CDO levels up Global Competiveness with new hydropower plant

Jun 22, 2012

by Mike Baños

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CAGAYAN DE ORO CITY – A new mini hydroelectric is expected to further improve the global competitiveness of this capital city of Northern Mindanao when it comes online in 2014.

Principals of the Turbines Resource & Development Corporation (TUREDECO) broke ground for the new project June 22 at the project site in Limbatangon, Sitio Narulang, Barangay Lumbia and Baungon, Bukidnon. It will be built at the left bank of the Cagayan River approximately 142 meters downstream from the junction of the Cagayan and Bubunawan Rivers.

Malaybalay Bishop Jose Cabantan presides over the blessing and capsule laying of the Limbatangon Mini Hydro project last June 22 at the project site as stakeholders led by the Barcelon, Arguelles and Lagapa families look on. (photo courtesy of Engr. Elpie M. Paras)


“Our run-of-river plant will have an installed capacity of 9 megawatts and will be a merchant plant with on-grid connectivity,” said Fr. Emeterio J. Barcelon, S.J., TUREDECO president and CEO. “Civil works will be undertaken by PHESCO Inc. while electro-mechanical works has been commissioned to FLOVEL/KALTIMEX (Philippines). The Professional Construction Management Consultant of the project has been awarded to Petra Konsult & Associates, Inc.”

“The project is estimated to cost around PhP 1.5-billion,” said Edgar N. Seronay, senior assistant vice president and regional head for the Development Bank of the Philippines (DBP), which has been tapped as the lead bank for project financing. In addition, the Land Bank of the Philippines granted the project a loan for the feasibility study through the CREB-PPF under the Environment Program and Management Departments.

“The construction of the plant will be financed under DBP’s Environment Program for Renewable Energy and is part of the bank’s commitment to environmental protection and sustainable development,” Mr. Seronay said. “Official development assistance (ODA) funds will be utilized for the project. The equity portion for the plant construction will be shared by shareholders and investors.

The Limbatangon project was started 2004, endorsed by the Lumbia Barangay Council and Cagayan de Oro City Council in 2005 and by the Regional Development Council 10 (RDC 10) in 2010 as supportive of the national government’s agenda of energy dependence as stated under the 2004-2010 Medium-Term Philippine Development Plan (MTPDP) and also included in the 2007-2014 Philippine Energy Plan (PEP) of the Department of Energy (DoE).

The project secured an Environmental Compliance Certificate (ECC) from the Environmental Management Bureau of the Department of Environment and Natural Resources (DENR) in June 2010 while the Department of Energy (DOE) awarded it a Renewable Service-Contract in 2012.

At present, the local utility Cagayan Electric Power and Light Company, Inc. (CEPALCO) has

a $5.3-million one megawatt fully automated solar power facility in Bgy. Indahag and two embedded power generators operated by its affiliate Mindanao Energy Systems, Inc. (Minergy):

the $ 10.2-million  seven megawatt Bubunawan run-of-river mini hydro at Baungon, Bukidnon and the $21-million 18.9 MW diesel power plant at Bgy. Tablon upgraded last February 2012 to 42MW.

Bubunawan was severely damaged by the flash floods of Tropical Storm Sendong last year and is slated for rehabilitation. Meantime, the Cabulig 8MW mini hydro in Claveria, Misamis Oriental is expected to be commissioned by September this year.

CEPALCO’s embedded generators are credited with keeping Cagayan de Oro and its environs free of brownouts during the latest power shortage to hit Mindanao. Besides Cagayan de Oro, only Davao City escaped the latest round of rotating brownouts also due to the embedded generators of the local distribution utility Davao Light and Power Co. (DLPC) which has a similar mix of renewable energy/thermal power plants.

The local government of Cagayan de Oro and other business related organizations like the Oro Chamber have been striving to upgrade the city´s competitiveness as rated by the Philippine Cities Competitiveness Ranking Program (PCCRP) of the Asian Institute of Management (AIM) Policy Center.

The PCCRP is a biennial nationwide research project of the AIM Policy Center which measures the ability of Philippine cities to attract investments and residents based on quantitative and qualitative indicators of six competitiveness drivers: cost of doing business, dynamism of the local economy, human resources and training, infrastructure, responsiveness of the local government unit to business needs, and quality of life

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