THE rehabilitation of the Agus-Pulangi hydroelectric complex could take place beyond 2025, the National Power Corp. (Napocor or NPC) told a House committee.
A Napocor engineer briefing the Committee on Energy, Rene B. Barruela, operations planning department manager wit Napocor’s Strategic Power Utilities Group, said studies on the proposed rehabilitation are scheduled or the fourth quarter of 2020, while the rehab itself “could go beyond 2025.”
Mindanao depends heavily on cheap power from Agus-Pulangi, whose facilities have deteriorated over time, leaving it well below its original rated capacity. Meanwhile, commercial power plants being built on Mindanao have been taking a greater share of power capacity, raising the prospect of higher rates on average.
Party-list Rep. Godofredo N. Guya, of Recoboda, a rural electric consumer group, had asked Napocor for its timetable in rehabilitating Agus-Pulangi.
The committee’s Vice Chair, Rep. Jericho Jonas B. Nograles, said that power agencies are pointing to the Republic Act No. 9136 or the Electric Power Industry Reform Act of 2001 (EPIRA) for the delay in the rehabilitation.
“There was a point in the EPIRA stating that the EPIRA basically directs the agencies to sell government assets, specifically Napocor generation facilities and privatized the same. That’s why spending for a full rehabilitation runs counter to EPIRA,” Mr. Nograles said.
He also said that it is up to Congress to provide clarity on the direction that the energy agencies must take regarding EPIRA privatization and the rehabilitation of the government-owned complex.
Section 47 of the EPIRA Law states that “all assets of NPC shall be sold in an open and transparent manner through public bidding, and the same shall apply to the disposition of IPP (Independent Power Producer) contracts.”
The EPIRA law also calls for the sale of Agus-Pulangi to take place no earlier than 10 years from the effectivity of the law in 2001.
Power Sector Assets and Liabilities Management Corp. (PSALM) President and CEO Irene Joy Besido-Garcia said that in 2018, Agus-Pulangi generated net revenue of P9.86 billion, with operating expenses of P2.44 billion and net operating income of P7.4 billion.
Pio J. Benavidez, Napocor’s president and chief executive officer, said in March that the cost of rehabilitating the Agus complex will be between P37 billion and P40 billion. — Marc Wyxzel C. dela Paz
