Proposed P2-B hydro power plant in Davao del Sur to beef up Mindanao's energy supply
(September 5, 2005)
STA. CRUZ, DAVAO DEL SUR-A hydro power plant project now being proposed for construction here is expected to help boost Mindanao's power supply, which energy analysts forecast to fall against growing demand in the next few years if no new power generation projects are made.
Preparatory activities for the proposed Sibulan Hydro Power Plant Project are now
being carried out by Hydro Electric Development Corporation (HEDCOR), a private
power generation firm which is set to invest P2-billion pesos for the construction
of the hydro power project in the Municipality of Sta. Cruz, Davao del Sur.
"There is already substantial progress made by the proponent with respect to the
preparatory activities for the proposed Sibulan Hydro Power Plant Project and we
certainly look forward to seeing this project start soon," according Jesus G.
Dureza, chair of the Mindanao Economic Development Council (MEDCo).
Dureza stressed that investments in power generation are particularly crucial for
Mindanao today, considering the sustained increase in power demand which averaged 5- 10% yearly for the last 5 years.
The Proposed Sibulan Hydro Power Project was initially considered by HEDCOR in 1993 on a pre-feasibility level and was concluded as potentially viable. However,
further studies were halted due to unfavorable peace and order situation in the
project area at that time.
The proposed project will have a total installed capacity of 40 MW and is expected
to generate 150 to 200 million kilowatt hours of electricity annually. The project
will include the construction of the two power plants, access roads and transmission lines. The project is designed to operate for 25 years.
In response to the government calls for investments in power generation, HEDCOR renewed its interest on the project with commitment to help in staving off future power
shortages in Mindanao through an environmentally-sound power generation and
production of energy.
The project's feasibility study is currently in its final stage and construction is
expected to commence late this year, with completion targeted for 2007. HEDCOR is
likewise completing necessary pre-implementation and implementation requirements.
Dureza believes that the community and the local government unit's support to the
proposed project are instrumental to the speedy implementation of this project and
other similar vital projects in Mindanao.
"These projects not only offer solution to the power crisis in the offing, but at
the same time provide livelihood opportunities and other benefits to the communities," Dureza added.
Meanwhile, the Mindanao Coal-Fired Power Plant, the first ever coal-fired power
plant in the island is set commence operation by December 2006, with 210 MW net
generating capacity. Located at Villanueva Misamis Oriental, the US$305 million
power plant constructed under BOT (Build-Operate-Transfer) scheme by STEAG State
Power, Inc., will provide electricity to the Mindanao grid representing about 15%
of the island's total power demand. MEDCo
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