NEGROS, Philippines — SMC Global Power Holdings Corp., the power unit of diversified conglomerate San Miguel Corp. (SMC), plans to invest P18.5 billion for a 300-megawatt (MW) liquefied natural gas (LNG) combined cycle power plant in Negros Occidental.

In a filing with the Department of Environment and Natural Resources (DENR), SMC Global’s wholly owned unit Reliance Energy Development Inc. (REDI) is proposing a 4×75-MW LNG Combined Cycle Power Plant within the San Carlos City Ecozone in San Carlos City, Negros Occidental.

The proposed project, which has an estimated project cost of P18.5 billion, will be constructed inside the 49-hectare leased property from Grand Planters International Inc.

An on-shore LNG terminal facility will be constructed adjacent to the power plant to store and re-gasify the LNG that will be delivered through barging.

REDI is targeting to start constructing the power project in the third quarter with completion eyed in the third quarter of 2024. It is in the process of pre-feasibility study and environmental compliance certificate (ECC) application.

The company considered different technologies for the project, such as natural gas, coal, wind and solar, but chose natural gas since it is more flexible, secured, environmental-friendly and cost-effective.

Moreover, the Department of Energy issued a moratorium on new coal-fired power plants in 2020 to support the government’s direction towards clean energy, removing coal from REDI’s list of considerations.

REDI said its proposed power plant would help augment the demand for reliable and affordable power supply.

“The proposed power plant will not only supply enough electricity to Filipino households and businesses, but will also contribute to national development. The proposed project will also support DOE’s advocacy to shift to cleaner source of energy to reduce the GHG emissions from the energy sector,” it said.

However, for consumer welfare group, Koryente Konsumers Alliance, an LNG power plant will only lead to increase power rates in the area. 

“We have not explored indigenous fuel sources so the country will have to import LNG. LNG is a fossil fuel like oil, diesel and gas. The world market price is just as high and it is hard to secure supply due to the ongoing war between Russia and Ukraine. Although, we have Malampaya in the country, the well is set to dry up very soon and the country has not explored new areas to replace it.

Especially for Negros Island let us explore other sources of power like Mini-Hydro, Wind, Solar, and most especially Bagasse cogerneration with the Sugar Mills.

Negros being the sugar capital of the country with numerous sugar mills, let us increase the congeneration capacity of all sugar mills to create power.”

The Department of Justice orders the City of Prosecutor of Quezon City to withdraw charges against Land Transportation Office (LTO) IT Contractor Dermalog officials Gunther Mull, Randolf Sitz, Michel Schutt, and Lourilyn Ocampo.

The case stems from the 3.1 Billion peso LTO IT project that was awarded in 2018 to the Dermalog Joint venture which includes German based company Dermalog 40%, Philippine based company Holy Family Printing Corporation 30%, Verzontal Builders 25%, and MicroGenesis 5%.

Verzontal Builders Inc. represented by Silvestre “Sly” Natividad, failed to accomplish their deliverables based on the joint venture agreement and in April 5, 2019 wrote Dermalog that they are “pulling out of the joint venture” then authorized Dermalog to “deduct whatever costs it may incur to complete its unfinished part of the project.” The Joint Venture headed by Dermalog continued to pay Verzontal Builders 228 Million Pesos for all the work accomplished despite having to incur additional expenses to rectify previous works as well as complete the unfinished works.

In the now withdrawn case, Verzontal Builders Inc. alleged they were owed the full 25% of the whole contract even though the project is still ongoing and in effect and despite Verzontal pulling out of the joint venture last 2019 with unfinished works per their agreement.

The Department of Justice as represented by the Secretary of Justice, Jesus Crispin Remulla, ruled that the case filed by Verzontal Builders should not be a criminal case and no elements of the alleged qualified theft were present in this case.

In the resolution dated July 20, 2022 of the Department of Justice it reads:

“WHEREFORE, the instant petition for review is hearby GRANTED, and accordingly, the assailed resolution of the Office of the CITY Prosecutor of Quezon City finding probable cause against respondents-appealants Gunther Mull, Randolf Sitz, Michel Schutt, and Lourilyn T. Ocampo for the crime of qualified theft is hearby REVERSED and SET ASIDE.”

Multi awarded biometrics innovator, Dermalog, continues providing the Land Transportation Office IT services which has resulted in billions of pesos savings for drivers as well as reduced processing times from over 2-3 hours to 20-30 minutes.