Allan Ortiz, president of the National Transmission Corp. (Transco), said the Investment Coordinating Council-Cabinet Committee (ICC-CC) has approved the funding for the Abaga-Kirahon-Maramag (Pulangi)-Bunawan 230-kilovolt power transmission project.
The transmission line is expected to boost power supply to key areas like Davao City, considered to be the largest growth center in the South.
The city, with a population of over 1.6 million, is noted to be the biggest power consumer in Mindanao, particularly due to its industrial and commercial requirements.
The project’s funding was approved following the results of a study showing the economic viability of the new transmission line and the importance of ensuring the continuous availability of sufficient, reliable and accessible power supply on the island.
The project will cost P8.559 billion, of which P5.054 billion will be financed by a loan and P3.505 billion as the government’s counterpart fund.
But Transco has also been advised that prior to the implementation of the project, it should secure an environmental compliance certificate (ECC) for the Kirahon-Maramag section from the Department of Environment and Natural Resources.
The business sector has been clamoring for a steady supply of power as demand for electricity continues to increase in the South.
The demand for power in Southern Mindanao is expected to increase dramatically with the region’s economic growth pegged at five to six percent in the next five years.
The new transmission line would transmit cheap power from Lanao to the southern and eastern areas of Mindanao.
The 230-KV power transmission project along Abaga-Kirahon-Maramag (Pulangi)-Bunawan will deliver excess power to Southern Mindanao, where demand for power is high.
The Abaga-Kirahon portion will cost P3.381 billion, Kirahon-Maramag, P2.104 billion, and Maramag-Bunawan, P2.663 billion.
The project would allow unrestrained power flow from various generating plants in Northern Mindanao toward the major bulk power delivery ports in the eastern and southern parts of the island, Transco said.