In a surprising turn of events, former Congressman Hector Sanchez’s company has gained a foothold in the local power industry after recently being disqualified from the EPSA 2 bidding.
Last June 5, 2026, S.C. Megaworld Construction and Development Corporation (SCMCDC), whose previous experience was running diesel gensets for big commercial developments and government offices, won the bidding for the lease of emergency power contracted by the National Power Corporation for the Catanduanes grid.
The negotiated procurement involved the emergency lease of 5.0MW modular diesel gensets for the Marinawa Dieset Power Plant and has an Approved Budget for the Contract (ABC) of P12.78 million.
Sanchez’s company won the bidding after its rival. Agrekko Energy Rental Solutions, Inc, withdrew due to its inability to comply with the delivery date of just three (3) days upon issuance of the Notice to Proceed.
Under the contract provisions, SMCDC will be responsible for the gensets’ installation at the site, supply of labor and materials, as well as its operation and maintenance, while NPC will supply the required diesel fuel presumably purchased at a discount from the Philippine National Oil Company (PNOC).
The lease will run for a minimum of 45 days and a maximum of 60 days, with NPC having the option to terminate the lease at any time after 45 days and to extend the contract on a month-to- month basis subject to availability of funds.
Assuming that the gensets operate for the full 60 days, NPC could spend around P100 million for the fuel alone and at least P20 million for the hauling of fuel, for a total cost of about P140 million together with the cost of the lease.
As of Sunday presstime, SMCDC was working with the local construction firm to move the six gensets, originally leased by Sunwest Water & Electricity Co. (SUWECO) for the expired EPSA 1, from the Solong Diesel Power Plant to the NPC Marinawa compound where it will be installed.
The gensets are supposed to start commercial operation by June 10, 2026, with the ceremonial switch-on to be attended by NPC President Jericho Jonas B. Nograles, National Electrification Administration (NEA) Administrator Antonio Mariano C. Almeda, in the presence of possibly Governor Patrick Alain T. Azanza, TGP Partylist Congressman Jose “Bong” Teves Jr. and Lone District Rep. Eulogio R. Rodriguez.
According to informed sources, the lease of the gensets as an interim measure while awaiting delivery and commercial operation of EPSA 2 would be the national government’s gift to Catandunganons as the country marks Independence Day on June 12.
Administrator Almeda was said to have asked Isla Dagyab Energy Corporation to speed up work on the EPSA 2 power plant ahead of its best-effort pledge of June 15, 2026 so that it could be switched on at the same time.
Thus, there is a very real possibility that the eight-hour rotational brownouts that the 60,000 member-consumer-owners of the First Catanduanes Electric Cooperative, Inc. (FICELCO) would end right this day.
The lingering question at the back of power industry observers is why it took so long for NPC to procure emergency power for Catanduanes grid.
Even before the expiration of the EPSA 2 contract of SUWECO, the FICELCO Board of Directors and management had written NPC to appeal that it assume its role under existing law to act as the Supplier of Last Resort (SOLR) until such time that a new power provider commences operation.
In fact, the last appeal was made on May 15, 2026 when the EPSA expired and the rotational brownouts began.
Was it because the top three public officials from the (un)Happy Island met with the top brass of DOE, NPC and NEA one after the other, with two of them now claiming credit for NPC’s interim measure?
Or was it because NPC belatedly realized its responsibility to the island and its people, especially after DOE Secretary Sharon Garin directed NEA on June 1, 2026 to coordinate with the NPC to fast-track the deployment of emergency generator sets to Catanduanes to mitigate the power deficit as an interim measure?
Whatever happened and who should take credit, the NPC’s better-late-than-never intervention deserves to be welcomed by the brownout-weary Catandunganons regardless of how expensive this interim measure and EPSA 2 turns out.