Philippines: VISAYAS BASE-LOAD POWER PROJECT

Nonsovereign Project | 43906-014

Summary

The Project involves construction and operation of a 200- megawatt (MW) coal-fired power plant in Naga City, Cebu, in the Visayas region. The plant is needed to address the power shortage in the region, and will adopt a more environment-friendly technology by using circulating fluidized bed (CFB) combustion boilers. It will provide base-load power to the grid. CFB is the next best solution to using pulverized coal technology. Supercritical technology cannot be used for a 200 MW plant.

Latest Project Documents

Consulting Notices

See also: CMS

No notices are currently available for this project.


Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Public Communications Policy (PCP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Project Name VISAYAS BASE-LOAD POWER PROJECT
Project Number 43906-014
Borrower/Company KEPCO SPC POWER CORPORATION
Country Philippines
Location Colon, City of Naga (20km from Cebu City), Province of Cebu
Approval Number 7303/2612
Type or Modality of Assistance
7303/2612 Loan USD 120.00 million Committed
Strategic Agendas
Drivers of Change
Sector / Subsector Energy - Conventional energy generation
Gender Equity and Mainstreaming
Responsible ADB Department Private Sector Operations Department
Responsible ADB Division Portfolio Management Division, PSOD
Responsible ADB Officer Jose Manuel Limjap
Project Sponsor(s) KEPCO PHILIPPINES HOLDINGS, INC.
Description The Project involves construction and operation of a 200- megawatt (MW) coal-fired power plant in Naga City, Cebu, in the Visayas region. The plant is needed to address the power shortage in the region, and will adopt a more environment-friendly technology by using circulating fluidized bed (CFB) combustion boilers. It will provide base-load power to the grid. CFB is the next best solution to using pulverized coal technology. Supercritical technology cannot be used for a 200 MW plant.
Objectives and Scope The Project (i) supports sustainable growth in the Visayas region by increasing the availability of reliable and competitively priced power to prevent power shortages and meet the growing demand of industrial, commercial, residential, and rural consumers without additional fiscal burden to the Government of the Philippines (the Government); (ii) supports continued implementation of sector reforms that aim to lower electricity costs for consumers by increasing competition and efficiency through private sector investment in the sector; and (iii) provides a demonstration effect for future private sector investments in greenfield, more environment friendly, coal-fired power generation under the new regulatory regime needed to meet the country's future energy needs.
Linkage to Country/Regional Strategy

ADB's country strategy and program for the Philippines (2005 2007, extended to 2010) was developed with significant input from the Government to highlight its priorities and key areas for partnership. The project addresses one of the Banks identified area of inadequate infrastructure by not putting additional strain on limited government financial resources in its attempt to achieve its goals in infrastructure investment. The Project has likewise introduced an international sponsor that can advocate for the development, integrity, and transparency of the reform process.

The Project is also in-line with ADB's country operations business plan for the Philippines, 2009 2010, which calls for interventions to support critical infrastructure projects, including power generation, and cites power generation as a specific target area for private sector operations.

ADB's Energy Policy recognizes that coal-based generation will grow to meet the electricity needs of the region. It states that ADB will encourage developing member countries to adopt available cleaner technologies, such as CFB, and assist them in collaborating with developed countries on technology transfer.

Status of Development Objectives

Commercial operations for Unit 1 started on 28 February 2011 and Unit 2 on 31 May 2011. Both of these dates were in line with the guaranteed dates in the EPC contracts. Unit 1 had 10 months and Unit 2 had 7 months of commercial operations in 2011.

The plant has been running smoothly and has been delivering electricity to the grid as planned. Excluding testing and commissioning periods, Unit 1 generated 478,140 MWh of electricity and Unit 2 generated 344,136 MWh for a total of 822,276 MWh in 2011. FY2012 represents the first full year of operations of the company and KSPC reported for 2012 a net output of 1,054.5 GWh for the plant and an availability factor of 94.11% and 73.49% for Units 1 and 2, respectively. In 2013, the plant reported total net generation of 1,338.7 GWh.

Material Changes NA
Safeguard Categories
Environment A
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects An environment management plan (EMP) for the Project was formulated as part of the project EIA and comprises a set of measures to mitigate potential impacts that may occur during all phases of project implementation. Its main objective is to minimize the direct and indirect negative environmental impacts of the Project through sound planning and introduction of proper construction and monitoring techniques during construction and operation. During construction, the EPC contractor Doosan established its environmental, health, and safety (EHS) management certified as ISO 14001 and OSHAS 18001 compliant. During operation stage, KSPC has established an environmental management system (EMS), led and monitored by its environmental department.
Involuntary Resettlement KSPC acquired the land for the coal-fired power plant through open and competitive bidding conducted by NPC and PSALM on 14 November 2005. KSPC has leased the land for 25 years; its only use was for the new power plant. Resettlement of illegal settlers has been undertaken and completed prior to project implementation. ROW requirements for transmission have likewise been secured.
Indigenous Peoples No indigenous people were affected by the Project.
Stakeholder Communication, Participation, and Consultation The Project has a multipartite monitoring team (MMT) composed of various project stakeholders, including civil society and local barangay representatives. The MMT meets regularly and as required to monitor and discuss any issues regarding implementation of the project.
Timetable for assistance design, processing and implementation
Concept Clearance 06 Mar 2009
Due Diligence 02 Mar 2009
Credit Committee Meeting 08 Jul 2009
Approval 11 Dec 2009
PDS Creation Date 10 Mar 2009
Last PDS Update 06 Oct 2014
Title Document Type Document Date
Visayas Base-Load Power Development Project Reports and Recommendations of the President Jul 2009
Visayas Base Load Power Project Initial Poverty and Social Analysis May 2009

Safeguard Documents

See also: Safeguards
Title Document Type Document Date
Visayas Base-load Power Development Project: Annual Environmental and Social Monitoring Report (2014) Environmental and Social Monitoring Reports Feb 2015
Visayas Base-load Power Development Project: Social Monitoring Report (October-December 2014) Social Monitoring Reports Jan 2015
Visayas Base-load Power Development Project: Environmental Monitoring Report (October-December 2014) Environmental Monitoring Reports Jan 2015
Visayas Base-load Power Development Project: Social Monitoring Report (July-September 2014) Social Monitoring Reports Oct 2014
Visayas Base-load Power Development Project: Environmental Monitoring Report (July-September 2014) Environmental Monitoring Reports Oct 2014
Visayas Base-load Power Development Project: Social Monitoring Report (April-June 2014) Social Monitoring Reports Jul 2014
Visayas Base-load Power Development Project: Environmental Monitoring Report (April-June 2014) Environmental Monitoring Reports Jul 2014
Visayas Base-load Power Development Project: Social Monitoring Report (January-March 2014) Social Monitoring Reports Apr 2014
Visayas Base-load Power Development Project: Environmental Monitoring Report (January-March 2014) Environmental Monitoring Reports Apr 2014
Visayas Base-load Power Development Project: 2013 Annual Environmental and Social Performance Report Environmental and Social Monitoring Reports Feb 2014
Visayas Base-load Power Development Project: Social Monitoring Report (October-December 2013) Social Monitoring Reports Jan 2014
Visayas Base-load Power Development Project: Environmental Monitoring Report (July-September 2013) Environmental Monitoring Reports Oct 2013
Visayas Base-load Power Development Project: Social Monitoring Report (July-September 2013) Social Monitoring Reports Oct 2013
Visayas Base-load Power Development Project: 2012 Annual Environmental and Social Performance Report Environmental and Social Monitoring Reports Aug 2013
Visayas Base Load Power Project: The New Fly Ash and Bed Ash Disposal Scheme Initial Environmental Examination Aug 2013
Visayas Base-load Power Development Project: Environmental Monitoring Report (April-June 2013) Environmental Monitoring Reports Jul 2013
Visayas Base-Load Power Project: Social Monitoring Report (April-June 2013) Social Monitoring Reports Jul 2013
Visayas Base-load Power Development Project: Environmental Monitoring Report (January - March 2013) Environmental Monitoring Reports May 2013
Visayas Base Load Power Project: The New Fly Ash and Bed Ash Disposal Scheme Initial Environmental Examination Apr 2013
Visayas Base-Load Power Project: Social Monitoring Report (January - March 2013) Social Monitoring Reports Apr 2013
Visayas Base-load Power Development Project: Environmental Monitoring Report (October - December 2012) Environmental Monitoring Reports Jan 2013
Visayas Base-load Power Development Project: 2011 Annual Environmental and Social Performance Report Environmental and Social Monitoring Reports Jan 2013
Visayas Base-Load Power Project: Social Monitoring Report (October-December 2012) Social Monitoring Reports Jan 2013
Visayas Base-load Power Development Project: Environmental Monitoring Report (July - September 2012) Environmental Monitoring Reports Oct 2012
Visayas Base-load Power Development Project: 3rd Quarter 2012 Social Monitoring Report Social Monitoring Reports Oct 2012
Visayas Base-load Power Development Project: Environmental Monitoring Report (April - June 2012) Environmental Monitoring Reports Jul 2012
Visayas Base-load Power Development Project: 2nd Quarter 2012 Social Monitoring Report Social Monitoring Reports Jul 2012
Visayas Base-Load Power Project: Quarterly Social Monitoring Report (January-March 2012) Social Monitoring Reports Apr 2012
Visayas Base-load Power Development Project: Environmental Monitoring Report (January - March 2012) Environmental Monitoring Reports Apr 2012
Visayas Base-load Power Development Project: 1st Quarter 2012 Social Monitoring Report Social Monitoring Reports Apr 2012
Visayas Base-Load Power Project: Quarterly Social Monitoring Report (October- December 2011) Social Monitoring Reports Jan 2012
Visayas Base-load Power Development Project: 4th Quarter 2011 Environmental Monitoring Report Environmental Monitoring Reports Jan 2012
Visayas Base-Load Power Project: Quarterly Social Monitoring Report (July - September 2011) Social Monitoring Reports Oct 2011
Visayas Base-Load Power Project: 2nd Quarter 2011 Environmental Monitoring Reports Sep 2011
Visayas Base-Load Power Project: Quarterly Social Monitoring Report (April-June 2011) Social Monitoring Reports Jul 2011
Visayas Base-load Power Development Project: 1st Quarter 2011 Environmental Monitoring Reports Jun 2011
Visayas Base-load Power Development Project: 1st Quarter 2011 Social Monitoring Report Social Monitoring Reports Apr 2011
Visayas Base-Load Power Development Project: Environmental Monitoring Results (4th Quarter of 2010) Environmental Monitoring Reports Jan 2011
Visayas Base-load Power Development Project: Quarterly Social Monitoring Report (October-December 2010) Social Monitoring Reports Jan 2011
Visayas Base-load Power Development Project Quarterly Social Monitoring Report (July - Sept 2010) Social Monitoring Reports Oct 2010
Visayas Base-Load Power Development Project: Environmental Monitoring Results (3rd Quarter of 2010) Environmental Monitoring Reports Oct 2010
Visayas Base Load Power Project Environmental Impact Assessments Sep 2010
Visayas Base-Load Power Project Quarterly Social Monitoring Report (April-June 2010) Social Monitoring Reports Jul 2010
Visayas Base-Load Power Project Environmental Monitoring Report - Second Quarter 2010 Environmental Monitoring Reports Jul 2010
Visayas Base-Load Power Project Quarterly Social Monitoring Report (January-March 2010) Social Monitoring Reports Apr 2010
Visayas Base-Load Power Project Environmental Monitoring Report - First Quarter 2010 Environmental Monitoring Reports Apr 2010
Visayas Base Load Power Development Project: Updated Resettlement Plan Resettlement Plans Feb 2010
Visayas Base Load Power Project Summary Environmental Impact Assessments Mar 2009

Evaluation Documents

See also: Independent Evaluation

No documents found.


The Public Communications Policy (PCP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.