US awards P16-million grant to First Gen Mindanao

MANILA, Philippines - The United States awarded yesterday a grant totaling over P16 million to First Gen Mindanao Hydro Power Corp. (FGMHPC) to assess the requirements needed to expand its hydroelectric power plant in Northern Mindanao.

The US Trade and Development Agency (USTDA) will fund a feasibility study for a 14-20 megawatt run-of-river hydroelectric power plant in the municipality of Cabadbaran in the Mindanao province of Agusan Del Norte to help address the growing demand for electrical power in the country.

The study will include a hydrology analysis, geotechnical assessment and mapping, environmental and social impact assessments, as well as preliminary designs for the power plant. 

The feasibility study is part of the US commitment to support the Philippines in its efforts to develop renewable energy sources and to increase electrification across the country. Once completed, this project will help improve access to electricity for 20,000-28,000 households in Northern Mindanao.

During the grant signing ceremony at the US embassy, Ambassador Harry K. Thomas Jr. said the funding “is yet another example of the US government’s commitment to renewable energy and infrastructure development in Mindanao.”  

“This agreement will also promote trade and establish long-term economic linkages between the United States and the Philippines. This will result in more jobs for both Filipino and American workers,” Thomas said.

Power demand is growing at an annual pace of 7.3 percent and the Department of Energy aims to have 10 percent of electricity production come from hydropower.

FGMHPC president and COO Francis Giles Puno said the grant will help in providing additional supply of power to the Caraga region of Mindanao following the brownouts and power outages it suffered in 2009.

“First Gen appreciates the support provided by USTDA in its efforts to develop and execute this project to meet the region’s growing demand for electricity particularly from clean and renewable power such as hydro,” Puno said.

First Gen Mindanao Hydro Power Corp. will use its vast experience from the operations and development of its First Gen-affiliated hydroelectric projects such as the 122-megawatt Pantabangan-Masiway hydro plant in Luzon and a 1.6- megawatt plant in Bukidnon to complete the project with USTDA’s support.