Winning bidder warned on Asin hydro rejection

By Dexter A. See 

BAGUIO CITY  – The city council warned the winning bidder for the rehabilitation and operation of the Asin mini-hydropower plants to appear before the regular session of the local legislative body on Monday, November 14, 2016, or else it will be constrained to reject the contract it entered with the local government.

            The members of the local legislative body reached a consensus during their regular session last November 7, 2016, after representatives of the Kaltimex Energy Philippines did not appear before the council to shed light on their financial capacity and their interest to pursue the project.

            Councilor Faustino A. Olowan, chairman of the Council Committee on Laws, said the members of the local legislative body wants to know from the company officials if they still want to pursue the project.

            Under the contract, Kaltimex will secure the pertinent permits necessary to operate the power plants within six months and pay to the local government the amount of P18 million  representing the company’s financial obligation to the city after the confirmation of the agreement.

            Olowan claimed his committee received several questions asking about the ability of the company to pursue the project, thus, it is important for the company officials to clarify all these matters before the council.

            In 2006, the Hydroelectric Development Corporation (HEDCOR) turned over to the local government the management and operation of the city-owned Asin mini-hydropower plants after the 25-year old contract between the city and the Aboitiz-owned Davao Lights expired.

            Since then, the local government operated the power plants until October 2012 following a cease-and-desist order from the Energy Regulatory Commission (ERC) after it found out that the city did not have the required certificate of compliance to operate the power plants from the regulating agency.

            Kaltimex Energy Philippines ended up as the winning bidder after a series of failed bidding conducted by the Special Bids and Awards Committee (SBAC) created by Mayor Mauricio G. Domogan to search for a competent company that will manage and operate the power plants.

            The contract between the local government and Kaltimex was submitted to the local legislative body for confirmation early last year but has not yet been confirmed up to the present.