Transco president Asisclo Gonzaga told The STAR that they have received a proposal from Alpha Omega Integrated Corp. (AOIC), one of the long-term contractors of the National Power Corp. (Napocor), which is "worth considering."
The project, which is estimated to cost over $2 million (approximately P100 million), will involve the reconductoring of the 230 kilovolt Biñan-Dasmariñas line which is already 25 years old. The transmission line is apparently one of the reasons for transmission line overload in the area.
AOIC president Edgardo Herrera said in a separate interview, the project will not only help solve the problem of power outages in Luzon, but will also be carried out in a shorter time or about six months and cheaper by 40 percent.
"It is a pilot project. We want to help the government. We are proposing this new technology so that we can get rid of blackouts," Herrera said, reacting to a recent banner story of The STAR which warned the public of more blackouts if Transco facilities are not upgraded or modernized.
"As we evaluate it, the government will not be able to finish the upgrading of the facilities in 2004, as targeted. They (Transco) are just bidding some of the project right now. It will take at least three years to five years to complete a project. With this schedule, the uprating and upgrading of transmission facilities will only happen in 2007 which will be too late," he said.
Herrera said that aside from a shorter project implementation period, their proposal will prevent any right-of-way problem which is one of the usual causes of delay in putting up new transmission line facilities.
The AOIC official said the company would be using the same poles but will only reinforce the cables.
"In effect, this project will provide the salutary benefit of using the existing steel transmission capacity while using the steel towers, and insulator assemblies. Accordingly, this proposed project will provide sooner (within six months of contract’s effectivity) the economic benefits to Transco of increased generation dispatch, improved reliability, reduced likelihood of conductor overheating/overloading, and better system integrity during loss of load scenarios," he said.
Herrera said AOIC will take care of securing financing for Transco to fund the project. "We are collaborating with LG Cable Ltd. of Korea as well as other local partners in project development project financing," he added.
Gonzales, however, said through the proposal is feasible, it still has to go through the required board approval and proper building process.
"We have been studying this proposal for quite sometime. It looks feasible. But we have too evaluate it before passing it for board approval," he said.