Cusi orders review of NGCP deal

MANILA, Philippines – Energy Secretary Alfonso Cusi is ordering the review of the concession agreement of the National Grid Corp. of the Philippines (NGCP) after expressing his dissatisfaction over delays in the Transmission Development Plan (TDP), an important component of the Philippine Energy Plan (PEP).

“On the concession agreement, what we’re doing is we’re having it reviewed to make sure [the TDP] will be enforced,” Cusi said during the agency’s Energy Investment Forum yesterday.

NGCP clinched a 25-year concession to run the country’s transmission network after it took over the management of the power grid in 2008 from state-owned National Transmission Co. (TransCo).

In his keynote address, Cusi expressed his frustration over the snail-paced action of NGCP on the transmission plans and projects.

He said he has ordered NGCP to expedite the implementation of the TDP to support the incoming additional requirement, which will include the completion of the Mindanao-Visayas interconnection “to finally achieve our vision of a national grid.”

“Ito po, mainit na ulo ko sa Transmission Development Plan. This is a new administration but we’re doing again the study. The studying phase has never been finished. We’re pushing this, we’re really pushing this in coordination with NGCP especially in Mindanao where we have sufficient power supply,” Cusi said.

Currently, only Luzon and Visayas are interconnected while Mindanao is isolated. Interconnection between Luzon and Visayas allows both grids to get supply from each other in times of supply shortfall.

NGCP is currently undertaking a study for the western interconnection route of the Visayas and Mindanao grids after encountering issues in the eastern side.

The eastern route traverses from Southern Leyte to Surigao del Norte while the western option will run from Cebu-Negros to Zamboanga del Norte.

A previous study showed there were geophysical issues in the eastern route of the interconnection.