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Latest News MEPA Conveys Position on Agus-Pulangi Privatization
Latest News MEPA Conveys Position on Agus-Pulangi Privatization
Mindanao Business Council (MinBC) Chairman Vicente T. Lao conveyed in behalf of the 30-strong members of Mindanao Electric Power Alliance (MEPA) the body’s stand on the Agus-Pulangi Hydro Complex Privatization during the Power Stakeholders’ Meeting organized recently by the Department of Energy in Davao City.
The meeting, which was presided by no less than Department of Energy Secretary Angelo T. Reyes, was organized to find viable solutions to the power supply situation in Mindanao.
The MEPA, an organization formally created during the 1st Mindanao Power Summit in Cagayan de Oro City last 2-3 December 2009, is a multi-stakeholder body composed of local electric cooperatives, distribution utilities, power generating companies and business organizations that aims to work together and collectively pursue programs that will entice new investors in power generation while preserving the reliability and affordability of power rates in the island. The Alliance has also been actively involved on talks related to the impending privatization of the Agus-Pulangi Hydro Power Complex in Iligan City.
Mr. Lao informed the Secretary that MEPA is not against the private sector taking over of operations and maintenance of the facility. What they are not in favor, however, is selling of the Hydro Complex generating assets if only to pay National Power Corporation (NPC) debts and maintain that ownership of the said assets should remain with the government.
“The low rates that Mindanao is enjoying provide a competitive advantage for business to thrive in the island. Otherwise, Mindanao will forever be an agricultural economy. We cannot encourage industrialization in the island because we don’t have enough power to provide them.”, Lao said.
PSALM representatives present during the meeting clarified that they have not yet finalised the privatization approach for the hydro facilities, whether through full asset sale or only its operations and maintenance.
MEPA members present also took the opportunity to air their positions on the privatization issue. Oro Chamber Vice President Ghaye Alegrio presented to the Secretary the official position paper of the Cagayan de Oro Chamber of Commerce which calls on the government to hold the privatization activities for Agus Plants 1 and 2. Another join resolution was also presented by the various business organizations of Cagayan de Oro on the completion of the Agus 5 Hydroelectric Power Plant track-rack repair, the resumption of the operation of the Iligan Diesel Power Plant by NPC-PSALM, the expeditious repair of the AGUS 2-Kibawe 138KV lines; and the commissioning of the Maramag-Bunawan 230KV Backbone Project.
The MEPA, an organization formally created during the 1st Mindanao Power Summit in Cagayan de Oro City last 2-3 December 2009, is a multi-stakeholder body composed of local electric cooperatives, distribution utilities, power generating companies and business organizations that aims to work together and collectively pursue programs that will entice new investors in power generation while preserving the reliability and affordability of power rates in the island. The Alliance has also been actively involved on talks related to the impending privatization of the Agus-Pulangi Hydro Power Complex in Iligan City.
Mr. Lao informed the Secretary that MEPA is not against the private sector taking over of operations and maintenance of the facility. What they are not in favor, however, is selling of the Hydro Complex generating assets if only to pay National Power Corporation (NPC) debts and maintain that ownership of the said assets should remain with the government.
“The low rates that Mindanao is enjoying provide a competitive advantage for business to thrive in the island. Otherwise, Mindanao will forever be an agricultural economy. We cannot encourage industrialization in the island because we don’t have enough power to provide them.”, Lao said.
PSALM representatives present during the meeting clarified that they have not yet finalised the privatization approach for the hydro facilities, whether through full asset sale or only its operations and maintenance.
MEPA members present also took the opportunity to air their positions on the privatization issue. Oro Chamber Vice President Ghaye Alegrio presented to the Secretary the official position paper of the Cagayan de Oro Chamber of Commerce which calls on the government to hold the privatization activities for Agus Plants 1 and 2. Another join resolution was also presented by the various business organizations of Cagayan de Oro on the completion of the Agus 5 Hydroelectric Power Plant track-rack repair, the resumption of the operation of the Iligan Diesel Power Plant by NPC-PSALM, the expeditious repair of the AGUS 2-Kibawe 138KV lines; and the commissioning of the Maramag-Bunawan 230KV Backbone Project.
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