Meralco cuts 2020 network capital expenditure to P9.34B

By Lenie Lectura May 4, 2020
https://businessmirror.com.ph/2020/05/04/meralco-cuts-2020-network-capital-expenditure-to-%e2%82%a79-34b/

The Manila Electric Co. (Meralco) has reduced its network capital expenditure (capex) to P9.34 billion this year, from P17.84 billion, as various projects were stalled by the enhanced community quarantine (ECQ).

“Because of the ECQ, the design, engineering, and construction, and even procurement of our capex project have been delayed that we had to recast our budget from P17.84 billion to P9.34 billion. This is only for the network side,” said Meralco First Vice President and Head of Networks Ronnie Aperocho.

The ECQ limited the deployment of people and transport of materials and equipment. “We expect network capex to be lower than budget for a number of reasons. It’s hard to get capex program going because of the lockdown.”

Only 27 percent, or P2.54 billion, of the revised network capex was utilized in the first quarter.

This year’s reprogrammed network capex include P2.88 billion for new connections, P2.39 billion for asset renewals, P2.27 billion to address load growth, P58 million for electrification project, P45 million for “Build, Build, Build” (BBB) and Private-Public Partnership (PPP) and P75 million for immovable and movable nonnetwork assets.

Aperocho said the balance of P8.5 billion would be carried over to next year.

To date, Meralco has installed and replaced over 100,000 meters, replaced more than 800 electric poles and more than 200 substation equipment covering new connections and asset renewals.

Separately, as part of the Meralco Electrification Project, 56 sites were energized this year with a total of over 1,100 meters installed. As work had to be suspended due to the ECQ, a total of only 173 poles in support of the government’s BBB projects and 96 poles for Department of Public Works and Highways’ (DPWH) road-widening projects have been relocated.

For government projects, Aperocho said Meralco has allotted close half a billion for BBB and PPP “because we expect the timely completion of these projects.”

He said the transportation department has already requested Meralco to resume the pole relocation works related to four priority projects: PNR North 1, MRT 7, LRT 1 Cavite extension and the Unified Common Station.

“Design and engineering works for these projects have already resumed. In fact, for MRT line 7 project, we were able to install 40 poles and conducted span cables during ECQ,” said Aperocho.

“We’re currently coordinating with the Department of Transportation for the release of more IDs for our working personnel and contractors, and with the DOE [Department of Energy] to grant us exemption from prearranged power interruption which are necessary for us to relocate our facilities,” he added.