[SOURCE: IPP REVIEW COMMITTEE REPORT]
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Name
of Plant :
354 MW San Roque Multi Purpose Hydroelectric Power Plant (A30)
Name of IPP :
San Roque Power
Corporation (SPRC)
Contract Type :
Build-Operate-Transfer/Power Purchase Agreement/Solicited
Status of Plant :
Under
Construction
Cooperation Period :
25 years (2005 - 2030)
Nature of Issue
Issue
Recommendation
Risk allocation
Despite the fact that NPC took in the direct risk in the
non-power component of the project and that San Roque has a full performance
undertaking in the power component, it still has one of the highest levelized
costs.
PSALM should negotiate for a lower fee with San Roque, taking
into consideration the risks that the government has shouldered on behalf of
San Roque.
Lower cost of pre-completion buy-out price than cost of
keeping the plant operational
San Roque has high energy rates, resulting in stranded costs for
NPC. Buying out the contract pending its completion might be cheaper.
Another option is for the government to consider the buy-out
option, PSALM and NPC are to reexamine the buy-out price.
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