BAGUIO CITY – The city council approved a resolution inviting the city’s
special bids and awards committee during its regular meeting on Sept. 17 to
discuss bidding and privatization of the Asin minihydro power plants and shed
light on why the multi-billion project has not yet been implemented despite
being awarded to the supposed winning bidder.
The resolution authored by Councilor Peter Fianza
stated there is a need to apprise the council on status of the multi-million
privatization project and consider recommendations or alternative moves to make
the power plants operational and avoid further losses considering deterioration
of the power equipment installed in said plants.
Earlier, the local legislative body passed Resolution
No. 219, series of 2011 approving the terms of reference and pro-forma contract
for the privatization of the Asin minihydro power plants.
The city council approved Resolution No. 037, series
of 2017 that confirmed the memorandum of agreement dated 30 January 2015
entered into between the local government and Kaltimex Energy Philippines, Inc.
on rehabilitation, upgrading, expansion, operation and management of the power
plants.
However, to this date, despite the award and the
alleged issuance of the notice to proceed (NTP) to the winning bidder, the
contract has not been realized to the prejudice of the local government.
Instead of earning, it has reportedly been subsidizing
the preservation and maintenance of the existing facilities since Oct. 12, 2012
when the Benguet Electric Coop. decided to disconnect it from its system.
This, when the Energy Regulatory Commission issued a
cease-and-desist order to the local government to temporarily stop the
operation of the power plants until such time that it secures a certificate of
compliance for the hydros from the regulatory body.
The local government took over the operation of the
three Asin minihydro power plants after the expiration of the city’s 25-year
agreement with the Aboitiz-owned Hydroelectric Development Corp. in 2006 and
the local government was able to earn some P30 million annually from operation
of the plants.
Kaltimex has reportedly requested the local government
several time extensions to address issues and concerns that cropped up during
their supposed due diligence, but the project never pushed through for more
than a year and a half after the contract was confirmed by the local
legislative body.
Beneco has signified its intention to partner with the
local government, the Tuba municipal government and the indigenous peoples of
the host communities if only to make the renewable energy plants operational by
providing quality power at cheaper cost. -- Dexter A. See
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