DOE backs Senate inquiry on Meritec

Energy Secretary Vincent S. Perez said yesterday he welcomes a possible Senate inquiry into a report submitted by New Zealand-based Meritec Ltd. on the IMPSA contract for the rehabilitation of the Caliraya-Botocan-Kalayaan (CBK) power plant complex.

In a press conference, Perez said the lawmakers have every right to look into the report. "We want to assure the public that we have been transparent with the results of the Meritec assessment of the CBK-BROT (build-rehabilitate-operate-transfer) project."

According to Perez, there are two Meritec reports. The first report was commissioned by the National Power Corporation (Napocor) to "have a basis for the rehabilitation work undertaken pursuant to the contract."

He said the second report, on the other hand, was requested to assist in the ongoing independent power produce (IPP) contracts review process being undertaken by the inter-agency committee.

The second report, he said, is envisioned that the results of the subsequent review would be used as part of the policy review by the Department of Justice and the National Economic and Development Authority (NEDA).

Perez said the copies of the two reports would be given to both the DOJ and the NEDA for the second review of the IPP contracts.

The energy chief said he has requested for a meeting with Sen. Sergio Osmeña this week "in order to fully brief the Senator on the contents of the second part of the Meritec report which was a review of the CBK contract.

Last month, the DOE released to the public the first report where Meritec said it found the payments to IMPSA justified based on the parameters and scope of the evaluation.

While the first Meritec report observed that there were some administrative procedure not complied with the operator, these were minor enough not to warrant withdrawal of payments and put at risk the country’s recently improved credit rating by being declared in default.

Perez said he hopes a possible Senate inquiry would clarify "pervading doubts in the Meritec reports and further shed light on the government strategy for dealing with the issue of payments of IPPs."

According to Perez, he is also making another preliminary investigation in a "sweetheart deal" which may have been fully disadvantaged to the electricity consumers.

The energy secretary said he is optimistic that he will also get Osmeña’s backing on the investigation of all alleged sweetheart deal.