Senate urged: Probe delays in NGCP transmission projects

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SEN. Sherwin Gatchalian has asked the Senate Committee on Energy to probe the delayed completion of the transmission projects of the National Grid Corporation of the Philippines (NGCP) which has adversely impacted the total power supply in the country.

Gatchalian, in filing Senate Resolution No. 616, underscored the need to finish the projects the soonest time possible to stabilize supply and ensure reliable electricity to consumers.

Citing data gathered by his office, the senator noted that NGCP only has a 37.5 percent completion rate as of March this year, finishing only six out of the 16 transmission projects under the government’s Energy Projects of National Significance (EPNS).

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He said implementation of EPNS projects had been delayed by an average of three years, while those not yet completed are delayed by about five years already.

On the other hand, he said that of the 168 projects under the Transmission Development Plan, only 30 projects have been completed, 138 are delayed, while 56 are in the pre-construction stage,

Gatchalian said the NGCP’s failure to complete the projects on time is causing significant delays in the development and operation of generation facilities, which in turn affect the total electric power supply in the country.

“The delay causes a multi-layered impact. When we talk about attracting investments into the country, the power supply is a fundamental consideration. How can we attract investors if we don’t have adequate supply and if it’s too costly?” Gatchalian said.

He cited as an example the Mindanao-Visayas Interconnection Project which, once completed, will enable the country to have a single grid. The project, with a full transfer capacity of 450 megawatts (MW), was originally scheduled to commence operation in December 2020.

There is also the Cebu-Negros-Panay 230 kilovolts (kV) Backbone Stage 3 Project, originally set for completion in December 2020, which would increase transfer capacity from 200 MW to 800 MW.

Likewise, there is also a delay in the operation of the Hermosa—San Jose 500 kV Transmission Line Project, which is originally set for completion in 2019. The project is expected to ease congestion in the Bataan Corridor with its capacity to accommodate 4,700 MW.

“As the sole backbone for the transmission of electricity throughout the country, the NGCP is duty bound in ensuring that it is able to adequately serve generation companies, distribution utilities, and suppliers requiring transmission and ancillary services through transmission system,” Gatchalian said.

Aside from the delays, Gatchalian likewise wants the Senate panel to inquire into NGCP’s reported collection of fees from industry stakeholders for the operation of the yet-to-be constructed or completed projects.

“Ang masama dito, nangongolekta na sa atin at nagbabayad na tayo ng pera sa mga proyektong hindi pa natin nakikita (What is worse is that NGCP has been collecting fees for these projects which we have yet to see),” he said.

The Senate energy committee has started reviewing the operations of NGCP amid the spate of power outages in different parts of the country, mostly due to power supply problems.

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