TransCo eyes WB funding for Visayas-Mindanao interconnection project
Apart from the Malampaya fund, state-run National Transmission Corp. (TransCo) is looking at securing a long-term loan from the World Bank to finance the construction of Visayas-Mindanao interconnection project.
TransCo president Melvin Matibag said the agency could secure a long-term loan with the World Bank at almost zero percent interest.
He said the agency has asked the Department of Energy (DOE) to endorse the major interconnection project for funding from the World Bank.
As for the payment of the loan, Matibag said the government may shoulder the payment by using the Malampaya fund.
TransCo previously proposed the use of the Malampaya fund to finance transmission projects such as the VMIP.
However, it needs the approval of Congress to use the Malampaya fund since the Electric Power Industry Reform Act of 2001 (EPIRA) reserves its use for energy resource development and exploitation activities.