IGCC blames NGCP for interconnection problems

The Iloilo Grain Complex Corp. (IGCC) asserted that the delay in the proposed 138-kV Panay-Guimaras Interconnection Project falls squarely on the National Grid Corp. of the Philippines (NGCP).

In a statement, IGCC said blaming the Supreme Court restraining order for the delay in its transmission project is not a valid excuse for NGCP's failure to follow expropriation rules and obtain necessary permits from the Energy Regulatory Commission (ERC).

“Records will show that from the start it was NGCP that caused the delay of its own project. It did not secure the required ERC permit; failed to make a genuine just compensation offer to IGCC; and refused to consider cheaper and more practical right-of-way alternatives,” Toby Tañada, IGCC spokesperson said.

To recall, NGCP obtained an expropriation order and a writ of possession from Iloilo Regional Trial Court Branch 33 in September 2022 to construct two tower sites within IGCC's property, which would connect its transmission lines to a submarine cable linking Iloilo and Guimaras island. 

However, IGCC contested the RTC's decision and obtained a temporary restraining order from the Supreme Court in April 2023, preventing NGCP from taking possession of the food company's property.

A portion of the Supreme Court order said: “the trial court [Iloilo RTC Br 33] committed grave abuse of discretion amounting to lack or excess of jurisdiction when it issued the writ of possession without first determining whether NGCP has in fact complied with the requirements of the law for a valid exercise of its delegated power to expropriate, among them, the existence of a genuine necessity for the taking of the subject property, compliance with the required ERC approval for the project, and compliance with the requirement that the expropriation and the manner by which it is sought to be implemented is least burdensome to the landowner.”

As this developed, Tañada denied NGCP's claims that it had attempted to settle with IGCC. 

He said that both parties have presented their arguments and counter-arguments to the Supreme Court.

“The highest court of the land has spoken and all parties need to respect  and abide by the Supreme Court ruling,” Tañada stressed. 

He also stated that IGCC has put forward a more economically feasible alternative for the project. According to him, IGCC proposed that NGCP's current 69kV line could utilize the same posts, structures, and Right of Way (ROW) by being "underbuilt" beneath the proposed 138kV transmission line.

The practice of underbuilt lines is a common practice in distribution systems in the country, as well as in transmission systems constructed by NGCP's state-owned predecessor, the National Transmission Co.

“IGCC believes that our company’s proposed route for the Project is not only technically feasible but is also more economically viable (following a direct route) than the proposed NGCP route (which follows a less direct, longer route). Under our proposed route, the existing 69kV line can share posts/structures and Right of Way (ROW) since it can be “underbuilt” under the proposed 138kV transmission line," Tañada said.

Underbuilt overhead transmission systems are typically implemented when there are limitations or constraints in the Right of Way (ROW). This approach leads to reduced costs due to lower ROW acquisition requirements and the sharing of posts or structures between two transmission or distribution lines, he clarified.

Several examples of underbuilt transmission systems include the La Trinidad-Loakan 69 kV line in Benguet, the Bacolod-San Enrique and Bacolod-Alijis 69kV transmission lines in Negros, as well as NGCP’s Ormoc-Maasin 138kV transmission line and 69kV line in Leyte.

Tañada mentioned that IGCC's sister company, La Filipina Uy Gongco Corp. (LFUGC), will not oppose the proposed alternative transmission line route that crosses its property.