Tunnelling and construction work has been announced that will increase production at the Philippines’ Bakun AC hydro power project by the middle of next year.

A joint venture between Pacific Hydro of Australia and Filipino Aboitz Equity Ventures is to spend over US$17M on the work to divert more water into the existing power plant.

Once the Bakun supplemental hydro project is complete in 2005, annual production is expected to be increased by some 50GWh.

The project will see the construction of weirs on the Poy-Ocan and Kayapa rivers and a 4km tunnel to feed the additional water to the plant located on Bakun river some 250km north of Manila.

The electricity is to be sold to the National Power Corporation.