DBP to fund P100-million mini-hydro project in Nueva Vizcaya

SOLANO, Nueva Vizcaya — As part of the government’s efforts to reduce the country’s dependence on traditional energy sources, it is funding a multimillion mini-hydroelectric plant here, which is capable of energizing this province’s premier town.

Following last week’s official signing of a memorandum of agreement (MOA) for the establishment of at least one-megawatt mini-hydroelectric dam here, the government, through the Development Bank of the Philippines (DBP), committed at least P100 million for the construction of the said project, the first of its kind in this landlocked province.

According to Mayor Santiago Dickson, the project, to be constructed in the upland villages of Commonal and Uddiawan, would be capable of energizing the whole town and parts of the neighboring municipalities of Villaverde and Bagabag.

DBP will finance the project while the construction will a be undertaken by Smith Bell, a multinational energy firm, which also constructed the country’s firs windmill project in Bangui, Ilocos Norte. The municipal government is responsible for mobilization of resources as well as ensuring peace and order in the area.

"Besides energy power, which would expectedly reduce the cost of electricity for households, the local government would surely benefit from taxes to be generated from the project," Dickson said.

Under the MOA, the project construction, would commence in March and Smith Bell, which will later operate the energy project, will sell power to the Nueva Vizcaya Electric Cooperative (Nuvelco) at reduced rates.

"A reduced rate will mean less expense for consumers," said Dickson, adding that the concerned communities where the water used for generating electricity is sourced have already given their consent for the project.

Dickson assured that the government would look into the economic and social benefits for villagers as a result of the utilization of their resources.

"Just like in the Casecnan project, the communities would be given their just share in the income of the project," Dickson added, referring to the multi-million peso Casecnan Multi-purpose Irrigation and Power Project in Alfonso Castañeda town, which has already paid at least P500 million in real property tax, franchise tax, business tax and other fees to the provincial and municipal governments since it started operating in 2001.

Engineer Narciso Salunat, Nuvelco officer-in-charge, said the mini-hydroelectric dam here is part of seven similar projects to be constructed in various parts of the province.

Gov. Luisa Lloren-Cuaresma, one of the signatories to the MOA, along with Dickson, DBP branch manager Arceli Tan and Smith Bell president Knud Hedeger, said that with this development, the province would be independent from outside sources for its electric power needs.

Cuaresma said the project is in line with the government’s long-term effort to provide alternative power sources to alleviate the burden of the high cost of electricity on consumers.