Aboitiz Power unit to proceed with Davao plant

MANILA, Philippines - Hedcor Inc., a hydroelectric development unit of Aboitiz Power Corp., has expressed confidence it can proceed with the construction of its hydropower project in Davao City. 

This optimism was an offshoot of a compromise agreement Hedcor entered into with the Davao City Water District (DCWD) that would pave the way for the eventual construction of the 10-15 megawatt power plant along the Tamugan River.

The agreement puts an end to the long-running dispute between the two parties, officials said noting that Hedcor and DCWD have been at odds over the water claims in the Tamugan River.

Davao City Mayor Rodrigo Duterte was instrumental in bringing both parties to agreeing and settling the row that had been ongoing for many years.

“We are very pleased to have found a win-win solution to the issue where all stakeholders would enjoy the benefits of the Tamugan River resource,” APC president and CEO Erramon Aboitiz said.

 “Now, more than ever, it is imperative that we develop Mindanao ‘s hydro resources for the benefit of everyone. We would like to thank Mayor Duterte for his assistance and the board of the DCWD for keeping an open mind,” he added. 

Once completed, the Tamugan hydropower facility is envisioned to further add to APC’s renewable generating capacity. APC also recently commenced with the operations of Sibulan Hydro, another greenfield hydroelectric plant in Mindanao.

Mindanao is currently suffering from rotating brownouts due to low water levels at Lake Lanao, located in Northern Mindanao and the main source of power for the Mindanao grid, and a lack of generation capacity capable of filling the void. 

APC is the holding company for the Aboitiz Group’s investments in power generation, distribution, retail and power services. It is a major producer of renewable energy in the country with several hydroelectric and geothermal assets in its generation portfolio. – Donnabelle Gatdula