REHAB OF HYDRO PLANTS EXPECTED TO WEAN MINDANAO FROM COAL DEPENDENCE

CAGAYAN DE ORO CITY— Climate activists welcomed plans by the national government to rehabilitate the hydropower-generating plants along Mindanao’s Agus and Pulangi rivers saying this could help wean the region away from dependence on coal, which is a pollutant.

Just before leaving office, then Finance Secretary Carlos Dominguez III announced a plan to borrow money for the upgrading of the decades-old facilities, estimated to require some P16.71 billion, based on a study by the World Bank.

The hydropower plants are owned and operated by the National Power Corp. (NPC), which is set to be privatized, hence now under the Power Sector Assets and Liabilities Management Corp.

“We hope this is a sign that lessons were learned on how unwise it was to flood Mindanao with (coal-fed capacities), which only burdened communities and consumers with pollution and higher electricity rates,” said Gerry Arances, convener of the Power for People Coalition (P4P).

Sustainability advocates, consumer rights activists, community leaders and other local stakeholders in Mindanao have long been urging the government to prioritize the rehabilitation of the Agus and Pulangi plants instead of favoring the building of coal-fired power plants.

Just the first step

In the last decade, P4P noted a radical rise of installed capacity of coal-fired power plants, from 232 megawatts to the current 2,089 MW.

“This is certainly a welcome direction,” Arances said, referring to the possibility of adding significantly to hydropower capacity as a result of the rehabilitation initiative.

Arances hoped the national government would not stop with the rehabilitation of the hydropower plants, saying it should only be the first step toward adopting a more sustainable approach to the country’s energy production.

“There has to be a comprehensive plan to make access to the vast potential for renewables in Mindanao within reach of every household,” Arances explained.

The rehabilitation project is expected to bring to 932.1 MW the total rated capacity of the hydropower plants, from the current 600 MW to 700 MW, said Melchor Ridulme, NPC senior vice president and officer in charge.

Pending approval

The first phase will involve the Agus IV, V, VI and VII plants at a cost of P10.19 billion, while the second phase will involve the Agus I, II and Pulangi IV plants at the cost of P6.52 billion.

The first phase is already pending approval by the National Economic and Development Authority, and the memorandum of agreement for the proposed loan arrangement is being reviewed by the Department of Finance, said Ridulme.

Ridulme added that the project aimed to not only to ensure the reliability of power supply in Mindanao but also to accelerate the country’s shift to clean energy sources.

The Agus and Pulangi plants are mostly run-of-river hydropower plants with a total installed capacity of 1,001 MW.

Six of the seven hydropower plants are located along the Agus River, which flows 36.5 kilometers from the mouth of Lake Lanao in Marawi City to Iligan Bay.

The seventh hydropower plant is the Pulangi IV, located on the Pulangi River in Bukidnon province.

Arances said they would continue to keep an eye on the hydropower plants “as the rehab may be used as a prelude for the privatization of the facilities—a matter which communities and advocates have been resisting for the longest time.”