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HomeUS-based firm offers to build P75 billion power plant, tunnel in Cebu

US-based firm offers to build P75 billion power plant, tunnel in Cebu

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CEBU, PHILIPPINES – Cosmo Energy LLC, a company based in Oklahoma, United States, has expressed interest in constructing a P75-billion power plant and tunnel in Cebu City through which telecommunications and power lines can pass.

As per report of SunStar, the company stated that it would build these facilities at its own expense, and the Cebu City Government would not be required to pay for them, according to lawyer Gerardo Carillo, chairman of the Cebu City Disaster Risk Reduction and Management Council (CDRRMC).

According to Carillo, Cosmo Energy wishes to enter into a joint venture agreement (JVA) with the Cebu City Government, and it has stated that it will charge only P9 per kilowatt hour, according to the Cebu City Public Information Office (PIO) via its website.

Carillo made a remarks on Wednesday, February 16, 2022, at Panaghisgot, a forum hosted by the Cebu City PIO and held on Wednesday, February 16, 2022, “I’m very glad that Cosmo offered 200-megawatt power. If they will operate, that will lower the cost of electricity. Veco (Visayan Electric Company) now is imposing us around P14 per kilowatt (hour).”

According to Cosmo Energy’s estimates, the project could cost up to $1.5 billion, or approximately P75 billion. The underground tunnel, power plant, and cables are already included in this price.

Carillo hopes that the JVA will be reached so that Mayor Michael Rama’s plan for Cebu City to have its own power plant can be implemented.

Meanwhile, during Environment Secretary Roy Cimatu’s visit to Cebu City on January 14, 2022, Rama requested that he build a power plant, underground power lines, and telecommunication lines that were severely damaged when Typhoon Odette (Rai) hit Cebu on Thursday evening, December 16, 2021.

Cosmo Energy, LLC is a family managed oil and gas acquisitions company based in Oklahoma City, Oklahoma. Cosmo Energy’s primary focus is in Oklahoma in the Anadarko and Arkoma Basins.

“Our primary strategy is the purchase of high return assets and the strategic development of those assets over time. Cosmo Energy also holds a large footprint of non-operated working interests throughout the state.”

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