DBP finances mini-hydro power plant in Oriental Mindoro

Manila (21 August) — State-owned Development Bank of the Philippines (DBP) has extended a P490-million term loan to Oriental Mindoro Electric Cooperative (ORMECO) for the construction of the 4.2 MW Linao Cawayan mini-hydro power project in San Teodoro, Oriental Mindoro.

DBP president & chief executive officer Reynaldo G. David said the project is a run-of-river type which taps the potential of the Linao Cawaya and Alag rivers in the said province.

“DBP’s assistance to this project underlines the Bank’s thrust of pushing for new and renewable energy sources that not only protect the environment through reduced greenhouse gas emissions but are also cheap and sustainable,” he said.

The project will reduce approximately 11,409 tons of carbon dioxide per year. It will also replace 14% of the National Power Corporation’s supply to ORMECO which translates to reduced customer subsidies.

The mini-hydro power plant is expected to generate an average of 19.8 GWh of electricity per year, which is equal to the consumption of 37,375 barrels of oil. It will also provide additional source of income through Clean Development Mechanism (CDM) carbon credits estimated at US$162,502 yearly

The project will benefit the residents of San Teodoro, Oriental Mindoro, a 4th class municipality located in the northwestern part of the province and its neighboring areas, said David. (PIA-MMIO)