In line with the Philippines’ plan to shift to cleaner and greener energy sources, the World Bank will provide greater financial support for the rehabilitation of the decades-old Agus-Pulangi hydroelectric power station in Mindanao.
World Bank documents showed the Washington-based lender recently added to its short-term lending pipeline for the Philippines a new $90 million loan for the second phase of the Agus-Pulangi Hydroelectric Complex Rehabilitation Project. .
It was in addition to the previous loan of $140 billion set aside for the first phase of the project, which was to be approved by the World Bank’s board of directors in fiscal year 2023 which begins in July this year. . The second tranche of the loan will be submitted for lender approval in fiscal year 2024, which begins in July 2023.
Pipeline of projects
This new upcoming loan from the World Bank has expanded its Philippine pipeline to 12 projects with a total value of $2.01 billion.
The Department of Energy (DOE) and the National Power Corp. will implement the rehabilitation of Agus-Pulangi.
The first phase of the project, in particular, “will restore the capacity of the generating units, increase the availability of clean electricity and strengthen the safety of the dams of the Agus-Pulangi hydroelectric complex”, the World Bank said.
In an earlier report, the World Bank said its loan support for hydropower plant rehabilitation “will produce greener, more affordable energy and increased system reliability in Mindanao and the eventual implementation of PPPs (public- private), in accordance with legislation that has mandatory privatization of power generation assets in the country.
“Through a phased approach, the Agus-Pulangi rehabilitation program will focus on the replacement of electromechanical equipment at the Pulangi and Agus VI and VII factories in the first phase,” he said.
The Philippines was the World Bank’s largest borrower in fiscal year 2021, with a total of $3.07 billion in loans across eight operations during the period from July 1, 2020 to June 30, 2021. These loans have helped address the health and socio-economic crises inflicted by the protracted COVID-19 pandemic.
To subscribe to MORE APPLICANT to access The Philippine Daily Inquirer and over 70 titles, share up to 5 gadgets, listen to news, download as early as 4am and share articles on social media. Call 896 6000.