Philippines National Power Corp awards coal supply contracts to Arutmin and Banpu

State-owned National Power Corporation (Napocor) said it has awarded coal supply contracts to 12 suppliers including 2 from Indonesia, in bidding that closed early January, Asia Pulse reported Tuesday.

South Kalimantan based coal-mining firm PT Arutmin bagged the biggest supply and delivery contract for the requirements of the Pagbilao power plant, pegged at US$11.2 million. The same firm got the contract for the Batangas power plant, amounting to 5.9 million Philippine pesos (US$115,149). The volumes are not disclosed.

Thai?s Banpu Indonesian subsidiary got the lone contracts for Naga and Toledo plants, amounting to US$1.9 million and US$3 million, respectively, Napocor said in a statement.

Napocor operates the Calaca and Masinloc coal power plants while the Sual, Pagbilao Naga and Toledo plants are operated by Independent Power Producers (IPPs).

Under Napocor's energy conservation agreements with IPPs, the state power firm is contractually obliged to supply the fuel requirements of the IPPs. Napocor also procures the imported coal requirements of IPP-run power plants.(*)