In a contract signing yesterday, the Czech Republic has committed the installation of a 750-kilowatt mini-hydro power project to benefit about 27,000 residents in the Municilities of San Luis and Baler in Aurora province.
The 750-kW mini-hydro project will be constructed in Barangay Ditumabo, San Luis and will be financed through a P10- million grant from the Czech Republic.
As a counterpart funding, about P37-million seven-year loan will be provided by the Philippine National Bank (PNB) to San Luis for the project financing.
Energy Secretary Vincent S. Perez said the construction of the mini-hydro project is directly in line with two of the DOE’s current thrusts: rural electrification and promotion of renewable energy.
Perez noted that there are still 4,753 barangays in the country that are still without electricity.
The energy chief said that on-site development of appropriate renewable systems such as mini-hydro are sometimes the only viable alternative for bringing electricity to remote mountain barangays.
"The project will provide significant social benefits to the 27,000 residents of San Luis and Baler, but it will at the same time create employment during the construction and operational stages," the energy chief added.