Aboitiz-owned Hedcor Tamugan Inc. is investing P2.86
billion to develop the 19-megawatt hydroelectric power plant in Davao
del Sur that would provide electricity to sister firm Davao Light and
Power Co. (DLPC) and help prevent a possible power shortage in Mindanao
in four years.
The BOI has approved the project on a pioneer status,
entitling it to six years in income tax holiday.
The activity, which falls under the energy and power
generation heading of the Investment Priorities Plan, is considered
pioneer as it utilizes an indigenous and renewable source of power. The
project has also been endorsed by the Department of Energy (DOE) as it
forms part of the Power Development Plan of 2004-2013.
Under the project, which would start commercial
operations by March 2010, Hedcor Tamugan will produce electricity from
water without burning scarce fossil fuels. The project would save the
government from importing 169,000 barrels of oil.
The plant, being a run-of-the-river type will produce
clean electricity from a renewable resource without constructing a dam
or impounding reservoir, requiring only a low earth embankment and head
pond. This results to minimal environmental impact.
Although the proposed plant is considered as a small
hydropower project, the additional capacity of the plant will hopefully
help address the looming power shortage in Mindanao.
Based on DOE estimates, Mindanao’s capacity will be
overtaken by demand without reserve capacity by 2011.
The plant, located in Sitio Ventura in Barangay
Wines, has an installed capacity of 19 MW from a maximum gross head of
224 meters tapping the headwater of Panigan Creek and Panigan River. It
would have an estimated annual generation of 128,332-megawatt hours of
clean energy.
Hedcor Tamugan has an offtake agreement with DLPC,
currently the largest privately-owned power utility in the Philippines
after Manila Electric Power Co. of the Lopezes and the Visayan Electric
Co., also owned by the Aboitiz Group.
Hedcor Tamugan supports government’s thrust to
encourage the private sector to build new capacities that will be
required in Mindanao by 2010.
