2 firms plan RE facilities at NIA properties; Magat solar eyed

Published March 21, 2020, 10:00 PM By Madelaine B. Miraflor
https://business.mb.com.ph/2020/03/21/2-firms-plan-re-facilities-at-nia-properties-magat-solar-eyed/

Two more companies expressed interest to build their respective renewable energy (RE) facilities within the properties owned by National Irrigation Administration (NIA), while SN Aboitiz Power Group, a subsidiary of Aboitiz family’s power arm, sought to pursue its proposal to build a solar power project in Magat Dam.

If things go well with these deals, this will provide NIA, whose earnings have been cut down since it was ordered to provide free irrigation, new sources of income.

In total, NIA had recently forged five memoranda of understanding (MOU) with three companies, including that with Aboitiz, for the potential development of several RE projects within its sites.

This was more than a year since NIA first revealed its plan to invite energy companies to invest and set up RE facilities within 379 potential sites where the agency currently operates.

This, according to the agency, will help the agency maximize the utilization of the country’s irrigation system.

“The development of hydroelectric and floating solar power projects is an undertaking of NIA to explore other income sources to sustain its viability as a government owned or controlled corporation [GOCC],” NIA said in a statement on Thursday.

Providing free irrigation to farmers is one of the promises made by President Rodrigo Duterte in his first State of the Nation Address (SONA).

Therefore, in 2017, NIA was told to stop collecting irrigation fees from farmers.

In the first MOU it recently signed, NIA is allowing Renewable Development for Sustainable Growth (RDSG) Corporation to conduct a feasibility study on the construction of mini hydroelectric power plants in three areas.

These areas are the Mal River Irrigation System (Mal RIS) Canal Stations in Matanao, Davao Del Sur, Andanan River Irrigation System (Andanan CIS) Canal located in Agusan Del Sur, and Miral River Irrigation System (Miral RIS) Canal Stations in Bansalan, Davao Del Sur.

The company was represented by its president and chief executive officer, Ruben B. Sumagang, during the MOA signing with NIA Administrator Ricardo R. Visaya.

NIA also signed an MOU with SunAsia Energy, Inc., represented by its president Theresa Cruz-Capellan.

In the deal, SunAsia Energy is targeting to pursue the development of a floating solar power project at the Pantabangan Reservoir located in Pantabangan, Nueva Ecija.

As for the MOU signing between NIA and SN Aboitiz Power Magat, it aims to pursue the development of floating solar power project at the Magat Reservoir located in Ramon, Isabela.

This will be done through an acceptable scheme under the existing laws, such as the Republic Act No. 9513 (Renewable Energy Act of 2008).

NIA pointed out that the feasibility studies to be conducted by all of the aforementioned hydroelectric and solar power developers will be at their own expense and at no cost to the government.