Smaller hydro plant proposed in Davao City

Business World Online

Posted on August 20, 2013 10:11:50 PM

A UNIT of listed Aboitiz Power Corp. (AboitizPower) has downscaled the hydro power plant it has proposed in Davao City, according to the second-quarter financial report the company disclosed through the bourse last week.

“Originally planned as a 27.5-MW (megawatt) run-of-river facility, Hedcor Tamugan, Inc. submitted a new proposal, which involves the construction of a 12-MW hydro power plant,” the report read.

“Hedcor Tamugan is waiting for the Davao City council to approve the project. Once approval and permits are secured, the two-year construction period will commence,” it added.

The plant will source its water requirements from the segment of Tamugan River in Davao City.

“In 2010… Hedcor Tamugan reached an agreement with the Davao City Water District (DCWD) on the use of Tamugan river,” AboitizPower said.

DCWD said last June that it will pursue its plan to tap the same river to provide additional water supply to residents of the city.

Hedcor Tamugan is a wholly owned subsidiary of Hedcor, Inc., which in turn is a unit of AboitizPower that engages in development of hydro power projects.

Hedcor is conducting feasibility studies for potential hydro power projects across the country, according to the same report.

“Based on current findings, Hedcor sees the potential of building plants with capacities ranging from 10 MW to 50 MW,” said AboitizPower.

“When the projects pass the evaluation stage and once permits are secured, the two-year construction period for the hydro power plant facilities will commence,” it added.

Hedcor is building two hydro power plants (Tudaya 1 and Tudaya 2) with combined capacity of 14 MW in Sta. Cruz, Davao del Sur -- both of which are expected to be completed by the first half of 2014.

The company started construction of its 14-MW Sabangan hydro power plant in Mountain Province last May. Operation of the plant is expected to start by 2015.

Hedcor currently has 19 hydro power plants in its portfolio, with aggregate capacity of 155 MW.

Tudaya 1 and 2, together with the Sabangan power plant, will bring the complement of its hydro power plants to 23.

Among Hedcor’s existing projects are the 5.9-MW FLS hydro plant, 3.6-MW Lon-oy hydro plant and 2.4-MW Lower Labay hydro plant, all located in the municipality of Bakun in Benguet; as well as the 2.4-MW Salangan hydro plant in the municipality of Itogon, also in the province of Benguet.

In Davao City, the company currently operates five hydro power plants: the 1-MW Talomo 1 hydro plant in Calinan district; Talomo 2, 2A and 2B with a combined capacity of 1.55 MW in Tugbok district; and 1.92-MW Talomo 3 hydro plant in Catalunan Pequeño.

AboitizPower, the power generation and distribution arm of the Aboitiz Group, saw its net income fall 25.07% to P5.05 billion last quarter from P6.74 billion a year ago. Shares of the company closed at P2.45 each on Friday last week. -- C. A. M. C. Feliciano   source