The project was delayed due to opposition from the barangays that are to be affected by the project. The company plans to eventually increase the capacity of the plant to 100MW.
Jacinto Paras, chairman of PNOC-EC, said that the company plans to set up 50-100MW power plant that would use coal from its coal mine in Isabela. To set up a coal power plant would entail a huge investment, “A 50-MW plant could at least cost P1 billion,” he added.
The company holds a Coal Operating Contract (COC) 122 which spans from the city of Cauayan and municipalities of Naguilian and Benito Soliven in Isabela.
Jacinto Paras continued that the company is in talks for partnership with three local companies and would like to have a majority stake, at least 50% interest in the power plant. The negotiations are expected to be concluded by the end of 2009.
The company’s feasibility study reveals that for the Isabela deposit, the optimum plant size is 57.5 MW. The project valued at $95m would include setting up a 50MW power plant that would use low-grade coal in the province.
Under COC 122, the company’s commitment with Department of Energy, which is part of PNOC- EC’s work commitment, partially covers municipalities of Benito Soliven and Naguilian and the city of Cauayan.
An application for environmental compliance certificate has already been filed with DENR in 2003.
