Chinese investors interested in 2 Mindanao hydro projects

CHINESE investors are interested in building hydropower plants with combined capacity of 550 megawatts within the state-owned complexes in Mindanao, an official of Mindanao Development Authority (MinDA) said.

As the government could not anymore build power plants with the implementation of Electric Power Industry Reform Act, MinDA Deputy Executive Director Romeo M. Montenegro said yesterday in Wednesdays @ Habi at Kape in Abreeza Mall that the private sector will be the onesto pursue the projects.

A consortium in partnership with the family that owned the lot for Agus III in Agus hydropower complex, for instance, aimed to build a 250-MW project.

The national government only operates the Agus I, II, IV, V, VI and VII with combined rated capacity of 728.1 MW. Reports cited that the national government was not able to set up Agus III due to land ownership issues.

“The group that planned to build the project is currently still exploring contracts,” Montenegro said.

As of 2012, a report cited that the Agus 3 Hydropower Corp. sought congressional approval for the $500-million project. This was a partnership between the Tzanzen Group and Lanao Hydropower Development Corp.

The plan to build 300-MW hydropower project Pulangui V, meanwhile, will be pursued by Greenergy Development Corp. in partnership with Power China Guizhou Engineering Corp. The project will be worth $1 billion.

“Greenergy is currently awaiting approval from Department of Energy to pursue the project,” Montenegro said.

Montenegro said the projects are vital to help balance the energy mix in the Mindanao grid. At present, he said the number of renewable energy plants now comprised 30% with the increase of coal and diesel power projects.

The MinDA, he said, targeted to have a 50-50 energy mix by 2030.

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