SRPI reacts to council motion on deal cancel PDF Print E-mail
Friday, 22 January 2016 11:58


The San Ramon Power Inc. (SRPI) is giving Zamboanga City Electric Cooperative, Inc. (Zamcelco) the prerogative of negotiating for an additional power from other independent power producers (IPP), despite the existence of a contract between them, which would eventually come into perfection three years from now, provided it will respect the already signed contract with SRPI.

This, after the city council passed a resolution in its regular session Tuesday, asking Zamcelco to study the possibility of rescinding its contract for an 85-megawatt coal power with SRPI, and instead secure the same from the newly-established San Miguel Power Corporation, a 300-megawatt coal-fired power plant in Malita, Davao City, which offers to sell 35 megawatts power to the cooperative, at a cost cheaper than that of SRPI.

The apparent impatience of city councilors who moved to pass such motion, was brought about by too much delay in commencing construction of SRPI’s structure, inside ECOZONE complex, in barangay Talisayan, west of the city.

“I believe, that Zamcelco is in the best position, as to how much capacity they will have to buy from another power source, just so, to be assured of enough power supply, and San Miguel’s offer is appropriate for their power requirements,” said Joseph Nocos, vice president for business and development of ALSONS Power, SRPI’s mother company.

Nocos however reminded the cooperative of the contract it signed with SRPI and approved by the Energy Regulatory Commission (ERC).

“While Zamcelco has the prerogative of exploring all options on how to secure power, I hope it will also respect the contract, their side and obligation with it”, Nocos said in an interview with RPN-Zamboanga.

Nocos clarified that if Zamcelco decides to enter into a contract with San Miguel or other supplier, “but respecting our contract, certainly, we will not have a problem with that”.

He said, that it will be a different story, if  Zamcelco would enter into a contract with said power supplier at the expense of SRPI.

At present, Nocos said, two investors, “one based in Manila, and the other operates business in Visayas and Mindanao, have already expressed interest in investing into Zamcelco under the Investment Management Contract (IMC)”.

The ALSONS vice president said that just as the coop awards the IMC contracts to these investors, SRPI will immediately start constructing its plant in Talisayan.

Meanwhile, Zamcelco OIC-General Manager Edgardo Ancheta vowed to let the coop’s legal department do the study on the city council’s resolution. — Philip Abuy