Korean firm bags P542-M TransCo deal

Korean firm Iljin Heavy Industries Co. Ltd. bagged the P542 million supply contract for the expansion of six substations of the National Transmission Corp. (TransCo) in Mindanao.

TransCo president and chief executive officer Arthur N. Aguilar said the contract would be the first of many expansion projects for the Mindanao grid.

"There are 21 substations in Mindanao and we will also be upgrading them as the need arises. We are following a timetable which is until 2010," Aguilar said.

The six substations to be upgraded are the Sta. Clara, Kibawe, Butuan, Bislig, Davao and Tindalo substations. These are located in Bukidnon, Agusan del Norte, Surigao, Davao del Sur, Compostela Valley and Zamboanga.

Under the deal, Iljin will supply and deliver equipment for the six substations, particularly transformers and power circuit breakers. "These will ensure a more reliable service and faster delivery of power in Mindanao," Aguilar said.

Iljin is a major manufacturer of heavy electric machineries and equipment such as transformers, pumps, motor and power generators. It will specifically provide power transformers and power circuit breakers for TransCo.

Aguilar said the expansion of Transco’s Mindanao substations is part of the agency’s efforts to constantly improve its power delivery service throughout the country.

In the meantime, TransCo has added several new transmission projects to reinforce the Luzon grid.

TransCo said one of these projects is the Hermosa-Balintawak transmission line relocation project targeted for completion by October 2007. This project involves the relocation of a portion of the Hermosa-Balintawak transmission line along the North Luzon Expressway parallel to the viaduct stretching from San Simon to Pulilan exits.

Another proposed new project is the Luzon-Mindoro interconnection project, also targeted for completion by October this year. This will provide the island of Mindoro with a more stable and reliable source of electricity from the main grid.

Other projects include the Mexico-Balintawak reconductoring project intended to prevent an overloading of the Mexico-Balintawak line and the San Jose reconfiguration project which involves the reconfiguration of gas insulated switchgear substation.

Also among the new projects is the San Jose-Balintawak transmission line designed to increase its transfer capacity to prevent overloading.

For the Visayas grid, the proposed projects include: the Bohol backbone project; the new Naga substation project; the power circuit breaker replacement project; and the Southern Panay backbone project.