In its petition, the company revised the earlier project costs to PHP1.106 billion from PHP729.423 million for the 2.3-MW Solong mini hydro electric power plant in San Miguel, 1.5-MW Hitoma 1 minihydroelectric-power plant in Caramoran, and 2.6-MW Capipian minihydroelectric- power plant in San Miguel, Catanduanes.

The revised project cost, according to Suweco, would have an impact of PHP5.3955/kWh from an earlier project cost impact of PHP3.6642/kWh.

The company had to increase its project costs from its original estimates due events like soil erosion brought by typhoons, increase in the price of construction materials and the change in its project plans.

“Suweco has opted to advance the construction of the Capipian mini hydro plant in lieu of Hitoma 2 [1.58 MW] due to its larger capacity and the latter’s inaccessibility to civil works,” ERC said.

As per ERC, Hitoma 2, which is located in the upper cascade of the Hitoma river, was not feasible for development at this time of the year due to terrain reconfiguration caused by typhoons and soil erosion.

Suweco will spend PHP404.17 million for the Solong project, PHP242.48 million for the Hitoma 1 minihydro plant, and PHP459.72 million for the Capipian minihydro project.

Suweco informed ERC that most of the civil-works portion of the Solong and Hitoma 1 mini hydro plants is complete and is expected to be commercially available within the fourth quarter of 2009.

Energy Secretary Angelo Reyes said that Suweco’s project will help stabilize the electricity supply in Catanduanes, as the minihydropower projects will contribute to the government’s goal of achieving energy independence by reducing dependence on imported fuel.

Reyes further said that the projects will utilize a renewable form of energy, therefore giving the benefits through the reduction of carbon-dioxide emissions.

“The initiative and participation of local investors in the power-distribution sector is consistent with the current administration’s thrust to tap the private sector to develop the country’s indigenous-energy resources and achieve energy independence.

“These additional capacities will surely contribute in addressing the increasing electricity demand in Catanduanes and Antique,” Reyes said.