DAVAO CITY — Aboitiz Power Corp. subsidiary, Davao Light and Power Company, Inc. (DLPC) is allocating a capital expenditure (CAPEX) of about P1.5 billion this year, which will be used for an underground cable system in Davao City and its rural electrification program.
Rodger S. Velasco, DLPC executive vice-president, said P200 million will be spent for the second phase of its Underground Distribution System project which involves transferring cables underground in parts of the city’s downtown area.
The project “will reduce the vulnerability of the system to power outages by about 75%,” Mr. Velasco said during a press conference in December.
“It will also be not subject anymore to extreme weather conditions like heavy rains and winds,” he said, adding that it can even withstand an intensity 8 earthquake.
At the same time, Mr. Velasco said the company is allocating P130 million for the electrification of remote and small villages in its franchise area.
While DLPC already provides power to all barangays, there are still some smaller areas referred to as sitios and puroks that have yet to be reached.
“We want to intensify our electrification of these small villages,” he said.
DLPC’s franchise area covers Davao City and parts of Davao del Norte province, including Panabo City and the towns of Carmen, Sto. Tomas and Braulio Dujali.
The national government has called on industry stakeholders, particularly in Mindanao, to help in providing electricity to rural areas. National Electrification Administration head Edgardo R. Masongsong said last year that out of the 2.4 million households in the country that do not have electricity, about 1.4 million are in Mindanao.
Meanwhile, Mr. Velasco said DLPC is also allocating P80 million this year for the conversion of sodium street lights into LED lights.
“The target is to complete this project also in the next five years,” he said.
The remainder of the capex will be used to enhance transmission systems, substations and power lines as the company anticipates a power demand growth of 6.5% annually.
“We need to spend to provide better services to our customers,” Mr. Velasco said as the company is projecting that by 2020, the power demand in its franchise area will be at 460 megawatts. — Carmelito Q. Francisco
