The Kepco Case Analysis

CASE ANALYSIS

LIVING WITH KEPCO-SPC AND COAL

Viewpoint

President Benigno Aquino III (P-Noy)

Time Context

After 27 June 2011, when the President inaugurated the103MW x 2Units Circulating Fluidized Bed Combustion (CFBC) Cebu Coal-Fired Thermal Power Plant located at the City of Naga in the Province of Cebu.

I. Problem Statement

The power outlook for the province of Cebu including its neighboring provinces is more or less stable with the commercial operation of the Coal-Fired Thermal Power Plant. Rotating brownouts is a thing of the past. P-Noy described the past predicament of Cebu as “a hostage of its own success…”

The LGUs of Metro Cebu failed, in some instances resist, to coordinate their actions with one another. Hence, Metro Cebu was not able to conceptualize a common development plan and foresee the future power demand of the province. As posted by Fernando Fajardo in Cebu Daily News Online on 23 February 2011, “each member city and town continues to do its own thing without regard to what the others are doing.”

On 12 April 2011, the Metro Cebu council members signed an agreement to establish the Metro Cebu Development Coordination Board (MCDCB). The goal of the MCDCB was to achieve an integrated, inclusive and sustained development of Metro Cebu. With the problem of rotating brownouts had been resolved, the local government of Cebu can now shift into high gear on its development plans.

The question now “Is LGUs prepared to work as one, sans partisan politics, in creating a sustainable development plan for Metropolitan Cebu.”

II. Statement of the Objective

The root cause of the rotating brownout is the failure of the province of Cebu to anticipate its future power demand because they failed to realize the importance of coordination to solving their common problems; instead, they pursue their self or political interest. Further, for one reason or another some LGU does not like to report/work to other higher officials,...