Taipan to invest over $700 million in hydro power plants

March 31, 2009

Philippine Star, 23 February 2009

Taipan to invest over $700 million in hydro power plants
By Donnabelle L. Gatdula Updated February 23, 2009 12:00 AM

MANILA, Philippines – One of the country’s taipans is planning to invest over $700 million to put up hydro power facilities in Luzon and Mindanao, well-placed industry sources said.

“A group of investors, including a taipan, is putting up hydro power plants in several locations in Luzon and Mindanao,” the sources said yesterday.

They said the consortium is now in the process of conducting land surveys in preparation for the construction of a 332-megawatt (MW) hydro power facility in Luzon.

This capacity, the sources said, could be expanded up to another 300 MW.

According to sources, the taipan really wants to take an active role in the government’s effort to develop renewable energy (RE) sources.

“Hydro power is clean and renewable,” the sources said, when asked why the taipan chose to build a hydro power facility.

There are over 40 indicative hydro power projects that are listed in the Department of Energy’s Philippine Energy Plan (PEP) which will generate 1,025 MW.

The Metro Luzon Urban Beltway and Mindanao regions host the bulk of the potential projects with a total capacity of 368 MW and 369.8 MW, respectively.

The biggest indicative project based on the PEP is the 360 MW expansion of CBK Power of the Kalayaan Pumped Power Storage in Laguna which is expected to be completed in 2011.

Another huge hydro power project expected to be completed in 2011 is the Salug Daku hydro power plant in Saguiaran, Lanao del Norte.

The PEP indicated that there are already 14 hydro power projects with feasibility studies all over the country. These projects are estimated to provide an additional 255.2 MW to the country’s hydro power capacity.

The projects are being undertaken by various developers. These are: Solutions Using Renewable Energy (SURE); Province of Biliran; PNOC-EDC/Soluziona, Chase Makros Management Inc. (CMMI); Benguet Power Resources Development Corp.’ First Gen Visayas Hydro Power Corp.; and the Sta. Clara Power Corp.

The DOE noted that two of these projects will proceed to the construction phase. These are: Colasi in Mercedez, Camarines Norte; and Sipangpang in Cantilan, Surigao del Sur projects with a potential capacity of 1 MW each. Both projects are expected to be completed this year.