DBP Approves ₱660 Million Loan for Hydro Project in Nueva Ecija

Dupinga Mini Hydro Corp. (DMHC) recently secured ₱660 million in funding from the Development Bank of the Philippines (DBP). The firm will use the loan for the completion of its Dupinga run-of-river hydro project in Nueva Ecija. The hydro project is expected to have a capacity of 4.6 megawatts (MW) harnessing water from the Dupinga River system.

DMHC is a partnership between two renewable energy companies, namely Alternergy Holdings Corp. and Markham Resources Corp. “The DBP is at the moment routing the additional document for the release of the first tranche,” explained Alternergy regarding the loan. DMHC hopes to achieve its target completion date by early 2024.

“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,” explained Eduardo Martinez-Miranda, DMHC president and CEO. The recent funding falls under the DBP’s Financing Utilities for Sustainable Energy Development program. This particular program focuses on improving accessibility to electricity services through the financing of utility-scale energy generation projects.

According to Alternergy, the hydro project will supply around 15% of the energy to the Nueva Ecija II Area 2 Electric Cooperative (NEECO 2-Area 2), which services nearby communities. The Department of Energy awarded the hydropower service contract for Dupinga earlier in 2010. Later in 2017, it transferred the right to develop the project and utilize the hydro resource to DMHC. With this, the DMHC has conducted technical studies and public consultations as well as secured the necessary permits for construction.

Miranda also noted that the development of hydropower projects is quite lengthy. Project proponents often have to secure a number of permits and clearances during the predevelopment stage. Moreover, they also have to account for the challenges associated with civil works. DMHC initiated the construction of the Dupinga Project in June 2020 amidst the ongoing global pandemic.

Source: Inquirer