BACOLOD, Philippines – The National Grid Corporation of the Philippines (NGCP) boasts the resources and drive to build a robust power transmission network that could meet the growing demands of the country. 

Billions in investment? It’s well within the means of the Henry Sy Jr.-led firm. But the path to building that vision is blocked by a 15-year-old hurdle: right-of-way (ROW) issues.

Since taking over from the government’s National Transmission Corporation (Transco) in 2009, NGCP has struggled with ROW challenges across Luzon, Visayas, and Mindanao. 

According to Cynthia Alabanza, NGCP’s assistant vice president for public relations, these ROW issues have delayed more than half of the agency’s projects, and over a hundred applications are still stuck in the Energy Regulatory Commission (ERC) queue. 

ROWs remain NGCP’s biggest challenge, Alabanza said at a press conference in Bacolod on Wednesday, November 13.

She cited the case of NGCP’s newly completed P52-billion landmark endeavor, the Mindanao-Visayas Interconnection Project (MVIP), which suffered nearly an eight-year delay.

Alabanza said two main reasons are behind the chronic delay: a slow judicial process in securing writs of possession and resistance from private landowners through whose properties NGCP projects must pass.

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Alabanza noted that 50% of the agency’s project timelines have been affected by ROW issues.

At present, 115 of NGCP’s transmission project applications with the Energy Regulatory Commission (ERC) remain pending.

Unfortunately, Alabanza said, it may take an additional three years to gain approval for these development projects, which are crucial for the country’s energy security.

The chronic delays, she said, impact the effectiveness of NGCP’s proposed projects aimed at strengthening transmission infrastructure and supporting the country’s economic growth.

“We’re helpless,” she added. “We don’t have police power.”

Alabanza said the best option available is to remain patient and coordinate closely with government agencies.

Beyond slow government processing, she also lamented another major challenge NGCP often faces – insurgency – which further hinders expansion efforts.

Some armed groups have acted as saboteurs, she noted, targeting NGCP projects, especially transmission towers, which has created additional complications.

Landowner resistance remains a significant challenge, often forcing NGCP to resort to expropriation cases in court, which can take years to resolve.

Negros Occidental Police Provincial Office (NOCPPO) Director Colonel Rainerio de Chavez said they were committed to providing security assistance to NGCP, particularly for its transmission towers in the province in support of efforts to achieve energy security.

“Although NGCP has its own private security group, still, NOCPPO’s doors are open to help them in any way in case there are safety and security concerns that may arise in unexpected moments,” de Chavez said.

Alabanza explained that expropriation cases are usually stalled due to disputes over land valuation, or “fair value.”

While NGCP is prepared to pay premium prices for ROW procurement, Alabanza said, the firm needs to balance the landowners’ demands with the impact on consumers if costs are passed along in power rates.

Judicial delays, Alabanza added, have had a severe impact on transmission services.

As for power supply concerns, Alabanza pointed to recent improvements, such as the MVIP, which could transmit power from Mindanao to the Visayas, and the newly inaugurated 230-kilovolt (kV) Cebu-Negros-Panay Backbone Project in Bacolod.

Both transmission infrastructures, she said, are landmark projects NGCP considers among the best in the country’s power sector.

Regarding the power supply through these transmission facilities, Alabanza clarified that it depends on the generation sector, with only the Department of Energy authorized to approve the construction of additional power plants nationwide.

“If we were to be asked,” Alabanza said, “the more (power plants) the better.” 

However, Michael Baylosis, NGCP transmission planning manager, said that despite the many challenges the agency has faced, NGCP’s power transmission services remain “better than ever.” – Rappler.com