Mindanaoan-run firm eyed to solve power woes

Monday, May 28, 2012

THE Mindanao Development Authority (Minda) plans to create "Mindanao Power Corporation" (MPC) -- a Mindanaoan company that would oversee the operation of remaining government-owned power assets in the island.

Romeo Montenegro, head of media and public affairs for Minda, said they sent a memo last week to President Benigno Aquino III about the proposal.

Montenegro, in Monday's Kapehan sa Dabaw at SM City, said they are now waiting for an executive order formalizing the creation of MPC.

To recall, the MPC is one of the proposed recommendations raised by power stakeholders during the Mindanao Power Summit held in Davao City on April 13.

Stakeholders believe that with the creation the MPC, the government need not privatized remaining power assets in Mindanao and allow Mindanaoans to resolve its own problem of power shortage.

Among these power sources, Montenegro said, is the Agus-Pulangi hydropower complex that has a total capacity of 900 megawatts (MW). Right now, he added, Agus-Pulangi plants only produce 646 MW that is only 65 percent of its total generating capacity.

"Agus 2, 4, 5, 6, 7 are operational," he said, adding that there's an ongoing rehabilitation on Agus 3.

Minda is eyeing more than 800 megawatt power generation this year for the Agus-Pulangi in the Mindanao Grid that is expected to generate an additional 200 MW from the Agus 3.

The state-run Power Sector Assets and Liabilities Management Corporation (Psalm) previously reported that there is a loss amounting to P15 billion for Agus-Pulangi complex since 2001.

For his part, Montenegro added that Psalm only presented "one side of the coin," saying that Agus-pulangi earnings have been used to pay up the debts of other government power assets amounting to P83 billion.
Agus-Pulangi earned around P68 billion since 2001.

Minda urged Congress to review the Energy Reform Industry Act (Epira) Law since it failed to meet up its purpose to ensure reliable supply of energy, and offer better competition in the players of power industry. (ALC)

Published in the Sun.Star Davao newspaper on May 29, 2012.    source