Albay-based firm invests P1.16 billion on mini-hydro power projects

MANILA, Philippines - Albay-based Sunwest Water and Electric Power Co. Inc. (Suweco) has adjusted upwards its planned investments for three mini-hydropower projects to P1.16 billion from the previous estimate of P729 million.

Suweco told the Energy Regulatory Commission (ERC) that it had to adjust the project cost to take into account the rise in the cost of steel and other raw materials and other factors.

The company said they need to raise the required funds for the projects to consider the extra expenses due to force majeure events such as soil erosion caused by typhoons and the increase in prices of construction materials.

Suweco, a member of the Sunwest Group of Companies, plans to put up the 2.3-megawatt (MW) Solong, 1.5-MW Hitoma 1 and the 1.58-MW Hitoma 2 mini-hydropower projects in Catanduanes province.

The Sunwest Group has diversified into the energy distribution business such as the construction and operation of electric facilities.

In its ERC filing, it stated that it would need about P404.17 million for Solong, P242.45 million for Hitoma 1 and P459.72 million for Hitoma 2.

The mini-hydropower plants are expected to displace some 43,000 barrels of fuel oil equivalent annually, generating $5.8 million in foreign exchange savings.

The projects will also generate avoided carbon dioxide emission of 15,446 tons annually, or equivalent to P3.418 million.

Suweco’s projects are expected to provide additional power to Albay province in 2009 and 2010, the schedule dates of completion of the hydropower facilities.

Suweco will sell the power to be produced from these projects to First Catanduanes Electric Cooperative, Inc. (Ficelco) at a rate of P5.40 per kilowatt-hour, or 25 centavos below the effective selling rate of state-owned National Power Corp.’s Small Power Utilities Group (SPUG).