO) with power providers Mindoro Geothermal Power Corporation (MGPC) and Occidental Mindoro Consolidated Power Corporation (OCMPC) will be underpinned by a guarantee of the National Electrification Administration (NEA), as reported by the Manila Bulletin.

Emerging Power, Inc. (EPI), the parent firm of MGPC has affirmed the state-run’s approval of its bid for guarantee on their supply deal.

‘The PSA guarantee for OMECO is the first that NEA released under its new Charter,” the Zamora-led firm has noted. NEA’s revised charter is under Republic Act 10531 also known as the National Electrification Administration Reform Act of 2013.”

MGPC is now advancing its planned 40MW geothermal plant in Oriental Mindoro with a targeted commercial operation date in 2017. It has been part of the electrification agency’s mandate not just to set traction on the government’s electrification program, but also to “act as guarantor for the electric cooperatives’ power purchase transactions with independent power suppliers.”

NEA Administrator Edita S. Bueno qualified that their approval of the guarantee for OMECO has all been aimed at providing “stable power supply” and improve the economic opportunities for the island-province of Occidental Mindoro.

 

Source: Manila Bulletin