DOF set to become project owner of APHC

MANILA, Philippines — The Department of Finance (DOF) is set to become the project owner and loan borrower for the P17 billion rehabilitation of the Agus-Pulangi Hydropower Complex (APHC) in Mindanao.

The DOF yesterday announced that it is finalizing a proposed arrangement with state-run Power Sector Assets and Liabilities Management Corp. (PSALM) and National Power Corp. (NPC) for the financing and implementation of the APHC rehabilitation.

The draft memorandum of agreement (MOA) names the DOF as the lead agency, loan borrower and budget holder for the project, while it tasks the PSALM and NPC as implementing units.

According to NPC officer in charge Melchor Ridulme, the rehabilitation of the Mindanao energy facilities will be divided into two sections. He said the first part would involve the reactivation of the Agus IV, V, VI and VII plants that should bring in a total capacity of 417.1 megawatts.

On the other hand, the second series will focus on the rebuilding of the Agus I and II, as well as the Pulangi IV, plants. When finished, Ridulme said the three facilities can generate at least 515 MW for Mindanao.

Ridulme said that based on a World Bank report,  the APHC rehabilitation may require nearly P17 billion – P10.19 billion for the first part and P6.52 billion for the second part.

“Series of Project 1 is already pending the approval by the National Economic and Development Authority and the MOA for the proposed arrangement of the loan is being reviewed by the DOF,” Ridulme said.

Ridulme reminded the next administration of how crucial the project is, as the APHC generates  just 700 MW at present when its installed capacity runs up to 1,001 MW.

The NPC chief hopes the rehabilitation of APHC will remain a priority project in the next few years. He said that the hydropower plant would operate on limited capacity for as long as its aging equipment are neglected.

The APHC consists of seven mostly run-of-the-river hydroelectricity systems that harvest energy from the Agus and Pulangi Rivers.