‘Cooperativization’ of Napocor proposed

The sole congressional representative of local electric cooperatives urged recently the International Monetary Fund (IMF) to consider a full options approach in the power restructuring bill that may include the "cooperativization" of the National Power Corp. (Napocor).

In a dialogue with IMF representative to the Philippines Sean Nolan during the IMF meeting with Civil Society in Singapore last Jan. 29, 2001, the Association of Philippine Electric Cooperaives (APEC) secretary general Luis Corral said Napocor’s privatization should not be treated as a fiscal matter that only seeks to burden the taxpayers with stranded costs amounting to $11 billion.

Corral made this statement after Nolan revealed that the IMF is pushing for the privatization of the Omnibus Power Bill that is still pending in Congress because Napocor debts amounting to $15 billion constitute more than 10 percent of Philippine government debts. Last December, IMF officer Markus Rodiauer wrote former House Speaker Arnulfo Fuentebella urging the immediate passage of the bill.

Corral affirmed that Napocor’s privatization will not only be a heavy burden to the ordinary taxpayers, it will also spell P550 billion worth of school buildings, hospitals, roads and public sector wages that will be forgone to pay for graft, mismanagement and overpriced contracts on the part of Napocor. He said APEC is also committed to keep the Agus hydro complex in Lanao Sur away from the privatization chopping block.

The APEX head proposed that taxpayers be given the shares of stocks from the National Transmission Corp. if they are going to assume the multi-million stranded costs.

"It is imperative that the consuming public be made owners of the company which debts they paid for. Electric consumers should directly benefit from the Napocor privatization not just a few oligarchs and multinationals," he said.