Issue of August 4, 2019
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Council authorizes mayor to negotiate Asin plants deal
by PIO release

The city council approved a resolution authorizing Mayor Benjamin B. Magalong to negotiate and enter into re-contract with the Department of Energy for the renewal of the service contract of the city-owned Asin mini-hydroelectric plants.

The resolution authored by all city council members stated that one of the legal requirements needed by the DOE is a city council resolution authorizing the local chief executive to enter into a re-contract for the renewable service contract of the Asin plants.

The resolution stipulates that the city government is the lawful owner of a number of hydroelectric plants at Barangay Tadiangan, Tuba, Benguet, which are currently non-operational due to the absence of a special permit from the DOE.

The three mini-hydro power plants were operated and managed by the local government for several years after the expiration of its 25-year contract with Davao Lights in 2006 that yielded additional income for the city before it was issued a cease-and-desist order by the Energy Regulatory Commission (ERC) in October 2012 for lack of certificate of compliance.

Magalong recently expressed the urgency of reactivating the operation of the power plants and has initiated the process of applying for a special permit to operate the power plants to maximize its potentials of generating added resources.

Magalong has inquired from the DOE on how to fast-track the processing of the renewable energy service contract application.

Mylene C. Capongcol, officer-in-charge of the DOE’s Renewable Energy Management Bureau, said that as per guidance from the agency’s centralized review and evaluation committee, the city government is required to submit its renewable energy service contract application together with the needed documentary requirements, such as copy of the City Charter, original copy of the resolution authorizing its representative to negotiate and enter into re-contract with the DOE, and organizational structure of the city government indicating the specific office occupying the position in the table of organization in the city government profile.

The DOE also required the local government to submit a five-year work and financial plan with the corresponding financial commitments, topographic map, and curriculum vitae of the management and technical personnel, aside from submitting the audited financial statement for the last two years, current unaudited financial statement, current bank certificate, and projected cash flow statement for two years.

The DOE mandated the local government to submit all the requirements within 30 days from receipt of the response, otherwise, the city’s application for renewable service contract application will be deemed disqualified.

The local government bid out the operation of the power plants, but the winning bidder Kaltimex Energy Philippines failed to operate the same for still unknown reasons.

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