Two foreign firms have expressed their interest in building a coal-fired power plant in Isabela, according to a Philippine National Oil Co.-Exploration Corp. (PNOC-EC) top official.
”We have received unsolicited proposals, [but we] cannot disclose [anything yet] due to [the] confidentiality agreement. There are two foreign companies, but they also have local partners,” PNOC-EC President and CEO Pedro A. Aquino Jr. told reporters.
He noted that the parties plan on processing the coal to synthetic gas which will be used as the feed for power plants.
PNOC-EC holds Coal Operating Contract No. 141, which is estimated to have enough resources for a 100-megawatt power plant.
The site, which has a project area of 3,000 hectares, is in Benito Soliven, Isabela.
Aquino explained the submitted proposals are still under evaluation and will likely result in a Swiss challenge-bidding process. He added it avoids other firms to match the first offers submitted.
Aquino said the awarding for the bidding will likely be next year, but may likely be postponed due to the election ban. However, he stressed that the state-owned corporation might seek an exemption from the ban. Aquino further said the interested party will enhance the calorific value of coal, then pack it and transport it to other sites.
But he also stressed the complicated part is the gasification process.
According to PNOC-EC, the power plant will use the lignite coal reserves in the coal concession of PNOC-EC.
The firm also said its joint venture partner will be involved in developing the mine and power plant, including the power-plant operations and marketing the power output.