MALOLOS CITY—Legal and technical requirements in the privatization of the Angat Dam power generating facility has hindered its planned take-over by the Korea Water Resources Corporation (K-Water) last month.
But offi cials are optimistic that the take-over will push through by March 25 to complete the privatization of the 246-megawatt Angat River Hydro Electric Power Plant (ARHEPP). It is also seen as a step closer to the planned P5.7-billion rehabilitation of the dam.
Engineer Rodolfo German, ARHEPP general manager, confirmed yesterday that K-Water still has to secure its business permit from the municipality of Norzagaray. He said that it is one of the key legal requirements for the Korean company to fi nalize its take-over of the power generating facility.
Earlier, Gov. Wilhelmino Alvarado disclosed that he already talked with Norzagaray Mayor Alfredo Germar to issue a business permit to the K-Water. Alvarado said that the mayor demanded from K-Water payment of real property taxes (RPT) before issuing the business permit.
“I told Mayor Germar that they have to issue the permit first because K-Water’s formal take-over is one of the keys in the planned rehabilitation of the Angat Dam. Besides, K-Water isn’t going anywhere and they can collect RPT later,” the governor said.
Alvarado is hopeful that bidding for the rehabilitation of the dam will commence in May if the take-over is finalized in March. The same was echoed by German, even as he said that before the take-over, ARHEPP must first complete a technical requirement. This involves testing of the power generating capacity of the 246-megawatt ARHEPP.
German said that ARHEPP only needs to show capacity to generate 200 megawatts. However, he said that of the four power turbines that have the capacity to generate 50 megawatts each, only one is operational.
German said that one of the turbines is under repair, while one is undergoing inspection due to vibrations, and one is not operational because its generator is under repair. He made assurance that by March all turbines will be operational except for one that is due for replacement.
“K-Water can have it repaired or replaced, and they will be reimbursed later by the Power Sector Assets and Liabilities Management Corporation (PSALM),” he said. PSALM is a government agency tasked to privatize assets of the National Power Corporation (Napocor).
German also disclosed that replacement of a 50-megawatt power turbine could cost up to $50 million or $1 million per megawatt capacity. This is a bigger amount compared to P15 million that will be spent for repair.
However, he said that replacement is better option in the long run because power turbines of the ARHEPP are at least 20 years old.
