NGCP explains reasons for delays in projects

THERE are 72 transmission projects, including six Energy Projects of National Significance (EPNS) of the National Grid Corporation of the Philippines that were not completed on time, but the NGCP told senators there were reasons beyond their control that caused this.

Energy Regulatory Commission (ERC) chairperson Monalisa Dimalanta told lawmakers at the Senate Committee on Energy hearing on Wednesday that her office approved a total of 348 projects.

Of these, 33 projects in Luzon, 19 in Visayas, and 14 in Mindanao experienced delays in implementation. On top of the 66 projects cited by the ERC, there are six more projects that are tagged significant energy projects for power generation, transmission, and/or ancillary services, including those required to maintain grid stability and security, and which are in consonance with the policy thrusts and specific goals of the Department of Energy’s (DOE) Philippine Energy Plan (PEP).

Among the delayed EPNS projects are the Mindanao-visayas Interconnection Project (MVIP), originally scheduled to commence operation in December 2020; the Cebu-negros-panay 230 kilovolts (kv) backbone stage 3 project, originally set for completion also last December 2020; and the Hermosa–San Jose 500 kv transmission line project, originally set for completion in 2019.

Delays not intentional

THE NGCP, for its part, said the delays in the implementation of these projects “are not intentional.”

“It is not because we don’t want to finish them. It’s because many hurdles were encountered, like right of way (ROW),” NGCP spokesperson Atty. Cynthia Alabanza explained to senators, speaking partly in Filipino.

New transmission lines and expanding substation capacity are equally important as increasing power supply. Power plants generate electricity that is delivered to customers through transmission and distribution power lines.

“First of all I would like to clarify and express our apologies for the delayed projects. I wasn’t able to express it clearly, but we admit we have delayed projects. But we are doing something about it and we are hoping to energize a second one by today. We are all praying for a good result so we can give you some good news,” Alabanza said.

“This does not mean that transmission never had a problem; it’s normal to have a disturbance on a day to day [basis],” she added, while agreeing with one resource person that “it’s our ability to recover and manage these glitches along the grid” that’s at stake.

Alabanza said the DOE has been assisting NGCP with ROW issues, which are the major causes of delay for transmission projects across the country. She added that NGCP has been proactive in seeking the DOE’S assistance to issues on permitting and ROW concerns.

All of NGCP’S projects are well laid out in its 10-year Transmission Development Plan, she said. In the next 13 years, the grid operator is committed to invest approximately P440 billion across 211 projects which are aimed to support the growing electricity demand in the country and to make the country’s power backbone continuously reliable.

NGCP holds the sole and exclusive concession and franchise for operating the Philippines’s transmission network.

NGCP assistant corporate secretary Atty. Ronald Concepcion said despite the company’s best efforts, delays in the completion of certain projects could not be avoided due to the pandemic.

He said construction works had to be temporarily suspended due to quarantine regulations. Even when restrictions were eased, NGCP could not fully resume work on the projects because of health and safety protocols. Other factors, such as disruptions in the supply chain, which affected the manufacturing and delivery of parts and equipment, as well as issues relating to rights of way, added to the delays.

“NGCP asks for the patience of this Honorable Committee and the public as it strives to accelerate the completion of its projects. NGCP clarifies that proper, mindful, and responsible generation and transmission planning are key to a stable grid. Basic principles such as individual island selfsufficiency, decreased interisland interdependency, and transmission redundancies must be considered,” he said.

Most importantly, the grid operator stressed the need for a holistic approach to power planning. “Development in all sectors involved in the power industry must be coordinated, with due attention given to each. Focus and attention must be given to ways forward in the short, medium, and long term, especially in rationalizing and optimizing generation planning. We all owe it to our consumers to provide reliable and quality power supply and services for the amount they are paying for,” he said.

The DOE earlier urged the NGCP to fasttrack the completion of the Cebu-Negros-Panay, and Mindanao-visayas transmission projects. On a recommendation of Senator Sherwin Gatchalian, Dimalanta said the ERC will come up with a benchmark to assess the operational performance of the NGCP.

“Submit to us an action plan on this and how much is being collected on those delayed projects and how much is that on per kilowatt hour,” Gatchalian told Dimalanta during the hearing. Based on his own records, Gatchalian earlier said that only six out of 16 transmission projects considered to be EPNS were completed as of March this year, with an “average period of delay of about three years.” This represented about 37.5-percent completion rate. The 10 ENPS transmission projects currently under construction, meanwhile, also have an “average period of delay of almost 5 years.”

Gatchalian also revealed that out of 168 projects under the Transmission Development Plan, excluding 56 projects that are in the pre-construction stage, only 30 projects have been completed, while 138 projects are delayed.