Governor junks Kepco's request

CEBU, Philippines - Cebu Governor Gwendolyn Garcia turned down yesterday the request of Kepco SPC Power Corp. for the provincial government to shoulder the transportation costs of coal ash from the power plant to Cemex Philippines, Inc.

Cemex, a cement company, had signed an agreement with the Capitol on its purchase of the coal ash produced by Kepco’s 200-megawatt coal-fired power plant in Naga City.

Kepco yesterday asked Garcia for P1,000 for every ton of ash transported to Cemex, which is about eight kilometers from Kepco.

Provincial legal counsel Marino Martinquilla said Garcia turned down Kepco’s request as the agreement between the Capitol and Kepco stipulates that the Capitol won’t shell out anything on the transportation of coal ash, the power plant’s byproduct.

“Ang Kepco gyud mao’y mubayad ana. (It’s Kepco that should pay),” Martinquilla said.

He said the Provincial Board also approved a resolution that the provincial government of Cebu will not be paying for such.

PB Member Alex Binghay earlier wanted to specify in the agreement as to who is responsible for the transportation cost as the Capitol will only gain a minimal profit of P40 if it would shoulder the transportation costs.

Cemex pays the Capitol P40 per ton of coal ash, inclusive of value-added tax. Kepco produces 100 tons of coals ash waster everyday.

Martinquilla said the Capitol was granted exclusive rights to the ash produced by the power plant, as indicated in the Ash Disposal Agreement the province and Kepco entered into in November 2009.

A separate memorandum of understanding (MOU) was signed in the same month, stating that Capitol and Cemex agreed to negotiate the terms and conditions of a definitive ash agreement for the delivery of ash by the province to Cemex. — (FREEMAN)