Asin hydro power plants’ rehab slated; talks between feuding power firms pushed

By Dexter A. See

BAGUIO CITY – Mayor Mauricio G. Domogan said rehabilitation and operation of the city-owned Asin minihydro power plants will be implemented as soon as possible so the local government can generate renewable energy and additional income for the city.

This also means ironing out differences between two feuding power firms who would like to operate and generate power along the Asin River.

The local chief executive claimed officials of the Kaltimex Energy Philippines, the winning bidder for the rehabilitation of the minihydro power plants, is about to strike a deal with a prospective partner to pursue the realization of the project.

He said part of the contract that should be complied by Kaltimex and its prospective partner will be the immediate settlement of its obligation to pay some P18 million annually as lease rentals of the power plants and the replacement of its P150 million performance bond to conform with the prescribed bonding requirements.

“We hope that Kaltimex will start implementing the rehabilitation of the Asin minihydro power plants after it finds a partner to complete the proposed rehabilitation so that the city-owned plants will be operational within the next three years,” Domogan said.

The city mayor said he is arranging a meeting between officials of Kaltimex Energy Philippines and Global Goldlink Energy to iron out issues on the use of the water of the Asin River for the operation of the two renewable energy plants to benefit the greater majority of the people living in the areas affected by the implementation of the projects.

According to him, the local government does not actually object to the plan of Goldlink to put up a similar power plant or a series of power plants along the same river system provided that their operation will not significantly affect the operation of the city-owned power plants because both companies intend to produce renewable energy that could be used to help lower the power cost within the host communities.

Earlier, Kaltimex raised an objection on the plan of Goldlink to put up a series of minihydro power plants upstream because it will significantly affect the company’s plan to increase the capacity of the city-owned power plants which resulted to the filing of petitions for the cancellation of the service contract issued by the energy department to Goldlink which is now undergoing litigation with the proper agencies.

In 2015, the local government signed a contract with Kaltimex for the rehabilitation and operation of the city-owned Asin minihydro power plants but the said contract was only confirmed by the local legislative body in 2017 or over a year since the signing of the same.

The local government took over the operation of the Asin minihydro power plants from the Aboitiz-owned Hydroelectric Development Corporation (HEDCOR) in 2006but the Energy Regulatory Commission (ERC) issued a cease and desist order against the city in October 2012 that resulted to the stoppage of the operation of the power plants since the local government was not able to secure a certificate of compliance from the regulating agency.