Governor Corazon N. Malanyaon extends full support to the soon-to-be-implemented hydropower project in the municipality of Caraga, Davao Oriental.
During a meeting with the representatives from the Volga Power Corp., Governor Malanyaon expressed her optimism about the project poised to augment the power supply in Caraga town. She said this is “truly a welcome development,” as her administration has been keen on looking at renewable sources of energy to help energize communities in the province.
Set to rise in Barangay Pichon, the P3.3 billion hydropower project consists of three mini-hydropower plants with a total capacity of 20.9 megawatts.
Using a “run-of-the-river” hydropower facility, this project will tap the flowing waters of the Caraga River, which will generate enough power supply for the Poblacion area and the hinterland communities in Caraga town.
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Aside from generating enough power to provide electricity to households and local industries, the project is also anticipated to provide employment opportunities to villages and residents of nearby barangays during the construction and operational phase, said Ms. Meriam Buguis, Consultant of Volga Power Corp.
She added that “the project can also pave the way for local development, such as the construction of concrete roads to facilitate transportation between different barangays.” More importantly, the project will increase local and national revenues, propelling further economic activity in the municipality and province.
Ms. Buguis explained that the host communities are also entitled to monetary benefits and incentives through a sharing scheme based on Energy Regulations 1-94 of the Department of Energy (DOE). Through this scheme, the province, municipality, and barangay will get a share of the revenue they can utilize for livelihood, protection of the forests and watersheds, and other local development initiatives.
These benefits are on top of the real property tax and income tax that the Local Government Unit is entitled to collect.
Aside from these benefits, she also mentioned other advantages, such as indirect employment due to other supporting economic activities. The project is also expected to usher in more improvements in social services due to the higher income of the local government.
Above the economic benefits, the hydropower project, given its accessible and renewable nature, provides environmental benefits considering it is a clean and sustainable energy source compared to fossil fuels.
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For several years since the project was started in 2014, the company has already secured the initial requirements, such as Environmental Compliance Certificates (ECC), endorsements from the municipal and barangay LGU, and the feasibility study, while the processing of other requirements are currently ongoing.
With the ongoing groundwork, the company hopes to have the Memorandum of Agreement for the project signed by January 2023, which will commence the construction phase.
The operational phase for the project is projected for up to 25 contract years and renewable for another 25 contract years. By Karen Lou Deloso, Photos by Mark Oliver Alvite, 3d model courtesy of Volga Power Corp.
