Loan under DBP’s Financing Utilities for Sustainable Energy Development program
The Dupinga run-of-river hydro project in Nueva Ecija got a funding boost from Development Bank of the Philippines (DBP), enabling Dupinga Mini Hydro Corp. (DMHC) to complete the planned renewable energy facility in about two years.
DMHC secured a P660-million loan from DBP for the development of the 4.6-megawatt Dupinga project in Gabaldon town.
DMHC, a partnership between renewable energy companies Alternergy Holdings Corp. of former Energy Secretary Vicente Perez Jr. and Markham Resources Corp. led by Francisco Tiu Laurel of the Frabelle Group, is targeting the completion of the hydropower project by early 2024.
“The DBP is at the moment routing the additional document for the release of the first tranche,” said Alternergy in a message to the Inquirer.
The loan is under the DBP’s Financing Utilities for Sustainable Energy Development program, which aims to increase the population’s access to electricity services through financing of utility-scale energy generation projects.
Alternergy, on its website, said the project would provide almost 15 percent of the electricity of nearby settlements serviced by the Nueva Ecija II Area 2 Electric Cooperative.
The Department of Energy (DOE) awarded in 2010 the hydropower service contract for Dupinga while the right to further develop the project and utilize the hydro resource was transferred to DMHC in 2017.
The project proponent conducted technical studies, held public consultations and secured permits upon getting the DOE approval. Construction commenced at the height of the COVID-19 pandemic.
“We are pleased to receive DBP’s approval of financing as it speaks confidence in our Dupinga project and our commitment to harnessing renewable energy,” DMHC president and CEO Eduardo Martinez-Miranda said.
Hydropower projects have a long gestation process due to the volume of permits and clearances that are needed during the predevelopment stage and the challenges associated with civil works, according to Miranda.