Batangas city gov’t stops transmission project of Transco

The crucial Batangas Transmission Line Reinforcement Project (BTRP) is facing another possible delay after the city government of Batangas issued a cease-and-desist order (CDO) preventing the National Transmission Corp. (Transco) and its contractor Alpha Omega Integrated Corp. (AOIC) to proceed with the project.

Documents obtained by The STAR showed that CDO was issued pending the approval of the application of Transco for zoning/location clearance by the Office of the City Planning and Development Coordinator (OCPDC).

"It has come to our attention that you already commenced the construction of the Batangas Transmission Reinforcement Project of the Transco/National Power Corp. in Batangas City without the approval of the Sangguniang Panlungsod and the necessary permits and clearances from the City Government, which are clear violations of the Batangas City Comprehensive Land Use and Zoning Ordinance and the National Building Code of the Philippines," the CDO said.

The city government of Batangas, which threatened to slap a fine of P50,000 plus P5,000 for each day of delay for violating the abovementioned law, is set to hear the issue today.

A Transco insider said the company has not yet received any notice from the Batangas city government.

AOIC president and general manager Edgardo Herrera, in a separate interview with The STAR, said the CDO will specifically affect the construction and erection of about 25 towers under BTRP Schedule I in Batangas and San Lorenzo.

Asked why did AOIC proceeded with the project without the necessary clearances from the city government, Herrera alleged that the company already got a notice from Transco to start the project two months ago. "After we won the bidding in January, we got the notice to proceed from Transco. Then we conducted the necessary survey and applied for a business permit which was granted April this year," he said.

Herrera said aside from the notice from Transco, the project already obtained an environmental compliance clearance (ECC).

According to Herrera, the AOIC will discuss with Transco this week the possibility of suspending the contract and/or ask for standby claim if the issue with the Batangas city government will not be resolved soon.

The completion of the controversial BTRP is necessary to resolve the issue between the Napocor/Transco and the Manila Electric Co. (Meralco) on the transmission of power of Meralco’s Batangas-based independent power producers (IPPs) — San Pascual and San Lorenzo natural gas-fired power plants.

Pending the completion of the BTRP, which will pave the way for the easy deliver of power of the two Lopez-owned IPPs from Batangas to Manila, Napocor/Transco and Meralco have arranged for so-called "line-sharing" scheme. Of the 1,500 MW total capacity of the two IPPs of Meralco, about 1,380 MW is already being allowed to pass through the transmission line of Transco.

To accommodate the power coming from the said IPPs, Napocor/Transco had minimized the entry of its own Batangas-based power plants like the Calaca and Makban. The transmission line of Transco in that area can only accommodate about 1,500 MW.

The other BTRP transmission line projects and their projected time of completion are: Batangas to New Makban (December 2004); New Makban to Calamba Tower (June 2004); Calamba Tower to Binan (August 2004).