KANANGA, Leyte — The ongoing construction of the 2-MW Bao Hydroelectric Power Project in Ormoc City and Kananga, Leyte, remains on track to meet its target commercial operation in the first quarter of 2027.

The Department of Energy–Visayas Field Office (DOE-VFO) said the project is among the critical power initiatives it is monitoring under Task Force 200.

The agency described the project as a strategic initiative to accelerate the completion and energization of key energy generation projects nationwide.

The DOE-VFO, through its Electric Power Industry Management Division (EPIMD), recently conducted an onsite inspection and validation of the project together with key personnel of the Leyte V Electric Cooperative Inc. (LEYECO V).

The DOE said that as of 15 September 2026, the project had reached 80.04 percent physical completion, with its target commercial operation date (COD) set for the first quarter of 2027.

“The onsite inspection provided an opportunity to validate the project’s progress and assess its current condition, as well as technical and site-related considerations relevant to its continued development,” the DOE-VFO said.

During the inspection, the DOE-VFO team engaged with LEYECO V personnel and discussed key aspects of the project, including its development status, technical considerations, and potential contribution to the cooperative’s power supply requirements.

The DOE-VFO said that through field-level monitoring under Task Force 200, it tracks the implementation of critical power projects, identifies potential bottlenecks, and facilitates coordination with project proponents to support their timely completion and eventual operation.

The Bao Hydroelectric Power Project, owned by LEYECO V, is projected to generate 14.36 million kilowatt-hours per year. The project is funded through a P44-million credit assistance agreement with the Development Bank of the Philippines (DBP).

Once completed, the project is expected to augment electricity supply in Kananga, Matag-ob, and Ormoc City.

Earlier estimates by LEYECO V indicated that it would be able to sell the generated electricity at P5.60 per kilowatt-hour during the first 11 years of operation and at an average of P3.80 per kilowatt-hour in succeeding years.

LEYECO V is among the distribution utilities in Eastern Visayas with the highest power rates, due to high generation costs. Its generation charge stood at P9.4935 per kilowatt-hour in August 2026.