K-Water eyes $900-M Pulangui V hydro project

Manila Bulletin 
By Myrna M. Velasco 
Published: June 3, 2013 
Korea Water Resources Corporation (K-Water) is planning to join any ‘project tender arrangement’ that the Philippine government may set for the proposed $900 million (approximately P38 billion) Pulangui V hydropower project in Mindanao.
The proposed capacity of the greenfield hydro plant is 250 to 300 megawatts and it will be a dam-underpinned project. The facility’s site could cover several areas in Bukidnon and is also set to reach North Cotabato for the dam component.
“We are studying Pulangui V project and we are interested to develop it,” K-Water director general for overseas business department Won-Cheol Park has noted in a chance interview.
The other venture eyed by the company is the proposed Bulanog-Batang hydro power project in Bukidnon, which it penciled in to cost $490 million.
Based on initial studies by other prospective developers, the facility could yield power capacity of about 150 megawatts.
Another target cast in the South Korean firm’s investment roll for the Philippines is the P12.0 billion Kapangan run-of-river hydropower project in the Cordilleras.
Park was in the country last week to continually discuss with government officials the remaining contentious issues on the turnover of the privatized 218-MW Angat hydropower plant.
The company also renewed last May 28 its security deposit for the Angat facility, effectively stretching their engagement in the project for another six months while matters relating to the issuance of the certificate of effectivity (COE) are being sorted out.
Despite the “five tricky hurdles” in the negotiations for the Angat plant transaction, the K-Water official noted that they would want the “deal to close.”
According to government sources, a new appeal was lodged by the Korean firm for further deferment of the COE issuance pending the resolution of “outstanding issues.”
The Power Sector Assets and Liabilities Management Corporation (PSALM) was reportedly inclined to issue the COE first week of June, based on the deadline earlier given by Finance Secretary and PSALM board chairman Cesar Purisima.
Energy Secretary Carlos Jericho L. Petilla also hinted to reporters that the government already has a “Plan B” in case K-Water walks away from the transaction or if negotiations on the closing will hit ‘epic fail’.
While he has not given the details, it was gathered from the side of the Metropolitan Waterworks and Sewerage System (MWSS) that the “option plan” could be a “re-bidding” or it may also involve the second highest bidder which is First Gen of the Lopez group.   source