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Saturday, October 01, 2005
P35B Vis-Min power projects okayed

WORKING faster on near-term and feasible measures against the threat of a power crisis, the Investment Coordination Committee-Cabinet Committee (ICC-CC) gave its nod to three power transmission efficiency projects of the National Transmission Corp. (TransCo) in Visayas and Mindanao.

One of the approved projects is the P1.1-billion 138 kV General Santos-Tacurong-Transmission Line, which would expand power substations and replace old wood pole-supported single circuit 138 kV line in the area.

"This project would ensure power system stability and reliability in Southwestern Mindanao, considering that the old existing system has already reached its economic life, thus a candidate for improvement," said Jonathan L. Uy, director of the National Economic and Development Authority's (Neda) Public Investment Staff.

Aside from providing higher power transfer capacity between the substations as well as access to future base load plants in General Santos City and Sultan Kudarat in the Mindanao Grid, Uy added that the project was compliant with the National Grid Code (NGC).

ICC documents show that the project would be financed under the Miyazawa Fund. P882.88 million will be funded from loan proceeds while P204.70 million will be the Philippine government counterpart.

The Miyazawa Fund is a bilateral assistance provided by the government of Japan to cover trade financing, financing for the manufacturing sector, assistance for structural reforms and for social safety net.

It is a support package provided for Asian countries affected by the currency crisis, which started in July 1997, in overcoming their economic difficulties and to contribute to the stability of international financial markets.

The second project approved by the ICC is the P1.1 billion-worth Sangali-Pitogo 138kV Transmission Line.

It aims to strengthen the Mindanao grid in preparation for the project demand increase in the region, which was expected to have increased by 6-8 percent in 1998-2000 and by 11 percent in 2000-2010.

The project, which is expected to complete in December 2006, involves the construction of a 32 km, 138kV double circuit steel pole transmission line from Sangali substation to the Zamboanga City load center at Pitogo.

It also aims to expand the Sangali substation and the Lunzuran switching station and establish a new Pitogo substation.

The project will be financed through Miyazawa and Calyon funds.

Finally, the whole of Samar-based customers can look forward to a robust electricity highway with the P865.5 million-worth Wright-Calbayog 138 kV Transmission Line Project, which complements future generation projects envisioned in the area for the next decade.

The third project, as ICC documents show, is capable of ferrying power safely and is crucial to the full implementation of the Open Access Transmission Service (OATS) and the Wholesale Electricity Spot Market (WESM).

"This is a priority TransCo project that was approved by the Board under the 2004 Transmission Development Program (TDP). It is part of the Visayas Island Transmission Augmentation Program (Project Vista)," Uy stressed.

Uy added that while Eastern Visayas has been exporting power to Luzon and the Visayas using steel towers, the transmission lines in the region, particularly in Samar Island, are still using wood pole structures, most of which are already rotten and dilapidated resulting in frequent power interruptions.

Project evaluation report shows that the major causes of power outages in the area are brought about by the unreliability of the region's 69 kV transmission lines (i.e., transient line fault, broken/toppled wood pole structure, cut-off OHGW/Guy wire, burnt/broken cross arms, broken/damaged insulators, etc.).

The project is expected to increase the region's power transfer capacity by installing 138 kV overhead transmission line together with a run of 24-count fiber-optic cable overhead ground wire.

The project would also be financed under the Miyazawa fund and is expected for completion in March 2008.

Meanwhile, Transco president Alan Ortiz stressed the potential that the newly approved infrastructures could offer.

"These transmission projects will pave the way for the sustainable economic development specifically in Zamboanga City with its special economic zone in San Ramon District and in General Santos City through its bustling tuna and agro-business industries," Ortiz said.

With a consistent effort to conserve energy, the government continues to promote its policy of shoring up more investments in renewable and indigenous energy projects to bring down costs for consumers and prop the country's bid for energy independence.

Providing electricity to barangays in the entire country is one of the 10-point development agenda of the Arroyo Administration.

For Bisaya stories from Davao. Click here.

(October 1, 2005 issue)
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