PIA Dispatch - Monday, February 15, 2010

Power cuts in Mindanao worsen due to critical water level

BUTUAN CITY (February 15) – The power outages in Mindanao worsened due to the critical water level in the Lake Lanao and Pulangi river, source of the Mindanao grid.

It was also learned that the National Grid Corporation of the Philippines (NGCP) on Monday forced hydroelectric power plants located at various areas in the southern island in Mindanao to reduce their power generation by at least 50 percent of their total capacity due to low water inflow of Lake Lanao and Pulangi River because of the onset of the dry spell.

In a statement on Monday, the NGCP said the generating capacity is anticipated to remain insufficient with the unavailability of Agus 5 (Units 1 & 2), the Mindanao Coal Fired Power Plant (Unit 2) and the Iligan Diesel Power Plant.

It was also gathered that the Western Mindanao Power Corporation's power plant in Zamboanga City also decreased its output from 90 to 80 megawatts as of February 9, this year.

This pushed the NGCP, as system operator, to implement power load shedding throughout Mindanao. It will be enforced for the whole month of February as it projects that power supply will remain below comfortable levels.

Eugene Bicar, head of NGCP Mindanao-Systems Operations (SO), urged the execution of some measures to address the situation in the short term, like the completion of the Agus 5 Hydroelectric Plant (HEP) preventive maintenance and trash rack repair; resumption of the operation of Iligan Diesel Power Plant (IDPP) to be expedited by the Power Sector Assets and Liabilities Management Corporation (PSALM) and the National Power Corporation and the contracting of additional power generation if there's one available from embedded generations.

The NGCP Mindanao head also said the completion of the repair of the Agus 2 - Kibawe 138 KV Lines 1 and 2 and the commissioning of Maramag - Bunawan 230 KV backbone project will also help strengthen the network interconnection of the Mindanao Grid.

NGCP had earlier informed electric cooperatives and consumers that starting February 3, they would request power distributors to begin additional load-shedding at 10 a.m. instead of past 5 p.m. as compared to January, owing to further decrease in the generating capacity due to water inflow constraints.

Three curtailment levels are currently set, first for 10 a.m. to 12:30 p.m.; second for 12:31-5:30 p.m. and third for 5:31 to 9 or 10 p.m. The levels increase to correspond with the continuous upward trend of the grid load between 10 a.m. to 9 p.m. Curtailment is automatically lifted as actual system condition improves.

Power distributors each have their assigned load allocation to maintain for each time bracket under the curtailment plan.

NGCP closely monitors the load of each distributor through the SCADA equipment of Area Control Centers (ACC) located in the cities of Butuan, Zamboanga, Cagayan de Oro, Davao and General Santos.

The head of NGCP Mindanao added that the cooperation of the distributors is vital to NGCP's efforts at maintaining the balance of the Mindanao power grid, especially during red alert state. The grid operator is bound by provisions of the Philippine Grid Code.

Meanwhile, Energy Secretary Angelo Reyes is set to visit on February 17-18 key cities in Mindanao to personally assess the worsening power crisis in the southern island where businesses have been badly affected since last month. (PNA)



PGMA to inspect big road projects in Surigao del Sur on Tuesday

LINGIG, Surigao del Sur (February 15) - President Gloria Macapagal-Arroyo is set to inspect on Tuesday the big road project that connects Regions 11 and 13 in Mindanao.
When completed, this road project under the Mindanao Super Region development strategy of the Arroyo administration, will further enhance economic activity in the two progressing southern Mindanao regions.

President Arroyo will be welcomed at the Lingig municipal ground by at least 5,000 students from various schools, teachers, local officials and member beneficiaries of the national government's “Pantawid Pamilyang Pilipino Program” or 4 Ps.

The President, along with some of her Cabinet officials, will also be met by Surigao del Sur Gov. Vicente Pimentel, 2nd District Rep. Florencio Garay and Lingig Mayor Jimmy Luna.

After a short program, the President, accompanied by the media group, will motor to Barangay Union of that same municipality for the briefing on the road project by Department of Public Works and Highways (DPWH) Secretary Victor Domingo.

Along with Caraga DPWH Regional Director Dr. Evelyn T. Barroso, Secretary Domingo will brief the Chief Executive on the already completed Bislig-Lingig Section with two bridges last Jan. 25, and the ongoing ground works on the Lingig-Boundary Bolton Section.

The completion of the road project, which is bordering the provinces of Surigao del Sur and Davao Oriental, will complete the close to P2-billion Surigao-Davao Coastal Road under President Arroyo's SONA (State-of-the-Nation Address) projects.

On Tuesday morning, the President will also inaugurate the P50-million feeder port in Socorro town, Surigao del Norte province.

“These big infrastructure projects are a big boost to the economic activity of Surigao del Norte, Surigao del Sur and Davao Oriental and other neighboring areas in Northeastern and Southern Mindanao regions,” said Director Barroso.

The visit of President Arroyo in Surigao del Norte and Surigao del Sur on Tuesday is part of her Mindanao Agribusiness Legacy Tour. (PNA)



PGMA starts Mindanao for Agribusiness Legacy Tour in Surigao provinces

SOCORRO, Surigao del Norte (February 15) - President Gloria Macapagal-Arroyo will start her Mindanao Agribusiness Tour in this Pacific Ocean facing town of Surigao del Norte and nearby Lingig town of Surigao del Sur province on Tuesday.

The Chief Executive, along with Mindanao Agribusiness Super Region Champion Secretary Jesus G. Dureza, Public and Highways Secretary Victor Domingo and Transportation Secretary Leandro Mendoza, will inaugurate and inspect on-going various government projects in Surigao provinces as part of her Legacy Tour accomplishments.

Mrs. Arroyo will personally inspect and evaluate Mindanao Super Region performance and accomplishments, especially her commitments in the State-of-the-Nation Address (SONA) projects.

The Super Regions are informal groupings of provinces and regions with identical economic strength, hence assigned specific development themes.

Agribusiness Mindanao covers Caraga region, Central Mindanao (Region 12), Region 9 to 12 and the Autonomous Region in Muslim Mindanao (ARMM).

In her Surigao del Norte sortie on Tuesday, the Chief Executive will visit a public school in the city and then will fly via Bell 412 chopper to Socorro town to inaugurate the P50-million Socorro Feeder Port.

President Arroyo will be accompanied during the inauguration and unveiling of marker of the Socorro Feeder Port by Surigao del Norte solon Rep. Francisco T. Matugas (1st district), Socorro Mayor Mamerto D. Galanida, Sec. Mendoza, Sec. Dureza, Port Manager Teodorico Taruc and Barangay Navarro Chairman Christopher Alvino Taruc.

The Socorro Feeder Port is in the center island east of mainland Surigao City port. Its passenger and cargo-handling also serves the mainland of Dapa town in Siargao Island and the fish port of Claver town of that same province.

The opening of the said port will also further enhance the public access, especially tourists both foreign and domestic to various tourism areas in Bucas Grande island where the famous Sohoton cave is located.

“Economic activity, particularly tourism and fishing business, is soaring high with the opening and full operation of cargo and passenger handling operation of Socorro Feeder Port,” said Rep. Matugas.

He added that the opening of this feeder port will also add more employment and livelihood to local folks. (PNA)


El Nino Dispatch

NFA and SRA Release Guidelines on Sugar Importation

Administrators Jessup P. Navarro of National Food Authority (NFA) and Rafael L. Coscolluela of Sugar Regulatory Administration (SRA) have released the guidelines for the importation of 150,000 metric tons of refined sugar.

The guidelines contain the mechanics of importation, eligibility rules for participants or importers, allocations per sugar end-user sector and arrival deadlines. The guidelines also provide for a protection mechanism for producers as well as consumers.

The Notice of Bidding was published by NFA on February 11, 2010 in a leading newspaper (Philippine Star) announcing that the pre-bid conference will be held on February 16 and the bidding on February 23, 2010.

The arrival period of the first tranche of imported sugar equivalent to 60,000 metric tons is scheduled to arrive not later than May 15 and the second tranche equivalent to 90,000 metric tons not later than July 31.

While the government allows the importation in its bid to stabilize the domestic price of sugar, curtail speculations and provide sufficient buffer stock at the end of the cropping season, Agriculture Secretary Arthur C. Yap and Administrators Coscolluela and Navarro have assured that the country’s local producers and farmers would not be disadvantaged by the importation.

The program is expected to keep retail prices of refined sugar within the P 50.00 to P 52.00 per kilo level, and millgate buying prices between P 1,700 – P1,800 per 50-kilo bag of raw sugar.

In a cabinet meeting held last February 9, 2010 at the Talipapa Barangay Hall in Novaliches, Administrator Coscolluela raised the producers’ concern that during times of low sugar prices and high cost of farm inputs, the sugar industry is left on its own. Now that high prices allow them to recover from two years of difficulty, they are dismayed to hear that government wants to force prices down.

Some cabinet members, however, stressed their concern for the need to protect the consuming public from profiteers. The importation, they opined, would help balance the interest of both sectors.

The President then instructed Secretary Yap and NFA to fast-track the program that would help address the concerns raised. (DA-SRA)



NFA sets bidding for performance bond to import sugar

The National Food Authority is inviting all interested sugar traders and end-users for today’s (Feb. 16, 2010) pre-bidding of the performance bond for the importation of 60,000 metric tons (MT) of refined sugar.

This volume will be the first in the two tranches of the 150,000 MT private sector-financed sugar importation following the government approval to import the commodity using the tax expenditure subsidy of the NFA as provided under Executive Order 857 issued on January 29, 2010.

The second tranche of the importation totaling 90,000 MT will be done through the sugar industry’s export replacement scheme.

EO 857 authorized the NFA to intervene in the sugar market to soften or stabilize the domestic price of sugar and price of the commodity. This is one of the mitigating actions the government has implemented to ease the present tightness in the domestic sugar supply.

Earlier this month, the NFA also started to sell refined sugar through the Institutionalized Bigasan Sa Palengke (IBSP) at a subsidized price of P48 per kilogram.

The Philippine Sugar Millers Association (PSMA) subsidized the balance differential to make the commodity more affordable to consumers.

Under the guidelines issued for sugar importation, only those traders and end-users accredited by the Sugar Regulatory Administration and registered with the SRA in the crop year 2009-2010 will be eligible to participate in the bidding.

For the first tranche, bidding shall be made on a per lot basis. Lot number I totaling 20,000 MT is allocated for industrial users, lot number 2 totaling 6,000 MT for food processors-exporter s, lot number 3 with 12,000 MT for institutions and lot number 4 with a volume of 22,000 MT allotted for repackers-retailers.

All interested accredited sugar traders and end users can participate in the bidding of one or all the lots.

The final bidding for the first tranche of the sugar imports will be on February 23 with the commodity scheduled to arrive by May 15. For the 2nd tranche, expected arrival will be up to July 31 this year.

The bidding will be held at ten in the morning at the Social Hall of the Sugar Regulatory Administration, Philippine Sugar Center Bldg., North Avenue in Diliman Quezon City. For more information on the story, the public may send their inquiries via Text NFA program through mobile number 09176210927.