DBP extends P271-M loan for power

MANILA, Philippines - The Development Bank of the Philippines has approved a P271-million loan for the construction of the 1.5 megawatt (MW) Tubao mini-hydro power project in the municipality of Tubao, La Union. The project consists of the construction and operation of a run-of-river type hydropower plant located in Sitio Maian, Brgy. Halog East, Tubao, La Union.  It will be constructed at the Galiano River, a tributary of the Aringay River. The project will contribute to the government’s thrust of achieving energy security through the development of indigenous and renewable energy sources.  It will augment power supply in the Luzon grid, which has a projected deficit of 184 MW in 2015 and 339 MW by 2017, based on the Department of Energy’s Luzon Supply-Demand Outlook 2013-2020. Electricity generated will be sold to La Union Electric Cooperative (LUELCO), which serves 17 municipalities in the province. Currently, LUELCO sources the bulk of its power requirements from the Luzon grid. The project will also have a multiplier effect on the local economy as 51 percent of the construction cost is allocated for civil and other construction works.  An estimated 100 to 150 locals will be employed during the construction phase.