MANILA, Jun 25, 2008 -- Asia Pulse Data Source

Three new operating contracts have been approved by the Department of Energy (DoE) for the Sunwest Water and Electric Power Company, Inc. (SUWECO) for the development of three mini-hydro electric power plants in Catanduanes.

"This latest contract signing between the Department of Energy and SUWECO will help stabilize the supply of electricity in Catanduanes. The mini-hydropower projects will contribute to our goal of achieving energy independence by reducing the dependency on imported fuel. More importantly, the projects will utilize a renewable form of energy, therefore giving us benefits through the reduction of carbon dioxide emissions," said Energy Secretary Angelo Reyes.

Mr. Elizaldy S. Co, CEO of SUWECO said the three mini-hydroelectric power projects in Catanduanes include the 2.3MW Solong Mini-Hydropower Project in Brgy. Solong, San Miguel and the 1.5MW Hitoma 1 and 1.575MW Hitoma 2 Mini-Hydropower Projects in Brgy. Obi, Caramonan.

The operating contract signing was done at the office of Secretary Reyes and witnessed by DOE Undersecretary Ramon Santos, Director Mario Marasigan, SUWECO President Jose Silvestre Natividad and First Catanduanes Electric Cooperative (FICELCO) President Fidelito Soledad. FICELCO is the off-taker of these projects.

With the signing of the contracts, SUWECO will soon begin developing the mini-hydro projects with a total capacity of 5.375MW.

The plants will displace 43,000 barrels of fuel oil equivalent annually which will save the country USD5.8M in foreign exchange annually. The mini-hydro projects will also generate avoided carbon dioxide emission of 15,446 tons annually which is equivalent to P3.418M yearly.

The latest contract signing comes on the heels of a separate agreement signing between the DOE and SUWECO to develop the 8MW Villasiga Mini-Hydropower Project in Sitio Villasaga, Brgy. Igsoro, Bugasong, Antique.

The Villasaga project will generate annual foreign exchange savings and reduce carbon dioxide emission by 17,100 tons yearly which is equivalent to Php3.7 million annually.

SUWECO is part of the Sunwest Group of Companies (SGC) based in Albay province. SGC has diversified into the energy distribution business such as the construction and operation of electric facilities.

"The initiative and participation of local investors in the power distribution sector is consistent with the current administration's thrust to tap the private sector to develop the country's indigenous energy resources and achieve energy independence. These additional capacities will surely contribute in addressing the increasing electricity demand in Catanduanes and Antique," Reyes stressed.

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