SANTIAGO CITY, Isabela—It was 10 years ago since the Magat Hydroelectric Power Plant transitioned from a state-run asset to a privately owned and operated facility under SN Aboitiz Power or SNAP. Today, it continues to be a positive force in the industry and its host communities, its chief executive said Wednesday.
“As Magat Hydro enters its 10th year, we will ensure that it continues to provide not just power, but ‘positive power’ the kind that helps sustain the environment and uplift communities, the industry, and the economy, SNAP president and CEO Joseph Yu said.
“It has always been rewarding and fruitful years. All our achievements could not have been carried through successfully without our combined relentless efforts in achieving a common goal.”
When SNAP took over Magat, “it was important to ensure its longevity and to raise its operating efficiency. In 2014, we completed the half-life refurbishment to ensure Magat remains available and operates efficiently throughout its life span,” Yu stressed.
Lawyer Mike Hosillos, SNAP’s chief corporate service officer, agreed. “The first 10 years of our operation provided a lot of resources and benefits to our host communities,” he said.
“As we go into the next ten years and beyond, we are looking at more programmed and sustainable development frameworks to address not only the present generation but also the future generations,” Hosillos stressed.
SNAP-Magat is a joint venture of SN Power of Norway and Aboitiz Power.
Since 2007, SNAP-Magat has implemented 337 corporate social responsibility projects in its host communities, investing a total of P220 million for projects in livelihood, education, social infrastructure, health, governance, and environment.
Under the Department of Energy’s ER 1-94 program, SNAP-Magat has remitted P73 million from 2007 to 2017. ER 1-94 covers electrification; development and livelihood; and reforestation, watershed management, health and environment projects.
The Magat complex was completed in 1982 and started operating under the National Power Corp. in 1983. The government turned over Magat Hydro to SN Aboitiz Power on April 26, 2007 following a successful bid for privatization in December 2006. The non-power components such as the dam remain in government hands.
SNAP won the bid in 2006 with an offer of $530 million. It underwent project financing, allowing it to provide government full payment only four months into operations and bank negotiations. For this, SNAP-Magat received several project financial citations from international financial magazines.
It also secured top-up financing of P19 billion to repay its existing loans and finance its recapitalization requirements.
Standing on the border of Alfonso Lista, Ifugao and Ramon towns, Magat Hydro is a proud partner of its host communities. With 360 megawatts in nameplate capacity and 380 MW in dependable capacity, it is one of the largest hydroelectric plants in the country.
SNAP-Magat is also targeting later this year the completion of the 8.5-MW run-of-river Maris Canal Hydro power Plant Project in Brgy. Ambatali, Ramon, Isabela.
Other than providing clean energy to the grid and customers, Magat is also an accredited provider of ancillary services needed to maintain the reliability and stability of the grid. It is the first private power company to be contracted for ancillary services back in 2009.