Power grid buildout saddled with P346-B ROW claims

The development of the country’s power grid network is still saddled with as much as P346.1 billion worth of unsettled right-of-way (ROW) claims, according to a top executive of the National Transmission Corporation (TransCo), the owner of the country’s power transmission assets.

TransCo OIC and Vice President Dinna O. Dizon indicated that out of the P360 billion aggregate ROW claims, only P13.9 billion had been settled by the company so far, that was since it turned over in 2009 the management and operation of the transmission assets to its concessionaire-firm National Grid Corporation of the Philippines.

“As of the right of way, we handle all existing cases and claims of which causes of action accrued prior to the turnover of the transmission business to NGCP…as of June 30, 2023, the total ROW payments we’ve made so far was P13.9 billion, out of our estimate true universe of P360 billion,” she said.

Right-of-way (ROW) refers to a legal right to pass over a specific tract of land traversed by power transmission facilities – be that for power lines, substations or other associated infrastructure linked to the development and operation of power grids.

Typically, these ROW access may cover public lands, private properties and there are also instances that they disturb culturally-sensitive and environmentally-assaulting domains, such as the areas inhabited by indigenous peoples (IPs) or protected zones.

Dizon qualified that the total ROW cases lodged with TransCo hovered at 6,703 claims; and it was only 34-percent of that or 2,277 claims had been resolved and settled at this time.

“There were claims that have been denied or archived; and then there have been letter-offers for filing, for validation and ongoing cases,” the TransCo executive stressed.

As culled from TransCo’s data, archived cases accounted for 27-percent or 1,526 claims; while denied claims have 10-percent share in the pie or 662 cases. It was not specified though if these denied and archived cases will no longer be revived by the claimants.

The total cases filed in the courts represent 1,119 claims; and there are additional 124 claims that are still scheduled for filing; while 843 cases have been ongoing validation by TransCo; and 152 claims are covered by letter-offers.

Concessionaire-firm NGCP has relentlessly raised that the colossal ROW claims have been obstructing grid expansion projects, hence, these have been contributing enormously to the delays in targeted facilities’ completion – including big-ticket projects like the $1.0 billion Mindanao-Visayas Interconnection Project (MVIP) that is set to realize the country’s long-time dream of having a nationally-connected grid.

It was emphasized that while the ‘power of eminent domain’ had been re-assigned to concessionaire-firm NGCP under its franchise, the titles of the properties acquired for transmission projects must still be with the government through TransCo.

The expansion as well as reinforcement of the country’s power transmission network is highly critical to the Marcos administration’s energy transition agenda, because the massive-scale renewable energy (RE) installations will require modernization of power grids that will reliably integrate as well as manage the intermittent generation of key technologies, primarily wind and solar.

The never-ending concerns arising from ROW procurements tread along upholding sanctity of private properties and deep respect for land at protected sites; versus the need for power investments so no one would be left out in the dark. — Myrna M. Velasco