First Gen signs agreement with Nueva Ecija for hydro project

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THURSDAY, 10 MARCH 2011 19:24 PAUL ANTHONY A. ISLA / REPORTER

LISTED First Gen Corp. (First Gen) said on Thursday that it entered into an agreement with the province of Nueva Ecija and the municipality of General Tinio for its planned Balintingon Reservoir Multipurpose Project.

The project, according to First Gen, will be undertaken by First Gen Luzon Power Corp. which will involve the development, construction and operation of a new hydro reservoir and a new hydroelectric power plant in General Tinio town for purposes of power generation, irrigation and domestic water supply.

First Gen said it still has not estimated how much the project will cost since it is still in its early stages and the company will be doing the prefeasibility study soon.

Federico Lopez, First Gen Luzon chairman and chief executive, said they have taken a keen interest in this project because of its potentially far-reaching contributions to the development not only of Nueva Ecija and General Tinio, but of the entire country. 

Once completed, Lopez said the project is envisioned to provide year-round irrigation to an additional 15,000 hectares and livelihood to more than 9,000 farm families and fisherfolk.  

Lopez added that the project will also generate additional megawatts of much-needed power in the Luzon grid and a solution to the seasonality of bulk-water supply to as far as the National Capital Region.

First Gen said the Department of Energy has previously given due course to the application for hydropower service contract filed by First Gen Luzon for the Balintingon project, pursuant to Republic Act 9513, otherwise known as the Renewable Energy Act of 2008.                

The Renewable Energy Act of 2008 was enacted into law primarily to accelerate and promote the exploitation and development of renewable-energy sources, increase the utilization of renewable energy, encourage the renewable-energy resources to prevent or reduce harmful emissions, and establish the necessary structures and mechanisms.

Nueva Ecija Gov. Aurelio Umali hailed the partnership as a model that should be replicated on a national scale where private investors that possess the required financial and technical capabilities and track record can be tapped to undertake massive infrastructure projects without having to draw from government resources. 

General Tinio mayor Virgilio Bote expressed confidence that the realization of the Balintingon project will not only uplift the social and economic status of the residents of General Tinio, but more important, enable the town’s untapped hydro resources to contribute to the power generation, irrigation and domestic water requirements of Nueva Ecija, the neighboring province of Bulacan, and Metro Manila. 

First Gen Luzon is a wholly-owned subsidiary of the Lopez-owned First Gen Corp., which has a track record of leadership and pioneering spirit in the use of clean and indigenous fuels, such as natural gas, hydro and geothermal energy, through its major operating assets Energy Development Corp. and the First Gas group of companies.