Issue of August 5, 2018
Mt. Province

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City to earn P1/kwh from Asin hydro
by PIO release

The city government can earn at least P1 per kilowatt-hour from the future operation of the Asin mini-hydro power plants if the Benguet Electric Cooperative is given the chance to manage the plants.

Beneco General Manager Gerardo P. Verzosa said that the cooperative will be submitting to the city in due time an unsolicited proposal for the takeover of the operation and maintenance of the Asin mini-hydro plants.

“The bottom line is the benefit that will accrue to the local government and the consumers once resources infused for the operation of the Asin power plants are settled. The city will be earning at least P1 per kilowatt-hour aside from the fact that the plants will contribute in lowering power rates,” Verzosa said.

He added that Beneco’s disqualification by the Special Bids and Awards Committee (SBAC) as private developer of the Asin hydro power plants a few years ago will not deter the cooperative from submit its unsolicited proposal.

He said Beneco wants to pursue its long standing offer to be a partner of the city in the operation of the Asin mini-hydro power plants so that the facilities will not be left unproductive forever.

In October 2012, the Energy Regulatory Commission ordered the local government to cease and desist from continuing the operation of the Asin mini-hydro power plants because the generation facilities were not issued a certificate of compliance pursuant to the Electric Power Industry Reform Act.

The city government subjected the operation of the power plants to a series of public bidding, but most of which were failures.

Beneco was disqualified by the SBAC on grounds that the electric cooperative is not registered with the Cooperative Development Authority.

The SBAC awarded the operation of the Asin minihydro power plants to Kaltimex Energy Philippines but for over two years now, the company has prosecuted the project for always requesting for possible renegotiation of the contract because of various issues that cropped up that were not raised during the bidding process.

The city government opted to confiscate the 30 percent performance bond posted by the developer for its failure to implement the project but the same remains uncertain to date.

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