Energy office inaction ‘hampers hydro power projects’

By Teresa Ellera-Dulla
Wednesday, January 18, 2012


JOSE Maria Valencia, provincial legal officer and chief of staff of Governor Alfredo G. Marañon Jr., said Tuesday the Department of Energy (DOE)’s inaction on expired service contracts covering several rivers in the province is hampering the development of hydro electric power projects for Negros Occidental.


These service contracts for hydro power projects were entered into by the DOE with potential investors without the consent nor consultation with concerned local government units nor the Capitol.


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Valencia recalled that, on October last year, DOE Secretary Jose Almendras informed provincial officials that they should just wait for the expiry of these contracts.


"The contracts have already expired but the DOE has not yet acted on them," Valencia pointed out.


Valencia said that they have called the attention of the DOE on these service contract holders, which has not even undertaken initial feasibility studies in the areas nor has consulted with the respective LGUs.


He lamented that, when Capitol queried again recently with DOE regarding the said contracts, he was informed that, despite the expiry of the said service contracts, the holders have to be given due process.


He said this has resulted in the delay of the projects and eventually will discourage the would-be investors of the hydro power projects in the province.


Practically all the main rivers in the province eyed for hydro power projects were covered by these service contracts, according to Valencia.


Several investors had communicated to Capitol their intent to develop hydro power projects in the province but the existence of these DOE contracts prevent interested investors from undertaking further feasibility studies as a follow-up to their initial feasibility studies.


The hydro power projects are eyed by the Provincial Government to address the looming power shortage by year 2015.


Published in the Sun.Star Bacolod newspaper on January 18, 2012.