TABUK CITY, KALINGA – While most Cordillera provinces are wasting a lot of time and saliva discussing prospects of clean energy projects which will at the same time result in additional income, Kalinga is ready to construct and operate one.
This developed as there are no more hitches to the implementation of the 400 kilowatt minihydro project of the Kalinga provincial government after the junking of the new feasibility study in favor of the old one.
Sangguniang Panlalawigan Secretary Mathew Matbagan said that the project which will be constructed along the National Irrigation Administration (NIA) lateral canal in Bulanao, this city, was proposed by former governor Dominador Belac to supply the electricity needs of provincial government offices including the provincial hospital and national government offices located in Bulanao with the excess to be sold to the Kalinga-Apayao Electric Cooperative (KAELCO).
The provincial government applied for a loan of P42M, the projected cost stated in the feasibility study prepared by the Oriental Planners, Builders and Consultants, but only P36.9M was approved by the Development Bank of the Philippines (DBP) on the reason that the balance should be funded by the provincial government.
Matbagan said that the project did not materialize then as time ran out due to the elections in 2007.
Matbagan said that Gov. Floydelia Diasen who succeeded Belac was able to have the loan approved by the DBP which was ratified by the new members of the SP. The problem however was the sharp increase in the prices of construction materials which made the borrowed amount inadequate.
The DBP had cancelled the loan because it was not implemented within one year.
Matbagan said that in November 28, 2008, Diasen requested the SP for a new authority to contract a loan of P65M from the DBP to finance the project on the basis of a feasibility study prepared by Travis Fruitt Design Services, Inc. (TFDSI) which took into consideration the escalation of the prices of construction materials.
Matbagan said that the new feasibility study sparked opposition to the project from two members of the Sangguniang Panlalawigan (SP) and the Provincial Employees’ Association of Kalinga (PEAK).
SP members Efraim Orodio and Antonio Bakilan questioned the new feasibility study because not only was it submitted unsigned but it failed to provide details such as how the project will pay for itself, source of financing, management and operation of the project and even the qualifications of TFDSI.
The PEAK said that the new cost was not justified because of the rollback in the prices of construction materials which took place while the feasibility study was being prepared.
TFDSI then amended the feasibility study recommending P46M as cost of the construction but before the SP could act on the amended feasibility study, Diasen requested the DBP for an extension of time to implement the old approved loan of P36.9M on condition that if it is not enough to pursue the project, the bank will conduct a reevaluation for purposes of extension of an augmentation loan.
Matbagan said that although the thinking of the SP is that no additional loan will be taken out for the project and for provincial government loans to cover the balance of the construction cost, the action of Diasen had the effect of clearing all obstacles to the implementation of the project.
“The amended feasibility study has been set aside in favor of the old feasibility study,” Matbagan said.
With regards to the question as to what happens during the time of the year when the NIA cuts off the water for the annual rehabilitation of the system, Matbagan said that the provincial government has entered into a memorandum of agreement with the NIA to allow enough water to support the minihydro.
“The provincial government has also made a sales agreement with the KAELCO to buy generated by the minihydro,” Matbagan said. **By Estanislao Albano Jr., ZZW
This developed as there are no more hitches to the implementation of the 400 kilowatt minihydro project of the Kalinga provincial government after the junking of the new feasibility study in favor of the old one.
Sangguniang Panlalawigan Secretary Mathew Matbagan said that the project which will be constructed along the National Irrigation Administration (NIA) lateral canal in Bulanao, this city, was proposed by former governor Dominador Belac to supply the electricity needs of provincial government offices including the provincial hospital and national government offices located in Bulanao with the excess to be sold to the Kalinga-Apayao Electric Cooperative (KAELCO).
The provincial government applied for a loan of P42M, the projected cost stated in the feasibility study prepared by the Oriental Planners, Builders and Consultants, but only P36.9M was approved by the Development Bank of the Philippines (DBP) on the reason that the balance should be funded by the provincial government.
Matbagan said that the project did not materialize then as time ran out due to the elections in 2007.
Matbagan said that Gov. Floydelia Diasen who succeeded Belac was able to have the loan approved by the DBP which was ratified by the new members of the SP. The problem however was the sharp increase in the prices of construction materials which made the borrowed amount inadequate.
The DBP had cancelled the loan because it was not implemented within one year.
Matbagan said that in November 28, 2008, Diasen requested the SP for a new authority to contract a loan of P65M from the DBP to finance the project on the basis of a feasibility study prepared by Travis Fruitt Design Services, Inc. (TFDSI) which took into consideration the escalation of the prices of construction materials.
Matbagan said that the new feasibility study sparked opposition to the project from two members of the Sangguniang Panlalawigan (SP) and the Provincial Employees’ Association of Kalinga (PEAK).
SP members Efraim Orodio and Antonio Bakilan questioned the new feasibility study because not only was it submitted unsigned but it failed to provide details such as how the project will pay for itself, source of financing, management and operation of the project and even the qualifications of TFDSI.
The PEAK said that the new cost was not justified because of the rollback in the prices of construction materials which took place while the feasibility study was being prepared.
TFDSI then amended the feasibility study recommending P46M as cost of the construction but before the SP could act on the amended feasibility study, Diasen requested the DBP for an extension of time to implement the old approved loan of P36.9M on condition that if it is not enough to pursue the project, the bank will conduct a reevaluation for purposes of extension of an augmentation loan.
Matbagan said that although the thinking of the SP is that no additional loan will be taken out for the project and for provincial government loans to cover the balance of the construction cost, the action of Diasen had the effect of clearing all obstacles to the implementation of the project.
“The amended feasibility study has been set aside in favor of the old feasibility study,” Matbagan said.
With regards to the question as to what happens during the time of the year when the NIA cuts off the water for the annual rehabilitation of the system, Matbagan said that the provincial government has entered into a memorandum of agreement with the NIA to allow enough water to support the minihydro.
“The provincial government has also made a sales agreement with the KAELCO to buy generated by the minihydro,” Matbagan said. **By Estanislao Albano Jr., ZZW
