DOE taking care of Mindanao’s power woes

This is in reply to the article “Power woes attributed to DOE inaction.” (Inquirer, 3/20/12)

Energy Secretary Jose Rene D. Almendras was out of the country, on official business, at the time the Mindanao legislators met. Undersecretary Josefina Patricia M. Asirit told the Mindanao legislators about this during their meeting early in February this year.

Last Feb. 22, the Department of Energy convened, through the House of Representatives’ Committee on Energy, a dialogue to apprise the legislators of the real situation in Mindanao. Contrary to the allegation of inaction, the DOE has consistently taken measures to address the emerging concerns of Mindanao:

1. Dredging of Pulangui River. To set the record straight, it is impractical for the government to undertake “overall dredging”; the best way is selective dredging and flushing. The surrounding watershed areas of the river are already denuded. Government has released P3 billion for the reforestation of the surrounding areas, but this will take time. Dredging at this time will not solve the problem; it will just give more space for silt accumulation. The Pulangui plant’s capacity is not stable because it is dependent on the amount of rainfall and water flow.

Nevertheless, we have presented to the Joint Congressional Power Commission the cost (about P2 billion) and effects of the dredging.

2. Repair and transfer of power barges 101, 102, and 103. A 2010 study showed that moving the power barges to Mindanao will cost P740 million. Operating these plants will also require upgrading because of the condition of the power barges.

3. Operation of the Iligan Diesel Power Plant (IDPP). On Jan. 18, 2012, Iligan City informed the Commission on Audit (COA) of the disposal of the IDPP and sought the approval of the sale to Conal Holdings Corp. The DOE has not been remiss in monitoring the review of the sale without infringing on the audit review. The matter remains pending with the COA and we recognize that the COA, as an independent constitutional body, has its own regulatory requirements.

The DOE has issued a circular aimed at rationalizing the Mindanao grid power supply system. This is a stopgap measure that will give relief to the people in the region.

The long-term solution for Mindanao is the installation of baseload generation that will give the region supply reliability and affordability as its demand grows. This will only happen if contracts are closed, otherwise no investor will risk a project.

Rest assured that the DOE is committed to attract investors to the Mindanao power portfolio. We urge the Mindanao legislators, local government and consumers to extend their utmost cooperation to the national government in addressing the power situation in Mindanao.

—LORETA G. AYSON,

undersecretary and officer in charge,

Department of Energy, [email protected]