Alstom, PNOC-EDC propose rehab of Ambuklao plant

French power giant Alstom and government-run PNOC-Energy Development Corp. (EDC) are proposing to rehabilitate the 75-megawatt (MW) Ambuklao hydro-electric power plant of the National Power Corp. (Napocor).

EDC chairman and president Sergio Apostol, in an interview, said Alstom and EDC are planning to forge a 50-50 joint venture for the rehabilitation of Ambuklao.

"We are studying the possibility of joining forces in terms of financing and technology to rehab the Napocor facility," Apostol said.

He said they have talked with Power Sector Assets and Liabilities Management Corp. (PSALM) president Edgardo Del Fonso on the matter. Under the Electric Power Industry Reform Act (EPIRA), PSALM will absorb all the assets and liabilities of Napocor.

"Two months ago, we have indicated our keen interest to continue the rehab program of Napocor’s Ambuklao which was abandoned by Miescor," he said.

He said aside from Ambuklao, the joint venture group is likely to propose the rehabilitation of Napocor’s Binga power facility.

"I think it is important for Napocor to rehabilitate Ambuklao since it is one of its flagship projects," Apostol said, adding that up to now, the PSALM has not made a decision on the proposal.

Ambuklao was constructed in 1956 and is now under a rehabilitate-operate-lease (ROL) scheme. The hydro plant is located in Bokod, Benguet.

The facility’s rehabilitation was started in 1993 by Miescor, a subsidiary of the Manila Electric Co. (Meralco). The rehab was supposed to run within a 15-year period from 1993 to 2008.

But Miescor, which was supposed to rehabilitate the reservoir of Ambuklao, abandoned the project in 2000 after Napocor officials did not give in to the engineering firm’s proposal to extend the contract period by another five years.

Once rehabilitated, Napocor should have paid Miescor some P1.35 for every kilowatthour (kWh) generated from the power facility. – Donnabelle Gatdula