PHL secures P340-M energy grant from JICA

The Philippines on Thursday signed a P340-million grant project with the Japan International Cooperation Agency (JICA), in support of the energy sector in conflict-affected areas in Mindanao.

Signed at the National Economic and Development Authority (NEDA) headquarters in Pasig City, the grant will finance the upgrade of six electric cooperatives in Mindanao.

With the agreement signed, Pernia said the initial phase of the project can begin before the first half of the year is out.

"It should be shortly after the signing. So, probably, within the first semester of the year. So, I guess, before the end of June," he told reporters on the sidelines of the signing ceremony.

"That will be under the supervision of NEA and the Japanese contractor," Pernia said. NEA is the National Electrification Administration.

In particular, the conflict areas were identified as Sulu, Lanao Sur, Tawi-Tawi, Siasi Island and Maguindanao.

"The project is part of our continuing commitment to support peace and development in Mindanao," JICA Chief Representative Susumo Ito said.

"By helping resolve power the power supply ... in conflict-affected areas, we aim to help the Philippines create more economic activities in the region," he added.

According to government data, the affected areas have an in energy loss of 26 percent on average due to aging equipment for energy transmission which have been put up in the 1970s.

The JICA grant is expected to reduce energy distribution losses to about 7 percent, and assure the supply of electricity to some 44,000 households. — VDS, GMA News