Gov’t to complete Agus-Pulangi hydro rehabilitation by ’28
The rehabilitation of the Agus-Pulangi hydropower complex in Mindanao, earlier estimated to cost, is on track for completion within the Marcos administration, according to Finance Secretary Ralph Recto.
“It’s moving forward,” Recto told reporters on the sidelines of the Economic Journalists Association of the Philippines Economic Forum in Manila on Monday.
Asked about the target timeline, the finance chief said they would pursue this “within the term of administration, hopefully.”
President Ferdinand Marcos will end his term in 2028.
Recto also chairs the state-run Power Sector Assets and Liabilities Management Corp. (Psalm), which is tasked to privatize some crucial power assets.
The complex, which consists of seven run-of-river hydroelectric power plants, has a combined capacity of about 1,000 megawatts (MW).
Six of the hydropower plants are located on the Agus River that flows for 36.5 kilometers from Lake Lanao to Iligan Bay, encompassing Lanao del Sur and Lanao del Norte. The seventh is located on the Pulangi River of Bukidnon.
However, only 600 to 700 MW is operational due to aging infrastructure.
Challenges
Previous data from the World Bank estimated that rehabilitation of Agus-Pulangi facilities could require about $350 million.
The World Bank report also noted that the company was “grappling with issues such as cooling system failures, turbine-generator shaft vibration and outdated auxiliary equipment and control systems.”
Psalm president and CEO Dennis Edward dela Serna previously said the government would explore a potential concession agreement with the private sector to push for the restoration of the complex.
Former Energy Secretary Raphel Lotilla said in February that once a private player comes in and rehabilitates the complex, an additional 400 MW of hydropower would be provided to Mindanao.
Meanwhile, on the privatization of the Caliraya-Botocan-Kalayaan hydroelectric facility, Recto said the Aboitiz-led consortium’s offer was “not below my expectation.”
“It will generate something like P35 billion, which is good, additional revenue for the government,” Recto added.
