The Energy Regulatory Commission (ERC), on 14 November 2011, approved the issuance of a Certificate of Compliance (COC) to Desco, Inc. for its 1.059 MW Libertad Natural Gas Power Plant located in Sitio Tantiago, Brgy. Libertad, Bogo City, Cebu. The plant is about 100 kilometers north of Cebu City. The COC is valid for a period of five (5) years. The COC must be renewed by the filing of an application at least six (6) months prior to its expiration with proof of its continued compliance with financial, environmental and technical requirements.
ERC Chairperson Zenaida G. Cruz-Ducut hands the Certificate of Compliance to Mr. Sherwin L. Mendiola, President of SPC Island Power Corp. (SIPC). The COC awarding was also attended by ERC Commissioners Gloria Victoria Yap (leftmost), Jose C. Reyes (2nd from left), Maria Teresa R. Castañeda (3rd from left), Alfredo J. Non (rightmost), Engr. Andrew L. Licup, Power Plant Manager of SIPC (2nd from right), and Mr. Edgardo Peter L. Dimalanta, Vice-President of SIPC (3rd from right).
Desco, Inc. was incorporated and duly registered with the Philippine Securities and Exchange Commission (SEC) in December 1974. Its primary purpose is to engage in the business as general contractors and builders of buildings and industrial plants and facilities of every type and description, including all auxiliary facilities thereof (i.e., to supply manpower and perform work as a special contractor in operations involving the energy exploration and extraction and water well drilling industries). One of the secondary purposes of the company is to engage and venture into the power generation business through the sale and distribution of power generating units and spare parts and the servicing of the said generating units, and to engage in the sale of electricity through the operation of power generating units.
Desco, Inc.'s power plant is embedded in the distribution system of Cebu II Electric Cooperative, Inc. (CEBECO II) via a distribution feeder at the 13.2 kV side. The plant testing and commissioning were completed in October 2011. It can commence full commercial operations only upon the issuance of the COC and approval of its Power Purchase Agreement (PPA) with CEBECO II, which is on the final stage of the negotiation.
The ERC granted the COC to Desco, Inc.'s 1.059 MW Libertad Natural Gas Power Plant upon compliance with the requirements prescribed under the Revised Rules for the Issuance of COC for Generation Companies/Facilities, as follows: (1) Financial qualifications such as Debt Service Capability Ratio and other financial indicators set forth in the Financial Guidelines for Generation Companies; (2) An Environmental Compliance Certificate (ECC) from the Department of Environment and Natural Resources (DENR); (3) Memorandum of Agreement on the Establishment of Trust Account for Benefits to Host Communities with the Department of Energy (DOE); (4) Technical qualifications as provided in the Philippine Distribution Code; and (5) Compliance with Cross Ownership and the 30% national and 25% Visayas Grid market share limitations.
"The ERC positively notes the use of Desco, Inc of natural gas since such is an indigenous resource. Desco, Inc. will augment vital power supply in the Visayan region. Having power stability leads to further economic growth that will help upgrade the lives of the citizenry," ERC Chairperson Zenaida G. Cruz-Ducut noted. - https://www.affordablecebu.com/