Baguio City council urged: Confirm Asin hydro contract

By Aileen P. Refuerzo

BAGUIO CITY-  Mayor Mauricio Domogan urged the city council last week to hasten confirmation of memorandum of agreement between the city government and Kaltimex Energy Philippines for privatization, development and operation of the city-owned Asin mini-hydroelectric plants in Tadiangan and Nangalisan, Tuba, Benguet.

The mayor said the city needs to speed up its act to get the project off the ground.  He said the city waited long enough to use the mini-hydros, once an income-generating venture for the city, running again.

The contract signed last January by the mayor and Kaltimex chairman Krishan Kumar Ralhan needs to be confirmed by the august body before the city can issue the notice to proceed.

Upon issuance of the notice, Kaltimex will also submit within six months detailed work plans, schedules and environmental compliance and disposal plan of the project based on a detailed engineering feasibility study of Asin Mini Hydro Power Plants as basis for construction, rehabilitation, operation, evaluation and monitoring of the project.  

By virtue of the MOA, the city government will turn over the mini-hydropower plants to Kaltimex “unencumbered and without any accounts payable to any authorities whatsoever” for rehabilitation, upgrading, expansion, operation and management for a period of 20 years.

Kaltimex, for its part, will undertake the full rehabilitation, upgrading, expansion of the three power plants within four years commencing upon the issuance of the notice to proceed, with a minimum capitalization amounting to P500,000,000 spread over four years as based on the typical plans showing the initial Project Implementation Rehabilitation Schedule it submitted.

The firm will pay the city monthly rental fees which for the first two years will amount to P18 million or the peso equivalent of 32 percent of gross power plant production valued at the prevailing selling price, whichever is higher.  The amount shall be paid on twelve monthly equal installments every third week of each month without any extension.