MANILA, Philippines - A study on the technical and financial viability of the Leyte-Mindanao interconnection project (LMIP) is underway, according to a top official of the National Grid Corp. of the Philippines (NGCP).
In a press conference over the weekend, NGCP president and CEO Henry Sy. Jr said they have been preparing for the LMIP since they believe it should be part of the long-term solution to alleviate the power shortage in Mindanao.
“We think that is one of the long-term solutions. We can have a study for that. Right now, were just going to study,” he said.
Sy said they are just discussing the matter with their technical partners. “I’ve to discuss with the Chinese partners,” he said.
He admitted that there are some issues that need to be threshed out with their partners.
“Somehow we have different point of view but only the study can resolve that, but study takes money also,” he said.
One Taipan Holdings Corp., controlled by Sy Jr., bought out the group of Monte Oro Resources of businessman Enrique Razon at NGCP. The NGCP consortium is composed of State Grid of China with 40 percent share as the foreign partner, Monte Oro Grid Resources Corp. with 30 percent equity and Calaca High Power Corp. with 30 percent shareholdings as the local partners.
On Jan. 15, 2009, state-owned National Transmission Corp. (TransCo) officially turned over the management and operation of its nationwide power transmission system to NGCP. The concession period is for 25 years and renewable for another 25 years.
On a separate interview, Energy Secretary Jose Rene Almendras echoed the same sentiment as Sy.
“If it can be done, we should do it, in the scheme of things in the future, you want the flexibility to be able to move power to wherever you need it,” the energy chief said.
Almendras also recognized the impact of the LMIP on prices.
“I dont know how much it’s gonna cost. I dont want the price of electricity to go up because we will build that, somebody’s gonna pay for that,” he said.
But he said he expects NGCP to include LMIP to the grid development plan that they would have submit to the Energy Regulatory Commission (ERC).