GMA urged to review one-sided power supply contracts

President Arroyo was urged yesterday to order an immediate review of the "onerous" power supply contracts worth billions of pesos with the so-called independent power producers (IPPs).

"The review of these one-sided contracts is long overdue. If the new administration is really committed to the welfare of the masses, it should immediately address this problem squarely," said Rep. Prospero Pichay Jr. (Lakas, Surigao del Sur).

He said for 2001 alone, IPPs are to collect about P170 billion from the National Power Corp. (Napocor).

"These are obligations which are shouldered by users of electricity and by taxpayers in general," he said.

Pichay accused Energy Secretary Isidro Camacho of dilly-dallying on the issue involving the power supply contracts of the Napocor that were entered into during the power crisis under the Aquino and Ramos administrations.

He dared the administration to review the contracts worth P5 billion annually given to Alsons Power Holding Co., which is owned by the Alcantara family of Davao.

He said the Alcantaras are among Davao-based big-time businessmen comprising the so-called Linden Suites Group that is reportedly close to First Gentleman Miguel Arroyo.

Linden Suites in the Ortigas Center in Pasig City is where then Vice President Gloria Macapagal Arroyo held office prior to assuming the presidency.

Pichay said unless the government reviews the contracts of the Alcantaras and other power suppliers, suspicions will linger in the minds of many people that it is protecting these power producers.

"The President should make good her promise that she would not coddle or protect any businessman-friend, that she would not have cronies," he said. – Jess Diaz