Napocor, Transco welcome Senate probe on CBK

The National Power Corp. (Napocor) and the National Transmission Co. (Transco) welcomed yesterday a Senate inquiry on the Caliraya-Botocan-Kalayaan (CBK) project.

Sen. Sergio Osmena has threatened to file charges in court if he can prove that the contract is downright anomalous. On the other hand, Napocor acting president Roland S. Quilala said the company is ready to answer all questions that may be raised by the legislators.

"We welcome the probe the good senator has again proposed for the CBK contract. But we are curious why this issue was resurrected at this time. As in the past, Napocor assures the senator and the public that it will be completely transparent as far as presenting all the necessary documents to show that there was no irregularity made in the contract," Quilala said.

According to Quilala, the power firm has been called several times in the Senate to shed light on issues raised against the CBK project and never has the legislative body presented any piece of evidence to show malice in the contract.

"The CBK issue has been resurrected, unfortunately, in spite of the many times we have clarified concerns on this contract. Still and all, we remain committed to transparency and full public disclosure in all our dealings. We have said it in the past and we will say it again, the contract has gone through all the necessary checks and balances. The contract is aboveboard," Quilala said.

All issues raised regarding the CBK contract and the Meritec report on the performance audit of the rehabilitation of the hydro complex have been given point-by-point explanation both by Napocor and the Department of Energy which commissioned the performance audit. Both the Napocor president and Energy Secretary Vincent S. Perez have attended previous Senate hearings to clarify these issues.

In June, Napocor paid a total of $5 million (P255 million) to CBK Power Ltd., a joint venture between US firm Edison Mission and Argentinian firm IMPSA Asia Ltd.

This payment came after an independent auditor, Meritec, based in New Zealand, has reviewed and recommended for Napocor to effect a payment of the overdue invoices, which were apparently delayed for 90 days. Based on Napocor data, it paid some $4.57 million and P19 million for the months of March to May representing capital recovery fee (CRF).

Meritec was commissioned by the DOE to conduct a separate review following a report submitted by newly-designated presidential adviser for energy affairs Jesus N. Alcordo involving an unaccomplished task in the rehabilitation.

Transco president Asisclo T. Gonzaga said the Senate is the proper venue to raise and clear all these issues on CBK.

"So many facts have been twisted and peddled as truth. So many names have been tarnished in this issue. Perhaps it would be better if the Senate conducts its own investigation to determine once and for all the truth behind the CBK project," Gonzaga said.

CBK project spokesperson Geoffrey Andawi said Napocor VP-general counsel Rainier B. Butalid had issued a legal opinion affirming the authority of the TransCo president to issue a certificate of completion (CoC) for the rehabilitation of Unit 1 of the Kalayaan hydro plant stating that "the responsibility in overseeing the proper implementation of the CBK-BROT agreement was placed under the Office of the TransCo president."

Atty. Andawi also clarified that the CBK Power Corporation, a partnership between IMPSA and Edison Mission, had already invested over $350 million in the project and not $9 million as written in the PCIJ report.