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Viable power sources seen in Kalinga

TABUK, Kalinga (Sept. 22) — Pre-feasibility studies showing the viability of operating three mini-hydro power plants here raised the optimism that the province will attain a 30-percent self-sufficiency level in its power needs before Governor Dominador Belac Jr.’s term ends. This local venture on energy development, a component of the investment portfolio of the province, is being considered as Kalinga’s ticket to a self-reliant local government unit.

Belac said this development is the province’s response to President Gloria Macapagal Arroyo’s statement that the key strategy towards achieving energy independence is the implementation of critical and strategic energy infrastructure projects, “such as micro/mini-hydro and geothermal power projects in the case of Kalinga.”

President Arroyo’s energy independence and savings program aims to achieve a 60-percent self-sufficient level by 2010 and thus shield the country from the adverse effects of imported energy.

The three proposed mini-hydros along the Tanudan River were opposed by communities in Taloctoc but the other one in Bunog River is awaiting approval of the people.

But Belac’s administration is cautious and always in proper consultation with the people. “We are firm in our stand that the tapping of our natural resources must be in accordance with our peoples’ development needs even if this may sound very parochial. We would not want to have another development debacle in the province. The Chico Dam IV experience taught us enough in this respect,” Belac said.

The proposed Bulanao Mini-hydro project with a power generation capacity of 300 kW is viable according to a pre-feasibility study conducted by Manila-based Oriental Planners Builders and Consultants, Inc. From the result of an on-site inspection and assessment, the maximum available water flowing through the UCRIS Main Diversion Canal at Sta. MDC 0+300 (Bacras) is 14 cubic meters per second and the maximum water discharge allocated for the proposed project is 2.5 cubic meters per second and is continuously available for 10 months.

This will serve the electric power requirement of the provincial government, hospitals and other government facilities, whose electric power bill is presently subsidized by the provincial treasury. If operational, Kalinga local government units (LGUs) will save P3.6 million in electric bills paid annually to KAELCO or an average of 600,000 kilowatt-hours (kwh) annual energy purchased from KAELCO @ P6.00 per kwh compared to 2,160,000 kwh to be generated annually from the mini-hydro.

Excess power generated from the proposed mini-hydro power plants may be supplied to the consumers of KAELCO, which means additional revenue to the LGU of P8.6 million and an estimated Net Annual Income of P6.7 Million excluding amortization payment.

The proposed mini-hydro project, which is within the franchise area of KAELCO is located along the main diversion canal of the NIA-Upper Chico River Irrigation System and is approximately 1.5 kilometers away from the provincial capitol.

The Bulanao mini-hydro project has an estimated cost of P35 million which can be implemented through a joint venture between KAELCO, the LGU and financing institutions. The local government will contribute a total equity of 10%. Ninety percent will come from loans from financial institutions like the Development Bank of the Philippines (DBP), Philippine National Bank (PNB) or Land Bank of the Philippines (LBP).

The project will be completed within a period of 15 months and can be done through administration or forced account.

According to the Pre-FS, neither technical barriers nor environmental issues are foreseen and the project financially viable where the invested capital can be easily recovered for a short period. A preliminary financial and economic analysis indicates that the financial internal rate return is 25.20% and the economic internal rate return is 34.61%.

A second ocular survey of the main diversion canal, this time with NIA engineers revealed that there are two other potential sites for mini-hydropower development.

These include Tuliao and Bulo sites with potential capacity of 150 kW and 350 kW respectively. Combining the output of three power plants together can provide an aggregate capacity of 800kW, which is over and above the power requirement of the province.

The estimate cost of the two other sites is P60 million. Completion period is estimated at two years and this includes the detailed FS and design, construction, installation and commissioning.

The combined annual energy generation is 5,760,000 kwh which is equivalent to an annual revenue of P23 million at P4.00 per kwh. Recovery of the P95 million investments is expected within a period of six years.

A 6-megawatt mini-hydro power project along the Tabia River in Pasil is temporarily shelved pending availability of financial sources. # Peter Balocnit / PIA Kalinga

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