NEA okays IMC Print
Monday, 26 March 2018 18:27

By Bhong Simbajon

The National Electrification Administration (NEA) has given the go signal for the Zamboanga City Electric Cooperative (Zamcelco) formalize plans to enter into an Investment Management Contract (IMC) with  COMSTECH, a private subsidiary of Meralco.

In a letter to Zamcelco Board President Omar Sahi dated March 23, 2018, NEA Private Sector Participation (NEA-PSP) Committee Chairman Rossan Rosero- Lee said that the electric cooperative may proceed with the IMC contract with due compliance to the requirement of the General Assembly’s approval of the Investment Management Contract.

In making their decision, the NEA-PSP took cognizance of the urgent need to implement the IMC due to critical state of Zamcelco.

Lee said that the NEA is fully aware of the sorry state of Zamcelco.

The NEA-PSP also aims to encourage private sector initiatives in rural electrification to enhance the operational, technical and financial capability of electric cooperatives as well as encourage the flow of private capital into the rural electrification program.

NEA took up the status of Zamcelco’s IMC two days after First District Congrssman Celso Lobregat made a manifestation to NEA Administrator Edgardo Masongsong on the urgent need to implement the IMC due to Zamcelco’s hemorrhaging status.

For his part, Zamcelco Board President Omar Sahi said that NEA and Zamcelco had two meetings to discuss the IMC but was advised by Lobregat to write the NEA for the latter to act with urgency on the matter.

Sahi credits Lobregat in the IMC contract approval due to the latter’s efforts to follow up the contract.

The Zamcelco Board is expected to meet with their IMC consultants together with COMSTECH  to plan for the final draft of the IMC contract.

The contract is expected to be presented to the cooperative’s members through a general assembly for approval.

Should it be approved, the contract will then be forwarded to NEA for their confirmation and eventual implementation by the electric coop.  (Bhong Simbajon)