Napocor sets bidding for P10.2-B fuel requirement

The National Power Corp. (Napocor), the country’s largest power producer, will bid out its one-year fuel requirement worth an estimated P10.23 billion on Feb. 13.

The fuel requirement of Napocor for the period April 1, 2001 to March 2002 is estimated at 1,243,401 kiloliters (Kliters), higher than its projected consumption of 1,171,518 Kliters for the period March 2000 to April 2001.

The Feb. 13 bidding is expected to be participated in by the Big "3" oil firms led by Petron Corp., which got the highest contract last year worth P3.3 billion.

Last year a total of 13 oil firms had expressed interest in supplying Napocor’s fuel requirements, but only seven actually participated in the Feb. 17, 2000 public bidding and the subsequent rebidding held last March 20. During last year’s bidding, Napocor for the first time had required the bidders to submit their tenders net of taxes and duties.

Meanwhile, an official of Napocor sought yesterday to correct a published report that "the government will have to shell out as much as P10 million to implement the proposed power reform legislation," which was reportedly the reason why the Arroyo administration has opted to shelve the power reform bill.

In an interview with newsmen, Dr. Fernando Y. Roxas, head of the Napocor privatization and restructuring external office, said the significant costs involved in the power reforms sought by the bill have already been incurred in the form of the foreign loans and the contract liabilities with the independent power producers (IPPs), which are guaranteed by the government.

"Not passing the bill and maintaining the status quo means that these costs will still be and continue to be incurred," Roxas said, adding that it is precisely these costs that are sought to be addressed by the industry reforms and restructuring mandated by the bill.

Roxas echoed industry concerns that the country may face another massive power shortage in the next three to five years if the power reform bill is not passed before the end of the 11th Congress.

Among the concerns over the non-passage of the bill at this time are "continuing rate increases and decreasing global competitiveness of Philippine Industries."

Other industry observers said the Arroyo administration may be sending wrong signals to the international financial community regarding the economic policy agenda of the new Philippine government.

Meanwhile, the Philippine Chamber of Commerce and Industry (PCCI) is reportedly organizing a power industry forum on Feb. 2 at the Makati Shangri-La Hotel.