National Grid cleared for P2-B Cagayan line

Business World Online
Posted on March 30, 2014 08:45:07 PM

THE NATIONAL GRID Corporation of the Philippines (NGCP) has received the green light to develop a P2.4-billion transmission line project in Cagayan province.
The Energy Regulatory Commission (ERC), in a decision dated Dec. 16, approved the grid operator’s Tuguegarao-Lal-lo (Magapit) 230-kilovolt (kV) transmission line project.

The project will involve construction of a new Lal-lo (Magapit) 230-kV substation; development of a transmission line that will link the new substation to the Tuguegarao substation; as well as expansion and configuration of the existing substation.

“The capital investment of the proposed project and activities is… P2,393,386,046.25 which will be funded through internal cash generated fund,” the decision read.

It added that the transmission line project is part of the development of the North Luzon loop that will connect the northwestern and northeastern 230-kV backbone of the Luzon grid. “This loop will provide adequate transmission facilities to cater to [sic] the huge wind power generation potential in the region, and importantly, to improve overall reliability of the transmission network of northern Luzon,” the decision read.

It also noted that existing transmission facilities have “reliability issues which endanger continuous and quality supply of power in the northern part of Luzon.”

Hence, the project is seen to “avoid power supply problems during line outage, repair, and rehabilitation and too ensure power quality to electricity consumers…”

“Perusal of the evidence presented… showed that the approval of NGCP’s Tuguegarao-Lal-lo (Magapit) 230-kV transmission project… will redound to the benefit of consumers in terms of continuous, reliable and efficient power supply,” ERC said.

ERC also ordered NGCP to submit a progress report on implementation of and schedule for the project. It also directed the firm to conduct competitive bidding for acquisition of key materials needed to develop the project.

NGCP -- a consortium composed of State Grid Corporation of China (40%), One Taipan Holdings Corp. (30%) and Calaca High Power Corp. (30%) -- took over operations of the country’s transmission network in 2009 under a 25-year concession agreement. The firm bagged the right to operate state-owned National Transmission Corp. assets after it submitted a bid of $3.95 billion in an auction conducted by the Power Sector Assets and Liabilities Management Corp. in 2008. -- Claire-Ann Marie C. Feliciano source