KORONADAL CITY -- An Alcantara Group-led power generation company is discussing with an electricity distributor here the possible construction of a $20-$25 million hydropower plant in scenic Lake Sebu, South Cotabato, a senior company executive confirmed Thursday.

Joseph C. Nocos, Conal Holdings Corp. vice president, said they have started the preliminary talks for a joint venture with the South Cotabato Electric Cooperative I (Socoteco-I) for the construction of a 10-megawatt hydropower station that would ensure stable supply for consumers in the area.

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Socoteco-I serves nine towns of South Cotabato, many in the upper valley portion, and Lutayan in Sultan Kudarat.

"If it is okay with the LGU [local government unit], then we will start the technical feasibility study that may last for six months," Nocos said.

As of press time, the company is still presenting the project at the provincial development council, where officials reportedly aired concern over its possible effect to the environment of Lake Sebu, South Cotabato's premier tourist destination owing to its beautiful lakes and waterfalls.

Nocos said they "would not proceed with the hydropower plant if studies will show that it will affect the town's seven waterfalls."

Aside from its waterfalls, the town is famous for its lake-side resorts. The lakes host tilapia fish cages.

Since last year, the local electric cooperative has been pushing for a hydropower plant in anticipation of power shortfall in the next several years.

Santiago C. Tudio, Socoteco-I general manager, said failure to respond to the looming power shortage would have adverse effects to the cooperative, businesses and residential consumers.

"Should we not concede to the cry of the situation, disturbing power deficiency will definitely step in and alarm our business," he said.

Nocos said a hydropower plant in the service area of Socoteco-I would result to lower power rates since a lot can be saved for the transmission cost charged by the National Grid Corp of the Philippines, formerly the National Transmission Corp.

In the bid of the Socoteco-1 to put up a hydropower plant, Tudio cited the feasibility study prepared by the state-owned National Power Corp. for such a project in Lake Sebu town as early as the 1980s.

Tudio stressed the "best option" in generating new electricity is through a hydropower plant in the wake of the rising cost of diesel fuel.

Conal Holdings is 60 percent owned by the Alcantara Group and the rest by the Electricity Generating Public Company Limited, Thailand’s largest power producer.

Conal Holdings earlier said it is keen to construct a 200-MW coal-fired power in Maasim, Sarangani worth $450 million to avert power shortage in Mindanao starting three to four years from now. (BSS)