Posted on 10:32 PM, December 12, 2010
THE PLANNED rehabilitation of the state-owned Agus and Pulangui hydropower plant complex in Mindanao is estimated to cost around P3 billion, however funds for the project are still not available, the National Power Corp. (Napocor) said.
The National Power Corp. estimates that the government will spend about P3 billion to bring the Agus-Pulangui hydroelectric power complex back to its former generation capacities.
Napocor President Froilan A. Tampinco told reporters in an interview the rehabilitation of the Agus-Pulangui complex is expected to bring the power plants back to its full capacity of 700 megawatts (MW) and 255 MW include dredging.
"For the rehabilitation works that is needed to bring up additional capacity for our hydropower facilities in Mindanao, it will cost around P2 billion to put in an additional of about 100 MW to 200 MW capacity. But if we would like to add or uprate some of the facilities, for instance the Pulangui [power plant] which will include the cost of dredging, then we’re looking at spending about P3 billion," said Mr. Tampinco.
He added Napocor is evaluating how to go about the rehabilitation.
Since Napocor is disallowed by law to raise funds for power generation projects, Mr. Tampinco said funds for rehabilitation of Agus and Pulangui will have to be sourced through the Power Sector Assets and Liabilities Management Corp. (PSALM).
PSALM President Emmanuel R. Ledesma, Jr. told BusinessWorld in a mobile text message that PSALM has not provided for rehabilitation costs.
"Except for the regular operations and maintenance of Agus-Pulangui, we have not provided for rehab cost in the 2011 budget. We will need supplemental budget for any major rehab and additional borrowings to finance that budget," Mr. Ledesma said.
"Raising funding for the Agus-Pulangui rehab will also depend on the directions of the board and should be considered in our financing and liability management programs," he added.
The Agus hydropower plant has seven units with a combined generation total of 700 MW.
The first of the seven units was constructed in 1953, and the newest one started operation in 1992. Agus is located in Lanao del Sur.
The Pulangui hydropower plant in Bukidnon generates 255 MW and began operations in 1985.
Currently the power plants are operating at a derated capacity of around 200 MW to 300 MW.
The Agus-Pulangui power complex supplies about 55% of the power supply of Mindanao.
Both hydroelectric plants were scheduled to be privatized next year but the House Committee on Energy resolved to put on hold the privatization of the complex.
Energy Secretary Jose Rene D. Almendras earlier told reporters privatization of the two plants could mean the pricing can be managed in the region and attract additional generating capacities from investors.
Under section 47 of Republic Act 9136 or the Electric Power Industry Reform Act of 2001 (EPIRA) "the Agus and the Pulangui complexes in Mindanao shall be excluded among the generating companies that will be initially privatized. Their ownership shall be transferred to PSALM and both shall be operated by the [National Power Corp. (Napocor)]...the privatization of Agus and Pulangui complexes shall be left to the discretion of PSALM in consultation with Congress."
PSALM is the agency tasked by the EPIRA to privatize assets of Napocor to push for open access to electricity. -- ENJD
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