The joint venture of Norwegian firm SN Power and Aboitiz Power Corporation would be stepping back on the implementation of the proposed $1.0 billion Alimit hydropower project due to remaining permitting concern that has yet to be resolved with the host community as well as on the grid connection of the plant.

In a briefing with reporters, Aboitiz Power President and CEO Emmanuel V. Rubio said “we’ve held back on Alimit given that we have issues with permitting. We’re also re-evaluating the route for the line” – that is in reference to the transmission facility that will wheel the generated power of the Alimit project to the grid.

The company executive said the project already has its system impact study (SIS), but there have been suggestions from transmission operator National Grid Corporation of the Philippines (NGCP) “on where to connect and it requires certain reconductoring of the Magat-Santiago line.”

It is for that reason, he qualified, that “maybe, it’s time to e-evaluate our position with Alimit. That’s where it is, we have not stopped.”

The Aboitiz Power chief executive further explained “we are actually re-evaluating given the situation that we have some permitting issues with the IPs (indigenous peoples) and the connection point that we have to finalize with NGCP.”

Relative to the flooding problems that pummeled Cagayan province last year, Rubio noted that once the hydropower project is concretized, “Alimit would probably be able to at least alleviate to a certain level flooding in Northern Luzon – it can trap certain amounts of water, but not totally.”

He added that while the proposed project may not completely prevent flooding, “at least it would help alleviate flooding and that’s the new track we're evaluating with the government.” Rubio said such sphere of the project development had already been discussed with the National Irrigation Administration (NIA).

The Alimit hydropower facility has been designed as a multi-phased development – with the first phase covering the construction of the 120MW Alimit plant along with the 20MW Olilicon facility. That project component had been previously estimated to require capital outlay of US$450 million to US$550 million.
The second phase will comprise the 250MW Alimit pumped storage facility that may also entail investment of up to US$500 million.

Project developer-firm SN Aboitiz Power Inc. (SNAP) had already secured the required approvals of the four municipalities that will be hosting the hydropower facility – these are the municipalities of Aguinaldo, Lagawe, Lamut and Mayoyao in Ifugao.

A subsequent development to that had been the signing of a framework agreement between the project developer and the host-local government units.