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Alto Power Management Corp., a subsidiary of publicly listed Alsons Consolidated Resources Inc., has completed a preliminary feasibility study for a 40-megawatt hydroelectric power complex along Bago River in Negros Occidental.

 

The company is set to present its development plan before Negros' local government and provincial council headed by Gov. Isidro Zayco.

 

Alto is proposing a cascade of three run-of-river power facilities, which will take about four years to construct and cost roughly P3.8 billion based on current prices.

 

For technical, geological and safety reasons, Alto's feasibility study downgraded previous studies conducted by the National Power Corp. (Napocor) in 1981 and 1992 that recommended dam with reservoir type of facilities.

 

"The existence of fault lines, landslide prone areas and proximity to Mt. Kanlaon, any of which could precipitate disastrous events, were the main considerations for the changes," Alto said.

 

The power complex, which will be located within the franchise area of Central Negros Electric Cooperative (Ceneco), would be able to connect directly to the distribution utility, eliminating the cost of transmission ordinarily paid to Napocor, and therefore, bringing down electricity prices. Ceneco supplies power to the cities of Silay, Bago, Talisay and Bacolod, and to the town of Murcia.

 

Alto targets a tariff rate for the hydropower project of no more than P4.00 per kilowatt-hour (kWh) before any adjustments for inflation. The company said this is much lower than the P5.00 per kWh that Napocor currently charges.

 

Upon approval of its initial study, Alto said it will "proceed with the preparation of a full feasibility study that will include detailed engineering, economic and environmental assessments to confirm the preliminary conclusions and form the basis for subsequent project implementation."

 

In June, the company forged an accord with the local government of Negros to address power shortage in the province as well as provide residents with cheap electricity and irrigation for food production.

 

Alto and its parent firm, Alsons Consolidated, are owned by the Alcantara Group, whose interests span several industries, including power generation, agribusiness, forestry, transportation, real estate