Oriental Energy gets OK for Aklan power project

MANILA, Philippines - Oriental Energy and Power Generation Corp. (Oriental Energy) has secured the green light from the Department of Environment and Natural Resources (DENR) to proceed with its 18-megawatt (MW) hydropower project in Madalag, Aklan.

Oriental Energy received its environmental compliance certificate (ECC), which is required prior to the start of construction. The ECC outlines the firm’s duties and responsibilities to ensure that the environment and immediate surrounding communities of its Timbaban hydropower plant will not be disturbed nor harmed during construction.

The hydropower project is the first of five mini-hydro facilities set to be developed by Oriental Energy, a sister company of publicly-listed Oriental Peninsula Resources Group.

With a combined generation capacity of 55 MW, these projects include the P2.2-billion, 15-MW Culaman run-off-river hydroelectric power project in Manolo Fortich, Bukidnon; and three service contracts for the upper, middle and lower cascades of the Odiongan River in Odiongan, Misamis Oriental with a total expected output of 22 MW.

Oriental Energy president Caroline Tanchay said the mini-hydropower projects are being pursued in line with government efforts to address the country’s acute power supply problem without depending on expensive and pollutive fossil fuels.

“These hydropower projects will produce renewable clean energy at reasonable cost,” she said.

She added that the mini-hydropower projects would contribute to the Department of Energy’s goal of achieving power sufficiency especially in the Visayas and Mindanao power grids.

As the Aklan mini-hydro facility enters the construction stage, shareholders of Oriental Peninsula Resources Group – are expected to proceed with their planned purchase of a 40-percent equity stake in Oriental Energy.

Last December, Oriental Peninsula shareholders approved the change in the listed firm’s primary purpose to include power generation and natural resources development. At the same time, they approved an increase in the corporation’s capital stock. To raise funds for the equity purchase, shareholders are poised to approve a planned stock rights offering later this month.