Capitol to release P15M loan today

CEBU, Philippines - Capitol is set to release today the P15.2 million it loaned to Bantayan Electric Cooperative (Banelco) to ensure the continuous power supply in the three towns comprising the island.

The said amount shall be remitted by Banelco to Bipcor for payment to Petron Corp. who delivers and supplies fuel for power generation.

The Cebu Provincial Board yesterday passed the resolution sponsored by fourth district Board Member Joven Mondigo, Jr. authorizing Cebu Governor Gwendolyn Garcia to execute and sign the memorandum of agreement for the granting of a loan to Banelco.

Hours after it was passed, the agreement was signed by Garcia, Banelco manager Oscar Seares and Bantayan Island Power Corporation (Bipcor) vice president Apolinar Saso.

Garcia instructed Provincial Treasurer Roy Salubre and Budget Officer Eme Gingoyon to immediately process the check for her to sign before she leaves for Manila today.

As agreed, Banelco shall start paying its monthly amortization on July 31 in the amount of P699,638.16 inclusive of 5.2 percent interest per annum for the period of two years.

With this, Banelco will add around P.50 per kilowatt hour to the electricity billing of consumers within two years also making it around P10.20 per kilowatt hour from the present P9.70/kwh.

Seares said that they are collecting an average monthly of P1.6 million from consumers enough for them to pay the monthly amortization to the Provincial Government.

The Energy Regulatory Commission has approved an applied increase of P2.62 per kilowatt hour effective January 2012 which reportedly was not implemented by Banelco.

Due to the Banelco’s non-implementation of the said power rate increase, they were also not able to pay and remit to Bipcor the amount corresponding to the rate increase and in turn Bipcor was also not able to pay and remit the same to the National Power Corporation.

Subsequently, Napocor withheld its subsidy to Bipcor and the latter has not been able to collect from the former, the corresponding unremitted amount, which has a total of P15.2 million for a period of three months.

As a result, Bipcor was not able to pay the corresponding amount to Petron Corp. for fuel delivery prompting the latter to serve notice that they would stop delivering and supplying fuel unless the amount is paid not later than May 31.

Garcia intervened and asked Petron to extend up to June 15 in order to give time to find the solution.

Garcia offered to extend a loan which Banelco and Bipcor welcomed to prevent rotating brownouts in the island. (FREEMAN)