BOT power projects pushed in Mt Province

By Gina Dizon

BONTOC, Mountain Province – Power projects are now being pushed in the province with “build, operate transfer (BOT)” the best option to attain these, according to a power consultant.

BOT schemes are the way to go in hydropower development  energy projects, engineering consultant David Tauli told mayors and   municipal planning   and development  officers here in a forum to discuss power development in the province.

The forum  facilitated by the provincial planning and development office  attended by local executives and  municipal planning officers July2  discussed why local government units in Mountain Province should develop run- of- river  hydroelectric power  projects, and how to go about  implementing projects under the Renewable Energy  Law of  2008.  

Tauli, formerly vice chairman of  Cagayan Electric Power and Light  Company  (CEPALCO)  and currently engineering consultant  said  mini hydro power plants are environmentally friendly unlike mega dams, and assures while increases income  for the LGU.

He urged participants along with the mountain province electric company (MOPRECO)  to  go into  hydroelectric power  with build, operate and transfer arrangements and not private companies  who perpetually own the energy projects.

Tauli said low cost loans  are available from banks  to support LGUs who go into  renewable energy projects under the  RE Law.    

Earnings from hydro projects go to the LGU for use in the development of the river and its watershed area, as well as for other government services, he added.

“In BOT contracts, project financiers recover all their investments by the end of the contract period . At end of contract, the hydro power plant is turned over in good working condition to the LGU, without any payment. Though, the LGU can contract with private corporations to continue operating the power plant after the BOT period”, he added.

He cited  the 200 KW Ambangal mini hydro project owned by the Provincial government of  Ifugao with an annual generation 1.5 million kWh. Constructed in 2010,  the mini hydro plant  has annual gross revenues of  PhP 5,430,000 with a power sales agreement  with IFELCO at 3.62 pesos per kWh.  At least two pesos per kWh (3 million pesos per year) is allocated to development of rice terraces.