NEDA body endorses P4.7-B power transmission projects

MANILA, Philippines - The National Economic and Development Authority (NEDA) Investment Coordination Committee-Cabinet Committee (ICC-CC) has approved about P4.7 billion worth of two transmission projects, a P692.55-million increase in the cost of the Central Mindanao Road project, as well as a 15-month extension in grant validity and additional grant of P287.25 million for the Basic Education Assistance for Mindanao (BEAM) Stage 2, a NEDA statement read. The P2-billion Southern Panay 138 kilovolt (kV) Backbone Transmission Project is designed to address increasing load voltage problems and the increasing demand for power in the area and to provide a new distribution point for the Panay grid network. Visayas power supply The project is also one of the main components of the Visayas Transmission Augmentation Program (VISTA). The VISTA program was designed to build robust, resilient and reliable electricity highways in the Visayas. About 52.58%, or P1.09 billion, of the total project cost will come from foreign sources, while 47.42%, at P979.77 million, will be the local counterpart. The project is proposed for local funding through the internal cash generation of the Transmission Corporation (TransCo). TransCo plans to start the project this year and complete it by February 2010. Clark Freeport On the other hand, the P2.7-billion Mexico-Clark 230kV Transmission Project aims to provide a reliable supply of electricity to the Clark Freeport Zone to sustain the operation of its locators and attract more investors in the area. Specifically, it aims to provide Clark Freeport Zone locators with power transformers, and ensure the electricity supply of distribution utilities in Pampanga. The project will have a foreign cost component of about 66.5% of the total project cost or about P1.79 billion, while the local cost component is about P905.48 million or 33.5% of the total cost. The construction of the project is expected to take 26 months to be completed from March this year to May 2010. Central Mindanao roads The ICC also endorsed the DPWH-proposed cost increase in the Central Mindanao Road Project by P692.55 million, which now totals P2.76 billion or a 33.54% increase from the ICC-approved cost of P2.07 billion. The project involves the rehabilitation and reconstruction of about 85.1 kilometers of roads and bridges along the project road traversing Maguindanao and Sultan Kudarat. The increase was proposed to sufficiently finance the three contract packages of the project. Likewise, the ICC endorsed for NEDA Board approval the proposed 15-month extension of grant validity and the additional grant amount of P418.4 million for the second stage of BEAM. The additional amount will cover project activities scheduled to be implemented from September 2008 to November 2009. The additional amount will be provided by the Government of Australia through the Australian Agency for International Development, with no additional counterpart financing from the government of the Philippines. - BusinessWorld