“They informed the President that they are serious in investing once they get all the necessary approvals of government agencies concerned,” Treñas told reporters.

The new plant in Iloilo City will have a capacity of 164 MW.

Treñas said the mayor of Toledo in Cebu, who was also present in the signing rites, has allayed concerns of health and environmental risks claimed by oppositors to the coal plant project.

“According to him, the coal plant has been there for a long time but they have not seen harmful effects on population in Toledo,” said Treñas.

“They (investor) still have to go through the usual government approval. I don’t think the government will allow the investor to put up the plant if it will be detrimental to the people,” he pointed out.

Treñas said he will also consult with Jaro Archbishop Angel Lagdameo after the latter reportedly raised opposition to the proposed coal plant in the city.

He added that local business groups had sat down with Lagdameo to talk about concerns on coal plant.

“I’ll find time to be able to talk with the archbishop and ask for his opinion. The city’s coal plant evaluation task force has no final recommendation yet. All opinions have been listened to and their study is still on-going,” Treñas said.

“We have power problems. We hope there are proposals for other sources but there’s none yet. While we understand and appreciate the opposition, I think there should be an alternative if the proposal is not acceptable to them,” he explained.

Oppositors to the coal plant have been pushing for renewable energy source but their idea seems farfetched.

“Wind energy is site-specific. Indi man ta kabutang sang (We can’t put up) windmill, then ‘invite’ the wind. The Department of Energy needs the data to determine the areas with sufficient wind as to its magnitude. We are talking of renewable energy, if it’s available, why not? But we can’t just say ‘open sesame’ and it’s there,” Treñas clarified.

Asked about the claims of oppositors on health and environment hazards, Treñas said “the biggest (gaseous) emissions are coming from vehicles.”

Global Power is the largest independent power producer in the Visayas with a total capacity of over 230 MW using both coal and diesel technologies. It owns and operates the Toledo Power Station in Cebu which supplies VECO and CEBECO and the Panay Power Station which powers Iloilo City through PECO.

Formosa Heavy Industries owns and operates over 14,000 MW of coal fired plants in Asia, mainly Taiwan, China and Vietnam. It belongs to the Formosa Group of Companies, a global conglomerate and one of the largest plastics and petrochemical companies in the world.

The joint venture agreement completes the plans of Global Power to expand its power plants in Cebu and Panay in answer to the urgent need for more electricity in the Cebu-Negros-Panay grid.