Press Release - Gatchalian urges NGCP, TIEZA to ensure year-end compromise for sufficient power supply

Senator Win Gatchalian urged the National Grid Corporation of the Philippines (NGCP) and the Tourism Infrastructure and Enterprise Zone Authority (TIEZA) to ensure that a compromise agreement to resolve a conflict relating to the construction of two transmission towers is finalized by year-end.

Gatchalian made the call upon learning that NGCP and TIEZA have already agreed in principle to resolve an existing conflict through an out-of-court compromise agreement. During a recently-concluded Senate deliberation, Senator Nancy Binay, who chaired the Department of Tourism's budget hearing, reiterated the department's statement that the project is expected to be completed by December of this year. TIEZA is an attached agency of the DOT.

"This is a piece of good news that we hope will come to fruition. The documentation will follow suit, enabling NGCP to fast-track the construction with minimal damage and cost for this project," expressed Gatchalian, noting that he discussed with TIEZA head Mark Lapid the details and possible resolution of the conflict.

"The dispute between NGCP and TIEZA has significantly delayed the completion of a critical transmission project essential for ensuring the sufficiency of the country's energy supply. We cannot afford any further delays," Gatchalian emphasized, referring to the Cebu-Magdugo 230 kiloVolt (kV) Line, a 33-kilometer transmission line stretching from the NGCP's substation in Cebu City to Toledo City, crossing the mountain barangays of both cities.

Gatchalian said the Cebu-Magdugo project is a vital component of the Cebu-Negros-Panay Stage 3 (CNP3) power sharing and for the 450-megawatt (MW) Mindanao-Visayas Interconnection Project (MVIP) to operate at full capacity. The MVIP and CNP3 will largely eliminate the threat of a power shortage by providing electricity from comparatively better-supplied Mindanao and other parts of the Visayas.

TIEZA had halted the development of the critical grid connection after securing from the court a temporary restraining order (TRO) against NGCP's construction of the two transmission towers located on TIEZA's Kang-Irag property in Cebu.

Gatchalian stressed that the Senate Committee on Energy