Aboitiz Power pushes Isabela hydro project

Manila Standard Today

by Alena Mae S. Flores

SN Aboitiz Power Corp., a joint venture between SN Power of Norway and Aboitiz Power Corp., has expressed strong interest to build the Ilaguen hydropower and bulk water reservoir project in Isabela estimated to cost around P12.9 billion.

SN Aboitiz president Emmanuel Rubio told reporters Friday that the company would initiate studies to validate the project’s viability.

The Agriculture, Agrarian Reform and Environment Departments are spearheading the project with provincial governments and the private sector.

“The original study [from National Power Corp.] says it can generate 88 megawatts, but we’re updating that. We have no estimates yet. We initially estimate to complete the feasibility study by the end of this year,” Rubio said.

Rubio said SN Aboitiz had applied for a service area permit with the Energy Department for the Ilaguen B hydro project.

He said the company was open to talks with the service contract owner of the area for a possible joint venture if the holder of the concession had legal claims.

Rubio said the province of Isabela tapped SN Aboitiz to take part in the project because of its expertise in hydropower development.

Aboitiz Power is the holding company for the Aboitiz Group’s investments in power generation and distribution while SN Power is a global renewable energy company owned by Norway’s Statkraft and Norfund.

Statkraft is Norway’s public power utility and Europe’s largest generator of renewable energy while Norfund is a leading Norwegian risk capital investor in emerging markets funded by the Norwegian government.

Mike Hosillos, SN Aboitiz vice president for corporate services, said the Ilaguen B project was in the early stage of development.

“What we’re counting on is that we’re part of the convergence [project] and it’s not like a simple plan where we need to just put up the facility. It will require a reservoir,” Hosillos said.

“The province [of Isabela] is really pushing for it,” the official said.

The project will generate power for the towns of Ilaguen, San Agustin and Tumauini.