The Transco ‘Crown Jewels’: Part II

Just about one week ago, I wrote a column on the country’s "crown jewels" - the valuable electric power transmission assets that are stringed all over the country, thanks to the National Transmission Corp. or Transco that has managed these assets well.

The piece elicited a lot of response, some from friends of Transco president Dr. Alan T. Ortiz, who pointed out to me that Transco’s top man is one who would rather stay away from the limelight and just do his work very quietly.

In some ways, Transco has taken on the character of its president: low-key, but hardworking. Most of us have not realized it, but there has not been any major countrywide black out in the past two years or so. A major reason is what is called greater transmission systems reliability. Transco’s engineers have made sure that even if a tower is felled or a substation breaks down, there are alternative "transmission highways" through which power can pass. We are, therefore, no longer at the mercy of saboteurs and force majeure.

The feat did not get national media attention. No accolades. But that is exactly the character of the organization. Like its president, Transco’s work force just goes about doing what it does best. And then waits for no applause. Something that we hope other government agencies would emulate.

If Dr. Ortiz would have his way, his friends say, he would keep the "crown jewels" away from the public eye. But the way things are going, Transco’s low-key boss would probably not get his wish.

Reason number one: Transco’s current projects are way to major to ignore. Just recently, President Arroyo inaugurated Transco’s Leyte-Bohol link-up project that will transport "clean" electricity from Leyte‚s renewable energy resources to the pristine island paradise of Bohol. Transco has also broken ground for the interconnection of Mactan’s industrial zones to Cebu’s power resources.

Reason number two: The entry of a private concessionaire into Transco has become an important national concern. Such entry is expected to bring in billions of dollars into the national coffers – an entry already being touted as the deal of the new century.

Energy Secretary Vincent Perez and Dr. Ortiz must have done a good job at enhancing the value of the "crown jewels" – it is heartening to note that international investors are interested to come in and put their money into Transco: Tokyo Electric, the Electricity Generating Authority of Thailand, Hydro Quebec and Australia’s Trans-Grid.

The sad part of this unfolding saga is an apparent attempt by some quarters to make a major controversy out of the entire privatization process. Even before the important steps have been taken, there are already accusations that some quarters will make money out of the deal. Isn’t it quite too early to consign the Transco privatization effort to the dust bin of failed deals? Sometimes, we are tempted to think there are efforts to make self-fulfilling prophecies out of these unfair accusations.

The government also declared recently that it is going for open bidding instead of negotiated bidding. Immediately there is a howl from some interested parties against an open bidding making one wonder what is so wrong about making the whole process transparent. Why, don’t people like me deserve to know who wants to get the concession and at what price? Don’t we – the people – own these "crown jewels" and therefore deserve a transparent process ?

It looks like the way things are going, some personalities will do everything to make the Transco privatization process look very controversial. Maybe, some of them will find it to their benefit to delay the privatization process, or to even make it fail.

I can only feel sorry for Secretary Vince and Dr. Ortiz. Already, there are reports that public relations spin masters have been hired so that whichever way the bidding process goes, it would be made to look controversial. With negotiated bidding would come insinuation that something fishy will be cooked up. With an open bidding would come sour-graping that rules are being changed in the middle of the game. With bidding of any sort would come demands that Transco not be privatized.

One thing is sure though. Should the administration relent and shelve privatization, there will be a national furor over the possible deterioration of the "crown jewel" since there will be no new money to fund its preservation and expansion.

We hope our political leaders can arrive at a good consensus at what is the best way forward for Transco. We pray that our energy officials will have the moral strength to weather onslaught of PR-crafted "controversy".

And we hope that the excellent work that Transco’s staff and engineers have done at preserving the "crown jewel" would not just be put to waste by parties who badly want the controversy.

If we can spare Transco from the national passion for noisy controversies, then let us. That would be a good way to say thank you to Transco’s work force that has done its job well and quietly.

Another Round Of Price Increases

The price of rice could increase by as much as P1 per kilo if government goes ahead with implementing a law that requires millers to fortify rice with iron.

Joji Co of the rice millers association says the law, Republic Act no. 8976 or the Philippine Food Fortification Program, is now causing nightmares to industry. Despite the fact that Nov. 7 is the start of the fortification program, millers still do not know how to go about fortifying the rice. Will it be thru coating, adding powder? During a consultation meeting at the Department of Agriculture, millers learned that the only source of the iron are US companies. Millers are definite in saying that come Nov. 7, the price of rice will increase by a minimum of P1 per kilo because of the fortification. If the peso continues to depreciate, you could just imagine how much it would cost to fortify rice with iron.

Because iron overdose can be fatal, the equipment to be used should be very precise. These machines however do not come cheap. Not to mention the red tape that millers have to go through. The Bureau of Food and Drugs requires that all millers should register their rice before they can sell it in the market. And based on experience, registration can take as long as a year.

Joji is suggesting that instead of promoting this poison, government should rather promote eating regular milled or brown rice which is rich in vitamins.

RA 8976 made the fortification of rice with iron, wheat flour with Vitamin A and iron, and refined sugar with Vitamin A, cooking oil with Vitamin A, and other staple foods with nutrients as may later be required by the National Nutrition Council, as mandatory on the part of local manufacturers.

This mandatory fortification for imported and locally-manufactured rice, wheat flour, refined sugar, and cooking oil, starts this year.

An increase in the price of these food products therefore appears inevitable. Not to mention the dangers of overdose.

As I mentioned earlier, excessive intake of Vitamin A could result in liver damage, abnormal bone grown and nerve damage. According to the US Food and Nutrition Board, large doses of Vitamin A may be teratogenic or can cause fetal formation during the first three months of pregnancy.

Iron overdose, meanwhile, is the leading cause of fatal poisonings in children, according to the US Food and Drug Administration. About 110,000 children have been poisoned with iron since 1986, and 35 children have died.

The Arroyo administration has this very distinct chance of making a difference in the lives of Filipinos by scrapping this useless and dangerous piece of legislation. It should not let this opportunity pass.

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