IMC prepared for signing PDF Print E-mail
Monday, 07 May 2018 13:38

By RG Antonet Go

The Zamboanga City Electric Cooperative (ZAMCELCO) and Comstech are expected to sign this week the Investment Management Contract (IMC), an agreement envisioned to improve the current power situation and provide stable supply to electricity consumers in Zamboanga City.

Under the contract, Comstech, a subsidiary of Meralco, will take charge of the operations of ZAMCELCO.

Omar Sahi, ZAMCELCO Board President, said that Zamcelco officials are expected to receive the final draft of the IMC today, May 7, for signing.

Prior to this, the agreement had been sent to Comstech for the latter’s signed approval.

After signing, the contract will then be presented to ZAMCELCO consumers for their approval during a general assembly.

The agreement will thereafter be sent to the National Electrification Administration (NEA) for its final approval.

Comstech takes charge of the management and operation of Zamcelco once the contract obtains NEA approval.

The new General Manager however must be appointed in accordance with NEA rules.

A separate Chief Management Officer will be appointed by the Investment Manager.

Meanwhile, the bid amount will reportedly be maintained in a separate bank account to be managed by ZAMCELCO and the Investment Manager.

The contract was finally approved after several years of threshing out contentious issues involving the management of ZAMCELCO.

Initially, another major power distribution company, Aboitiz Power Ventures, joined Comstech in vying for the ZAMCELCO IMC.

Bidding was initially scheduled on December 1, 2016.

The bidding was moved to February 7 the following year after bidders asked for more time to conduct their due diligence on Zamcelco’s financial situation.

A failure of bidding eventually occurred after both parties, the bidders and ZAMCELCO, failed to thresh out contentious issues.

After several months, Aboitiz Power Ventures, announced its decision to withdraw from the bidding.  (RGAAGo)