AN OFFICIAL of the Mindanao Development Authority (Minda) said the privatization of the Agus-Pulangi Hydropower Complexes remains unclear as the government now is currently focused on rehabilitating the hydropower plants within the complexes.
"So far there are no specific in terms the next steps and timelines because the focus now for the Agus and Pulangi is rehabilitaion," assistant secretary Romeo M. Montenegro, Minda deputy executive director, told SunStar Davao in an interview during the launch of the Philippines Mindanao Jobs Report last April 6, 2018 at the Marco Polo Davao.
Late last year, Finance Secretary Carlos Dominguez III the rehabilitation of the Agus-Pulangi Hydropower Complexes, which is a major renewable energy source for the island, will cost approximately P54 billion or about $1.07 billion which when finished, is targeted to increase their capacities and extend service longevity by more than 30 years.
"The rehabilitation and uprating is needed to scale up the capacity factor of the Agus-Pulangi Complexes up to 80 percent capacity factor to maximize the capability of the facility," Montenegro said. At present the 982 megawatt (MW) hydropower complex is only producing 600 MW.
He said by increasing the hydropower plant's capacity will allow the power distributors in Mindanao to source out more cheap electricity.
Montenegro said the privatization of the Agus-Pulangi Hydropower Complexes continues to be a "policy issue".
"Psalm (Power Sector Assets and Liabilities Management Corporation) cannot procede without the concurrence of the Joint Congressional Power Committee (JCPC), which gives the needed good signal for the privatization to take place," he said.
Montenegro said in the past couple of years there has been opposition on the privatization of the Agus-Pulangi Hydropower Complexes by some Mindanao lawmakers, some of whom are members of the JCPC.
"Up until there is a clear cut policy coming from JCPC then no privatization can be slated," he siad.
Sectio 47 (f) of Republic Act 9136 or the Electric Power Industry Reform Act (Epira) of 2001 states that the Agus-Pulangi Hydropower Complexes may be privatized not earlier than ten years from the effectivity of the act, which was in 2001.