ADB asked to grant loan for power plant

October 26, 2009, 5:37pm

CEBU CITY (PNA) – The Asian Development Bank (ADB) is being requested to approve the $220-million loan application of Korean power firm, Kepco-SPC Power Corporation (KSPC) for the construction of a 200-megawatt coal-fired power plant in Naga City, Cebu province.

Naga City Mayor Valdemar Chiong, who communicated such request to ADB, argued against the charges raised by environmentalists that said power plant project would impair the environment in the area and negatively affect the health of the local community.

Chiong, stressing that such charges raised by environmentalists are bereft of merit, wrote the letter to the foreign lender because opposing organizations, Freedom from Debt Coalition (FDC) and the Global Legal Action against Climate Change (GLACC) trying to block the Kepco’s loan application.

Lito Vasquez of FDC-Cebu and lawyer Gloria Estenzo Ramos of GLACC are urging the ADB to quash the loan application because coal-fired power plants are major contributors to global warning and climate change.

Chiong, who expects some P20-P30 million a year in business and real property taxes from Kepco-SPC’s more than P15-billion investments, said he cannot tolerate the black propaganda of so-called environmentalists as this is detrimental to the interest not only of the people in Naga, but also of communities in the Visayas interconnected in one power grid.

”Most, if not all of their statements, are false. While it may be true that some emissions from the plant may be considered pollutants, KSPC has ensured that the technology they will use will protect the environment,” Chiong said in his letter addressed to ABD president Heruhiko Kuroda.

Chiong said that at this point, where the use of renewable energy is not yet in full swing, the best available option is the utilization of clean technologies such as KSPC’s circulating fluidized bed combustion (CFBC), a kind of clean coal technology.

”This only shows that the project is environmentally-friendly,” Chiong said.

He added that in support of KSPC’s project, the Naga City Council unanimously passed a resolution reiterating its support for the project, a copy of which is likewise enclosed for ADB’s reference, in assessing the loan application.

Chiong said the ADB must consider the importance of the coal-fired power plant to the Visayan community in general.

”If we were truly convinced that the project will be a threat to the health and overall welfare of our people, we will be the first one to have it restrained,” Chiong said. “However, we are certain that the project will bring stable power, economic growth career opportunities to residents here.”

He added, in his letter to the ADB that, ”In behalf of the people of Naga, Cebu, I am therefore seeking your good judgment in the assessment of KSPC’s loan application. We hope that ADB will positively and immediately act on it so that we can be on our way to achieving our cherished dream in bringing economic development to our constituents,” Chiong added.