TransCo takes over 6 power transmission projs

The National Transmission Corp. (TransCo) is taking over from its contractor the remaining construction works for six power transmission facilities estimated to cost P93.5 million.

TransCo president Alan T. Ortiz said the state-owned firm has decided to take over these projects after the contractor, Alphaomega Integrated Corp., ceased all activities in the construction sites since December last year.

All six projects were supposed to have been completed last year.

"Following a thorough review of the six projects awarded to the contractor, we have initiated the take-over process, pursuant to Clause 26 of the contracts which states conditions to warrant the take-over. Likewise, security measures have been put in place to protect TransCo assets at the project sites," Ortiz said.

"We are left with no option but to take over these projects. In spite of several follow-ups and notices, the contractor failed to complete works before expiration of the contracts. We will complete these as soon as possible because these are crucial to our efforts to improve the reliability and stability of our nationwide transmission network," he added.

TransCo has served separate "notices of take-over" to the contractor early this year for three projects which were all supposed to have been completed in December 2005, inclusive of contract time extension.

These contracts are: the 100-megavolt ampere (MVA) Quiot (Pardo) substation construction project which will boost reliability of the Cebu grid; Bacolod substation expansion project which will improve the reliability of the Negros-Panay grid; and the New Bunawan switching station project which will enhance the reliability of the Southeastern Mindanao transmission system.

TransCo is also set to issue notices of take-over for three other projects where the contractor has no more on-site workforce. These are the New Makban substation project and Makban switchyard-Calamba Tower 50 project which are both components of the Batangas transmission reinforcement project which will reinforce the transmission system in Southern Luzon; and the Cabanatuan substation expansion project which will augment the capacity of the facility by 100 MVA to serve the growing demands of Central Luzon customers.

While the New Makban and Cabanatuan substations are already in operation, minor project components included in the contract have yet to be completed by the contractor.

As part of the take-over process, TransCo has started conducting an inventory of the completed works to determine its value and the usable materials and tools at the construction sites.

Works on these projects will resume as soon as new qualified contractors are awarded the contracts to complete the transmission projects.