Page 10 - Oil & Gas Australia - Feb 2015
P. 10

Issue 2 2018
              Resources Commentary                                       
                                                                                                     Issue 2 2018

          < Continued from page 6            political  considerations  interfere  the Bataan (Philippines) Nuclear Power
                                             with  economic decision-making, thus  Station”.  METTS found  that  conversion
          Elec. Corp., 714 F. Supp. 1362, 1366 (1989);  complicating the project management  was  technically  possible,  but  economi-
          Public Interest  Center vs. Roxas, G.R.  picture.  Historical  content  analysis  cally unwise. New and dedicated coal or
          No. 125509, 31 January 2007; Philippine  of events would reveal that earlier  natural gas-fired power plants would give
          Commission  on Good  Government vs.  discourses  on the BNPP  focused  more  much higher efficiencies than converting
          Desierto, G.R. No. 132120, 10 February  on  economic  considerations  (e.g.  BNPP.
          2003; Philippines vs.  Westing-house,   addressing power shortage concerns).
          774  F.  Supp.  1438,  1441  (D.N.J, 1991);                           The study concluded that the only way
          Philippines vs. Westinghouse Elec. Corp.,  Midway, the debates  related to techni-  of obtaining a reasonable  return from
          782 F. Supp. 972, 976 (1994); Philippines  cal project implemen-tations revolved  the BNPP is to use it as a nuclear power
          vs. Westinghouse, 139 F.R.D. 50, 52-53  around the issue of environmental sus-  plant.
          (D.N.J., 1991); Repub-lic vs. Westinghouse  tainability (e.g. safety issues, environmen-
          Elec. Corp., 43 F.3d 65 (1994); Republic  tal  impacts).  Latter discussions,  mean-  METTS’ conclusion was summarized in a
          vs. Westinghouse Elec. Corp., 821 F.Supp.  while, focused on power contestations  study  presented by Clarke, Ebeling and
          292 (D.N.J., 1993); and, Constantino, Jr.  (e.g. alleged  corruption, filing of  legal  Cordero at the First Philippine Interna-
          vs. Cuisia, G.R. No. 106064, 13 October  complaints, etc).            tional Conference on  Energy Efficiency
          2005).                                                                and Demand Side Management in Manila
                                             It appears  that  over time, BNPP  pro-  on January 1995:
          The Ateneo School of Government made  ject management discourses seemed to
          a  case  study  using  Sanderson’s  (2011)  have deviated away from the project and  •   That the use of the present ‘nuclear’
          framework in as-sessing the setbacks of  its  intended  benefits  and  proceeded  to  turbine/generator  in a fossil fired sys-
          the BNPP from its planning stage to its  tackle issues involving political interests.  tem would be high-ly wasteful of energy
          completion.                                                           (fuel),
                                             Reactivating the BNPP
          As  per  Sanderson’s  framework,  stra-                               •   A  new pulverised  coal  power  sta-
          tegic rent-seeking as  an explanation of  Previous administrations particularly the  tion and/or combined cycle natural gas
          megaproject underper-formance involves  Ramos presidency, have indicated that the  power stations at other site(s), would be
          conscious tweaking of project proposals  Philippines’  will-ingness  to have nuclear  a better investment in terms of fuel ef-
          in order to win project bids. It appears,  power, but that power will  come from  ficiency and levellised power costs,
          however, that in the BNPP  case, West-  a new plant and not the BNPP. In 1994,
          inghouse’s success in winning the BNPP  Ramos announced that the BNPP reac-  •   The Bataan site is inappropriate for
          contract was fueled more by a deliberate  tor would be converted to a 1000MW  coal  fired  plant, due  to  environmental
          effort to strategically wield existing po-  combined cycle gas plant.  constraints and materials (coal and ash)
          litical ties to serve private interests than                          handling problems,
          a conscious attempt to deceive project  M.E.T.T.S. Pty. Ltd. - Consulting Engineers
          evaluators.                        of  Australia (“METTS”) conducted a  •   More assessable  sites  could  be
                                             “Study of the Con-version Options for  found  for  combined  cycle  natural  gas
          The  case  is  also  an  example  of  how                             fired plants around Manila Bay and Batan-

                                                                                •   The Bataan reactor has been main-
                                                                                tained in a good condition since moth-
                                                                                balling, and

                                                                                •   The reactor is of basically sound
                                                                                design and construction, and could with
                                                                                modest expendi-ture become one of the
                                                                                most modern and safest light water reac-
                                                                                tors in East Asia.

                                                                                The study also noted that the perceived
                                                                                problems at the Bataan power plant are
                                                                                its greatest  liability. These  problems  in-
                                                                                clude seismic instability, claims of faulty
                                                                                workmanship and the lack of experience

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