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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