ZAMCELCO Signs 85 MW Power Supply Agreement with Malita Power Inc.

MPI Wins Competitive Bidding with Lowest Offered Rate

Zamboanga City, May 2, 2025 — In a significant move to enhance power reliability in Zamboanga City, the Zamboanga City Electric Cooperative, Inc. (ZAMCELCO) officially signed a Power Supply Agreement (PSA) on Friday, May 2, 2025, with Malita Power Inc. (MPI) for an 85 MW baseload capacity.

The contract signing ceremony was held at the ECJ Hall in the San Miguel Corporate Office in Pasig City yesterday afternoon.

Attended by key officials from both parties, the agreement formalizes a 10-year commitment by MPI to deliver continuous and dependable energy from its coal-fired thermal power facility in Davao Occidental.

The PSA signing followed a competitive bidding process that attracted two qualified bidders. MPI secured the contract after offering the lowest and most competitive rate, providing the best deal for ZAMCELCO and its member-consumer-owners. The rate offered by MPI, however, remains subject to the review and approval of the Energy Regulatory Commission (ERC).

ZAMCELCO Chief Management Officer Atty. Rommel S. Agan highlighted a notable feature of the agreement: the guaranteed supply of electricity with zero outage allowance. Under this provision, MPI is contractually obligated to maintain uninterrupted power delivery—even during plant outages—without imposing additional costs on ZAMCELCO.

Representing ZAMCELCO at the signing were Board President Ernesto O. Oller, Chief Management Officer Atty. Rommel S. Agan, and General Manager Engr. Gannymede B. Tiu. MPI was represented by General Manager Elenita D. Go and Chief Finance Officer Paul Bernard D. Causon.

“This agreement strengthens ZAMCELCO’s mission to provide affordable, reliable electricity to our consumers in Zamboanga City. It is a vital part of our long-term strategy to meet growing power demands and avoid energy shortages in the future,” said Board President Ernesto Oller during the ceremony.

Engr. Gannymede B. Tiu, General Manager of ZAMCELCO, emphasized that the contract with Malita Power Inc. also aligns with national energy policies, including future provisions for retail competition, green energy integration, and compliance with regulatory standards set by the Energy Regulatory Commission (ERC).

The delivery of the power supply under the agreement is scheduled to begin on or after July 26, 2025, following the approval of the ERC—whether provisional, interim, or final. (END)