MANILA, Philippines — Further delay in the approval of power supply agreements (PSA) will put Manila Electric Co. (Meralco) and its customers at a serious disadvantage since this will result in higher costs, company officials said. This has already been manifested in the renegotiation of the engineering, procurement and construction (EPC) contract for the 2x300-megawatt (MW) coal-fired power plant in Subic, Zambales under Redondo Peninsula Energy Inc. (RP Energy), Meralco president Oscar Reyes said. “Just on the power supply agreements, the additional penalty of prejudice of these delays and passage of time results in significant increase in project cost because of depreciation - the weakening of the peso or increased cost of materials,” he said. It received the updated EPC contract from Doosan last month which contained higher cost, MGen president and CEO Rogelio Singson said. “They had to submit a new EPC contract.

Source: Philippine Star May 01, 2018 15:28 UTC