Re­hab of Min­danao hy­dro plants to cost P54 B

The Philippine Star - - BUSINESS - By LAWRENCE AGCAOILI

The gov­ern­ment needs to shell out ap­prox­i­mately P54 bil­lion to bankroll the re­ha­bil­i­ta­tion of the AgusPu­langi hy­dro power plants of the Na­tional Power Corp. (Napocor) in Min­danao, Fi­nance Sec­re­tary Car­los Dominguez said.

Dominguez said the tim­ing of the re­ha­bil­i­ta­tion of the fa­cil­i­ties was ap­pro­pri­ate.

“Let us do it now be­cause we are not un­der pres­sure,” Dominguez told Napocor pres­i­dent Pio Be­navidez at a re­cent Ex­ec­u­tive Com­mit­tee (Ex­e­com) meet­ing of the De­part­ment of Fi­nance (DOF).

Be­navidez in­formed Dominguez the gov­ern­ment needs to take ad­van­tage of the ex­pected power over­sup­ply in Min­danao in the next three years.

Be­navidez said the Agus 6 fa­cil­ity would be re­ha­bil­i­tated first as it is the old­est fa­cil­ity at 40 years fol­lowed by Agus 2 that is al­ready op­er­a­tional for 37 years and Agus 7 at 34 years.

Agus 4 and 5 as well as Pu­langi has been op­er­a­tional for 31 years while Agus 1 is 25 years old.

The re­ha­bil­i­ta­tion of units 3-5 of Agus 6 costs around P8.7 bil­lion ($172.5 mil­lion); Be­navidez Agus 2,P10.45 bil­lion ($207 mil­lion); Agus 7, P3.13 bil­lion ($62.1 mil­lion); Agus 4 and 5, P12.37 bil­lion ($245.07 mil­lion); Pu­langi 4, P14.8 bil­lion ($293.25 mil­lion); and Agus 1, P4.64 bil­lion ($92 mil­lion).

Be­navidez said these fa­cil­i­ties are cur­rently op­er­at­ing at around 60 per­cent of their over 900-megawatt rated ca­pac­ity.

The re­ha­bil­i­ta­tion could take place from four to five years and would in­crease the to­tal ca­pac­ity by an av­er­age of 10 per­cent for each fa­cil­ity to more than 1,000 megawatts.

Be­navidez said the re­ha­bil­i­ta­tion should be done phase by phase be­cause the fa­cil­i­ties could not be shut down si­mul­ta­ne­ously.

In the past, pre­vi­ous steps were taken to main­tain these fa­cil­i­ties. These in­clude pe­ri­odic pre­ven­tive main­te­nance ser­vic­ing.

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