Manila—(PHStocks)—A Brown Company Inc. (ABCI, PSE: BRN) has signed a Memorandum of Understanding (MOU) with the South Cotabato II Electric Cooperative, Inc. (SOCOTECO II), paving the way for the installation of a 9.6 megawatt (MW) bunker-fired power plant which seeks to ease the power shortage in parts of southern Mindanao.
SOCOTECO II president Elenito C. Senit and ABCI vice president for business development Roel Z. Castro were signatories to the MOU.
Under the MOU, both parties will negotiate the final terms of supply, installation and operation of said bunker-fired generating capacity within a 90-day period.
ABCI and SOCOTECO II said the proposed power project is timely since the whole island of Mindanao is experiencing a crisis in the supply of electricity which is mostly felt during hours of the day when demand at its peak.
SOCOTECO II, which distributes electricity to General Santos City and the provinces of South Cotabato and Sarangani, is among the cooperatives that suffer from the power supply deficiency.
Within its franchise areas, SOCOTECO II has to implement load dropping and/or rotating brownouts, resulting to massive business losses in the area.
Both parties also see the urgency of setting up a new power facility as there is no new large generating capacity scheduled to come online in the Mindanao grid in the next three years.
In a meeting last October 20, 2012, the board of SOCOTECO II passed Resolution No. 53, Series of 2012 to accept ABCI’s proposal subject to review by its Technical Working Group and legal departments; and subject further to the guidelines of the Energy Regulatory Commision.