ORMOC CITY – On December 29, 2022, an Omnibus Loan and Security Agreement was signed and entered into by the Leyte V Electric Cooperative, Incorporated (LEYECO V) and the Development Bank of the Philippines (DBP), approving the loan for the proposed 2 megawatts (MW) Bao Hydro Power Plant project of the cooperative, which will be located in Brgy. Masarayao and Brgy. San Ignacio in Kananga, Leyte and Brgy. Nueva Vista, Ormoc City, Leyte.
Accordingly, the development of the said hydro project aims to address the challenges of energy security, affordability, and access to clean energy as mandated in the Renewable Energy Act of 2008.
The rate impact for this project is projected to be an average of PHP 5.60 per kilowatt-hour (kWh) for the first 11 years from the commencement date and PHP 3.80 per kWh for the succeeding years, and it will also help stabilize the power rate of the cooperative.
According to LEYECO V Manager for Corporate Planning and Energy Trading Department, Engr. Michael Guinarez, project construction will start in January 2023 and would be completed or be used in 2025.
“Ang total niya nga project cost is PHP 513 million, and for the first 10 years dunay PHP 5.60 nga presyo sa kuryente mao ni mosagol sa atong generation rate, pagka 12th year mahimo nalang siya nga PHP 3.80 kay impas naman ang loan nga atong gibayran,” said Guiñarez.
In addition, additional benefits of the said project include compliance with the Renewable Portfolio Standard (RPS), system loss reduction, power supply resiliency, local job generation, and benefits to the host communities under the Energy Regulations (ER) 1-94 Program, which was enacted to make sure that host communities get a reasonable share of the profit from power plants operating in their area.
Moreover, the aforesaid project is expected to generate a dependable capacity of 2 MW with 14.36 million kWh per year, which will serve the towns of Kananga, Matag-ob, and Ormoc City.
LEYECO V, accordingly, assures the communities that the project will be built in a sustainable way and would make sure to protect the environment by rehabilitating the Bao Watershed and preserving the groundwater resources of the area. The said signing ceremony was joined by DBP Tacloban Lending Center head, Atty. Janet L. Dacillo; Head Account Officer, Mary Darleen D. Matienzo; DBP Ormoc Branch Head SM Joniel E. Sagdullas; LEYECO V Board of Directors headed by Board President, Director Emmanuel S. Arpon; General Manager Atty. Jannie Ann J. Dayandayan; Power Generation Unit (PGU) Chairman and Corporate Planning and Energy Trading Department Manager, Engr. Michael R. Guinarez; LEYECO V Department Managers; and PGU members. By Gwen Maurillo (EV Mail Dec. 26, 2022-Jan. 1, 2023 issue)