By Neil Jerome C. Morales (The Philippine Star) Updated September 26, 2012 12:00 AM
MANILA, Philippines - Agus 3 Hydropower Corp., the proponent behind the Agus 3 hydropower plant, is seeking congressional approval to pursue the $500-million project in Mindanao.
The 225-megawatt (MW) power plant will increase available output in electricity-starved Mindanao, the company said in a statement.
In a letter to the Joint Congressional Power Commission (JCPC) dated Sept. 10, Agus 3 said it is applying for a service contract in line with the Renewable Energy Act of 2008.
“The development of the Agus 3 hydropower plant can proceed independently of the privatization of the Agus complex...and in furtherance of the objective of the Renewable Energy Law for the acceleration of the exploration and development of renewable energy resources for power generation,” the company said.
“The immediate implementation of Agus 3 will empower the host local government units and their constituencies by way of financial assistance to be derived from their share in the revenues of the Agus 3 hydropower plant,” it added.
Agus 3 said it has secured relevant government clearances, including the certificate of non-overlap from the National Commission on Indigenous Peoples.
In January, Agus 3 applied for a service contract to the Department of Energy (DOE).
However, DOE Secretary Jose Rene Almendras referred the matter to the Power Sector Assets and Liabilities Management Corp. for study of the current situation of the Agus complex.
The DOE, which also said that the awarding of hydropower resources in the area is not technically feasible due to the cascading nature of the resource, also asked the JCPC for policy directions.
Under Republic Act 9136 or the Electric Power Industry Reform Act of 2001, Agus complex should be privatized 10 years after the passage of the law.
The 10-year moratorium ended last June, but DOE already recommended not to sell the hydropower facilities prior to the deadline.
The sale of the hydropower complex has faced several oppositions, like concerns from the Alliance of Electric Service Companies in Mindanao that the low-cost power provided by the power complex could be jacked up when privatized.
Agus 3 is 80 percent held by Tranzen Group of Salvador Zamora II that also owns the country’s largest miner Nickel Asia Corp. The remaining 20 percent stake is owned by Lanao Hydropower Development Corp.
Agus 3 said it will fund the construction of the 225-MW primarily through bank financing.
The company has already secured a credit line from the Development Bank of China. source
The 225-megawatt (MW) power plant will increase available output in electricity-starved Mindanao, the company said in a statement.
In a letter to the Joint Congressional Power Commission (JCPC) dated Sept. 10, Agus 3 said it is applying for a service contract in line with the Renewable Energy Act of 2008.
“The development of the Agus 3 hydropower plant can proceed independently of the privatization of the Agus complex...and in furtherance of the objective of the Renewable Energy Law for the acceleration of the exploration and development of renewable energy resources for power generation,” the company said.
“The immediate implementation of Agus 3 will empower the host local government units and their constituencies by way of financial assistance to be derived from their share in the revenues of the Agus 3 hydropower plant,” it added.
Agus 3 said it has secured relevant government clearances, including the certificate of non-overlap from the National Commission on Indigenous Peoples.
In January, Agus 3 applied for a service contract to the Department of Energy (DOE).
However, DOE Secretary Jose Rene Almendras referred the matter to the Power Sector Assets and Liabilities Management Corp. for study of the current situation of the Agus complex.
The DOE, which also said that the awarding of hydropower resources in the area is not technically feasible due to the cascading nature of the resource, also asked the JCPC for policy directions.
Under Republic Act 9136 or the Electric Power Industry Reform Act of 2001, Agus complex should be privatized 10 years after the passage of the law.
The 10-year moratorium ended last June, but DOE already recommended not to sell the hydropower facilities prior to the deadline.
The sale of the hydropower complex has faced several oppositions, like concerns from the Alliance of Electric Service Companies in Mindanao that the low-cost power provided by the power complex could be jacked up when privatized.
Agus 3 is 80 percent held by Tranzen Group of Salvador Zamora II that also owns the country’s largest miner Nickel Asia Corp. The remaining 20 percent stake is owned by Lanao Hydropower Development Corp.
Agus 3 said it will fund the construction of the 225-MW primarily through bank financing.
The company has already secured a credit line from the Development Bank of China. source
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