MANILA, Philippines – The government is readying a comprehensive plan to rehabilitate the Agus-Pulangi hydropower complex, a top energy official said.
Energy Secretary Jose Rene Almendras said even if legislators eventually decide to sell the hydropower assets, the Department of Energy (DOE) has already devised a plan for it.
“Whether JCPC (Joint Congressional Power Commission) will decide to sell or not, we have a plan that will ensure stability of power in Mindanao,” Almendras said.
Earlier, the Power Sector Assets and Liabilities Management Corp. (PSALM) said it will shoulder the funding for the rehabilitation of the Agus-Pulangi facilities.
PSALM president and CEO Emmanuel Ledesma Jr. said the rehabilitation of the hydropower complex was proposed by the National Power Corp. (Napocor).
“Since PSALM signed the operation and maintenance agreement with Napocor, PSALM will fund the Agus-Pulangi rehabilitation either through income from power plant operations or through financing,” he said.
Earlier estimates showed that the government may spend about P3 billion to keep the Agus-Pulangi facilities running.
Napocor president Froilan Tampinco earlier said for the rehabilitation works needed to bring up additional capacity for hydropower facilities in Mindanao, “it will cost around P2 billion to put in an additional of about 100 to 200-MW capacity.
But if we would like to add or uprate some of the facilities, for instance the Pulangi which will include the cost for dredging, then we’re looking at spending about P3 billion,” he added.
At present, the executive and legislative bodies are evaluating their options on the privatization of Agus-Pulangi hydropower complex, which under the Electric Power Industry Reform Act (EPIRA), should be auctioned off 10 years after the passage of the power bill.
The privatization of Napocor assets and contracts is crucial for the National Government to cut off on Napocor’s debts.
“The completion of the privatization program is necessary to check the further accumulation of debts because, historically, the remaining generation assets and the plants operate at a loss. Further delays in the privatization program, on the other hand, may increase the amount of the indicative shortfall,” PSALM said.
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By: Donnabelle L. Gatdula
Source: The Philippine Star, Oct. 14, 2011
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