Published September 6, 2018, 10:00
PM By Myrna
M. Velasco
At least four multilateral lending
firms are in the queue and expressing willingness to finance the P50 billion
Agus hydropower complex rehabilitation project of the government.
In an interview with reporters,
National Power Corporation (NPC) President Pio J. Benavidez disclosed that the
initial interested parties to bankroll the project are the Asian Development
Bank, the World Bank Group, Japan International Cooperation Agency (JICA) and a
Chinese firm.
“After the feasibility study, we
will bid out the (Agus) rehab project, then we will look at the funding sources
available,” the NPC chief said.
He expounded that JICA has an offer
of 1.5-percent interest rate; while the Chinese firm is dangling it at
2.0-percent rate. The World Bank, he added, also sets keen interest to be part
of the project.
At this stage though, Benavidez emphasized that the priority is to re-analyze the rehabilitation options for the facility based on the feasibility study outcome of the World Bank.
At this stage though, Benavidez emphasized that the priority is to re-analyze the rehabilitation options for the facility based on the feasibility study outcome of the World Bank.
The FS result will be sifted through
anew by a third party consultant that will be working in tandem with the
state-run power firm’s technical team. “We are the counterpart because we will
provide the facilities and manpower,” he said.
It is a three-pronged approach that
the World Bank has proposed to the government – primarily to NPC as the
counterpart-implementer and the Power Sector Assets and Liabilities Management
Corporation (PSALM), being the transferee-entity for the asset.
First option, the NPC president
said, is to look at the rated capacity of the plant plus assess its safety
protocols; while the second option delves with the requirement to increase its
capacity from the level where it is currently de-rated at.
The last option will be combination
of the first two plus improving water efficiency, via dredging or other
solutions so the power facilities’ generation efficiency can be optimized.
Benavidez reiterated that financing
of the planned Agus rehabilitation venture shall range from P37 billion to P50
billion, depending on the final scheme that shall eventually be implemented.
The privatization of the hydropower
complex, Benavidez qualified, is not part of the current study – and may just
be done separately in the future, including assessments on the policy impact of
the newly-enacted Bangsamoro Organic Law, primarily on the cascading water
resource powering the Agus complex.
The PSALM Board previously indicated
that it targets to divest the hydropower assets after comprehensive
refurbishment so the State can fetch heftier scale of proceeds.
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