Mindanao business leaders support Aboitiz coal plant project in Davao City

Subscribe Now November 10, 2010 at 04:22pm

The plan of Aboitiz Power Corporation (ABP) to put up a coal plant in Davao City gets the support of the business sector as Mindanao Business Council chair Engr. Vicente A. Lao said with it, the city will become a magnet for investments and it will be a plus factor for the local government. Lao said there has to have other sources of power with the increasing need of electricity here now until 2013.

"We haven't felt lately the rotational brownout because we have enough supply but this is just temporary, then we're back to the problem when low power supply sets in," he said.

The ABP plans to build a 200-megawatt coal-fed power plant in Davao City costing 400 million dollars.

In an earlier report, chief executive officer Erramon I. Aboitiz explained that the modern technology has drastically improved the fuel efficiency of newer power plants compared with those built in the previous century.

He said Aboitiz Power guarantees that the operation of the coal plant will meet stringent international and Philippines' environmental safety and health standards.

Based on report, Southern Mindanao has an estimated load of 780 megawatts. With its dependable capacity, including embedded plants, it has only 595.5 MW or short of 275 MW.

Lao said, "We're not saying there could be no carbon footprints but this could be properly managed. Perhaps we could also look at the benefits of having one especially that we already have the infrastructures in place."

He also said the city's human resources are of top quality but there is less support from the manufacturing sector due to lack of power.

"If we have the supply then we can also invite other investors to come and provide employment for our rich human resources," he said.

Source: tradingmarkets.com

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