NGCP to complete $500-M proj by 2018

MANILA, Philippines - The National Grid Corp. of the Philippines (NGCP), the country’s sole power-lines concessionaire, is aiming to complete the $500-million Leyte-Mindanao Interconnection Project (LMIP) by 2018, its top official said on Friday.

“Hopefully, the completion will be by 2018,” NGCP president Henry T. Sy Jr. told reporters in a briefing.

The ambitious project, which involves connecting the Visayas grid to the Mindanao grid through 23 kilometers of submarine cables from NGCP’s Leyte and Surigao substations, is seen as the key to addressing Mindanao’s power woes, as it allows sharing of reserves during periods of shortfall between the two grids.

NGCP is aiming to start the construction in 2016 after finishing the required hydrographic survey, said Joseph Dechavez, NGCP special assistant to the president.

The hydrographic survey involves determining measurements that affect maritime navigation, marine construction and offshore oil exploration and drilling.

“The hydrographic survey is important for us to be able to come up with the design of the project,” Dechavez said.

He said NGCP expects to finish the hydrographic survey by middle of next year and at the same time get approval from the Energy Regulatory Commission (ERC).

He said NGCP has already obtained the approval of the ERC for the conduct of the hydrographic survey and the feasibility study.

“Once we’re done with the feasibility study and hydrographic survey, we will go back to ERC,” Dechavez said.

The Department of Energy is aiming to expand the country’s entire transmission network by connecting the Visayas and Mindanao grids by 2017 and also the transmission network between Batangas and Mindoro by 2014.

At least 2,590 circuit kilometers of transmission lines are programmed be put in place between 2011 and 2015.

NGCP is a privately owned corporation in charge of operating, maintaining and developing the country’s power transmission network.

It is a joint venture between State Grid Corp. of China and Henry Sy Jr., the eldest son of mall magnate Henry Sy, whose company operates the SM Mall chain.

The company won a 25-year concession to run the country’s transmission assets after it took over the management of the country’s national transmission network in 2008 from the state-owned National Transmission Co.

It won in a public bidding, which was undertaken in accordance with privatization thrusts of Republic Act No. 9136 or the Electric Power Industry Reform Act of 2001.