Source: http://www.tribune.net.ph/nation/vivant-subsidiary-gets-5-year-lease-on-la-union-plant
Vivant Corp. subsidiary, 1590 Energy Corp (1590 EC), secured the right to operate and maintain the 215-MW diesel bunker-fired power plant located in Bauang, La Union for five years.
The provincial government of La Union awarded the lease contract to Vivant-led 1590 EC from January 1, 2019 to December 31, 2023 for the Bauang Diesel Power Plant (BDPP), which will augment the supply of power and supply ancillary services to the grid. 1590 EC secured the five-year lease contract following an unsolicited proposal, which was subjected to a Swiss Challenge.
Ownership of the plant remains with the local government, which contracts out operations and maintenance to private corporations as part of their public-private partnership initiatives. The Swiss Challenge was pursued by the La Union government by virtue of its Public-Private Partnership Code to ensure the continued operations and maintenance of the BDPP through the provision of technical capacity and support by the private sector.
The agreement brings in proceeds to the province of over P1 billion, including rehabilitation for the 23-year-old facility, with a majority of employment being sourced locally.
“Through the years, 1590 EC has continuously improved the efficiency of BDPP to ensure that it helps provide reliable power to the grid. We look forward to more years with 1590 EC as the province’s partner in development,” La Union Gov. Francisco Emmanuel Ortega III said.
“We are honored that the provincial government of La Union continues to trust us with the efficient and safe operation and maintenance of the BDPP. We welcome another opportunity to strengthen our initiatives to contribute to the reliability of the grid,” VEC president Arlo Sarmiento said.
1590 is majority-owned by Vivant Energy Corp., a wholly-owned subsidiary of Vivant Corp. Vivant Corp., a company listed in the Philippine Stock Exchange, has investments in energy distribution, generation and retail electricity supply. Through its equity interests in subsidiaries and associates, Vivant provides services in Luzon, the Visayas and in Mindanao.
By Tribune Wires
