Aboitiz Power gets nod to build hydropower plant in Mt Province

MANILA, Philippines - Aboitiz Power Corp. (APC), the power generation arm of the Aboitizes, will proceed with the construction of a hydroelectric power plant in Mt. Province after clearing some regulatory hurdles.

In a disclosure to the Philippine Stock Exchange (PSE), APC said it will start to build a 13.2-megawatt run-of-river hydropower project in Sabangan by the first quarter next year.

APC had been encountering problems with permits for its hydroelectric projects particularly on water rights.

The Sabangan project will be carried out by Hedcor Sabangan Inc., a wholly-owned subsidiary of AP Renewables Inc. - the renewable energy development arm of the Aboitiz Group.

According to APC, it had resolved the issue of environmental clearances, including issues with the National Commission on Indigenous Peoples and water rights.

“As part of the Free and Prior Informed Consent (FPIC) process for the project as required under the Indigenous Peoples’ Rights Act of 1997, (IPRA), Hedcor Sabangan signed memoranda of agreement with the indigenous peoples of Barangays Namatec and Napua and the municipality of Sabangan, Mountain Province in February and March 2011, respectively,” it said.

APC also informed the PSE that it is now awaiting the issuance of the certificate of precondition by the National Commission on Indigenous Peoples.

“The two-year construction period is expected to commence in the first quarter of 2012 assuming that the required permits are secured by then,” it said.

APC said Hedcor Tudaya Inc., another subsidiary of AP Renewables, will construct the 6.6-MW Tudaya 1; and seven- MW Tudaya 2 run-of-river hydropower projects in Tudaya, Santa Cruz, Davao del Sur.

In February this year, Hedcor Tudaya signed an agreement with the Bagobo-Tagabawa indigenous peoples as a result of the FPIC process conducted for the Tudaya 1 as required under the IPRA.

Hedcor Tudaya is presently awaiting the issuance of its certificates from the National Commission on Indigenous Peoples for the 6.6-MW Tudaya 1.

The company said it won’t be needing an FPIC for construction of Tudaya 2 as there are no indigenous inhabitants in the area where the project would be located.

It said the construction period for Hedcor Tudaya 1 and 2 is expected to commence by July this year.