Davao town to build power plant

MANILA – With the Aquino administration hard-pressed attracting investors to put up more power plants in energy-starved Mindanao, a local government in Davao del Sur has taken upon itself the task of securing its electricity requirements by building its generating plant.

The Energy Regulatory Commission has approved the 25-year supply deal between the Malita town and Davao del Sur Electric Cooperative Inc (Dasureco) at a provisional rate of P5.08 per kilowatt-hour.

With a customer in the bag, the Malita local government unit can now proceed to building a hydroelectric power plant.
Dasureco’s supply contract with state-owned National Power Corp will expire on December 25.

“Psalm has issued a certification confirming that due to the ongoing privatization of its generation assets, it cannot commit the availability of capacity to supply any energy requirements of Dasureco,” the cooperative said, referring to state-run Power Sector Assets and Liabilities Management Corp.
Psalm oversees the sale of Napocor’s assets and settlement of its debts.

The Malita hydro project involves the construction of a 1.5-megawatt facility at the boundaries of Barangays Macol, Sanghay and Tical in the said municipality.
The hydro plant will use run-of-river technology, or riverflow to run the turbines that generate electricity. As such, the project will require no huge dams or reservoirs.

The municipality aims to complete the facility by the second quarter of 2013.
Costing P311.3 million, the project will be funded by a P283.0 million loan from the Development Bank of the Philippines and a P28.3 million equity from the Malita LGU, which has earmarked part of its budget for 2011-2013.

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