APC unit to pursue M'danao hydro proj

MANILA, Philippines -  A subsidiary of Aboitiz Power Corp. will push through with its downscaled hydropower project in Mindanao, a top company official said.

“The city council committees on energy and environment had looked at the project...and they came up with a report saying that the project will not adversely affect the flow of the river or the aquifers,” Hedcor Inc. president and chief operating officer Rene Ronquillo told reporters.

He said they expect a watershed code from a local government unit next week that will ease concerns on water supply amid the presence of a hydropower plant.

Ronquillo said the local government approval will allow Hedcor to build a 12-megawatt (MW) run-of-river hydropower plant along Tamugan River in Davao City.

“It is feasible, just smaller,” Ronquillo said, adding that the earlier target for the project is 32 MW.

In March 2010, Hedcor signed a compromise agreement with the Davao City Water District to settle a water rights dispute over the Tamugan River.

Utility firm Davao City Water District, which supplies water to 150,000 consumers in the area, earlier warned that the hydropower project will threaten water supply as Tamugan River is the only viable source of water for Davao City.

Ronquillo said that there was a misunderstanding after the Mines and Geosciences Bureau earlier marked the entire Tamugan River as a conservation area.

But Hedcor needs to be careful in protecting the riverbanks against erosion, he added.

“We will need eight months of engineering so we are hoping [to start construction in the] third quarter next year,” Ronquillo said, adding that it will help ease the supply shortfall in Mindanao.

Hedcor is conducting a grid impact study for the 13.2-MW Sabangan hydropower plant in Mt. Province, and the 16.4-MW Sita project and 11.8-MW Simod hydro plant that are both in Kitaotao, Bukidnon.

Aside from the three projects, Hedcor also holds service contracts for the 5.9-MW FLS hydro plant, the 3.6-MW Lon-oy hydropower project and the 2.4-MW Labay hydro, all in Benguet province.

Hedcor claims to be the largest developer of run-of-river plants in the country.