La Union building hydro power plant

Manila Bulletin
by Erwin G. Beleo
November 10, 2014

Tubao, La Union — The Department of Energy (DOE) has finally given a go to the construction of the 1.5-megawatt hydropower plant project in Barangay Halog East, here, amounting to P240 million.

“After more than five years of complying the numerous documents and requirements, we can now start the construction of the project,” said Atty. Vicente Dulay Ching, consultant to the Tubao municipal government.

Ching said the project will be built along the Aringay River after a thorough project study by students of the University of the Cordilleras and experts from the Auburn Power Technologies, Inc.

Tubao Mayor Dante Garcia led local officials and executives of the La Union Electric Cooperative (Luelco) and the Tubao Hydro Electric Power Corp. (THEPC) in last weekend’s ground-breaking ceremony for the power plant project which promises to bring down the price of electricity in this province.

“There is already a power purchased agreement between Luelco and Tubao Hydro Electric Power Corp. Our constituents will benefit on this project and our neighboring towns,” Garcia said.

He said Luelco has committed to purchase the power to be generated by the project and sell it cheaper by P1 than prevailing rates to consumers in the province.

“Based on the feasibility study, the (Aringay River) location is suitable because of its soil and rock formation and away from residential houses. We come out with this project because we see the unstoppable increase in power rates. This is a solution on the shortage of electricity supply and we also want to develop our natural resources like this project,” Garcia said.

The mayor said the project is a public-private partnership which will be having a second phase for another 1.5 megawatts.

Alice Herrerra, an official of Auburn who serves as THEPC vice president, said the construction will start first week of December this year while the project is expected to be operational early 2016.

“This is the first hydro project of Auburn in partnership with Tubao government. Although its capacity is only 1.5 megawatts, this will solve electricity shortage in the province,” Herrera said.

She said the P240 million fund of the project will be loaned from the United Coconut Planters Bank. source