Title: National Power Grid Network Development Hindered by Unresolved Right-of-Way Claims Worth Billions
The National Transmission Corporation (TransCo) has revealed that the development of the country’s power grid network is facing significant challenges due to unsettled right-of-way (ROW) claims, amounting to an estimated P346.1 billion ($6.8 billion). According to TransCo’s top executive, only P13.9 billion ($275 million) of the total ROW claims have been settled since the management and operation of the transmission assets were turned over to the National Grid Corporation of the Philippines (NGCP) in 2009.
TransCo’s OIC and Vice President, Dinna O. Dizon, explained that the company is responsible for handling all existing ROW cases and claims that accrued prior to NGCP taking over. As of June 30, 2023, TransCo has made ROW payments totaling P13.9 billion, out of an estimated universe of P360 billion ($7.1 billion).
ROW refers to the legal right to pass over specific tracts of land where power transmission facilities, such as power lines and substations, are located. These ROW access rights can cover public lands, private properties, and sometimes culturally-sensitive or environmentally-protected areas.
Out of the 6,703 ROW claims lodged with TransCo, only 34% (2,277) have been resolved and settled thus far. The remaining cases include denied claims, archived cases, ongoing validation by TransCo, and claims covered by letter-offers.
NGCP has been vocal about the impact of unresolved ROW claims on grid expansion projects, resulting in significant delays. This includes the Mindanao-Visayas Interconnection Project (MVIP), a $1.0 billion initiative aimed at establishing a nationally-connected grid. The delays caused by ROW issues have hindered the government’s plans to transition to a renewable energy-driven future, as modernized power grids are crucial for integrating intermittent generation from wind and solar technologies.
While NGCP holds the power of eminent domain under its franchise, the properties acquired for transmission projects must still be owned by the government through TransCo. Resolving the ROW claims is critical to achieving reliable power supply and ensuring that no one is left without electricity.
The unresolved ROW claims have become a complex issue that weighs the sanctity of private property rights and the necessity of power investments for the country’s energy development goals. Resolving these claims will be crucial for achieving a sustainable and modern power grid network.
