P1.5-B Naguilian mini-hydro project underway

February 5, 2018 Provincial

SAN FERNANDO CITY – In the recent Provincial Development Council (PDC) meeting held at the Provincial Capitol of La Union, the municipal government of Naguilian presented the updates on the development of the proposed Naguilian mini-hydroelectric power project.
The proposed project conceptualized in 2014, costs P1,506,577,675 and is seen to initially serve as a source of power generation, a bulk water supplier for farm irrigation projects, a flood control measure, and a possible site for tourism and recreation activities.
During the council meeting, Dr. Rafael M. Valdez, president of the Mini-Hydro Electric Corporation said, “Once this project is finished and is operational, the secondary benefits will prevent tonnage of greenhouse gases (GHG) emissions into the atmosphere, thus will protect our environment.”
He added, “On the socio-economic impact, it will bring employment opportunities consequently provide a better quality of life for the townspeople and the local tax revenue will increase to be used for the various programs of the LGU.”
Also, according to Dr. Valdez, the facility’s powerhouse will be built in Mamat-ing village and situated on a 20-meter high run-of-the-river debris brickwork dam with an 8.5-megawatt capacity.
The dam is designed inclusively of a side intake as bulk water storage and a huge drainage area of 304 square kilometers can impound a capacity of 13.5 million cubic meters and ensured to operate continuously at full capacity for about six months.
At present, the project is still waiting for the certificate of project endorsement from the Provincial Government of La Union (PGLU) and other certifications from the Department of Environment and Natural Resources (DENR), Department of Energy (DOE), and National Water Resources Board (NWRB).
Along with the certification from PGLU is the submission of a more comprehensive report on the financial aspect of the project specifically on its financing scheme which will incur a debt to equity ratio of 80/20 or P1,205,262,140/P301,315,535.
If approved, the project will operate under government incentive grants such as zero value added tax (VAT) for purchases of its goods, properties and services, and 7-year income tax holiday but for the 8th to 20th year, it will incur a tax at a 10 percent rate.
Also, other incentives include duty-free importation of machinery and materials, special realty tax of 1.5 percent on equipment and machinery, and a 100 percent full tax credit for VAT and Bureau of Customs fees paid.
The proposed project was introduced to the LGU on March 2014 and the Sangguniang Bayan Council approved and endorsed the project on May 2014 following approved resolutions on April 2014 from Mamat-ing Sur, Mamat-ing Norte, Bimmotobot and Tuddingan villages. Anne Hazel F. Flores, PIA-1 / ABN