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June 19, 2024

DBP finances P2.6B mini hydro power project in Ifugao

State-owned Development Bank of the Philippines (DBP) headed by bankero Emmanuel Herbosa is extending up to P2.6 billion funding facility to Kiangan Mini Hydro Corp. (KMHC) for the development of the Asin-Hungduan and Ibulao1 mini hydro power projects in Kiangan, Ifugao.

“DBP’s credit support to the Kiangan Project demonstrates our commitment to help the country accelerate the use of renewable energy resources and our confidence to KMHC as project developer in consolidating the development of a portfolio of three river systems into two power projects,” the bankero said.

The Kiangan Project is a portfolio of small-scale run-of-river hydropower projects that will harness the water from the Asin, Hungduan and Ibulao River systems to convert it into clean, renewable electricity.

It is expected to supply 17.5 megawatts of renewable power supply to the Luzon grid to help meet the target of 30 percent renewable energy share in the country’s energy mix by 2030.

The project is being developed by KMHC, a consortium composed of Alternergy Mini Hydro Holdings Corp., a pioneering renewable energy company led by former energy secretary Vicente S. Pérez Jr.; Renova Renewables, a leading renewable energy developer in Japan; and Sta. Clara International Corp., a full-service engineering, construction, development company.

Herbosa said DBP is excited to partner with Alternergy for the Kiangan project, which is backed by technical support from its Japanese partner and from one of the top-rated construction firms in the country.

The Kiangan project, which is located within the ancestral domains of the Tuwali indigenous cultural communities, is expected to create employment opportunities for the locals to improve welfare and livelihood of the surrounding communities.