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MWSS: Hydropower plant sale may affect Metro water supply


Metro Manila’s water utility regulator on Monday raised concern that power generation had taken priority over domestic water use at the Angat dam, saying problems could arise if the Angat hydroelectric plant is privatized next month. Diosdado M. Allado, Metropolitan Waterworks and Sewerage System (MWSS) administrator, said such "violations" might become more pronounced as a result of privatization. The April bidding has attracted big players such as Ayala Corp., Metro Pacific Investments Corp., San Miguel Corp., Aboitiz Power Corp., and the Lopez group’s First Gen Holdings Corp. "I don’t want to… point fingers to blame, but this becomes critical because the Angat dam is about to be privatized in terms of the power component," Allado said before the weekly Kapihan sa Manila. Under the dam’s water protocol, drinking water is the priority for Angat, with irrigation second and power generation last. Allado, however, said the water protocol provision stating that water should not be released for power generation if the elevation at the dam is below the lowest average level was repeatedly being violated. Water levels have fallen as a result of the dry season. Allado said he did not have plans to block the plant’s sale. The Angat dam is owned by the Power Sector Assets and Liabilities Management Corp. (PSALM) and operated by the National Power Corp. (Napocor). Napocor spokesman Dennis S. Gana allayed Allado’s concerns. "The system is just adjusting because water release can’t be exact," Gana said in Filipino in a phone interview. Removing the 246-megawatt Angat hydroelectric plant from Luzon’s power supply mix might lead to higher power rates, he added. "If they’re telling us to pull hydro out of the power mix, then electricity will become expensive because hydropower is cheap. But even then, that does not mean that we are using water wantonly," Gana said. Conrad S. Tolentino, PSALM vice-president for asset management and electricity trading, said privatizing the Angat plant would in fact stop violations of the water protocol. "The difficulty of enforcing that (protocol) is because the operator is [the Napocor], which is a government entity. [Violations] will not happen if [the plant] is sold and a private entity takes over," Tolentino said in a phone interview. Tolentino added that the water protocol to be used for the privatization of the Angat hydroelectric plant was yet to be finalized. Sanctions for water protocol violations might even be included in the new contract, he added. The PSALM, the government entity tasked to sell the state’s generating assets and handle the Napocor’s liabilities, has scheduled the Angat bidding for April 28. The Angat dam supplies over 90 percent of Metro Manila’s water needs. At least 12 companies have prequalified for the bidding. — Jose Bimbo F. Santos, BusinessWorld

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