Solis urges Zamcelco, SRPI to re-negotiate power deal PDF Print E-mail
Monday, 08 February 2016 11:57

Zamboangueno lawyer Vic R. Solis is urging the Zamboanga City Electric Cooperative (ZAMCELCO) to immediately re-negotiate its two-year old Power Supply Agreement (PSA) with San Ramon Power Corporation (SRPI) aimed to require the power company start the construction of its coal-fired power plant at the Zamboanga City Special Economic Zone in San Ramon.

According to Atty. Solis, the re-negotiation must be focused on binding SRPI to start the construction of the power plant “effective within a reasonable period from the signing of the Investment Management Contract (IMC) by ZAMCELCO and commence the supply and delivery of power to ZAMCELCO within thirty-six months thereafter.”

ZAMCELCO is expected to soon bid out and sign an Investment and Management Contract which would effectively transfer the day-to-day management of the power cooperative to a private company.

Solis stressed that the state of relative uncertainty in the start-up of construction of the SRPI power facility in San Ramon must be put to an end, and “can be effectively achieved with the re-negotiation of the existing PSA.”

The Power Supply Agreement or PSA was entered into by ZAMCELCO with SRPI on March 8, 2013 and approved by the Energy Regulatory Commission on September 15, 2014.

The agreement requires SRPI to supply ZAMCELCO 85 megawatts of electricity based on a 3-year construction and completion period of the power plant.