By Daniel Que
TeaM Energy Corp., a joint venture between Japan’s Marubeni Corp. and Tokyo Electric Power, has officially transferred operations of the 1,200-megawatt (MW) Sual Coal-Fired Thermal Power Plant (CFTPP) in Pangasinan to the Philippine government following the expiration of its contract.
The turn-over was made through the Power Sector Assets and Liabilities Management Corporation (PSALM) on October 25 with the expiration of the cooperation period of the Sual Independent Power Producer (IPP) contract dated May 20, 1994. The plant was built under a Build Operate and Transfer (BOT) scheme with the national government, then represented by the National Power Corporation (NPC).
Mitsuhiro Kojima, officer in charge of TeaM Energy, stated that the plant is in excellent condition and ready to continue supplying electricity to the Luzon grid. The company collaborated closely with the NPC and the PSALM to ensure a smooth transition.
On the same day of TeaM Energy’s transfer of the Sual CFTPP to NPC and PSALM, Sual Power Inc. (SPI), a subsidiary of San Miguel Global Power (SMGP) received the facility from PSALM.
SPI was the Independent Power Producer Administrator (IPPA) of the TeaM Energy- operated Sual facility, pursuant to the IPPA Administration Agreement between SPI and PSALM. SPI’s IPPA Administration Agreement with PSALM ended on the day of the transfer of the plant to PSALM from TeaM Energy, giving it the right to take ownership of the plant.
Kojima expressed confidence in SPI’s ability to maintain a reliable electricity supply from the Sual plant. He highlighted the plant’s significant role in powering homes, factories, and schools across the Philippines for over 25 years, contributing to the growth of Sual from a fifth-class municipality in Pangasinan to a thriving and progressive first- class town.
TeaM Energy will continue to operate the 735-MW Pagbilao Power Station in Quezon Province and holds a 50% stake in the 420-MW Pagbilao Unit 3 Power Project.