NEWSFLASH

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GOVT REJECTS BATAAN POWER PLANT CONVERSION

Manila, Dec. 28, 1997 - The government has rejected the proposal of a private consortium to absorb the plant's P38 billion debts and convert the Bataan nuclear power plant into a 1,500- megawatt low-sulfur plant.

Energy Secretary Francisco Viray said there was no way the Bataan Power Consortium could absorb the debt of the $2-billion plant without eventually passing on the cost to consumers.

The consortium has pointed out that delaying the conversion of the nuclear plant until the year 1020 as planned by the government would mean P19.5 billion more in debt servicing.

Viray replied that the government expects a power surplus until the year 200, and only then will they need supplemental supply from the converted Bataan plant.

The consortium is composed of local businessmen as well as the US firm Community Energy Alternatives, Japan's Nippon Plant Management, Korean firms Kolon Group and Kohap Group,. The Filipino participants are Asian Neaga Inc of the Abbas family of Mindanao.

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