Rehab of damaged power facilities in Marawi to cost P150-M: DOE

FILE: DOE LOGO (Photo: Department of Energy Philippines/ Facebook)

MANILA — The Department of Energy (DOE) estimates that the rehabilitation of damaged power facilities due to the recent conflict in Marawi City will cost around PHP 150 million.

This comes as the DOE welcomes the intention of European companies to invest in the Philippine energy industry as this will increase power supply in the entire country.

“I have talked to the EU (European Union) Ambassador and he told me that the Chamber (European Chamber of Commerce of the Philippines) is pooling all their resources in support of the rehabilitation of Marawi City,” Energy Undersecretary Benito Ranque said in an interview on the sidelines of the Energy Smart Philippines 2017 held at the Bonifacio Global City Thursday.

“We welcome the interest of European companies to invest in the country’s energy sector. We need more supply of energy to attract investments in the country,” he added.

The DOE official stated that the estimated rehabilitation cost of PHP150 million was based on the department’s initial assessment of damaged power plants and other facilities in the war-torn city.

“It will take some time to restore the power supply in the war zone area. We will be cooperating with other government agencies in the ongoing rehabilitation efforts of Marawi City,” said Ranque.

The Energy department earlier stated that the rehabilitation of power supply in Marawi City had started and targeted to be completed before the end of the year.

DOE has to start the electricity rehabilitation early to immediately provide residents with power supply when they return to their homes upon instructions by Energy Secretary Alfonso Cusi.

The rehabilitation is focused on the rebuilding of electric posts and full restoration of the operations of power plants in the city.

Cusi has created an interagency group that will implement initiatives on rehabilitating the energy facilities in Marawi City. Members of the group include the DOE, National Power Corporation (NAPOCOR), Power Sector Assets and Liabilities Management Corporation (PSALM), National Electrification Administration (NEA) and the Lanao del Sur Electric Cooperative (LASURECO).

Around 40 European companies have expressed interest in venturing in the local renewable energy sector.

These firms, coming from 13 European countries, are attending the 4th Energy Smart Philippines to explore opportunities and business partnerships.

The EU Delegation to the Philippines is also about to sign four contracts with a combined value of 11 million euros (USD13.04 million) for the utilization of renewable energy in the country’s far-flung areas particularly in Mindanao.

European Chamber of Commerce of the Philippines (ECCP) president Guenter Taus noted that the EU has allocated an indicative amount of 190 million euros (USD225.22 million) from its cooperation budget of 325 million euros (USD 385.25 million) for job creation including renewable energy from 2014 to 2020.

“The EU has been actively supporting the Philippines in engaging stakeholders towards creating and implementing policies and programs that provide increased efficiency in energy use and renewable energy development,” Taus said.

The EU is financing local efforts to expand energy generation through the Access to Sustainable Energy Programme (ASEP) which aims to provide electricity to the entire Philippines by 2022.

Based on the DOE’s draft of the policy rules released in June 2016, the country seeks to get the energy mix to 35 percent renewables by 2030. (PNA)