NEDA okays Cebu-Negros-Panay power interconnection project

The National Transmission Corp. (Transco) has recently secured the required approvals to fast track the implementation of the Cebu-Negros-Panay (CNP) Interconnection Uprating Project.

Transco President Alan Ortiz said the project will boost the effort of the Department of Energy (DOE) to address the rapidly-growing electricity demand in the Visayas region.

Ortiz said the CNP project was recently given the stamp of approval by the NEDA Investment Coordinating Council (ICC) Cabinet Committee (CabCom) during its last meeting for the year on Dec. 18. The NEDA ICC CabCom was chaired by DOF OIC Juanita Amatong.

"We are fast tracking the implementation of CNP project so that more power from Leyte will get to Cebu, Negros and Panay at the soonest possible time", Ortiz said.

Approval by the NEDA ICC CabCom means that Transco can now explore financing options from Official Development Assistance (ODA) donor partners including the World Bank, ADB, and JBIC. TransCo is also eyeing to use the "bid with financing" option similar to Leyte-Cebu interconnection project earlier bidded out last July 30.

The NEDA Cabcom approval came a few days after Transco secured the needed project endorsements from the Regional Development Councils of Region 6 and 7. About 150 LGU endorsements from provinces, cities, towns, and barangays were also previously acquired.

"Last Dec. 11 and 12, we got the endorsements of the RDCs of Regions 6 and 7 respectively. These endorsements were critical in the approval process. We are grateful to these RDC officials for their full and unwavering support," Ortiz added.

Ortiz said the CNP project aims to double the power carrying capacity of Transco’s existing submarine cables between the islands of Cebu, Negros, and Panay and enhance the reliability and stability of electricity in these areas.

The project involves the installation of an additional submarine cable between Cebu and Negros and another, between Negros and Panay. It also calls for the expansion of three existing substations, construction of two new substations, 173 kilometers of transmission lines, and two switching stations.

According to Ortiz, the CNP project will also expand and modernize Transco’s telecommunication system with the inclusion of fiber optic cables inside the submarine cables. It also complements Transco’s Leyte-Cebu Interconnection Uprating Project (LCIUP) which has been awarded to the consortium of Kanematsu and J-Power Systems. LCIUP will be completed in the first quarter of 2005.

The CNP project is slated for completion by Dec. 2005.

"These two projects demonstrate President Gloria Macapagal-Arroyo’s determination to provide adequate power to Cebu, Negros and Panay", Ortiz said.