Monday, March 14, 2011

New Pulangi dam pushed for public-private partnership

Business World Online
Posted on March 14, 2011 11:21:19 PM

CAGAYAN DE ORO CITY -- This city’s power utility is pushing for the Pulangi III Multi-Purpose Dam Project as a public-private partnership (PPP) initiative, a ranking executive of the company said here.
David A. Tauli, senior vice-president for engineering of the Cagayan Electric Power and Light Co., Inc. (Cepalco) said in a recent interview that Bukidnon Rep. Florencio T. Flores, Jr. (2nd District) has given his support for the project. Mr. Flores could not be contacted immediately to confirm Mr. Tauli’s claim. But in previous statements, he had expressed support for hydro power projects in the province.
Compared with the existing Pulangi IV and the planned Pulangi V, which are primarily hydroelectric facilities, Pulangi III will have an irrigation component like multipurpose dams in Luzon.
"(Mr. Flores) said the project is urgent in order to prevent floods similar to those that occurred in Valencia last week and those in Cotabato provinces last month," Mr. Tauli said, noting that multipurpose dams can help prevent floods in low-lying areas.
Mr. Tauli said the proposed multipurpose Pulangi III Dam is estimated to cost P15 billion.
The facility, designed to generate 90 megawatts (MW) at a cost of P3.50 per kilowatt-hour, could start operating in 2016 if work starts this year, Mr. Tauli added.
"He (Mr. Flores) also said the project is needed for irrigation and for the power that could be generated, which would be more than enough to supply the requirements of the province of Bukidnon when it comes into operation," Mr. Tauli said.
Excess power could be sold to nearby areas, including this city, he added.
Under a PPP scheme, the legislative district could take charge of developing the flood control and irrigation components in partnership with state bodies, namely: the Department of Public Works and Highways, the National Irrigation Administration, as well as the local governments of Valencia and Malaybalay.
For its part, Cepalco will work on the power component and bring private sector investors and off-takers that will buy the electicity generated. "The off-takers will most likely be the recently organized association of distribution utilities in Northern Mindanao, mainly the electricity cooperatives of the Northern Mindanao Electric Cooperatives Association and private utilities such as Cepalco and Iligan Light and Power Co.," Mr. Tauli said.
He acknowledged, however, that investors have seemed hesitant to take on multipurpose dam projects, which are more complicated than those that are designed purely to generate electricity. -- M. D. Baños

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