Speaker Jose de Venecia urged Japan, China and South Korea to invest in Philippines’ privatization of its transmission and power-generation assets to modernize the country’s electric power facilities and help reduce the Philippines’ external debt by $5 billion.
In a statement, De Venecia cited as basis for his call the "failed privatization bids including the Masinloc power plant fiasco and the looming power crisis in Mindanao and the Visayas next year," which he said "should prod the government into action."
Speaking before the students and alumni of the Mindanao State University in Marawi City and political leaders from Cagayan de Oro City and Misamis Oriental as MSU celebrated its 45th anniversary, De Venecia said the proceeds from these power asset privatization efforts could amount to roughly P250 billion.
"The proceeds could reduce Philippine external debt by as much as $5 billion," he said. He also asked Mindanao’s congressional leaders and the officials of the National Power Corp. (Napocor) to resolve the Agus 3 power plant project, which was bogged down by land disputes.
"This would enable power investors to build a 300 to 400 megawatt power plant for Mindanao," he said.
De Venecia said new power plants should be built in the Visayas to solve the power shortage in the region and set the stage for new power expansion in Luzon.
He added that the country’s expanding economic buildup will require new electric power "merchant" plants that are not dependent on guaranteed power purchases by government so no further pressure will be put on the national budget.
He told reporters from Cagayan de Oro that he has asked Tokyo, Beijing and Seoul on his visits to these capital cities to "mobilize their state and private power companies to join the large-scale Philippine privatization program."