PSALM to bid out rehab contract for hydro plant

State-run Power Sector Assets and Liabilities Management Corp. plans to bid out the crucial P2.6-billion rehabilitation and upgrade project for the Agus 6 hydroelectric power plant in Mindanao in the third quarter.

The project, which will increase the power facility’s generating capacity, will now be undertaken by PSALM and not by another state agency, the National Power Corp. (Napocor).

“The PSALM board has confirmed PSALM’s authority to implement the Agus 6 uprating project through its bids and awards committee,” PSALM president and CEO Emmanuel Ledesma Jr. told the Inquirer.

“PSALM is currently preparing the bidding documents for the project … [to be auctioned off] by third quarter this year,” Ledesma added.

The uprating project is critical in enhancing the efficiency and extending the life of units 1 and 2 of the Agus 6 power facility, which is part of a bigger hydropower complex.

The Agus hydropower complex, together with the Pulangi hydropower facility, provides 53 percent of Mindanao’s electricity requirements.

Napocor documents showed that the Agus 6 project would include the uprating of hydropower generating turbines and blades to 34.5 megawatts from 25 MW.

This will entail engineering investigation, designing, manufacturing and installation of new turbines and blades.

Also covered by the project is the replacement of electrical equipment, materials and devices that are necessary to meet the requirements that will ensure the safe and reliable operation of the plant.

It was previously reported that the rehabilitation and uprating project for Agus 6 would be done in phases to mitigate its impact on the island’s power supply.

Located in Iligan City, Lanao del Norte, the Agus 6 hydropower plant is composed of four power units. Units 1 and 2, which can generate 25 MW each, were commissioned in 1953. Units 3 and 4, which can generate 50 MW each, were commissioned in 1977.