The Alsons Power Group is pushing the construction of a 15-megawatt run-of-river hydroelectric power project at the Siguil River basin in Maasim, Sarangani province after recently signing a contract with Sta. Clara International Corp.
The P3.7-billion hydro power plant, which is scheduled to begin commercial operations in 2020, will provide power to Sarangani, General Santos City and key municipalities of South Cotabato province.
The Siguil project is the initial rollout of Alsons’ potential 200-MW hydro capacity that includes another in Bago City, Negros Occidental province.
SCIC chairman and managing director Nicandro Linao and Alsons Power executive vice president and chief executive officer Tirso Santillan Jr. signed the agreement.
The Siguil run-of-river hydropower plant is the company’s first foray into the renewable energy.
Alson’s long-term Japanese partner Toyota Tsusho Corp. is expected to take a stake in the renewable energy project and help the company secure a grant from Japan’s Joint Crediting Mechanism amounting to 600 million yen to 700 million yen.
The JCM is a system of cooperation with developing countries to reduce greenhouse gas emissions.
Alsons plans to develop specific sites in Mindanao and Negros Occidental with a hydro potential totaling around 200 MW.
Santillan earlier said Global Business Power Corp., the company’s partner in its coal assets, was also interested in teaming up with Alsons for the Siguil hydro project.
Alsons currently operates four power facilities in Mindanao, generating a combined capacity of 363 MW and serving over eight million people in 13 cities and eight provinces, including key urban centers such as Davao City, Cagayan de Oro, General Santos, Iligan and Zamboanga City.
