NGCP rationalizing development plan to prioritize urgent projects

MANILA, Philippines - The National Grid Corporation of the Philippines (NGCP) is rationalizing its Transmission Development Plan (TDP) to line up projects with utmost priority, an energy official said.

Energy Undersecretary Josefina Patricia Asirit said NGCP president Henry Sy Jr. has indicated to the Department of Energy (DOE) their plan to rationalize the TDP to give way to projects which could be more beneficial to consumers.

“NGCP would want identification of the sites where upgrading and modernization are most needed,” Asirit said, noting that there are projects which would be more important than the others which could be prioritized.

Asirit said NGCP wants to synchronize the priority projects in the TDP that would be submitted to the Energy Regulatory Commission (ERC) as part of the company’s maximum allowable revenue (MAR).

“They would want a realigning of the projects and be able to justify it in relation to MAR,” Asirit said.

NGCP is composed of Monte Oro Grid Resources Corp. (now owned by Sy’s One Taipan Holdings), Calaca High Power Corp. led by Robert Coyuito and State Grid Corp of China.

The consortium won the concession to operate and manage the system run by the National Transmission Corp. (TransCo) in a public bidding conducted by the government in December 2007. The consortium offered $3.95 billion for the concession contract.

NGCP took over the operations and maintenance of the country’s transmission network, which consists of 20,236 circuit kilometers (combined length of transmission and sub-transmission) and a total capacity of 24,607 mega-volt amperes, from the government on Jan. 15, 2009.

It was granted a franchise by Congress to operate and maintain TransCo for a 25-year period, renewable by another 25 years.

Monte Oro is a wholly-owned subsidiary of Monte Oro Resources & Energy Inc. It was incorporated in August 2006 to invest and hold interest in shares of stocks of companies engaged in infrastructure projects.

Calaca High Power, meanwhile, was also formed in 2006 to engage in the business of operating, managing, maintaining and rehabilitating energy systems and services for gas, steam and electricity.

State Grid Corp. of Hongkong Ltd. is a subsidiary of the State Grid Corp. of China, one of the world’s largest power utility companies, in the business of power transmission, distribution and sale.

State Grid of China is expected to provide the technical support and know-how in NGCP which serves 88 percent of China’s territories covering more than one billion customers.

Sy earlier said that NGCP has been working in tandem with the DOE and other industry stakeholders including distribution firms and electric cooperatives, in implementing all approved projects spelled out in the government’s National Transmission Development Plan (TDP).

“One of NGCP’s top priorities in this regard is to ensure that the TDP is in place to build and develop an efficient and reliable grid,” Sy said.

“As the only corporation responsible for the operation, maintenance and centralized planning of the nationwide transmission system, NGCP prepares and revises a 10-year TDP annually to reflect significant changes in the power industry landscape and priorities,” he said.