Meralco to spend over P4 B to relocate distribution poles

Manila Electric Co. (Meralco) plans to spend over P4 billion to relocate distribution poles affected by railway projects under the government’s Build Build Build program.

Meralco estimated an initial total cost of P14.16 billion to relocate 10,342 poles that will be affected by five priority railway projects of the Department of Transportation (DOTr).

The five projects are the 38.2-kilometer Philippine National Railways (PNR) North 1 project, the 12.6-kilometer PNR North 2, the 25-kilometer Metro Manila Subway project, the 208-km PNR South Long Haul project, and the 56-kilometer PNR South Commuter Railway Project.

The total estimated cost, which will be divided between the DOTr and the power distributor, is based on preliminary cost design estimate for budgetary purposes, Meralco senior vice president and head of networks Ronnie Aperocho said.

“We need P14.1 billion and there’s a cost sharing between Meralco and DOTr,” he said, noting that 70 percent would be charged to the DOTr and the remaining 30 percent to Meralco.

Under the cost sharing, DOTr is estimated to shoulder P9.92 billion and Meralco some P4.24 billion.

The 30 percent to be shouldered by Meralco will be allocated for “provisions for load growth for the execution of these projects,” Aperocho said.

The cost sharing will be defined under a memorandum of agreement which both parties are finalizing.

“The parties, through the draft MOA, agree to shoulder adjustment costs based on actual relocation costs. We’re now finalizing the MOA,” Aperocho said.

“We just want to make sure the agreement is clear, solid, and secured,” he said.

Once the total cost is finalized, Meralco will apply for approval with the Energy Regulatory Commission (ERC).

Under the PNR North 1 project, 1,395 poles are affected. The project will run from Tutuban, Manila to Malolos, Bulacan.

Meralco expects to start relocating affected facilities by September.

The PNR North 2 project, which will run from the old PNR Malolos station to the old PNR Apalit station, will displace 390 poles.

Traversing Mindanao Ave. to FTI, the Metro Manila Subway Project will affect 238 poles.

The PNR South Commuter Railway running from Manila, to Calamba, all the way to Los Baños will affect 1,884 poles.

The largest number of poles affected is under the PNR South Long Haul Project, which is 6,435 poles. The project will run from Manila, to Legaspi, Matnog, and Batangas.