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Samal Island plans to negotiate a loan to stabilize the power supply

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SAMAL ISLAND, Philippines — Frustrated and fed up with unfulfilled promises, the local government of Samal Island is taking proactive steps to stabilize its power supply by negotiating for a significant loan.

This move comes in response to the persistent power interruptions that have been affecting residents and businesses, hindering economic growth and quality of life.

In a press conference last week, Mayor Al David Uy apologized to his constituents for the city’s failure to resolve the power issues, stating they had been reliant on promises from the Northern Davao Electric Cooperative (Nordeco).

What’s the Plan?

Uy announced that the island’s administration is in the process of securing a loan aimed at upgrading and expanding the island’s power infrastructure. “Our goal is to provide a reliable and stable power supply to all residents and businesses on Samal Island. This loan will enable us to invest in essential infrastructure improvements that are long overdue,” Uy said.

The proposed loan will be used to enhance the capacity of existing power facilities, install new power lines, and integrate advanced technology to manage and distribute electricity more efficiently. These measures are expected to significantly reduce the frequency and duration of power outages that have plagued the island for years.

The unstable power supply costs the island P120 million annually. “We lost many opportunities in tourism, transportation, and agriculture, and our residents have suffered long enough. We have to make a bold move to address this issue,” Uy emphasized.

The Promise

Nordeco, the island’s power distributor, has repeatedly promised to provide stable power via a submarine cable from the Pantukan Grid to Aundanao in Samal, but residents have yet to see this promise fulfilled. “I don’t want to hang on to promises anymore. We can see the Samal Island-Davao City Connector Project moving forward, but we have yet to see a stable power supply. That is why we are taking bold steps,” the mayor emphasized.

Despite being a key tourism destination in the Davao region, Samal Island has struggled to stabilize its power supply. “We have to move because we mean development,” Uy added.

Financial Strategy

According to Uy, the decision to seek a loan was made after careful consideration of various financing options. “We have explored multiple funding avenues, and we believe that securing a loan is the most feasible and immediate solution to address our power supply issues. This will not only ensure a stable power supply but also support the island’s economic development and attract more investors,” he explained.

The local government has initiated discussions with potential lenders and financial institutions, aiming to secure favorable terms that will not overly burden the island’s financial resources. Part of the plan includes a detailed feasibility study and a comprehensive repayment strategy to ensure the loan can be managed sustainably.

Community Support

Residents and business owners on Samal Island have expressed support for the initiative, highlighting the critical need for a dependable power supply. “Consistent power is crucial for our daily operations and overall quality of life. We fully support the local government’s plan to secure this loan,” said local business owner Maria Santos.

Alfa, a mother of two, said, “We will support every move of the city as long as we have stable power. My children are suffering due to unstable power. It’s always like Christmas in my house—the power flickers like Christmas lights,” she added.

Government Assistance

The Department of Energy (DOE) has also shown support for the initiative, with plans to assist the local government in technical evaluations and project implementation. “We commend Samal Island’s leadership for taking decisive action. The DOE is ready to provide the necessary technical assistance to ensure the success of this project,” a DOE representative stated.

Uy emphasized the importance of transparency and community involvement throughout the process. “We are committed to keeping the public informed and involved. This is a collective effort, and we value the input and support of our community,” he said.

As negotiations continue, the local government remains optimistic that the loan will be secured and the necessary infrastructure improvements will be implemented promptly. This initiative marks a significant step towards ensuring a brighter and more prosperous future for Samal Island.

About Editha Z. Caduaya

Edith Z Caduaya studied Bachelor of Science in Development Communication at the University of Southern Mindanao.

The chairperson of Mindanao Independent Press Council (MIPC) Inc.

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