THE Department of Energy (DOE) is still waiting for the National Grid Corp.
of the Philippines’ updated feasibility study on the Leyte-Mindanao Interconnection Project (LMIP), Energy Undersecretary Josefina Patricia Asirit told reporters.

The DOE official said in an interview that the LMIP has been included in the NGCP’s third regulatory period and approved by the Energy Regulatory Commission (ERC).

Asirit said the NGCP will need to update the feasibility study on the LMIP and they also need to come out with the terms of reference for the engagement of the group to who will undertake the study.

“We have to wait for the feasibility study. It will determine the project’s feasibility and timetable. Even if the government wants to have the LMIP put up, the government still has to make sure that the appropriate studies have been made to ensure that the interconnection will be effective,” she said.

Asirit added that they cannot compromise the project and that it’s important to ensure that the project is implemented in the most cost-efficient way possible and not burdensome to consumers.

“The project is still on track and cannot be delayed. If it can be fast tracked to make the implementation efficient, then we will push for it as well. We will exploit all means for as long as the project will not be a burden to consumers,” Asirit said.

Henry Sy Jr., NGCP President, said they are ready to advance the cost for the P24-billion Leyte-Mindanao Interconnection project (LMIP).

“We will advance the needed amount on a staggered basis as soon as the ERC approves our petition. As soon as we obtain the ERC approval, he NGCP will carry out the first phase of the LMIP, which is the implementation of a feasibility and technical study that will take six months to one year to complete,” he said.

Before the NGCP took over operation and maintenance concession of the National Transmission Corp. (Transco) in 2009, the latter estimated the LMIP to cost them $275 million to build.

The LMIP is supposed to be the final phase in the completing the transmission loop connecting the Luzon, Visayas and Mindanao grids, which would enable the deferment of additional baseload plants and lower the system production cost due to the overall pooling of resources.

During the Arroyo Administration, the Department of Energy (DOE) urged the NGCP to invest and put up the multi-billion peso Leyte-Mindanao Interconnection Project.

Former Acting Energy Secretary Jose Ibazeta said before that NGCP should do it, as it will ensure stable supply of power in the grid by giving the Visayas grid to export power to Mindanao through these lines.

“With respect to energy security, NGCP should push through with this project though the project cost will have to be passed on to consumers making them pay for more,” Ibazeta said.

But of course, he added that the cost to be passed-on to consumers will have to reviewed and approved by the Energy Regulatory Commission (ERC).

“But we expect NGCP to undertake this project to help avert power shortages in the future,” Ibazeta said.
Before the 25-year concession of Transco was privatized, the LMIP was supposed to be included in the list of projects the Asian Development Bank (ADB) will finance for 2003, which the latter cancelled after the government decided to defer it. The Transco board then pushed the need to put up the LMIP as it was deemed to link the Luzon, Visayas and Mindanao grids.