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By Euan Paulo C. Añonuevo, Reporter
PHILIPPINE National Oil Co. (PNOC)
plans to build another hydroelectric power plant in Mindanao at a
cost of about a quarter of a billion dollars to help prevent a
looming energy crisis in the country’s second-biggest island.
Pedro A. Aquino Jr., PNOC
president, said the state-owned company is eyeing to develop the
150-megawatt Bulanog-Batang hydro power project in Bukidnon
province.
“We have to respond to the
looming energy crisis in Mindanao and we are looking at the
Bulanog-Batang hydro project as one renewable project that can help
address this situation,” he said.
Rene Bala, PNOC manager for
energy research, said the company plans to shoulder about 30 percent
of the cost of the project, and allow private investors to spend for
the remaining amount.
He said PNOC has yet to send
invitations to other parties for the remaining 70 percent although
the Northern Mindanao Electric Cooperative Association Hydro Power
Corp. (NORMECA) has already signified its interest in the
facility’s funding requirements.
PNOC recently signed an agreement with NORMECA formalizing their
technical alliance to facilitate the development of the $245 million
project.
The agreement calls for the review of the potential of the Bulanog
and Batang rivers in Talakag, Bukidnon as a viable source of hydro
electric power.
The National Power Corp. (Napocor) made studies on the project in
1980 and 1991. But with the major restructuring of the energy
industry, the venture was shelved.
Based on these studies, “the
Bulanog-Batang hydro project remains one of the most viable power
projects in the region. It’s 150-megawatt output will be a big
contribution in meeting the energy demand in northern Mindanao.”
Pedrito H. Baculio, NORMECA president, said.
Mindanao’s booming economy,
driven by renewed interest in mining and consumer spending growth,
has been putting a strain on its power supply. A power shortage is
projected to hit the island if no new power plants are online by
next year.
Investors, who are looking for
longer supply contracts with the government, have largely stayed
away from power projects in Mindanao after the passage of the
Electric Power Industry Reform Act of 2001 effectively disallowed
build-operate-transfer (BOT) contracts.
“Should the study prove to be a
viable undertaking for PNOC, the company will waste no time in
pushing for its immediate implementation.” Aquino said.
Mindanao sources more than half of its power supply from hydro
plants, which produce relatively cheaper electricity and are cleaner
than fossil fuel fired plants. However, these facilities’
operations are severely hampered during summer because of water
supply constraints.
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