MANILA, Philippines - A unit of Aboitiz Power Corp. will build an 8.5-megawatt (MW) hydroelectric power plant in Isabela after sealing a deal with the National Irrigation Administration (NIA).
In a disclosure to the Philippine Stock Exchange yesterday, AboitizPower said its unit SN Aboitiz Power-Magat Inc. (SNAP-Magat) signed with NIA for the construction of the hydroelectric power plant along the Maris Main (South) Canal along the Magat River which is under the operation and management of NIA.
AboitizPower said the hydroelectric power plant will use the irrigation water released from the Maris Reservoir for the Maris Main (South) Canal.
“The project shall commence in the last quarter of 2015 and is targeted to be completed by November 2017,” the company said.
SNAP Magat and NIA have earlier signed a memorandum of understanding for the former to develop the proposed six-MW Maris South Canal and 1.75-MW Maris North Canal mini-hydropower projects.
In December 2013, the Department of Energy (DOE) awarded a hydropower service contracts (HSC) for Maris Main Canal 1 to SN Aboitiz Power-Greenfield Inc.
SNAP-Greenfield then assigned the HSC to SNAP-Magat, which was eventually granted by the DOE.
SNAP-Magat owns and operates the 360-MW Magat hydroelectric power plant located at the border of Ramon, Isabela and Alfonso Lista, Ifugao after a successful bid for the plant under the Philippine government’s power sector privatization program in December 2006.