The PGI position was made public after several quarters were reportedly interested in acquiring the 60-percent stake in the Power and Renewable Energy Corp. (Power Corp.), a joint venture between PGI and Tanco.
"We do not have plans to change our business relationship with Mr. Tanco. We are a US-based company that respect our agreements," Luli Huertas-de Leon, PGI executive vice president said.
Huertas-de Leon said that PowerCorp. came into being as a fulfillment of Presidential Decree (PD) 1441 which requires that a Filipino corporation tap the geothermal fields in the country. She further revealed that they undertook extensive due diligence to ensure that Tanco was the best partner for the project.
Other interested parties that courted PGI were the Wellex Group of William Gatchalian and Forum Exploration.
For his part, Tanco said that he would keep his part of the business arrangement. He added that he would not succumb to any pressure for him to sell his 60-percent stake in PowerCorp. amid rumors that there were interested parties wanting to acquire his stake.
"I will keep my share of the bargain. I will not succumb to any pressure," he told The STAR.
Industry sources said that there were certain interest groups which wanted to acquire his stake of PowerCorp. since the PGI stake was already "implanted" on its present operations in the Tiwi Mak-Ban geothermal fields.
Tanco invested about P40 million as part of his share in PowerCorp.’s authorized capitalization while PGI put in P100 million. Additional capital would only be required when it becomes fully operational.
However, Sen. Sergio Osmeña III recently claimed that government through the National Power Corp. (Napocor) and PGI/PowerCorp. entered into a questionable deal.
As a result of his allegations, the Economic Coordinating Council (ECC) decided to suspend a memorandum of agreement (MOA) between Napocor and PGI until after all the legal disputes and other questions have been answered.
"The Economic and Coordinating Council has decided to suspend the current talks to focus the much needed attention on the passage of the powerbill." Energy Secretary Mario V. Tiaoqui said in a earlier interview.
Tiaoqui said the ECC decided to do so to ensure that everything was clear and above board.