TWO big potential hydro-power projects are expected to be established in Mindanao within the term of President Rodrigo Duterte.
Assistant secretary Romeo Montenegro, Mindanao Development Authority (MinDa) deputy executive director, during the Wednesday’s Habi at Kape at Abreeza Ayala Malls March 15, said a combined 550-megawatt hydro power plant are on its final stages of negotiation with potential Chinese investors.
He said the Agus 3 power plant, with a 250 megawatt (MW) capacity, and the Pulangi 5 power plant, with a 300MW capacity, will help increase the share of renewable energy in Mindanao's energy mix.
Pulangi 5 hydro-power plant was one of the projects signed in China for funding last year during President Duterte’s visit there.
“These are two projects that are in the stages of negotiations with specific investors. We hope they will be able to firm up such negotiations and look forward to the start of these big ticket renewable energy projects in Mindanao,” said Montenegro.
It was previously reported that the Joint Congressional Power Commission (JCPC) has ordered Power Sectors Assets and Liabilities Management Corp. (Psalm) to fast-track the privatization of the said project under Republic Act 9136 or the Electric Power Industry Reform Act (Epira) of 2001 based on the consultation with the Mindanao representatives.
“They are also probably looking at the market in Mindanao. If they develop these 550-megawatts power plant, you have excess in Mindanao, to whom will these be sold? Who will use this? The timing is important also.
As we look at the energy spike in Mindanao, previously we are just looking at a four to five percent annual demand growth in Mindanao but with more malls, real estate establishment, and manufacturing, we’ve gone up to seven percent. As a matter of fact, a nine percent energy growth was recorded in Mindanao last year,” said Montenegro. (JPA)