Magat Hydro

completed

Magat dam was completed in 1983 as part of the World Bank financed Magat River Multipurpose Project (MRMP) in northern Luzon, about 350 km north of Manila. MRMP’s primary objective was to expand the existing Magat River Irrigation System (MARIS) to triple rice production in the Cagayan River basin in an effort to attain the country’s self-sufficiency in staple food supply. The dam is about 3,150 m long and is of rock fill construction. It was constructed as a multi-purpose project, for both irrigation and electricity generation. Currently about 85,000 ha of land is irrigated, and irrigation daily requirements (IDR) are discharged on a priority basis.Irrigation activities are conducted by the National Irrigation Authority (NIA), and the 117 km2 reservoir, dam, and intake gates for the Magat hydroelectric plant are owned, operated and maintained by NIA. NIA is also responsible for management of the watershed upstream of the dam. The four-unit powerhouse has a rated capacity of 360 MW with a water head of 81 m. Until privatization, the hydroelectric facilities were owned and operated by the National Power Corporation (NPC), under agreement with NIA. Water used for electricity generation is regulated by the NIA’s MARIS dam about 5 km downstream, prior to entering into the distribution canal system. Magat operates as a peaking power plant, and water stored in the reservoir is equivalent to about 2 months of typical electricity generation. Inflow and outflow follow the seasonal patterns of rainfall in the country (rainy season from June to October and dry season from November to May), and the corresponding irrigation schedules. The reservoir experiences significant sedimentation, the rate of which has increased following the Luzon earthquake in 1990 as well as from deforestation in the watershed. However, a recent survey done by NIA showed the rate of sedimentation has slowed down significantly. The Magat hydroelectric facilities were privatized through an international tender process as part of the Electric Power Industry Reform Act (EPIRA) of 2001. The project company, SNAP, took over the hydropower facilities on April 26, 2007. Under the privatization scheme, the dam itself continues to be owned and managed by NIA. The proposed IFC loan will partly finance the privatization. SNAP will put in place new management procedures, implement deferred maintenance, and address technical issues such as sedimentation and operational improvements. SNAP will also suggest, advise, and assist NIA with respect to the operations, repair, and maintenance of the Dam under the Operations and Maintenance Agreement entered into between SNAP and NIA. Magat was originally planned for the possible addition of two generating units, and SNAP is considering the feasibility of such an addition, among others.