'Red tape' worsens power crisis - DOE

By Dennis Carcamo The Philippine Star Updated April 04, 2012 11:15 AM


MANILA, Philippines - The long and tedious process of securing government approvals has made it difficult for power investments in Mindanao to come on stream, the Department of Energy admitted on Wednesday.


In a radio interview, Energy Secretary Jose Rene Almendras said he had to personally go to Mindanao to meet with local government officials and barangay officials to iron out issues about permits to construct power plants.


"Hindi ako nagtataas ng sariling bangko, pero pumunta ako sa provincial board, nakikipag-usap sa barangay officials for the approval of a coal powerplant," Almendras said.


In the pipeline, Almendras said power plants that would produce 500 megawatts and 750 megawatts in the region are being ironed out.


"Kailangan pa 'yan ng local permit, maraming proseso iyan... It takes a year to get approval, may kakalaban... It takes one year to close a transaction, kapag may nag-invest, may magpapahiram ng pera," Almendras said.


He also said the government is expecting an announcement of a power plant project in a few days' time to address the power shortage in Mindanao.


"In a few days may mag-aannounce ng isang power plant project that will groundbreak. Hindi na kuwentuhan ito...masisimulan na ang power plant," Almendras said.


The power plant will be a non-hydroelectric power plant to supply electricity to parts of Mindanao while both the Agus and Polangui power plants are undergoing rehabilitation.


"It's the best time to shut down hydro plants in the summer... It will take around 30 months for their rehabilitation... Dapat may pansagot sa present na pangangailangn ng power supply," Almedras said.


Meanwhile, Almendras said there is enough power supply in Luzon and Visayas despite the double-digit growth in electricity demand in those islands.


He said the Manila Electric Co., Metro Manila's sole power distributor, has recently signed a 10-year power generation contract that would effectively reduce the electrity costs of its customers.


"This contract would be even lower than the electricty rates that we have now in Metro Manila," Almendras said. -- Cheryl Arcibal