Batangas power transmission project faces delay due to right-of-way issues

The crucial Batangas transmission reinforcement project (BTRP) faces delay in completion due to still unresolved right-of-way problems, a National Transmission Corp. (Transco) official said.

"We were able to get the court’s approval but the problem is the execution of the writ of rights," Transco vice president Winifredo Pangilinan said.

Pangilian, however, said they are optimistic that they can resolve the issue and cause only a "slight delay" in the project.

"We are hoping that the delay will only be a week or two. We hope to still meet the March 2005 target completion of the first part of the project," he said.

The first leg of the BTRP, he said, will involve the linkage of two power plants in Southern Luzon-Sta. Rita and San Lorenzo- to the main grid.

These two power plants are natural gas-fired power facilities owned and managed by First Gas Power Corp. (FGPC) of the Lopez group. They supply and sell power solely to the Manila Electric Co. (Meralco).

He said the BTRP will remove the choke point or the transmission line constraints in the Cavite and Laguna areas. "This will allow these IPPs to connect to the Luzon grid," he added.

The BTRP is a key component in preventing the island of Luzon from experiencing blackouts in the next five to 10 years.

The BTRP had been temporarily stopped due to a cease-and-desist (CDO) order issued by the city of Batangas allegedly due to lack of necessary zonal clearances.

Pangilinan said they were able to resolve this issue but the problem on right-of-way subsequently cropped up.

"We need to convince the complainants that we will have no choice but to implement and execute a court order allowing us to continue with the project," he said.

Ortiz said Transco and the contractor are not willing to shoulder the amounts being asked by the claimants.

Aside from maximizing the dispatch of the controversial natural gas-fired generating plants of the Lopezes, the upgrading of the BTRP will also help avert possible frequent transmission line trippings in Southern part of Luzon.

The National Power Corp. (Napocor) has signed an agreement with First Gas for the dispatch of its power plant – Sta.Rita and San Lorenzo. Napocor will be penalized if it will not allow these plants to transmit power at agreed levels.

The $76.6 million BTRP, which will expand the transmission line by 80 kilometers, was supposed to run from January 2004 up to December 2005. Aside from the setting up of the transmission lines, the project will also involve putting up of substations within the Batangas area.

Also included in the BTRP and their projected time of completion are: Batangas to New Makban (December 2004); New Makban to Calamba Tower (June 2004); Calamba Tower to Biñan (August 2004).

The substation projects under the BTRP, on the other hand, include: the Batangas substation which will be completed by February 2005; New Makban (May 2005) and Biñan (December 2005).