Negros Occ. to DOE: Don't renew expiring hydropower contracts

BACOLOD CITY, Philippines -  – All exclusive service contracts for hydro-electric power projects in Negros Occidental issued by the Department of Energy (DOE) to several companies in 2009 will end this year.

Provincial Legal Officer Jose Ma. Valencia said the provincial government has asked the DOE not to renew these contracts to open the field to other bigger investors that could offer more power generation than the existing contractors.

Valencia said he and Governor Alfredo Marañon Jr. recently met with Energy Secretary Jose Rene Almendras and requested him to cancel the contracts of hydro-electric power companies covering major rivers in the province, and give priority to complying investors in the awarding of new contracts.

“We have discovered that all the rivers of the province have been issued service contracts by the DOE under the Renewable Energy Act, but these deterred other investors from putting hydro-electric power plants in those areas,” Valencia said.

Those listed in the DOE with service contracts are Century Peak Energy Corp. for its Hilabangan hydroelectric power projects in Kabankalan City; Hamtican and Himogaan power projects in Minapasok, Calatrava, and Bago power project in Murcia; the Renouvel Development Corp., for its Iglanggam power project in Sagay City; and the Vivant Corp. for its Malugo power project in Victorias City.

Valencia earlier said bigger and more capable power companies have already conducted feasibility studies in the rivers of Kabankalan, Bago, and Sagay cities, unlike those existing contract holders that had no such studies and not even met with LGUs for endorsements, as mandated.

Valencia cited Alson Energy Power, which already did three feasibility studies on the Bago river, and has offered 40-megawatt power generation, compared with Century Peak that has only generated 8-mWs.

He cited similar situations in Kabankalan and Sagay rivers where bigger companies have offered to generate at least 15-mWs and 12-mWs, respectively, against the lower output of existing contractors.

The operation of hydro-electric power plants in the province is important, Valencia said, adding that Almendras earlier said Negros Occidental must have its own source of power because the submarine cables transmitting power to the province may be too overloaded to meet increased demand in the future. (FREEMAN)