The VISTA budget will form part of the P150-billion total funding needed for Transco’s infrastructure-related projects over the next 10 years.
Transco president Alan Ortiz said the project will provide medium to long-term solutions to the looming power crisis in the Visayas region, specifically in Panay Island, Negros and Cebu.
To start this initiative, Transco signed two contracts for the Cebu-Mactan interconnection project (CMIP) amounting to $40 million or approximately P2 billion.
"We have already signed the contracts for two key projects – the Leyte-Cebu uprating and the Cebu Mactan interconnection – six months after the alarm was raised that the power supply in the Visayas will no longer be adequate to meet the growing requirements of the region. This shows that with enough political will and the cooperation of concerned officials and stakeholders, we can accelerate the timetable for crucial infrastructure projects," Ortiz said.
The first contract was awarded to the China Xian Electric group for the construction of substations in Mandaue and Mactan while the joint venture of Japan’s Kanematsu and J Power Systems won the contract for the construction of 17.4 circuit-kilometers of underground lines.
Present during the contract signing here yesterday were China Xian Electric Group president Pu Tianxing and general manager Shi Jun and Kanematsu (Manila) general manager Toshio Satoh.
President Gloria Macapagal-Arroyo has ordered Transco to plug the impending power deficit in the three affected islands – Panay, Negros and Cebu. With this, TransCo committed to fast-track the implementation of interconnection and uprating projects in the region to allow these islands to harness geothermal power from Leyte.
Ortiz said with the signing of the contract pre-construction work for the CMIP is expected to begin next month and will be completed in November 2005.
Financing for the project will come from the Miyazawa Fund, with the Japan Bank for International Development (JBIC) acting as guarantor.