SN Aboitiz to complete Cagayan plant expansion

SN Aboitiz Power-Magat Inc., a joint venture between SN Power of Norway and Aboitiz Power Corp. (AP), expects to complete the expansion of a hydropower plant in Cagayan Valley as early as 2015.

The hydropower project, which is awaiting government approval, will add another 115 megawatts (MW) to the Luzon grid, an official said.

“We are focused on the Magat expansion. We have completed the engineering study,” said Emmanuel Rubio, president and CEO of SN-Aboitiz.

Rubio said commercial operations of the expanded Magat hydropower plant is targeted to start in 2015 or 2016 depending on the Department of Energy’s approval of the service contract.

SNAP-Magat is seeking government approval for the installation of a pumped-storage system to ensure efficient use of water while increasing electricity output.

“Once the DOE approves the service contract for the Magat expansion, I think we will proceed with the full feasibility to prepare us for the bids and to get the construction bids,” Rubio said.

The Magat hydropower plant is designed to produce up to 540 MW. To date, it has a generating capacity of 360 MW.

In 2006, SNAP-Magat submitted the highest bid for the purchase of the Magat hydropower plant. The following year, the Power Sector Assets and Liabilities Corp. turned over the control of the plant to SNAP-Magat.

Meanwhile, the rehabilitation of the Binga hydropower plant in Benguet province is ongoing. “We are also now on the second to the last unit of rehabilitation in Binga and it is ahead of schedule,” Rubio said.

Rubio said the power facility will be fully rehabilitated in July 2013 instead of the original target of end-2013.

The rehabilitation will increase the power facility’s output to 120 MW from the current 100 MW.