DOE creates team on APHC privatization

Danessa Rivera (The Philippine Star) - December 16, 2020 - 12:00am
https://www.philstar.com/business/2020/12/16/2064019/doe-creates-team-aphc-privatization

MANILA, Philippines — The Department of Energy (DOE) has formed a team to recommend policies on the privatization of the Agus-Pulangi Hydropower Complex (APHC) and other related energy issues in the Bangsamoro region.

Energy Secretary Alfonso Cusi issued an order forming a technical working group (TWG) to provide policy recommendations on power-related issues, particularly the APHC, to the Bangsamoro Government.

“The APHC-TWG, as hereby constituted, shall provide policy recommendations for the effective implementation of the Bangsamoro Organic Law,” the order read.

“Primarily, the APHC-TWG shall provide policy recommendation on the privatization of APHC and the resolutions of power sector issues in the Bangsamoro areas, with full consideration of the provisions of Bangsamoro Organic Law and the Republic Act 9136,” it said.

The TWG will be chaired by DOE Assistant Secretary Redentor Delola with representatives from the Energy Regulatory Commission, Mindanao Development Authority, National Electrification Administration, Power Sector Assets and Liabilities Management Corp., National Power Corp. and National Transmission Corp.

The recommendations shall be submitted to the Intergovernmental Energy Board (IEB), which was established under the Bangsamoro Organic Law (BOL).

The National Government-Bangsamoro Government Intergovernmental Relations Body (IRB) agreed that the privatization of the APHC would be referred to the IEB, which is co-chaired by the Energy secretary.

The DOE formed the TWG after the IEB moved to create a TWG to discuss the matter of privatization of the APHC and other power issues related to the asset’s sale that requires in depth legal and technical assessment and evaluation.

The 982-megawatt (MW) APHC – which is considered as crown jewels of the Mindanao power industry – is among the remaining power assets owned by government.

Currently, the power facilities can only supply up to 40 percent of their total capacity to the Mindanao grid due to its age.

The Agus Complex consists of six cascading power plants which uses the water from Lake Lanao in Marawi City, flowing through the Agus River and down to Maria Cristina Falls in Iligan City.

The complex should have seven facilities but the third project, Agus III, has yet to be finished.

The Pulangi complex, on the other hand, is a 255-MW hydropower facility with three generating units.

Apart from the APHC matter, the IEB also discussed energy development issues in the BARMM such as those concerning joint exploration, development and the utilization of fossil fuels and uranium during its kick–off meeting.

Earlier, Finance Secretary Carlos Dominguez has underscored the need to put in place the coordination mechanisms between the national government and the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM), such as the IEB and the other intergovernmental bodies to accelerate the implementation of programs leading to lasting and genuine peace and development in Mindanao.