Liangan Power Corporation (LPC) has obtained approval from the Board of Investments (BOI) a renewable energy developer of hydropower energy resources, along with its $1.36 billion (about P67.7 billion) proposed hydropower project to be located in Lanao del Norte.
The 11.9-megawatt (MW) project falls under the Mandatory List (Republic Act 9513, otherwise known as the Renewable Energy Law) of the 2014-2016 Investment Priorities Plan (IPP).
Slated to be fully operational by January 2019, the investment project is expected to employ up to 44 personnel.
“This project, which has the support of Chinese investors, will further spur industrial development in the South since it is located between two strategic cities. With the government pushing for more infrastructure projects in the countryside by next year, the role of renewable energy is crucial in achieving the pace of industrialization,” Trade Undersecretary and BOI managing head Ceferino Rodolfo said in a statement on Tuesday.
LPC aims to provide reasonably-priced supply of electricity with minimal negative impact on the environment and host communities. The project area is situated in Northwest Mindanao within the municipality of Bacolod, Lanao del Norte and is within the proximity of Iligan City and Cagayan de Oro.
“This is a concrete manifestation of the emphasis of President [Rodrigo] Duterte to attract more Chinese investments in the country,” Trade Secretary and BOI Chairman Ramon Lopez said.
“The BOI and the Philippine Chamber of Commerce and Industry [PCCI] are working closely right now to bring in more investors from countries recently visited by the President including China,” Lopez added.
Around 31 percent of Mindanao’s power supply is currently sourced from renewable energy sources, according to data from the Mindanao Development Authority (MinDa).
With government pushing for more RE-based power investments, MinDa data shows that aggregate dependable power supply in the island-region now stands at over 2,300MW with peak demand at around 1,600 MW to date.
For his part, PCCI Chairman Emiritus Francis Chua said, “The recent China visit of President Duterte opens the floodgate of investments from China. The efficiency of BOI in approving registration applications without sacrificing prudence in regulation, is a testament to the promise of the President that ease of doing business is guaranteed under his administration. The Philippines henceforth is the destination of investors.”
Recently, around 40 investors from China attended a two-day Global Investment Forum in Taguig City with eyes on Mindanao for more investment opportunities. The event was organized by Mahal Ko Mindanao Inc. (MKMI) in partnership with Philippine First Investment Council Corp.
According to MKMI, among those who attended and expressed willingness to invest in Mindanao included Foxconn IPC Group (part of global electronics giant Foxconn Technology giant), CAS Engineering & Development Corp., CHINT Electric Group, and Shenda Electric Group.
“This development also shows that investor confidence in the country continues,” Rodolfo said.