PNB partners with Mangima Hydro Power Corp. for hydro power project in Bukidnon
6 December 2021 — The Philippine National Bank (PSE: PNB) hosted an Omnibus Loan and Security Agreement Signing Ceremony between the bank and the Mangima Hydro Power Corporation (MHPC). The Php2.4-billion loan will go towards the construction of a 12-megawatt run-of-river hydroelectric power project in Manolo Fortich, Bukidnon.
Sen. Juan Miguel Zubiri, President and CEO of MHPC, said of the initiative, “We at Mangima Hydro Power are really passionate about making Bukidnon a sustainable, energy-secure, renewable energy-powered province, and this project is our big step towards that vision.”
“Bukidnon is one of the richest provinces in the country in terms of natural resources, so it’s a perfect area for developing renewable energy or RE. And the future is in RE and sustainability,” he stressed. “That is of absolute import, particularly in the countryside and especially in Bukidnon, where to this day, some towns and even cities like Malaybalay often face power supply problems.”
The project, which is set to be completed by 2024, is projected to have an annual generation of 64.12 gigawatt hours. It is the fifth power plant project spearheaded by Zubiri, having built a solar plant and three peaking power plants prior. The project takes its name from the Mangima River in Manolo Fortich, along which it will be built.
Along with Zubiri, signatories of the loan agreement were PNB President Wick Veloso, PNB Executive Vice President Jun Audencial, and MHPC Chairman Nicandro Linao, who also heads the Sta. Clara International Corporation (SCIC), the engineering, procurement, and construction contractor of the project.
Also present were representatives from PNB’s counsel, Abuda, Asis & Associates; MHPC’s counsel, Puyat, Jacinto & Santos Law Office; and MHPC’s financial adviser, FTI Consulting Philippines, Inc.
The project is a joint venture between SCIC’s affiliate, Philnew River Power Corporation, and Zubiri’s Green Renewable Holdings Corporation, which came together to form MHPC.
“Through this joint project, I am confident that we can contribute to Mindanao’s continuing economic growth,” said PNB President Veloso. “PNB is one with Mangima Hydro Power Corporation in supporting green projects and paving the way for a sustainable tomorrow.”
Veloso added, “With our strong commitment to work together, we have bright days ahead of us. We look forward to taking the next steps toward safeguarding our environment for future generations and leading the reform process for sustainable power—a marching order from Dr. Lucio Tan.”
MHPC Chairman Linao also discussed their goals for the project. “For decades, our country’s power industry has depended heavily on fossil fuel, which has both burdened our economy and our environment. Our project aims to help address these problems and continue towards energy independence and a cleaner tomorrow.”
“The construction of this project will create jobs and opportunities for various localities in Bukidnon and nearby provinces,” he further emphasized.
Zubiri closed the event, saying, “We’re very confident that with everyone’s continued support and commitment to this project, we will be able to see this through and complete construction by 2024. There’s a long road, and a lot of hard work ahead of us—this is actually just step one—but I think as long as we all stay on the same page, and stay dedicated to our goal of strengthening renewable energy in the country, this project will be a complete success.”
“This is not for us—this is for the country, for the province, and for the number of jobs that will be created by the construction of this project.”