The Board of Directors of the First Catanduanes Electric Cooperative, Inc. (FICELCO) has agreed via 6-1 vote to accept the proposal of the Hector Sanchez-owned S.C. Megaworld Construction & Development Corporation for the second Emergency Power Supply Agreement (EPSA 2).
According to reliable reports, only Board President Romeo Santos of Baras-Gigmoto opposed the proposal while Director Raul Angeles of Viga-Panganiban-Bagamanoc, who presided over the May 19, 2026 meeting at the co-op headquarters in Marinawa, led the other five directors in considering S.C. Megaworld’s final proposal.
The other directors who were reportedly convinced by Dir. Angeles to favor the Sanchez company were Dir. Arsenia Bernacer of Pandan-Caramoran, Dir. Myrna Carilimdiliman of Virac, Dir. Emma Bueno of San Miguel, Dir. Alicia Arcilla of San Andres, and Dir. Salvacion Lee of Bato.
It may be recalled that following the posting of an invitation for the emergency power deal, only two firms submitted proposals – Vivant Corporation subsidiary isla Dagyab Energy Corp. and S.C. Megaworld.
A technical committee tasked with evaluation the proposals recommended the award of the contract to Isla Dagyab as S.C. Megaworld proposal did not comply with several parameters, including the requirement of a minimum 10-year experience in operating power plants in off-grid areas.
On the other hand, Isla Dagyab reportedly offered to field modular gensets capable of generating 8 megawatts of electricity, enough to address expected deficiencies in the grid this summer.
Three directors – Bernacer, Carilimdiliman and Bueno – voted for the Vivant proposal while directors Angeles, Lee and Arcilla voted no, with Board President Santos breaking the tie for a 4-3 decision in Vivant’s favor.
The dissenters wanted the board to reconsider S.C. Megaworld’s proposal as it offered a lower fuel efficiency rate of 0.26 liters per kilowatt-hour compared to Isla Dagyab’s 0.28 liters/kWh.
Likewise, they took issue with Isla Dagyab’s alleged proposal that under EPSA 2, they will be paid the entire contracted amount for the entire year even if the entire electricity is not delivered.
A representative of the Vivant subsidiary that would provide the gensets reportedly refused to match its rival’s lower fuel consumption rate.
In the subsequent meeting, Sanchez reportedly explained that its final proposal involves the rental of SUWECO’s diesel gensets owned by United Power Rental Inc. of Singapore and the acquisition of additional units to complete the 8 megawatt.
As to the final fuel rate of 0.28 liters/kWh, he said that it reflects the efficiency of the secondhand SUWECO gensets but could lower it to 0.26 liters/kWh if brand-new units are utilized.
S.C. Megaworld also submitted a lower True Cost Generation Rate ((TCGR) of P21.65/kWh, lower than Isla Dagyab’s P29.53/kWh.
During the May 19 meeting, Sanchez clarified that it could comply with the 0.26 L/kWh fuel rate but it wouid apply to its new generator sets.
The company also said that it has been guaranteed the use of a 500,000 liter fuel storage facility by Silangan Fuel Corporation, the contract of which would be finalized later, for the exclusive use of the 8 mW power plant.
On its alleged lack of experience in operating an off-grid power plant, it claimed that for the past 32 years, it has maintained and operated diesel generators at the Bangko Sentral ng Pilipinas (2 units of 3mW), Medical City Clark (3 units of 2mW) and the Department of Finance (1 unit of 1.25mW).
According to several sources, Sanchez committed to commence commercial operation of the initial 4 megawatts deliverable by the rented former SUWECO gensets within a week upon issuance of the Notice to Proceed by the cooperative and another three weeks for the balance.
The BOD reportedly wants S.C. Megaworld to present proof of the rental arrangement with SUWECO and United Power, but Sanchez claimed that United Power has already sent a proposal to SUWECO but it would need FICELCO’s go-signal through the Notice to Proceed.