The power project, which is set to start commercial operations by the second quarter of next year, will be funded by a P283-million loan from the Development Bank of the Philippines (DBP). The fund will be released upon the approval of Malita’s renewable energy supply agreement with Davao del Sur Cooperative Inc. (Dasureco).
The remaining P28.3 million will be sourced from the yearly budget of the Malita municipal government.
Malita explained to the Energy Regulatory Commission in a letter dated July 5 that the approval of its power supply agreement with Dasureco would help expedite the implementation of the project as it would be able to complete its compliance with the loan requirements of the DBP.
This was the reason why the ERC decided to grant a provisional approval for the 25-year power supply agreement, which would allow Malita to supply Dasureco at least 600,000 kilowatt-hours monthly.—Amy R. Remo