Tuesday, October 10, 2017

VisMin power link-up could be EO 30 ‘pilot project’



Published By Myrna M. Velasco

The Visayas-Mindanao Interconnection Project (VMIP) is hinted as the ‘pilot project’ that will likely test the viability of President Rodrigo Duterte’s Executive Order No. 30, or the Malacanang-issued policy streamlining processes of energy project approvals.
Energy Secretary Alfonso G. Cusi indicated to reporters that he is already nudging the Energy Investment Coordinating Council (EICC) led by Senior Energy Undersecretary Jesus Cristino P. Posadas on the completion of the crafting of the EO’s implementing rules and regulations.
“I am rushing them (EICC body) because we’re going to declare already a project of national significance…A pilot project for the EO,” he said.
When prodded which particular project would serve as EO 30’s test case, the energy chief sounded off that “it could be the interconnection,” referring to the long-planned link-up of the Visayas and Mindanao power grids.
Cusi has not been very specific though if the EO 30-supported VMIP would be the one undertaken by concessionaire National Grid Corporation of the Philippines (NGCP) or the government-proposed venture to be carried out by the National Transmission Corporation.
NGCP already secured regulatory approval on its proposed VMIP through the installation of submarine cable from Cebu to Zamboanga, which has been estimated to command total investment of R52 billion.
Cusi is still ambivalent though of having this project done as a purely private sector undertaking, noting that having this project bankrolled by the Malampaya fund remains an option.
“Why we are proposing the Malampaya fund? It’s not a competition with NGCP or TransCo…because if we use the Malampaya fund, the consumers would no longer shoulder the cost of putting up that interconnection,” he said.
Cusi added “our main concern is that, our (electricity tariff) is still the highest…that’s why we’re also making a study to find out why we have the highest rates.”

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