To realize 100% electrification throughout the Philippines.
Marubeni Corporation
2010.4.30
Efforts Made by TeaM Energy Foundation, Inc. (TEFI)
The nationwide electrification program (Barangay Electrification Assistance for Countryside Development, otherwise known as "Project BEACON") has overcome various difficulties and is making steady progress. The goal of this project is to realize 100% electrification throughout the Philippines.
TeaM Energy Foundation, Inc. (TEFI) was established on July 25, 2001 as part of the TeaM Energy Corporation (formerly Mirant Philippines Corporation), a Marubeni group company. In light of the social improvement focus of its business, TeaM Energy implemented corporate social responsibility programs in the neighborhoods surrounding its power plants. As the scope of its business expanded, the Corporation came to believe that it was in a position to solve the social problems within the Philippines. Thus, the Corporation established TEFI as a social institution to fulfill this role.
Project BEACON has brought electricity to nearly 300,000 homes
Scene from the ceremony for the official handover from Project BEACON to the government of the Philippines (Left: Secretary Angelo Reyes, from the Department of Energy of the Philippines Right: Chairman Federico E. Puno of TeaM Energy Foundation, Inc.)
TEFI has worked to solve national level problems by cooperating with the Filipino government to conduct various activities and provide assistance in its business areas. The nationwide electrification program (Project BEACON) represents one of the main endeavors of TEFI’s work. It was one of the largest social development projects run by a private company, and successfully completed the electrification of the final barangay* in December 2007. During the course of this project, over 18,000 km of electrical cables were laid, more than 60,000 utility poles were erected, and over 10,000 home based solar power generation systems were installed, thereby bringing the benefits of electricity to nearly 300,000 homes, or more than one million people in the Philippines.
Furthermore, because these electrification efforts focused on mostly isolated rural areas and islands, TEFI had to overcome numerous challenges and difficulties to move this project forward. The experience we had working on the electrification of Cabalitian Island, where we recently held a ceremony to officially handover the electrification facility, has provided us with some amusing anecdotes.
Staff of TeaM Energy Foundation, Inc.
Overcoming failures during the installation work for the submarine power cable to Cabalitian Island
The Cabalitian Island Electrification Project in Pangasinan Province, which was launched by TEFI in early 2004, involved every kind of stakeholder, as well as the Department of Energy from the Central government, the Rural Electrification Cooperatives, and local residents. Sharing the costs and burden of this project was a major stumbling block, and caused negotiations to stall. During this time, TEFI provided four sets of simple electrical generators as a temporary expedient. Incidentally, we had the pleasure of enjoying President Gloria Macapagal-Arroyo’s company at the electricity distribution ceremony.
After continued negotiations, the parties finally agreed that TEFI would supply 2 km of submarine power cables, the local government would be responsible for handling the installation work, and the Rural Electrification Cooperatives would be in charge of connecting grids. The project officially kicked off in the beginning of 2006.
Joint operation scene
However, about six months later, at the time when the submarine power cables were nearly finished being laid, TEFI was surprised to learn that the supply of cables fell about 100 m short. The local instructor remarked that "when I heard the news, I practically fell off my chair. Everyone involved just sat on their chairs, absolutely dumbfounded."
This problem was resolved by an unconventional, large-scale construction undertaking. A portion of the coastal area of the island was reclaimed in order to build a tower, and then the submarine power cable was connected to transmission line on the island. However, immediately after the completion of work through outstanding efforts of those involved, a brand new problem awaited the project members: the submarine cable had been cut and part of it had been stolen!
One of the electrical power lines laid as part of the work under Project BEACON
As a result, work was delayed for an additional two months, but the damage was minimized and the project was finally finished. On September 26, 2008, all the parties involved with this project, including the local government and TeaM Energy Corporation, as well as the Secretary of Energy, attended the power distribution ceremony for Cabalitian Island and the official ceremony to commemorate the handover from Project BEACON to the government. The venue was mixed with a shared sense of relief among those who were in charge of the finished project, for they had to overcome numerous difficulties, as well as the sense of joy of the local residents that were going to receive the benefits of the project’s efforts.
Though TEFI is currently moving forward with another project, it will consider additional electrification measures as necessary as work towards realizing the 100% electrification of the Philippines continues. While TEFI recognizes the fact that the electrification of rural areas promotes social development in the countryside, it also supports public works infrastructure, such as education and welfare, to provide for the basic needs of everyday life.
Project BEACON Timeline
Outline of Project BEACON
To improve the quality of life in the countryside, in 1999 the Department of Energy of the Philippines launched the Accelerated Barangay Electrification Program (ABEP) to create an electric service infrastructure in rural areas by employing the multi-sector method. The original goal of the program was to achieve 100% electrification throughout the Philippines by 2006 (this goal was later pushed back to 2009), an improvement from the 80% electrification rate in barangays prior to the start of the program.
In response to an invitation from the government to participate in the program, TEFI launched the Barangay Electrification Assistance for Countryside Development (the nationwide electrification program), otherwise know as Project BEACON, as its first social development program. Thus far TEFI has invested 1.5 billion Philippine pesos of business funds and has independently operated the project. By the end of 2007, it had completed the electrification of 1500 barangays. As a result, a total of 40,495 of the 41,945 barangays in the Philippines had received electric power by the end of the same year, achieving a 96.5% electrification rate across the nation.
Project BEACON Details
* A barangay is the smallest administrative division in the Philippines.
Marubeni Group magazine "M-SPIRIT" VOL.49 (January, 2009)
