GMA warns of power shortage, opens San Lorenzo plant.

Asia Africa Intelligence Wire

 | January 29, 2003 | Copyright

(From Philippine Daily Inquirer)

Byline: Mei Magsino

BATANGAS CITY-President Macapagal-Arroyo yesterday inaugurated the 500-megawatt San Lorenzo combined cycle plant, the country's most advanced and efficient power-generating facility, at Barangay Sta. Rita, this city, marking the completion of the all power-generating facilities required for the Philippine gas-to-power project.

The President congratulated First Gas Power Corp., the developer of San Lorenzo Power plant, for its contribution to nation-building.

"A stable energy supply is an important factor of a strong republic. This project can produce more than 53 percent of the country's energy requirement," Ms Macapagal said. "Now we know how much it takes to invest in power. It's $1 million per megawatt."

The President also emphasized the role of the private sector in helping the country achieve self-sufficiency in energy.

"This is also to make one thing clear," Ms Macapagal said, "Meralco and the government are not fighting each other."

The President also said that the Philippines' electricity bill, which used to be the second highest bill in Asia, was now down to 6th place, the lowest in 15 years.

Still, the Chief Executive warned of a forthcoming energy shortage in the country, citing the study made by the Asian Institute of Management (AIM).

"If we don't act now, we will have power shortages in the Visayas next year, in Mindanao in 2005, and in Luzon, in 2006," Ms Macapagal warned. "We need to act now so that we should not be caught flat-footed with brownouts."

The President said that on Feb. 1, she would start the power reform for the Visayas.