Monday, December 12, 2016

Chinese company takes in equity in $1-B Pulangui V hydro power project



Published November 20, 2016, 10:00 PM By Myrna M. Velasco

PowerChina Guizhou Engineering Corporation will be taking in significant equity in the proposed $1.0-billion Pulangui V hydroelectric power project due to start construction in Mindanao grid by year 2018, according to its prospective local partner Greenergy Development Corporation.
According to Greenergy President and Chief Executive Officer Cerael C. Donggay, PowerChina as a joint venture partner is set on specific percentage of equity ownership in the 300-megawatt hydro project, but this has yet to be firmed up by relevant parties.
“Chinese investors will come in, which specific percent ownership will be observed in accordance with laws of the Philippine Republic,” he said.
A memorandum of agreement (MOA) was inked between Greenergy and PowerChina on last month’s state visit of President Duterte in China. At this stage, Greenergy informed DOE officials that they are currently waiting for the authentication of the documents by the Philippine consulate in Beijing.
With the very long gestation period for hydropower projects, Donggay indicated that the hydro power facility will come on stream at the time that overcapacity in Mindanao will already wear out.
“Given the need of compliance with regulatory bodies, development and construction may start in 2018 followed by construction in 5-6 years,” Donggay said.
He stressed that the project’s completion will be at a right timing “when excess coal power will be depleted below the expected power demand by 2024.”
At construction phase, the proposed plant will yield about 5,000 jobs; while 10,000 in various forms of employment could be generated post-completion in the areas of watershed rehabilitation and reforestation programs, fishery and livelihood projects, plantations of high value crops, irrigation control and development of rice paddies in downstream areas, among others.

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