Hanjin Shipping allots $10M for transmission project

Korea-based Hanjin Shipping is willing to invest $10 million for the construction of a two-phased transmission line project in Subic Bay economic zone, a top energy official said.

National Transmission Corp. (TransCo) president Alan T. Ortiz said Hanjin’s investment would ensure reliable power supply in the area.

"We have met with SBMA (Subic Bay Metropolitan Authority) and Subic Enerzone Corp. (of the Aboitiz group). We would support the investment efforts of Hanjin Corp., which is set to start operations next year, so they require anywhere from 10 to 20 megawatt initially building all the way up to 75 MW in the next five years. What they need is reliable power," Ortiz said.

Ortiz said the two-phased transmission project would entail the installation two seven-kilometer 69 kilovolt (kv) submarine cable that would provide the initial requirements of Hanjin.

Phase 2 of the project, he said, will involve a longer 230-kilovolt line that would connect to Olongapo substation in anticipation of the peak demand.

Ortiz said the two-phased transmission line project will cost about P500 million. TransCo is willing to shoulder half of the project cost or P250 million to be sourced from its internally generated funds. The remaining half will have to be financed by other interested investors.

If the funding requirement would be finalized this year, Ortiz said "we expect the new transmission line project to be operational by the end of next year."