P2 billion for hydropower rehab in Mindanao

AT LEAST P2 billion will be needed to rehabilitate and refurbish the Agus hydropower complex in Central Mindanao to expand its power generating capacity.

Energy Secretary Jose Rene Almendras said this during the hearing for the 2011 budget at the House, noting there is already a pending technical proposal for the rehabilitation of Agus 6.

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"But we're not allowed to do it yet. We have to go ask permission from Congress if we can defer the sale of the Agus facility or if we can rehabilitate it," he explained.

He also pointed out that it would be much better to improve the capability of the power complex than to privatize it since it would help in stabilizing the power situation in Mindanao.

Mindanao sourced over half of its electricity requirements from hydropower plants, particularly from the 955-megawatt Agus and Pulangi power facilities.

The Agus hydropower facilities have seven units that can generate a total of 700 MW.

Agus 6, the first of the seven units, was constructed in 1953 while the newest of the power plants was Agus 1, which began operating in 1992.

The Pulangi hydropower plant in Bukidnon, which began operating commercially in 1985, can generate 255 MW.

Almendras recognized that they need to seek a confirmation or a go-ahead from the Joint Congressional Power Commission (JCPC) to allow it to keep the facilities.

In the Electric Power Industry Reform Act (Epira), the government is mandated to privatize all its power generation assets, including the Agus and Pulangi facilities.

"But the Agus and Pulangi are not for sale yet," said Almendras. (MSN/Sunnex)