Bakun Hydro Project

We regard Bakun Hydro as one of our finest achievements.

Located in northern Luzon, one of the wettest regions of the Philippines, the project shows our unique ability to utilise otherwise daunting geography and create a valuable lasting legacy.

The site's steep topography (the elevation drops over 500 metres in the project area) and abundant annual rainfall creates an ideal climate for "run-of-river" hydro production. Such a system harnesses the natural gravity created by the flow of the river to produce electricity and doesn't require the construction of a major concrete damn or large reservoir.

How it works

For this project, water from the upper reaches of the Bakun River is diverted via an 11 metre high weir into a 9.6 kilometre long tunnel cut into the Cordillera Mountains. The water goes into the 70MW power station, which comprises two 35MW horizontally mounted generators converting the energy of the flowing water into electricity for use in surrounding villages and towns. The water exits the power station back into the same stream it was diverted from about 550 metres lower than the weir elevation.

As the amount of river water flowing fluctuates throughout the year, the power generation varies during the dry and rainy seasons.

Bakun Hydro was constructed as a build, own, operate, transfer (BOOT) project, by Luzon Hydro Corporation, of which Pacific Hydro is a 50 per cent shareholder. After 25 years the power plant will be handed over to the National Power Corporation (the government-owned power company).

Construction and development

The project's construction and development phase took more than five years and, at the height of construction, employed more than 1,700 workers, many of them from surrounding communities.

Commissioning and testing of the project began in September 2001 and commercial revenue has been generated since that time.

The project continues to employ 31 full time workers and 77 part-time staff, all of whom are locals.

An energetic bottom line

From an environmental standpoint, the Bakun Hydro Power Plant offsets an estimated 208,000 tonnes of carbon emissions each year.

Local benefits

We're proud the project has benefited local communities in so many ways. Local villages now have a steady supply of electricity, local roads have been upgraded and more than 8 kilometres of new roads were built as a result of the project.

Two entirely new bridges were also constructed, including the 292 metre long Friendship Bridge, which makes possible access to essential services (including health and education) during the treacherous wet season.

At the time, Pacific Hydro's General Manager, Philippines said that "the Friendship Bridge is a good example of Pacific Hydro's commitment to the local host communities in which we operate. We are also pleased that we have been able to supply electricity for the first time to thousands of villagers.

This is consistent with our triple bottom line approach to doing business. We look forward to seeing the socio-economic benefits of the bridge delivered to the people of Alilem."

In keeping with our policy of community development, we will spend $1 million over the life of the project on upgrading existing roads, providing medical and education services for the community. The project also includes a watershed management program, which protects, maintains and rehabilitates the area's existing forest cover. The power station creates no waste products and creates no air or water pollution, meaning the long term impact of the plant on the local community is minimal.