Council body gives no support, nor opposition yet on Zamcelco issue PDF Print E-mail
Monday, 28 April 2014 11:27

As the city experiences serious power outages, the City Council’s Committee on Energy and Public Utilities chaired by District 1 Councilor Charlie Mariano has decided for a “status quo” — no support nor oppostion — on on the issue of modular gensets procurement by the Zamboanga City Electric Cooperative (Zamcelco) pending the coop management exploration of  possibilities with other electric sources.

This, after the Mariano’s Committee met late last week with Zamcelco officials and other stakeholders on the procurement of P624 million worth of 16MW modular generator sets which was alleged as expensive.

Mariano said in view of the consensus reached by members of the august body who were present “we’ll maintain status quo for the meantime and possibly give Zamcelco management the benefit of the doubt as to finishing this business is concerned,” the alderman from Upper Calarian said.

He said Zamcelco will try to explore possibilities with other electric power sources to include Hydro,power barge, coal power plant and other sources.

“They (Zamcelco) are expected to also consider other better and cheaper sources of power in Mindanao without necessaily waiting for the approval of the National Government through the Department of Energy (DOE) relative to the additional power requirement of the cooperative,” Mariano said.

Earlier, the National Electrification Administration (NEA) officially turned over all the documents of the coop’s recommendation of Camec-JCB as the winning bidder to the DOE and endorsed to the National Grid Corporation of the Philippines (NGCP) as the third party for review on interconnections.

Councilor Mel Sadain raised a query on why Zamcelco is still holding on to their recommendation as NEA had directed Zamcelco for re-bidding on the alleged “over-pricing” comparing the price of Camec-JCB and Lin Man, Inc. as these are the two entities that participated in the bidding process with the Technical Working Group (TWG).

“Nuay kame para duru, we’ll wait for the decision of DOE to be respected,” Zamcelco General Manager Engr. George Ledesma said.

Ledesma pointed out that Camec-JCB is offering P22 million per megawatt and the gensets are made in the United Kingdom (UK),  while Lin Man offered P21.5 million per megawatt and their gensets are made in China.

Sadain learned from the Powerpoint presentation of Zamcelco that the winning bidder also offered accessories like testing, commissioning, securing of ECC, working capital and interconnections while Lin Man did not give any figure including warranty and extra services.

“So, Camec-JCB has all the edge if you consider all the expenses and compare it with LIn Man. More or less the difference between the two bidders is only P8 million, so, it’s not expensive,” Sadain said.

District 2 Councilor Kim Elago gave a Powerpoint presentation by showing other interested bidders who can offer lower price of about P200 million only with a difference of P424 million.

Elago questioned why there is a wide difference in offer between the highest and lowest bidders.

“Because ultimately it’s the consumers who’ll be paying  that amount. This is my intent and the question that I’m raising,” Elago said.

Mariano said the Committee’s recommendation to the plenary session of the City Council will be done by the third week of May, this year, whether to support or not the position taken by Zamcelco.

“We’re expecting a win-win solution by putting an end to the power problem in the city, since, Zamcelco is very much interested in seeing an end with the power problem the city is experiencing,” Mariano emphasized. — MLF