MB approval up for $80-M JBIC funding for Transco project

The Monetary Board, the policy-making body of the Bangko Sentral ng Pilipinas (BSP), is expected to approve the $80-million funding requirement from the Japan Bank for International Cooperation for the National Transmission Corp.’s Cebu-Negros-Panay (CNP) uprating project.

"We already have the approval in principle from JBIC, and they’re just waiting for the approval from MB. The Department of Finance (DOF) has also gave its consent on the project. Energy Secretary Vincent Perez has promised to include this concern in the MB’s regular meeting agenda," Transco president Alan Ortiz said.

Ortiz said he is confident that the MB will approve some minor amendments in the loan agreement since the finance department has already given its go-signal for the project.

The Transco official said after the MB approval, JBIC would issue its own approval from the Miyazawa Fund.

He said Transco would be able to announce the tender for the project by the end of the month.

"We’ll announce the tender for different components of the CNP project not later than April," Ortiz said.

The CNP is envisioned to double the load of the transmission lines-from 100 megawatt (MW) to 200 MW – among the three Visayas islands and optimize the use of indigenous power from the geothermal power plants in Leyte.

Transco has committed to fast-track the implementation of the $41.50-million Negros-Panay uprating project and the $40-million Cebu-Negros interconnection projects.

The Cebu-Negros component of the CNP project entails the installation of a 109-kilometer, 138 kilovolt (kv) overhead transmission line and a 17.8-km submarine cable to connect Transco’s Santander substation in Cebu and Amlan substation in Negros Oriental as part of the CNP grid.

The Negros-Panay component of CNP, on the other hand, will also increase by 100 percent the transfer capacity from 100 MW to 200 MW, of the 18.8 km first submarine cable system in Asia.

"Once these projects are completed by early 2006, the Visayas region can expect more than adequate supply of power," Ortiz said.