HONG KONG — Foreign or local investors who will be entering the Cebuano market could save themselves from a lot of hassle and stress if they opt to partner with the Cebu Provincial Government.
This was the gist of Gov. Gwen Garcia’s talk in a panel discussion at the recently concluded 2024 Asia Pacific Investors Cooperation (APIC) World Pension, Social Security, and Sovereign Wealth Funds Summit here on November 14 at The Royal Hong Kong Yacht Club.
“What would have taken them a year-and-a-half to just hurdle — the lot owners and going through government regulations — we’ve accomplished in six months,” Gov. Gwen said. “They are seeing how effective it is to partner with the Provincial Government of Cebu.”
The governor was referring to the Capitol’s ongoing partnership with the consortium Acciona Energia Global, a Spanish company that is a world leader in renewable energy production; and Freya Renewables, for the construction, maintenance, and operation of a 150-megawatt (MW) solar power plant in Daanbantayan.
While the consortium spends for the construction of the solar power plant, the Capitol exercised its right of imminent domain and filed a suit for expropriation of properties to be used by the power plant. The Capitol has also coordinated with national line agencies and power regulatory bodies for an expedited response to permit applications and other matters relevant to the project.
Because of this, Acciona Energia is already eyeing two more extension solar power plants in Cebu, with one to be put up in Toledo City and another in Dumanjug. Each of these extension plants will have a 150-MW capacity, bringing the total power output of the partnership to 450 MW.
This is very important because according to data by the National Grid Corporation of the Philippines, Cebu’s current total plant capacity is 1,123 MW. However, the island had a peak demand of 1,223 MW in May 2024, resulting in a 100 MW shortfall.
This problem could be avoided once the first LGU-led PPP in solar power generation becomes operational.
“With the 450 megawatts that will soon be available to the grid, this effectively brings down the cost of electricity. But more than that, we are not passing on our cost to the consumer. What we are doing is bringing down the price on a per kilowatt hour of power for all households,” Gov. Gwen said.
The Governor, joined by three board members and business leaders, was invited to deliver the keynote speech on building a multi-generational and resilient economy in a summit that gathered senior policy and regulatory leaders, CEOs, investment professionals; as well as leaders from institutional asset management, pension funds, and sovereign wealth funds from more than 100 countries in what is the first in-person gathering of its kind post-pandemic.
She added that cheaper power rates will always be good for businesses.
“Cheap power always is like honey to the flies, and that should signal a very good clarion call to all of our investors that are interested,” she said. “The market is replete with cash and you don’t know where to spend it. If you wish to be able to spend such capital, spend it in Cebu,” the Governor concluded.
Joining the Governor at the panel discussion were Leong Cheung, chief strategy officer of Exchange Fund Investment Office of the Hong Kong Monetary Authority; Torsten Albrecht, principal investment officer of Asian Infrastructure Investment Bank; and Atty. Robert John Cosico, deputy chief executive officer of Pag-ibig Fund. | with reports from Jude Torres
