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Monday, July 10, 2006

Mirant vows to energize 55 barangays with solar power

The Philippine Star 07/10/2006

Mirant Philippines Foundation Inc. has signed an agreement with the Department of Energy (DOE) for the electrification of 55 remote barangays in the provinces of Aklan, Masbate, Northern Samar, and Palawan using solar photovoltaic (PV) systems.

Jose Leviste Jr., Mirant Philippines chairman and president, said the memorandum of agreement (MOA) will also involve the Taytay sa Kauswagan, Inc., an Iloilo-based microfinance institution.

"Mirant has partnered with the DOE to undertake this World Bank and Global Environment Facility-supported rural power project (RPP) using a sustainable solar market package (SSMP) approach," Leviste said.

Leviste said the program, dubbed Project Access (Accelerating Community Electricity Services Using Solar), supports the goal of President Arroyo’s administration to achieve full barangay electrification by 2008.

"It is an honor for Mirant to partner with the DOE, headed by Secretary Raphael Lotilla, and other private sector groups on such a worthwhile project that will spread the benefits of electrification to our fellow citizens in the remotest parts of the country," said Leviste. "This will certainly jump-start local economic activity and improve the quality of life of its beneficiaries."

According to Leviste, Project Access is consistent with the commitment of US-based Mirant Corp.’s chief executive officer Edward R. Muller to President Arroyo of continuing support to the country’s rural electrification initiative.

Based on the MOA, Mirant Philippines Foundation along with the World Bank will provide the initial resources needed to start the project.

The DOE, on the other hand, will be in charge of implementing the program and overseeing the technical component.

To date, Mirant, in partnership with the DOE, has energized over 1,000 barangays nationwide in 33 provinces, benefiting over 1.5 million individuals at a cost of over P1 billion under its Barangay Electrification Assistance for Countryside Development program (Project Beacon).

Mirant Philippines, a wholly owned subsidiary of Atlanta-based Mirant Corp., is the largest private producer of electricity in the Philippines with over 2,000 megawatts of generating capacity. It owns and operates the 1,218-MW Sual power plant in Pangasinan and the 735-MW Pagbilao power station in Quezon. It also has a stake in the 1,200 MW Ilijjan natural gas project in Batangas.

Energy Secretary Raphael P.M. Lotilla, for his part, is urging other independent power producers to follow the lead of Mirant.

"We are very pleased with Mirant for their commitment to support Project Access by providing the needed assistance for the electrification of these 55 barangays. We encourage other private companies to follow the lead of Mirant to further help enrich the lives of our people living in the rural areas," he said.

Lotilla said Mirant will provide P55 million for the electrification of these barangays using the SSMP scheme, a component of the DOE’s Rural Power Project.

Taytay sa Kauswagan, on the other hand will provide credit and micro financing facilities amounting to P30 million to qualified consumers for the acquisition of solar PV systems.

With the signing of the MOA, it is hoped that this kind of project could be duplicated in other unenergized remote areas as Lotilla noted that it is becoming more and more difficult to reach the target of energizing 49,145 barangays in the country due to government’s financial constraints.

As of May this year, the country’s barangay electrification level stood at 94.04 percent. With the concerted efforts of the government and the private sector, the provision of electricity services to the remaining 2,500 unenergized barangays will be completed by year 2008, to achieve the government’s target of 100 percent barangay electrification level.

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