Hydro plant project gets P1.1-B loan

MANILA, Philippines - State-owned Development Bank of the Philippines (DBP) has granted a P1.1-billion loan to Ormin Power Inc. for the construction of a 10-megawatt mini-hydro power plant in San Teodoro, Oriental Mindoro.

DBP said the proposed mini-hydro power plant would harness the potential of the Inabasan River and is expected to become operational in 2015.

Formed in April 2009, Ormin is based in Calapan City in Oriental Mindoro. It is a subsidiary of listed company Jolliville Holdings Corp.

According to DBP, the power project would help augment power supply in the province, providing stable electricity to households and businesses and stimulate the local economy in the process.

The loan assistance is in support of the government’s goal of achieving energy independence through the development of indigenous and renewable sources of energy.

DBP also noted that the hydropower plant would also contribute to global efforts of reducing greenhouse gas emissions.

Electricity generated by the power plant will be sold to the Oriental Mindoro Electric Cooperative (ORMECO), the sole power distributor in the province.

ORMECO distributes power to the entire province of Oriental Mindoro which consists of Calapan City and 14 municipalities including Puerto Galera, San Teodoro, Baco, Naujan, Victoria, Socorro, Pola, Pinamalayan, Gloria, Bansud, Bongabong, Roxas, Mansalay and Bulalacao.

Developing the country’s hydropower resources is essential to meeting energy demand over the next 10 years.

The Department of Energy aims to double the current generating capacity from hydropower resources by 2013, as provided for under the Renewable Energy Policy Framework.