Lanao Hydropower to bid for Napocor’s Agus 2 expansion

Lanao Hydropower Development Corp. (LHDC) will participate in the bidding for the expansion of the Agus 2 power project of National Power Corp. (Napocor), a top company official said.

LHDC chairman Saidamen Pangarungan said the company will specifically join the bidding for the Baloi plains flood control project owned by Napocor.

He said the project would help Napocor fully utilize the capacity of the Agus 2 hydropower project.

"The project will involve the dredging and widening of the Agus River so Agus 2 which is located in Saguiaran can operate in full. Right now, Agus 2 has 180 megawatts but cannot operate all its three turbines," he said. "Every time Napocor attempts to operate fully, it floods the Baloi – resulting to damages and claims against Napocor. So the Baloi plain has to be dredged and widened to be able to accommodate the water coming from Agus 2."

He said if Napocor would be able to start the project in two years’ time, it could cover for the projected 57MW power shortage in Mindanao during that period.

"Once Baloi plains is in place by next year, then Agus 2 can fully operate its 180MW which is an additional 60MW for the Mindanao grid by 2009," he said.

Aside from this project, LHDC is also talking with at least four investors to put up a 225MW Agus 3 hydroelectric power project in Lanao del Norte.

He said three foreign investors and a local group have expressed interest to pour in capital for the $300-million hydropower project which is expected to start construction by the end of this year.

Pangarungan said they may also be exploring the possibility of tapping multilateral financial institutions to take part in the project.

According to the LHDC executive, they expect the project to jumpstart this year and completed in 2011 to be able to help ease the power supply shortage in Mindanao in four years’ time.

"This project is crucial. We hope that some sectors that are opposing the project will see this as a private sector initiative which is aimed at alleviating the power demand problem in Mindanao. We are trying to help bring more capacity in the province," he said.

He warned that unless new power plants are built, Mindanao will start suffering from blackouts in 2009 as there would be a shortage in power supply of 57MW by this time.

The 57MW shortage, he said, is enough to paralyze two provinces in Mindanao.