The National Power Corp. (Napocor) has entered into a contract with Albay Electric Cooperative (ALECO) to help the ailing cooperative recover from huge loans and high system losses.
The operation and maintenance (O & M) contract will basically involve the extension of Napocor’s technical and financial expertise to ALECO, formalizing the start of its rehabilitation program.
Among the problems that are expected to be addressed by the rehab plan are ALECO’s outstanding P1.6-billion obligations with Napocor and its runaway system losses, which have been placed at 23 percent.
Under the O&M contract, Napocor will review and audit ALECO’s the management procedures to improve the efficiency of its system. This, in turn, is expected to improve ALECO’s revenues and enable it to pay off its debts.
The O&M contract also taps for the National Transmission Corp. to help ALECO bring down its system losses from 23 percent to 14 percent within a year’s time.
The rehab program likewise aims to improve the reliability of ALECO’s distribution system to enable it to provide adequate and dependable power supply to its customers.
Prior to the O&M agreement, Napocor had formed an ALECO Rehabilitation Team which is tasked to implement and monitor the rehab program.
The rehabilitation program for ALECO is in compliance with President Arroyo’s directive to Napocor to assist in the operation and management of the cooperative, and to help ALECO improve its financial viability.
Based in Legaspi City, ALECO services the entire Albay province, including the towns of Daraga, Camalig, Manito, Tiwi, Tabaco, and Guinobatan, as well as the island of Rapu Rapu.