LEYTE CEBU GEOTHERMAL

closed

The objectives of the project are to: (a) meet the rapidly increasing demand for power in Cebu and the Visayas region using indigenous and environmentally superior geothermal energy; (b) strengthen the institutional, planning and financial systems of the National Power Corporation (NPC) and the Philippine National Oil Company (PNOC); (c) promote private sector participation in power generation; (d) improve the performance of the energy sector through better policies and implementing mechanisms; and (e) ensure the financial viability of NPC and PNOC to undertake a long-overdue investment program. The project includes the following components: PNOC will: (a) develop a 185 MW geothermal energy field which will also include steam collection and power subtransmission systems; (b) enter into a build-operate-transfer contract with private sector companies to construct and operate a 185 MW geothermal power plant; and (c) carry out technical assistance for project implementation. For its part, NPC will: (a) construct an overhead transmission line in Leyte and another in Cebu; (b) install a submarine cable linking the Leyte-Cebu lines; (c) upgrade its existing 138 kV and 69 kV power transmission facilities in Cebu; (d) carry out technical assistance consultancies for the design and preparation of tender documents for two hydroelectric projects; and (e) carry out institutional support consultancies to implement the project, its power development program and the recommendations of the efficiency and operational improvement study.