Masbate Power Generation

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On January 15, 2007, the National Power Corporation (NPC) awarded to DMCI Power Corporation (DMCI) the Masbate Power Generation, one of the small utilities groups (SPUG) of NPC. DMCI took over the power supply obligation in Masbate province with a 15-year Power Supply Agreement with Masbate Electric Cooperative (MASELCO). Masbate Power Generation had a total contract of 13MW of guaranteed dependable capacity. DMCI, a wholly-owned subsidiary of DMCIHI, was engaged in the business of a generation company which designed, constructed, invested in, and operated power plants. Three local groups were bidding for the Masbate-based small power utilities group (SPUG) assets of the NPC: DMCI, Vivant Corporation, which was run by the Aboitizes and Garcias, and Masbate Progress Power Corporation, a consortium led by EEI Corporation. The privatization of SPUG Areas was mandated by the Department of Energy Circular No. 2004-01-001 issued on January 26, 2004. It called for the periodic assessment of the requirements and prospects of bringing power generation and associated power delivery systems to commercial viability on an area-by-area basis, including a program to encourage private sector participation in the SPUG areas.