Two major mall investors hesitant on Samal expansion amid power crisis

Island Garden City of Samal (IGaCoS) Mayor Al David Uy discloses that two malls eyeing to open in Samal but are currently in a “wait and see” mode amid the power crisis that is being experienced in the island. LEAN DAVAL JR
Island Garden City of Samal (IGaCoS) Mayor Al David Uy discloses that two malls eyeing to open in Samal but are currently in a “wait and see” mode amid the power crisis that is being experienced in the island. LEAN DAVAL JR

Mayor Al David Uy of the Island Garden City of Samal (IGaCoS) bared in an interview on Friday that there are two malls from Luzon and Cebu City are currently in a “wait and see” mode amid the power crisis in the island.

“Yun na nga, they’re supposed to start but Covid-19 happened and na veto yung franchise ng Davao Light and Power Company (DLPC). Nag ‘wait and see’ na naman sila. They’re supposed to move na sana kung na approve yung transfer of franchise but karon ‘wait and see’ na naman sila,” Uy said.

Uy clarified that these companies did not back out and that the interests of putting up their malls are still there.

“But syempre if you build an infrastructure like this, vital gyud ang kuryente,” Uy said.

In July last year, President Ferdinand “Bongbong” Marcos Jr. vetoed a measure seeking to expand the franchise area of the Davao Light and Power Company (DLPC), Inc.

House Bill (HB) 10554, which was not signed by the President, expands the franchise area of DLPC, an Aboitiz Power firm, by including Tagum City, the Island Garden City of Samal (Igacos), Asuncion, Kapalong, New Corella, San Isidro, and Talaingod in Davao del Norte.

The said areas are currently covered by the Northern Davao Electric Cooperative (Nordeco).

The bill will grant DLPC an expanded franchise area for 25 years, which aims to ensure the continuous and uninterrupted supply of electricity in the said areas.

In March this year, as the island is struggling with a lingering power outage, the local government unit (LGU) of Samal declared a state of calamity to enable the use of emergency funds for the purchase of alternative power-generating capacities.

The LGU has acquired modular generator sets and accessories to address the rotational brownouts experienced by the residents under the franchise area of the Northern Davao Electric Cooperative (Nordeco).

Samal requires 9 megawatts daily, 6.12 MW of which are sourced from the Mindoro Grid Corporation while 3 MW come from Nordeco.

On May 24, the Senate’s Committee on Energy looked into customer concerns regarding power interruptions that had an impact on their way of life and quality of life on the island.

Nordeco stated during the meeting that the problem will be solved by the end of May this year.

To maintain the electricity supply, the cooperative recommended a P1.5 billion, 15-kilometer undersea cable project between IGaCoS and Pantukan town.

Earlier this month, Senator Christopher Lawrence “Bong” Go reminded Nordeco of its promise to solve the power woes last May.

During the Committee on Energy hearing on July 12, 2023, Go noted that Nordeco gave its commitment that it would be able to resolve the brownouts that have plagued various areas in Davao by June 30, 2023.

“We are interested to know if you have already fulfilled your promise to address the brownouts,” Go asked.

Nordeco Institutional Service Manager Marilou Impuesto admitted to the committee that efforts, including the connection between Pantukan and Samal, are still ongoing and they expect to complete it within the year.

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