PANAY POWER CORPORATION (FPPC-PPC)

A FIRST HOLDINGS COMPANY

Panay Power
Corporation
is a private,
100% Filipino
owned company
that operates
and maintains
the 72 MW
Panay Power
Plant.

Panay Power Corporation (PPC)
PPC, in Iloilo City, is 50%-owned by First Holdings, 20% by FPPC and 30% by Panay Electric Company (PECO), the utility purchasing the electricity produced by PPC.

PPC pie

The construction of the 72 MW plant began in July 1997 under a Build-Operate-Own (BOO) basis with selling prices at 5-10% below the NPC grid rate. PPC commissioned the Engineering, Procurement & Construction (EPC) contract to Wartsila NSD as equipment supplier on a full turnkey basis and with ECCO-Asia as turnkey civil works subcontractor.

Testing and commissioning of the engines started in the third quarter of 1998. The plant was inaugurated by Philippine President Joseph Estrada on 18 November 1998. PPC is the sole supplier of bulk power to Iloilo City.

PPC awarded the fuel and lube oil supply contract to Pilipinas Shell. It obtained incentives from the Board of Investments and the local government in the form of zero business taxes for the first five years of commercial operation. Currently, PPC is already studying plant expansion due to the demand growth in the PECO area. Various alternatives are being studied including the use of other technologies, such as combined-cycle plants, that will further lower the cost of generating power.

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Philippine President Joseph Estrada inaugurates the plant (11/28/98)

TECHNICAL DESCRIPTION
The plant has a total net capacity of 72 MW, generated by six (6) brand new diesel generator units operating synchronously. The diesel engines were manufactured by new Sulzer Diesel of France. Each unit uses Bunker "C" fuel, operates at medium speed, and generates a gross output of 12.8 MW.

Major facilities include a 69KV substation, concrete lined tank farm, water treatment plant, fire protection/alarm system including foam and COs systems, oil-water separation pits, sludge treatment and disposal system, power building, smoke stacks, radiators, SOx mitigating equipment and heat recovery boilers, auxiliary facilities such as administration building, canteen, machine shop, warehouse, bunkhouse and guesthouse

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PANAY POWER
PLANT

The 72 MW
power generation project to
serve the
industrial development
needs of
Iloilo City
thru the
assurance of
reliable and
reasonably
priced power

Mission Statement

FPHC Managing Director for Energy Peter Garrucho Jr,
FPHC Chairman & CEO Oscar M. Lopez,
and PECO President & GM Jose Ma. Cacho.

First Philippine Holdings Corporation (FPHC) and its partners, Panay Electric Company and the First Private Power Corp., are committed to provide safe, efficient, reliable and competitively priced power for the Philippines.

In recognition of this vision, Panay Power Corporation (PPC) will pursue the operation of the Panay Power Plant with vigor and purpose to help Iloilo City attain power sufficiency now and in the future. In particular, PPC commits to the following:

Carry out its operations at the most efficient, reliable and cost-effective manner thereby ensuring customer satisfaction and increasing shareholder value.
Ensure that the power plant will have no adverse effect on the environment through the provision of state-of-the-art ecological and environmental protection systems.
Exert all means to assist the development of the local communities by tapping its human and commercial resources, and by enhancing value orientation towards livelihood and ecology.

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COMMITMENT

First Private Power Corporation (FPPC) and its subsidiaries Bauang Private Power Corporation and Panay Power Corporation is committed to providing efficient, reliable, and reasonably priced power for the Philippines as the country moves forward to the new millennium.

BPPC Power Plant
Bauang Plant

Panay Power Plant

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