The amended project blueprint has been re-submitted to the Japan Bank for International Cooperation (JBIC) for concurrence, disclosed PNOC president Eduardo V. Mañalac.

"We have already run the bids, and unfortunately, the cost was very much higher than expected and higher than the loan amount by JBIC," he emphasized.

As to the reduced capacity, he said that the next steps would involve securing consent that the previous auction on the project’s turnkey contract be nullified.

"We are saying to reduce the wattage, and then re-bid it so that expected cost would be lower and closer to the approved loan amount," Mañalac pointed out.

Six Japanese firms have been previously pre-qualified to join the bidding for the turnkey contract of the planned wind facility, namely Itochu Corporation with Neg Micon, Sumitomo Corporation with GE Wind, Marubeni Corporation with Mitsubushi Heavy Industries and Kanematsu Corporation with Nordex.; Sumitomo Corporation and Marubeni Corporation.

Without changing the facility’s planned capacity, Mañalac noted that project cost could run up to $ 100 million; and that would be way lower than the JBIC-approved loan amount of $ 68 million, including transmission costs.

The PNOC chief executive further explained that "higher cost estimate were due to higher steel prices and higher cost of materials."

Project design prescribes the turnkey contract to comprise construction of a 42-kilometer transmission line connecting the facility to Transco’s substation in Laoag; the construction of a switchyard at Burgos and the interconnection works at the Laoag substation to accommodate the power facility’s output.

The entire North Luzon wind power project (NLWPP) was planned to have an aggregate capacity of 120 megawatts; and should have been implemented in three phases at 40 megawatts each.

PNOC-EDC’s foray into wind facility development is in line with the government’s thrust to shore up the country’s energy self-sufficiency, by enhancing utilization of renewable and indigenous energy resources.

The Department of Energy (DoE) recently opened for tenders at least 17 wind farm sites that are viable to bring in additional 500 megawatts in total capacity that shall add up to the country’s power supply.

In the first wind contracting round, the department has offered 16 wind sites; and this culminated in the signing of pre-commercial contracts (PCC) for five areas with private investors.