Landbank to finance construction of 15-MW hydropower plant in Bukidnon

State-owned Land Bank of the Philippines on Tuesday said it signed a P2.6-billion loan agreement with a local renewable energy developer to bankroll the construction of a 15-megawatt (MW) hydropower plant in the province of Bukidnon.

In a statement, Landbank said it inked a loan deal with Cabanglasan Hydropower Corp. (CHC), a wholly-owned subsidiary of Tiu-led Repower Energy Development Corp. (REDC).

The loan accord falls under the state-owned lender’s Renewable Energy Program.

The bank said the run-of-river hydropower plant will be developed on the Pulangi River in Barangay Lumbayao, Valencia City to sustainably improve the quality and reliability of energy supply in nearby cities and towns in Bukidnon.

The loan signing was led by Landbank president and CEO Cecilia Borromeo and Pure Energy Holdings Corp. and CHC chairman Dexter Tiu on December 6, 2022 in Manila, according to Landbank.

“Through the years, Landbank has collaborated with REDC and its subsidiaries towards advancing clean, sustainable, and reliable sources of renewable energy. We actively support local projects that aim to secure a safe and sustainable future for the country, as part of our broader commitment to help build sustainable and resilient communities,” said Borromeo.

Upon its completion in 2025, the hydropower plant is estimated to power around 130,000 households in 15 municipalities in the Province.

The stable energy supply is, likewise, expected to benefit Bukidnon’s local economy, particularly its tourism, agriculture, and industrial sectors, Landbank said.

“In just six short years of development, our group has brought 10 renewable energy power plants to operations – of which six are run-of-river hydropower, contributing around 50MW of clean energy to the grid. We have several hydropower projects under construction and in the pipeline, which we intend to bring to operations in the near future to help the country transition into a clean renewable energy phase,” said REDC president Eric Peter Roxas.

“We would like to extend our deepest gratitude to the financial institutions who stood by us and provided project finance like Landbank, led by president Cecilia Borromeo, for their trust and confidence in the Pure Energy-REDC Group time and again,” added Roxas.

As of end-October this year, the lender said it has approved a total of P20.1 billion in loans to 56 borrowers under its Renewable Energy Program, in support of local projects that harness solar, hydro, and biomass energy sources.—AOL, GMA Integrated News