ERC greenlights NGCP’s P52-B Visayas-Mindanao interconnection project

MANILA, Philippines — The Energy Regulatory Commission (ERC) has given the go-signal to National Grid Corp. of the Philippines (NGCP) to proceed with the construction of the P52-billion Visayas-Mindanao Interconnection Project (VIMP).

However, the National Transmission Corp. (TransCo) said it would appeal the ERC’s order as it wants to build the long-delayed interconnection project itself.

The power regulator granted NGCP a provisional authority to connect the Visayas and Mindanao power grids via Cebu and Zamboanga.

The application was filed last April after it completed a commissioned hydrographic survey on the route.

The previous study on the eastern route of the project revealed various obstacles including live ordinance (torpedoes and high explosive shells) from the Battle of Surigao in 1944, an underwater volcano, fault lines and seismic hazards such as unstable rock slabs.

NGCP expects to complete the project in 46 months, or roughly four years, with an estimated cost of P51.69 billion.

The converter stations will be located in Sibonga, Cebu and Aurora, Zamboanga del Sur.

“The provisional approval granted to NGCP to implement the Visayas-Mindanao Interconnection Project will enable power supply importations among the Luzon, Visayas and Mindanao grids,” ERC officer-in-charge Alfredo Non said in a statement.

“For instance, the deficiency of supply in Visayas may be supplied by importing power from Luzon or Mindanao.  Hence, this Visayas-Mindanao interconnection will help address the insufficient power supply and will also help optimize the available power supply in the Philippine grid,” he added.

The ERC, however, said the provisional authority is subject to certain conditions. It includes that the proposed project shall be subject to optimization based on its actual use and/or implementation during the reset process for the next regulatory period.

The grid operator is also required to conduct competitive bidding for the purchase of major materials in the implementation of the project and to pay the permit fee.

As ERC cleared NGCP’s proposal, TransCo president Melvin Matibag said they would file a manifestation on the power regulator’s approval as it pushes to build transmission projects.

“We have yet to receive order but we will file a manifest,” he said.

As directed by Energy Secretary Alfonso Cusi, TransCo earlier proposed to tap around P110 billion from the Malampaya fund to build transmission projects, such as the VMIP, to close the loop of the national  power grid.

Matibag said if government pursues the project, it could be done faster since it could be classified as energy projects of national significance under Executive Order 30.