Salceda hails SMC takeover of Albay electric co-op

LEGAZPI CITY , Philippines   â€“ Albay Gov. Joey Salceda has hailed the upcoming takeover by San Miguel Corp. (SMC) of the Albay Electric Cooperative (Aleco) that he said  will to solve the unending threats of blackouts in their province. SMC, one of the country’s largest independent power producers, won the bid to manage the beleaguered power coop,.

“Albay would have now SMC as one of its business trophies and send a strong signal to the investment community of the province’s economic potentials,” Salceda stressed.

Albay has recently become country’s fastest growing economy, even with the contant threats of blackouts despite its vast geothermal wealth, due to Aleco’s mounting debts has now reached P4 billion. With a stable electric supply, the province is destined to soar higher, Salceda said.

Energy Secretary Jericho Petilla recently announced SMC’s impending takeover of Aleco, San Miguel will not own ALECO; it will just run the cooperative and “shoulder the debt and pay monthly concession fees.”

The National Grid Corp. recently cut off Aleco’s power supply for failure to pay a month’s bill, plunging the entire province into darkness for 24 hours. Salceda negotiated for a reconnection in behalf of Aleco.  

Salceda said he fully supports SMC’s takeover of Aleco’s management. “Given

SMC’s vaunted management expertise and marketing clout, there are huge synergies that can further propel Albay to a higher level of economic stature,” he added.

Salceda noted that SMC Caticlan Airport, the principal gateway to Boracay, under the public-private partnership program, while Albay, a major tourism destination is the site of the Southern Luzon International Airport, which as a  regional hub can make a Caticlan-Legazpi air route viable.

Salceda noted that with SMC around, Albay will have not just stable power supply but also the conglomerate’s strong brands and destination networks that will help enhance Albay as a prime tourist destination coupled.

“Having been in the corporate sector since 1989, I have yet to see an enterprise fail due to mismanagement by the SMC group which has instead distinguished itself for impressive corporate results and corporate social responsibility,” he stressed.

 â€œI don’t know of distribution utilities managed by top corporations, but compared to Meralco and Smart, SMC has been way ahead of the curve in demonstrating that you can earn more with low prices - the lowest priced gin and the lowest priced beer in the whole world, with Lucio Tan at par or slightly lower,” he added.