Monday, April 25, 2011

AboitizPower to start $33-M hydro project construction in Mt. Province

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MONDAY, 25 APRIL 2011 19:34 PAUL ANTHONY A. ISLA / REPORTER

LISTED AboitizPower Corp. is prepared to start construction works for its 13.2-megawatt (MW) run-of-river hydroelectric power plant in Sabangan, Mountain Province within the first quarter of 2012.
In a regulatory filing, AboitizPower said Hydroelectric Development Corp. (Hedcor) Sabangan Inc.—the hydropower arm of subsidiary AboitizPower Renewables Inc.—will undertake the said project.
Total project cost is estimated between $26.4 million and $33 million considering that construction for this kind of facility may reach around $2 million to $2.5 million per megawatt.
AboitizPower said it is currently securing the necessary permits from the National Commission on Indigenous Peoples, environmental clearance and water rights.
As part of the Free and Prior Informed Consent (FPIC) process for the project as required under the Indigenous Peoples’ Rights Act of 1997 (IPRA), AboitizPower said Hedcor Sabangan signed memoranda of agreement with indigenous peoples living in barangays Namatec and Napua and the municipality of Sabangan, Mountain Province in February and March.
With the completion of the FPIC process, AboitizPower said Hedcor Sabangan is waiting for the issuance of the certificate of precondition by the National Commission on Indigenous Peoples.
“The two-year construction period is expected to commence in the first quarter of 2012 assuming that the required permits are secured by then,” Aboitiz Power said.
AboitizPower added that Hedcor Tudaya Inc. will also put up the 6.6-MW Tudaya 1 and 7-MW Tudaya 2 run-of-river hydropower facilities in Tudaya, Santa Cruz, Davao del Sur.
Hedcor Tudaya has already signed an agreement in February with the of Bagobo-Tagabawa tribe in that area. It is also waiting for the issuance of certificates from the National Commission on Indigenous Peoples.
AboitizPower said the proposed construction of Tudaya 2 does not require an FPIC process as there are no indigenous peoples living within the area.
AboitizPower said other permits required for the project are currently being processed. Construction period for Hedcor Tudaya 1 and 2 is expected to commence in July.
Chris Faelnar, Hedcor senior vice president for operations and maintenance, earlier said they are looking for other sites for hydropower plants within the area to meet the electricity demand of Davao Light and Power Corp.
Faelnar said Hedcor has been contracted to annually deliver 400 million kilowatt-hours (kWh) of electricity to Davao Light.
To meet the demand, Faelnar said they are looking at the developing the Sita River in Davao del Sur and also the Tamugan River. “We’re looking at other potential [sites] to satisfy the 400-million kWh that we’re supposed to deliver to Davao Light,” he added.
The Sita project is being considered as Tamugan has been downscaled to 10 MW which won’t be able to deliver the remaining 200 million kWh.
The Sita River—situated between the boundary of Davao del Sur and Bukidnon—is estimated to generate at least 40 MW to 60 MW of electricity.
Faelnar, however, said the Sita project is still in its prefeasibility stage and that only a fly-by survey has been conducted in the area.
It will be recalled that Hedcor has planned to put up a 27.5-MW hydroelectric power plant along the Tamugan River. The project to be downscaled owing to concerns aired by the Davao City Water District.
Faelnar said half of the 400-million kWh is expected to be delivered by the 42.5-MW Sibulan hydro power plant, while the balance is expected to be delivered by the Tamugan and other sites Hedcor would and could eventually develop.
Hedcor continues to look at further optimizing power generated from the Sibulan and Baroring rivers in Davao del Sur.

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