Issue of December 8, 2019
     
NEWS
Benguet
 
OPINION
 
 
Other Links:
City, Kaltimex Inc poised to forge compromise agreement
by Aileen P. Refuerzo / PIO

The city government and Kaltimex Energy Philippines, Inc. are poised to forge a compromise agreement that would settle the court case for the rescission of the latter’s contract for the rehabilitation and operation of the Asin mini-hydro power plants.

City Administrator Bonifacio dela Peña reported to the management committee meeting led by Mayor Benjamin Magalong that they are now finalizing the terms of the accord which will set the amount to be paid by Kaltimex as “liquidated damages” and the grace period the city will give the company to make the plant operational.

Kaltimex won the bid for the rehabilitation, upgrading, expansion, operation, and management of the three mini-hydropower plants of the city located in Asin, Tuba, Benguet and entered into a memorandum of agreement with the city on Jan. 30, 2015 which was confirmed by the city council on Feb. 9, 2017.

It however was unable to comply with its contractual obligations under the MOA as it failed to start the implementation of the project and later refused to heed the succeeding demand letters of the city to remit its monetary obligations then computed as P68.1 million thus prompting the city to file a civil case for the cancellation of the contract with damages.

In August, Kaltimex Energy Philippines Executive President Engr. Jurist Awal served to the new city leaders their intent to pursue the project with an offer to pay part of its computed obligation in exchange for the withdrawal of the case.

Based on the draft compromise agreement, Kaltimex will pay the city P13,633,500 as liquidated damages and will reimburse the filing fee incurred by the city in Civil Case 8957-R.

It will also replace and update its performance bond of P150M with a new bond.

Kaltimex will also take physical possession of the plants and will be given four months to make them operational.

Last week however, the city received a letter from the company requesting to extend the period to five months.  

The draft accord further stipulates that the city will withdraw the case upon the company’s payment of the damages and filing free.

Kaltimex will also be bound to “faithfully comply and abide with the terms and conditions of the compromise agreement as well as the MOA dated Jan, 30, 2015.

Its failure or refusal to comply will entitle the city to “extrajudicially terminate” the MOA, to file appropriate court cases and to forfeit the performance bond in its favor.


Your Ad Here


CITY
Baguio creative council formed

LTFRB asked to void memo on 200 taxis

MMDA traffic advisory available in 3 mos, to solve traffic woes

Anti-redtagging edict advances

Asin hydro plant landowners compensation worked out

Government workers urged to contribute for city’s growth

Mayor lifts number coding scheme


Philippine National Police – Police Regional Office – CAR
R.A Gapuz Review Center

Baguio Central University
Baguio Country Club
Benguet Electric Cooperative Inc.
Congressman Mark Go
Data Center of the Philippines of Baguio City, Inc.
Department of Health – CAR
Kings’ College of the Philippines
Mayor Benjamin B. Magalong
Pines City Colleges
Sangguniang Panlungsod
SiTEL
SM City Baguio
Social Security System
Veterans Bank

Albergo Hotel and Residences
Baguio Center Mall
Baguio Water District
C & Triple A Supermart
Congressman Nestor B. Fongwan
Curamed Pharmacy
Department of Agriculture – CAR
Department of Environment and Natural Resources – CAR
Ganza & Solibao Restaurants
GMS Technology
Governor Melchor D. Diclas
John Hay Management Corporation
Mayor Romeo K. Salda
MMS Development Training Center Corporatino
Mother Earth Deli Basket
Philipppine Science High School
Regional Development Council – CAR
Sutherland
Home | About Us | Editorial Policy | Contact Us  
News | Opinion | Snapshots | Week's Mail | Obituaries  
Copyright © 2007-2015. All Rights Reserved. baguiomidlandcourier.com.ph