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BELYING
its claims it has already secured its 2007 coal
requirements since last year, the National Power Corp.
awarded early this month a coal contract for five
panamax shipments at a relatively high price of $84 per
metric ton to Australian company Hunter Valley Coal
Corp. Pty. through its local representative Glencore Far
East Philippines AG.
A
panamax ship is designed to be able to transit the
Panama Canal and is usually of 75 deadweight tons. The
contracted amount is probably for 375 tons or about P1.5
billion.
Having
stated it already has purchased all of its supply
requirements for the year, the power company denied
allegations the power shortages in the Luzon grid last
week were due to lack of fuel. “There is no truth
whatsoever to reports in the media that we experienced a
fuel shortage nor did we undertake any emergency
purchase,” official had said then.
Napocor
even opened its books and said all fuel requirements of
both government-owned and independent power producers’ (IPP)
plants have been contracted out since December 2006.
Why then
the contract for more fuel? This must be explained well,
according to energy critics and observers, especially
since the Napocor tender notice on March 29 implied that
it needed the coal supply with utmost urgency, stating
in the letter-invitation that “opening of bids will
immediately follow and that extension of time to submit
price offer will not be entertained.”
The
award was reportedly confirmed as booked on Napocor’s
Bids and Awards Committee records with reference number
BCS# BAC-2007-026. The coal deliveries are scheduled for
the Masinloc plant from May 13, 2007 to October 19, 2007
for a per-shipment-cost of P312.31 million or a total of
P1.56 billion.
The $84
per metric ton was a solicited price Napocor tendered to
interested suppliers in a letter it issued to various
coal suppliers. The bid notices for the March and April
2007 coal procurement for the Masinloc and Pagbilao
coal-fired were posted at Napocor’s website.
Among
those invited were Shanxi Coal Import/Export (Group)
Corp., Hunter Valley through its local arm Glencore Far
East Philippines AG, China National Coal Group Corp.
through Noble Energy, and Shenhua Coal Trading Co. Ltd.
through Baretech Ltd.
On March
30 and
April 2, 2007, with a looming fuel shortage at the Pagbilao coal-fired
power facility, Napocor also awarded three separate coal
contracts for $65 to $68 per metric ton to PT Kaltim
Prima, PT Andalan Tiga Berjaya, and PT Baramulti Sugih
Sentosa with reference records BCS#BAC-2007-025 and BCS#BAC-2007-027.
The
contract to PT Kaltim Prima Coal has an approved budget
of P241.67 million. It required coal deliveries for four
power barges from April 5 to 25, 2007 and the succeeding
deliveries scheduled on May 1 to 7 and May 15 to 21 at
two barges per shipment.
The
award to PT Baramulti was for P107.097 billion and that
for PT Andalan Tiga Berjaya for P53.65 billion.
On April
18, Napocor sent another “notice to bid” for Pagbilao’s
coal supply for five panamax shipments with scheduled
delivery from June 20 to December 20. Those issued with
letter-invitations to bid at $68 per metric ton
reference price are PT Kendilo, PT Indominco, PT
Baramulti, PT Andalan, PT Kaltim Prima, PT Arutmin and
PT Gunung Bayan.
Industry
officials said the least that Napocor officials can do
is to admit a shortfall. Then perhaps the industry
itself can also help address the state power company’s
concerns. The IPPs could have helped Napocor with its
fuel supply problem, the officials added.
With
China now a net coal importer, the Philippines faces
greater competition for coal supply sources. |
