Agus rehab estimate lowered to P37-40B

THE National Power Corp. (Napocor) expects the rehabilitation of the Agus hydroelectric power plant complex to cost between P37-P40 billion, lower than the P50 billion previously anticipated by the government.

“We’re looking at P37 to P40 billion, rather than P50 billion. Around P37 billion possibly as a total cost of rehab for the Agus complex only,” Pio J. Benavidez, Napocor president and chief executive officer, told reporters.

Napocor is preparing a timetable for the power complex’s rehabilitation, which should see its feasibility study started in January.

Mr. Benavidez said the study should be completed within 48 weeks or almost a year to make sure that the agency will be taking the correct approach in rehabilitating the power source.

He said after the completion of the feasibility study, the agency will decide on which of two options to take — either to bring the complex’s output back to its rated capacity of 1,000 megawatts (MW) or to increase its capacity by 10% to reach 1,100 MW.

Napocor has its own study, he said, but a consultant will review the recommended approach of the government agency.

The Agus hydropower complex is a series of seven facilities that use the water from Lake Lanao, which flows along the Agus River and discharges into Iligan Bay. Of the seven, the third project has yet to be completed.

The complex has an installed capacity of at least 700 MW, with the biggest coming from Agus VI in Iligan City, Lanao del Norte. The 200-MW plant has five operating units, two of which have a capacity of 25 MW each and the rest with 50 MW each.

Pulangi hydroelectric power plant in Maramag, Bukidnon has three units each with an installed capacity of 85 MW.

“For Pulangi, we have a different treatment,” Mr. Benavidez said.

He said Napocor will evaluate whether it can be sold outright, with the buyer developing the series of power plants along the Pulangi river.

He said the Pulangi complex was supposed to have five power plants, but for now only the fourth is operating. He said Napocor would prefer that all the plants within the complex are sold to one buyer.

Mr. Benavidez said the Agus complex had been operating for decades and badly needs rehabilitation. He said the electrical component of the plants requires improvement, which should account for the biggest share of the rehabilitation cost.

He said he was hopeful that the rehabilitation will be completed with the current administration. He said the move is best scheduled at this time when Mindanao is experiencing excess power supply. —