600-mw is final, rp energy

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600-MW coal plant is final, RP Energy 600-MW coal plant is final, RP Energy Shoot it! XXXVIII Vol No. 4 December 12-18, 2011 Olongapo City and Zambales "We shall develop the full potential of the (power plant) site." By John Bayarong This was announced recently by officials of the Redondo Peninsula Energy, Inc., (RPE), pro- ponent of the 600-MW coal-fired power plant, during its first-ever face the media activity since the project began in 2006. (Photo shows MERALCO representative Lito Lantin (right) and Grant Smith, RPE project manager (left) facing the media recently.) Turn to page 5 Zambales special polls set The Commission on Elections (Comelec) has set the special elections for congressional post in the 2nd district of Zambales on February 4, 2012. In an en banc resolution, the Comelec said the election period will start on Dec. 21 and will end on Feb. 14. The special polls will be for the post left vacant by long-time con- gressman Antonio Diaz who died five months ago due lingering heart ailment. Candidates may file their cer- tificates of candidacy from Janu- ary 16 to 18 next year. The campaign period begins Jan. 19 and will end Feb. 2. The poll body, in the same resolution, said the prohibited acts during the said period are the fol- lowing: alteration of territory of a precinct or establishment of a new precinct; illegal release of prisoners; carrying of firearms or other deadly weapons; including wearing of uniforms, insignias, as well as organizing or maintaining reaction or strike forces, or simi- lar forces. Also prohibited are the trans- fer or detail of officers and em- ployees in the civil service, includ- ing public school teachers; use of security personnel or bodyguards by candidates, whether or not such bodyguards are regular members of the Philippine Na- tional Police or Armed Forces of the Philippines or other law en- forcement agency; and suspen- sion of elective provincial, city, municipal or barangay officials.. Contributed photos NEDA okays two major road projects The National Economic and De- velopment Authority (NEDA) approved two key infrastructure projects costing a combined P18 billion to provide a more reliable and faster road access in Luzon. It approved the Arterial Road Bypass Project Phase II and the Central Luzon Link Expressway Phase I of the Public Works De- partment. The project will stretch from the end of the Subic-Clark-Tarlac Expressway in Tarlac City to Cabanatuan City and San Jose City in Nueva Ecija. The project will bypass the congested part of the Pan-Philip- pine Highway from Guiguinto to San Rafael, Bulacan. Four bridges and drainage fa- cilities will also be constructed. “The ARBP will enhance the economic and physical integration of Metro Manila and the prov- inces of Bulacan, Nueva Ecija and the Cagayan P4.00 Conduct referendum, anti-coal activist By Ansbert Joaquin Anti-coal plant activists dared RP Energy to hold a referendum to prove its claims that there is minor opposition to its project. “If they really believe that those opposing the plant represent only a minority, then I challenge them to fund a province-wide and city-wide public referendum and let the public say their piece,” Alex Hermoso, a leader of the anti- coal plant groups, said. Hermoso was reacting to a claim by RP Energy official Ray Cunningham, who not only be- littled the opposition to the plant but also said the issue bugging local government units is not environmental but financial. RP Energy is a consortium formed by energy giant , Manila Electric Co. (Meralco), Aboitiz Power and Taiwan Cogen Corp. “It is not proper for them (RP energy officials) to make gen- eral assertions and not substan- tiate them,” Hermoso said, add- ing that “the issue of the coal plant being clean is no longer a subject of debate as there is no such thing as clean technology in coal plants.” “It could be cleaner than the existing coal plant Turn to page 6 We dedicate this section to those who send photos to our [email protected] email. Let them hear your opinion through your photographs. The Subicwater company dug up both sides of the entire stretch of 1st street. They claimed in their notices that City hall approved it. But did they also agree to leave it unpaved and a danger to residents and motorists? Also, note the concrete debris at the top left of the photo. Yikes! Turn to page 2 BTPI to get system upgrade Top executives of Bases Con- version and Development Au- thority (BCDA) met recently with telecommunications and power distribution firms to up- grade the communications and power facilities of the Bataan Techno Park, Inc., (BTPI) in Morong, Bataan. “With nine locators already doing business (at BTP), and more coming in, it is essential that reli- able networking and Internet op- tions can be used as soon as pos- sible,” BCDA chairman Felicito Payumo said. Dennis Magbatoc, chief for North Luzon of PLDT’s Alpha Enterprise said that Turn to page 5

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600-MW coal plant is final,RP Energy600-MW coal plant is final,RP Energy

Shoot it!

XXXVIII Vol No. 4 December 12-18, 2011Olongapo City and Zambales

"We shall develop thefull potential of the(power plant) site."

By John Bayarong

This was announcedrecently by officials of theRedondo PeninsulaEnergy, Inc., (RPE), pro-ponent of the 600-MWcoal-fired power plant,during its first-ever facethe media activity sincethe project began in2006.

(Photo shows MERALCOrepresentative Lito Lantin(right) and Grant Smith, RPEproject manager (left) facingthe media recently.)

Turn to page 5

Zambales special polls setThe Commission on Elections(Comelec) has set the specialelections for congressional postin the 2nd district of Zambales onFebruary 4, 2012.

In an en banc resolution, theComelec said the election periodwill start on Dec. 21 and will endon Feb. 14.

The special polls will be for thepost left vacant by long-time con-gressman Antonio Diaz who diedfive months ago due lingeringheart ailment.

Candidates may file their cer-tificates of candidacy from Janu-ary 16 to 18 next year.

The campaign period beginsJan. 19 and will end Feb. 2.

The poll body, in the sameresolution, said the prohibited actsduring the said period are the fol-lowing: alteration of territory ofa precinct or establishment of anew precinct; illegal release ofprisoners; carrying of firearms orother deadly weapons; includingwearing of uniforms, insignias, aswell as organizing or maintaining

reaction or strike forces, or simi-lar forces.

Also prohibited are the trans-fer or detail of officers and em-ployees in the civil service, includ-ing public school teachers; use ofsecurity personnel or bodyguardsby candidates, whether or notsuch bodyguards are regularmembers of the Philippine Na-tional Police or Armed Forces ofthe Philippines or other law en-forcement agency; and suspen-sion of elective provincial, city,municipal or barangay officials..

Contributed photos

NEDA okays two majorroad projects

The National Economic and De-velopment Authority (NEDA)approved two key infrastructureprojects costing a combined P18billion to provide a more reliableand faster road access in Luzon.

It approved the Arterial RoadBypass Project Phase II and theCentral Luzon Link ExpresswayPhase I of the Public Works De-partment.

The project will stretch fromthe end of the Subic-Clark-Tarlac

Expressway in Tarlac City toCabanatuan City and San JoseCity in Nueva Ecija.

The project will bypass thecongested part of the Pan-Philip-pine Highway from Guiguinto toSan Rafael, Bulacan.

Four bridges and drainage fa-cilities will also be constructed.

“The ARBP will enhance theeconomic and physical integrationof Metro Manila and the prov-inces of Bulacan, Nueva Ecija andthe Cagayan

P4.00

Conduct referendum,anti-coal activistBy Ansbert Joaquin

Anti-coal plant activists dared RP Energy to hold a referendumto prove its claims that there is minor opposition to its project.

“If they really believe thatthose opposing the plantrepresent only a minority, then Ichallenge them to fund aprovince-wide and city-widepublic referendum and let thepublic say their piece,” AlexHermoso, a leader of the anti-coal plant groups, said.

Hermoso was reacting to aclaim by RP Energy official RayCunningham, who not only be-littled the opposition to the plantbut also said the issue bugginglocal government units is notenvironmental but financial.

RP Energy is a consortiumformed by energy giant , ManilaElectric Co. (Meralco), AboitizPower and Taiwan CogenCorp.

“It is not proper for them (RPenergy officials) to make gen-eral assertions and not substan-tiate them,” Hermoso said, add-ing that “the issue of the coalplant being clean is no longer asubject of debate as there is nosuch thing as clean technologyin coal plants.”

“It could be cleaner than theexisting coal plant Turn to page 6

We dedicate this section to those who sendphotos to our [email protected]. Let them hear your opinion through yourphotographs.

The Subicwater company dug up both sides of the entire stretch of 1ststreet. They claimed in their notices that City hall approved it. But did theyalso agree to leave it unpaved and a danger to residents and motorists?Also, note the concrete debris at the top left of the photo. Yikes!Turn to page 2

BTPI toget systemupgradeTop executives of Bases Con-version and Development Au-thority (BCDA) met recentlywith telecommunications andpower distribution firms to up-grade the communications andpower facilities of the BataanTechno Park, Inc., (BTPI) inMorong, Bataan.

“With nine locators alreadydoing business (at BTP), and morecoming in, it is essential that reli-able networking and Internet op-tions can be used as soon as pos-sible,” BCDA chairman FelicitoPayumo said.

Dennis Magbatoc, chief forNorth Luzon of PLDT’s AlphaEnterprise said that Turn to page 5

2Olongapo News December 12-18, 2011

EDITORIAL

#34 National Highway, Upper KalaklanOlongapo City

Member, Publishers Association of the Philippines, Inc.

news

[email protected]#34 NATIONAL HI-WAY, UPPER KALAKLAN,

OLONGAPO CITY, PHILS, 2200

ENTERED AS SECOND CLASS MAIL MATTER ONSeptemver 23, 1986 AT THE OLONGAPO CITY POST

OFFICE UNDER REGIONAL PERMIT NO. 38

OLONGAPO

Founders

PresidentPublisher

EditorAccounts ManagerAccounts Assistant

CommercialAdvertising ManagerCirculation Manager

Secretary Legal Consultant

ELPIDIO CURIANOSUSANA CURIANOJUDELINE C. BASCOCRISPIN CURIANOJOHN B. BAYARONGJACQUILINE CURIANOANA MARIE ARCEOJACQUILINE B. CURIANO

CARLITO C. CURIANONOEL E. OLIVAJUDGE MIGUEL FAMULARCANO, JRATTY. NOEL ATIENZA

Sacred

from page 1

NEDA okays two major road...

More of this—A caravan of vehicles from Subic Bay traversethe 92-kilometer Subic -Clark-Tarlac Expressway.

Valley and Aurora,” saidEconomic Planning Secre-tary Cayetano PaderangaJr. in a statement.

Paderanga, who is alsoNeda director-general andvice chairman of the board,said the bypassed roadwould cut travel time andsave fuel costs.

“The project will en-courage local and interna-tional tourism by improvingthe North Eastern Luzonconnection of the Central

Luzon tourism route,” saidPaderanga.

This according toPaderanga improves theviability of the Subic-Clark-Tarlac Expressway(SCTEx) as it will “increasesources of traffic.”

The ARBP Phase IIproject will cost approxi-mately P3.26 billion, withP1.55 billion being appliedfor possible loan assistancefrom the Japan Interna-tional Cooperation Agency.

It will be built from 2012 to2017.

The ICC also approvedthe Central Luzon Link Ex-pressway Phase 1 that will

stretch from the end of theSubic-Clark-Tarlac Ex-pressway in Tarlac City toCabanatuan City and SanJose City, Nueva Ecija.(30)

TALKBACK

JohnBayarong

It seems the Subic Bay MetropolitanAuthority (SBMA) is divided on the coal-fired power plant project.

While many of the new directors areobviously against the project, many of thecurrent officials are for it.

Philip Camara, chairman of thegovernance committee of the SBMA board,said that the P1 million a year lease of RPE(read: Meralco and Aboitiz) for around 40hectares of land is grossly disadvantageousto the government.

SBMA, he also says, knew the effects ofthe coal plant but opted to proceed anyway.

I do not buy the argument that theseofficials are for it because “they are not fromOlongapo City and Zambales, and they willjust go back to their homes in Manila whenthe plant starts affecting Subic

Bay’s quality of life.They are, like it or not, residents of the

area and have made our home their home.I suspect that there are more personal

reasons for their stand and the new officialsmust find out for themselves.

Otherwise, Camara and rest of the PNoyappointees will soon see bigger monkeywrenches being thrown their way.

Journalists observed some subtle, and notso subtle, attempts to scuttle the directionthe new officials are steering the SBMA ship.

How about doing a force field analysis,Directors Camara and Norberto Soza?

*****Mayor James Gordon received so much

flak, from the city’s political opposition andeven from some of his family’s supporters,for his moves to sell some assets of the cityto the private sector.

But I certainly think that divesting assetsthat have underperformed for various reason

is the right way to go, if all efforts to makethese assets viable fail.

It is wise management action.First, you stop the bleeding of resources

better spent for more productive activities.Second, service delivery better and morereliable.

While the verdict is still out on the sale ofPUD assets and Olongapo Mall, I take myhat off to Mayor Gordon for being braveenough to stake his political capital on theright thing to do.

Let us recall that the PUD and Olongapomall are major resource drainer for the citygovernment and the service deterioratedrather badly.

So parting with them is good for usresidents and taxpayers, but is not politically-sound for the mayor and for his family’spolitical future.

Politicians generally do not want to partwith assets, especially

PUD and Olongapo Mall“The sale.. is good for us.”

turn to page 5

SM Supermarket opens its doorsThe city's first branch of SM City isset to open its supermarket even asconstruction on the rest of the mallcontinues.

In a statement released by the OlongapoCity public affairs office, it said that whilethe grand opening of the mall is slated onFebruary, 2012, the supermarket will be infull operations on December 15th of thisyear.

The mall, located at the corner ofRamon Magsaysay Drive and GordonAvenue, will offer shoppers special dealssuch as buy 1, get 1 promos, value packsthat give 80% saving on selected items.

The mall's traditional Yellow Tag Promoalso offers instant prizes for buyers.

Cristina Alegor, a 24 year-old-mother oftwo, said that the opening of the super-market is a welcome development.

"Sana lang mas mababa ang mgapresyo.Kasi napansin ko, kapag sa Manila

malls ako bumili, almost 30%less kumpara sa mgamabibilihan dito sa atin,"Alegor told Olongapo News.

Alegor works in an a com-pany located inside theFreeport.

The supermarket, thestatement added, has its own

" modern wet market" with its Fresh Sec-tion offering the same variety of selectionin a typical wet market and also offersChristmas baskets that will fit any budgetplus special deals on Christmas hams.

Another worker, Allen Diwa, looks for-ward to the opening of the entire mall.

"Ang hinihintay ko makapag-malling.Laking (Metro) Manila kasi ako kaya Imissed spending time, and money syempre,sa mga malls. Mabuti at meron na din dito,kasi dito maliliit na nga ang mga tindahan,mahal pa," Diwa said.

SM Olongapo drumbeaters saidOlongapenos and nearby provinces ofBataan and Zambales--- as primary tar-get markets will enjoy the "pleasant am-bience, clean and air-conditioned spaces,exciting promotions and excellent customerservice."

"Aside from its worl-class interior de-sign, wide aisles, SM Supermarket is alsoknown for the excellent quality and widerange of fresh food, grocery items andhome essentials at very affordable prices,"the statement said.

SM Supermarket opens its doors on the 1st floor while work continues on the rest of Olongapo mall.

The new officials of the Subic BayMetropolitan Authority (SBMA) say thatthe agency’s contract with RP Energy(RPE) is lopsided and grossly disadvan-tageous to the government.

So, they want RPE to renegotiate, theysais.

Inside the Freerpot zone, agreementsthat are lopsided and disadvantageous tothe government is not a rarity.

We’ve been witnesses to instanceswhere SBMA tried to take properties awayfrom locators it previously lauded aspartners in developing the Freeport.

Some attempts prospered. Others didnot. And when it the locators lost, we sawSBMA handing it to favored individuals orgroups at give away prices as well.

In RPE’s case, we agree that P1M ayear for 40 hectares of property is dirtcheap. Heck, it’s a give away.

One locator representative in the publicconsultation organized by SBMA rightlynoted that RPE’s lease rate is equivalentto the daily rate of room at Subic Parkhotel.

If one looks at most of the long termcontracts signed by SBMA in the recentpast, most may be calssified as lopsidedand disdavantagoues to the government.

Especially, if there are partiesinterested in the particular property. Andmore so when these parties are close tothe officials of SBMA.

But we all know that the argument onthe alleged lopsided contract wiht RPEis just a bogeyman. The real target is thecoal plant or the non-construction of it.

Nobody wants a coal-fired power plantanywhere near them, even if everyonewants the power it generates.

But RPE has a contract and thecontract was perfected by SBMA.

If SBMA thinks it was disavantaged, itshould go after the culprits who facilitatedthe contract.

From those at the board of directorslevel down to the technical people whoare charged to ensure that the contractconforms to all government (in this case,SBMA’s) policies and standards.

If SBMA wishes to pursue a contractreview, it should not be selective. Allcontracts should be reviewed byindependent third party institutions (be itthe courts or respected private entities.)

Otherwise, respect all contracts.

December 12-18, 2011 Olongapo News5

Meralco took control ofRPE after it acquired a 52%stake from Aboitiz Powerand Taiwan CogenerationInt'l Corporation in July ofthis year.

The declaration came atthe heels of the Subic BayMetropolitan Authority's(SBMA) new policy tosubject selected projects tosocial acceptabil i tyhearings.

SBMA chairman Garcia,in a letter to the public, saidthat SBMA will use thehearings “in its decision toendorse or not to endorsethe power plant project."

600 to 700MWRPE owns a lease and

development agreement(LDA) for 40-hectareproperty at the RedondoPeninsula where it plans tobuild its 600-MW coal-firedpower plant.

The US$1.2 billion projectwas approved in its finalform last June, 2010 andwas endorsed by theDepartment of Energy(DoE).

Subic’s 600-MW coal plant is final, Meralco

from page 1

"The RP Energy powerstation will be built on landon Redondo Peninsula thatwas agreed between theSubic Bay MetropolitanAuthority and the projectproponents since the year2006,' Angelito Lantin,Meralco representative toRPE, stressed.

He explained that underthe SBMA-RPE agreementthey are "supposed to build600-700 MW."

"We are preparing thesite for the eventual start of

our formal construction forthe power plant which wehope will commence on thelate 1st quarter or early 2ndquarter of 2012," Lantin toldreporters, adding that thepower plant wil l be inoperation by "late 2014 orearly 2015 to serve thepower requirements ofluzon."

OpposedAnti-coal plant activists

say that they coal plant willdamage Subic Bay’senvironment.

The No to Coal Plant inSubic Bay facebook page,moderated by leaders ofsocio-civic organizations,claim that some 67 groupsare against project,including the legislativecounci ls of Subic,Zambales, Olongapo Cityand the provincial board ofZambales.

The power project wasmet with a hai lstorm ofprotest from residents andgroups last August, a monthafter Turn to page 6

Work started—RP Energy is prepping up their Redondo Peninsula site for actual construction earlynext year. (Photo from No to coal plant in Subic Bay Facebook page)

“Our customers know howreliable our power is, andmore importantly, whenanything happens, our res-ponse is quick and efficient,’he added.

This, according toCaluza, is because they in-vest in their system andmanpower resources.

The rate increase appli-cation forms part of a rateof return of 15.01 percentper year.

SEZ, in its petition, saidthe proposed revenues arewithin the bounds of the re-quired cost of capital al-lowed by the ERC. (30)

Freeportpower...from page 1

they will beef up the cellsites in the areas ‘to com-pensate for the lack ofconnectivity in BTP.”

They would collaboratewith Subic Enerzone inputting up telephone lineswithin the area.

Payumo tapped SEZ,an Aboitiz-owned electricdistribution utility servicingthe Subic Bay FreeportZone, to provide the powerrequirements of BTP.

SEZ won the franchiseto distribute power insidethe sprawling Subic BayFreeport Zone whenPayumo was the chief ofthe SBMA.

Aside from establishing

the network connectionby early next year,Magbatoc said that theywould also construct anode to reinforce theBTP’s communicationscapability through thePLDT-SMART facilities.

Magbatoc said thePLDT-SMART networkwould operate at full ca-pacity, comparable to thatin Subic and Clark, withinone to two years.

Standard rates wouldbe applied for all network-ing services, minus VAT,since BTP is locatedwithin the Morong Spe-cial Economic Zone, aVAT-exempt area.

BTPI to get system upgradefrom page 1

those that connect directlyto a set of constituency,because they lose a powerbase and a tool to influencevoters.

Let’s just hope that thosewho took over will run thembetter (and more profitably!)because we will all benefit.

The third reason why Iagree with the assets dis-posal actions is becausegovernment, in general, doesnot have the competency torun a business enterprise.

Its processes, structureand even the human resourcecomplement are focused on

regulatory functions.Government is not agile

enough to compete withother businesses. And evenif ways are found to solvethese flaws, it will bestraight-jacketed by itsinability to use material,human and financial re-source efficiently.

The rules and policies onusing public resources,especially money, are sostrict and tedious that it isalmost impossible to movequickly enough to respondto fluid market conditions.

So the sale of these twoassets, the mall and thePUD, is good for us.

In fact, if there are other

TalkbackBY John Bayarongfrom page 1

assets like these (those thatdo not have regulatory rolesand those that do not func-tion as shared communityresources) should be sold tothe highest bidder in atransparent manner.

The sooner it is disposedwith, the better for all of us.

Then hopefully, with aleaner structure and morefocused bureaucracy, ourlocal government can focuson providing the fairregulatory conditions for alland the public serviceneeded by the community.

(A press freedom advocate,John Bayarong completed hisMBA from Ateneo de Manila. Heloves coaching kids’ football.)

Ocean 9 wants land back, will pay $2.1MThe South Korean firm Ocean 9 recently promisedthe Subic Bay Metropolitan Authority (SBMA) topay $2.1 million debt, but wants to reactivate itslease agreement for several properties it lost.

In a document obtainedby the Olongapo News, thecontroversial firm said it is“ready to immediately settleall our overdue obligationsin the amount ofUS$2,122,793.01 as of 24thof October (2011).”

Ocean 9 was the samecompany that secured alease agreement fromSBMA for the former mini-golf area in the CentralBusiness District (CBD)but was later withdrawndue to protests from of envi-ronmentalist organizations.

.

Park Hong Sik, presidentof Philkor, Inc., in the sameletter, said that they, how-ever, need to reactivate 4lease contracts to maketheir “operations viable.”

Among the properties heidentified that are neededare the former MainLegenda Hotel and GrandLegenda in the CBD area,Firing range/EOD at IlaninBay, Legenda Suites inCubi point.

Olongapo News previ-ously asked Garcia for aninterview. It was not given.

.

Park also asked SBMAto adjust its investmentcommittment for theLegenda Hotel fromP800M to P256M and fromP300M to P85M for theformer Legenda Suites.

He added that theamounts proposed are ex-clusively for “the renovationof the two hotels and otherexpenses.”

He did not identify in hisletter what were the otherexpenses that would be in-curred.

“For the two remainingproperties, further studieswill be made and subse-quent proposals will be sub-mitted accrodingly,” theSouth Korean told SBMAchairman Roberto Garcia inhis letter.

Under its new proposalthe firm said it will commitadditional investments once“the memorandum ofagreement with Pagcor hasbeen affirmed and furtherarrangements are fina-lized.”

SBMA ws criticized inthe past for allowing Ocean9 to lease a property thatits own Ecology Centercalled “urban forest.”

Urban planner FelinoPalafox said that some 300trees “will be cut for theproposed hotel.”

Former SBMA CEO Armand Arreza talks to groups about the Ocean 9 project at the mini-golf area. (FP)

A worker is seen here putting finaltouches on a large Christmas treefor the holiday season. (photo byAnthony Bayarong)

Olongapo News6

SBMA deputy administratorRaul Marcelo said recently thatthe launch of ACTA gives SubicBay a platform to influence thecruise lines.

“With the formal launching ofACTA, Subic would have thenetwork to bank on for support.We’d grow as ACTA grows,” headded.

Marcelo represented SBMA atthe ACTA inauguration inSingapore recently.

“We have a very good reasonto be optimistic about this,because not only does Subic havedeep harbor and ports, it also hastourism facilities and tourismattractions. Then, Subic’sconnectivity to other destinationsin Luzon would also boosts itspotential as a good cruiseterminal,” Marcelo said.

Subic became a foundingmember of ACTA when it wasorganized last year by SingaporeCruise Centre Pte Ltd. (SCC) andother terminal operators in China,Taiwan, Japan, Korea, Sri Lankaand India — the lone port torepresent the Philippines.

Marcelo said the SBMA has

‘Gapo, Freeport as cruise destinationThe Subic Bay MetropolitanAuthority (SBMA) might justbecome a cruise destinationowing to its membership with theAsian Cruise TerminalAssociation (ACTA).

made a strong impression forSubic when SCCPL vicepresident Ivan Ng and otherACTA officials visited Subic earlythis year and determined that ithas all what it takes to be a cruiseship destination.

In particular, the cruise shipterminal operators noted Subic’sport infrastructure, deep naturalharbor, support facilities, security,and tourist attractions.

With the launching of ACTA,Marcelo said that Subic stands toget a windfall from the cruiseindustry, which also eyes thegrowing number of wealthyAsians as a “source market.”

SBMA also said that otherACTA members have already

announced plans to expand theirfacilities because of the expectedinflow of more tourists.

The Freeport authority in thelast 5 years have completedmajor port upgrades.

Other ports such as theSingapore Cruise Center is in themidst of a S$14-million upgrade;Shanghai Wusongkou (WSK)International Cruise Terminal,which forecasts a passengerthroughput of 300,000 in 2012 and800,000 in 2016; Taiwan’s Port ofKeelung, which sees a 460,000throughput by the end of 2011from 116,300 in 2006; and theJapanese port of Sakai, which hasincreased its passenger traffic bymore than 10 times.(30)

Commodities stop—A vessel loads goods and commodities from variousparts of Luzon at the new container terminal of the Freeport zone. The Freeportauthority also wants Subic as a cruise destination point for various cruise linesin the Asian region. (Photo by MPD/SBMA)

from page 1

the Luzon grid needs 300MW ofbaseload power every year for thenext four years to supply thepower requirements of theeconomy.

Lazatin, in an interview withOlongapo News, said that hecame back from abroad last yearand was shocked to hear that nonew power plant has been built forthe last 15 years.

"There is no other power plantthat will be on-stream in the next3 to five years. I need to stressthe importantce of this project froma national perspective," Lazatinsaid.

But an SBMA source toldOlongapo News that their boardof directors are split on the issue

of the coal-fired power plant, withmany favoring the coal plant whilesome are against it.

"Hindi alam ni Chairman Garciakung ano ang gagawin," thesource explained.

The source added that it wasnot clear how the hearings canchange the current SBMA-RPEcontract because "it is a valid andlegal agreement between twoparties. They cannot do anotherAyala-like maneuver with this kindof company."

Last year, SBMA asked severalcompanies with leasehold rightsto relocate to give way to the AyalaLand project at the CentralBusiness District.

Power for locatorsRay Cunningham, also an

official of RPE, said that a 50MWsupply will be offered to locatorsonce the plant is operational.

"We are not ruling out a locator

Subic’s 600-MW...

in Masinloc, Zambales, but thatdoes not make it environmentallysafe. The fluidized bedtechnology that they arebragging about, is actually nolonger new as it has beenalready in use in America,” hesaid.

Zambales Vice GovernorRamon Lacbain II said “theproposed coal plant has seriousenvironmental and healthimpacts and does not provideany reasonable financialcontribution to local economy.”

Lacbain signed the provincial

council resolution opposing theproject.

“Besides, if we just needadditional 600MW of electricity,we just need to allow theexpansion proposal of (the) coalplant in Masinloc, Zambales.The proposed coal plant in SubicBay is misplaced; it will justdamage our tourism industry,”he said.

He said giving tax holidaysto companies setting up coal-fired plants is setting a bad pre-cedent, referring to the Hanjin’srequest for their own plant. 

Conduct referendum...From page 1

Freeport powerrates up in 2012Customers of Subic Enerzone Corp. (SEZ), owned and operatedby the Aboitiz Power Corp. (APC), will have to pay more starting2012.

This after the Energy Regula-tory Commission (ERC) report-edly approved a tariff increasethat the power ditribution utilityapplied for in 2010.

According to SEZ officials, therate increase was approved lastNovember 18, 2011 and will beeffective in 2012.

The increase was based on thecompany’s capital expenditureplan for 2012 to 2015.

Under the law, distribution utili-ties (DUs) are allowed a certainpercentage of rate increase basedon their approved developmentplans, revenue and efficiencies.

“The DUs have a fixed re-venue percetage subject to the ap-proval of ERC,” Edgar Caluza,SEZ admin and customer servicemanager told Olongapo News.

SEZ’s annual revenue require-ment would be P399.37 million in2012; P414.60 million in 2013;P435.94 million in 2014; andP455.23 million in 2015.

The Subic Bay Freeport Cham-

ber of Commerce (SBFCC) chal-lenged the computations of SEZtelling the ERC that SEZ wascharging more that what was al-lowed.

It stressed that it was actuallycharging higher, in 2010, that itsproposed tariff for 2012.

But SEZ said that the allega-tion of the SBFCC were “base-less.”

“Our bills are transparent be-cause we list the company’s rev-enue sources and charges as re-quired by law,” Caluza said.

SEZ’s proposed tariff asagainst the existing rates wouldbe: residential customers wouldincrease from P2.17 per kilowatt-hour to P4.70, P4.72, P4.79 andP4.83 in 2015.

Commercial customers fromP1.15 per kilowatt-hour to P2.48,P2.49, P2.53 and P2.55.

Industrial customers fromP0.73 per kilowatt-hour to P1.33,P1.34, P1.36 and P1.37, respec-tively, from 2012 to 2015.

Olongapo celebrates World AIDS DayEstablishments in the city carriedred ribbons last December 1st tomark the World AIDS Day.

The red ribbon is theinternational symbol for AIDSawareness.

A candle lighting ceremonywas held at the Rizal TriangleMultipurpose Center thatsymbolized the community’senlightenment about the problemand remember those who havedied and afflicted with AIDS.

Meralco took over the energyfirm.

But RPE said that theybelieve that there is "no majoropposition to the project."

"What opposition there isextremely vocal and well-financed and knows how to getto Manila Times, for example,"Cunningham noted, adding thati f there was signif icantopposition, they "would goaway."

The Manila Times, a nationaldaily, ran a week-long seriesagainst the power plant lastNovember.

Power shortageA recent Department of

Energy study recently said that

AIDS or the AcquiredImmune Defieciency Syndrome(AIDS) is a disease that thatslowly destroys the body'simmune system.

Mayor James Gordon said thatthe city is joining the celebrationyearly to remind the victims ofHIV/AIDS that the city and itsgovernment sympathizes withthem “and is one with in findingfor a permanent solution to theproblem.”

The city government, with theOlongapo City AIDS Council(OCAC) asked the public todisplay the red ribbons and wearred to show care for AIDS andHIV (Human ImmunodeficiencyVirus) patients.

An AIDS Quiz Bee was alsoheld at the Olongapo CityElementary School recently.

coming out directly to us underthe open access and retai lcompetition. Anyone with a 1MWcan contract directly with us," heexplained.

The Energy RegulatoryCommission (ERC) is finalizing an'open access policy" that willallow companies to choose theirown supplier, thereby reducingcost.

An official of Subic Enerzone(SEZ) explained that in an openaccess regime the distributionutilities allow consumers to buyfrom power plants directly.

"The power generators may linkup with the consumer and we arepaid a fee for the use of ourdistribution lines. Para bang tollfee sa mga expressway," EdgarCaluza, SEZ admin and customerservice manager, explained.

SEC distributes power insidethe Subic Bay Freerpot Zone.(30)