CAGAYAN DE ORO CITY (MindaNews / 6 Nov) —  Two renewable energy companies — one based in Mindanao — have expressed interest to rehabilitate the state-run hydropower plants in Bukidnon and Lanao provinces.

Cerael Donggay, president and chief executive officer of Greenergy Development  Corporation based in Cagayan de Oro, said their company submitted an unsolicited bid to the Power Sector Assets and Liabilities Management (PSALM) Corporation to rehabilitate the Agus hydro plants in Lanao del Sur and Lanao del Norte, including Iligan City, and Pulangi hydro plant in Bukidnon province.

Donggay said they offered to PSALM to undertake the rehabilitation of the hydro plants for ₱29 billion for a work period of 10 years.

“After that, we proposed to PSLAM to transfer the operations and management, including the financial, to our company, ”Donggay said.

Donggay said their company is composed of former engineers of the hydro plants and are familiar with the machines and operations.

There are six hydro plants along the Agus River. Agus I is in Marawi City; Agus II is in Saguiaran, Lanao del Sur; Agus IV is in Balo-i in Lanao del Norte; while Agus V, VI (at the foot of Maria Cristina Falls) and VII are all in Iligan City.

The Pulangi IV hydro plant is in Maramag, Bukidnon.

PSALM is planning to rehabilitate the Agus and Pulangi hydro plants at a cost of ₱16.71 billion under a public-private partnership to restore its capacity to 1,000 MW from its current 600 MW.

The rehab plan will be split into two phases with the first phase for Agus IV, V, VI and VII plants in Lanao del Sur and Lanao del Norte and Phase 2 for the Pulangi IV hydro plant.

The project has also perked up the interest of First Gen Corporation, a Manila-based company, who also has interests in renewable projects in Bukidnon and Cagayan de Oro.

First Gen Vice President for Strategy and Planning Jay Joel Soriano said they are also looking at the rehab plan to see where they can invest and whether it would be advantageous to their company.

The company operates a small 1 MW bypass project in Manolo Fortich, Bukidnon and have proposed a bigger 35 MW bypass hydro plant that would divert a portion of the Cagayan de Oro River. (Froilan Gallardo / MindaNews)