MANILA, Philippines – The National Power Corp. decried yesterday the “recycled” issues raised against its contracts with the joint venture of PT Marsitero and Transpacific Consolidated Resources Inc.
“The issues being thrown against us are rehashed and recycled and have long been resolved. The allegations are baseless. The award of the contract is consistent with the mandate of Republic Act 9184 or the government procurement law,” Napocor president Cyril del Callar told a press conference.
Del Callar also appealed to media to be fair in its treatment of the issue.
“We are asking, in the spirit of fairness and balanced reporting, if the resurrection of this issue on coal contract (is) honest-to-goodness reporting, a legitimate exposé, or just a means to peddle and push for the agenda of unscrupulous groups or individuals in their attempts to create undue concern (among) our public,” the Napocor chief said.
He also pointed out that the joint venture won the contract through public bidding in accordance with the government procurement law.
“It underwent the stringent pre-qualification process and has submitted duly authenticated documents, proving its track record and corporate performance,” he said of the joint venture.
He said details of the transaction are already on Napocor’s website.
“We will likewise fully cooperate with any legitimate investigating body in order to shed light on this concern,” he said.
Del Callar said they will only pay TCRI after the first delivery of coal in the first week of August. “If they will not deliver, we will forfeit the bond and they will be blacklisted on all government biddings,” he said.
On the issue of low capitalization of TCRI, he said existing laws allow manufacturers, suppliers or distributors to organize into joint ventures.
“PT Marsitero appointed Transpacific as its official marketing executive to Napocor. The JV also appointed Transpacific to be the official representative in all transactions with Napocor,” he said. The JV capitalization, he said, is $42.2 million.
He said Napocor is protected by a performance bond equivalent to five percent of the total contract cost if in cash, 10 percent if in bank guaranty or 30 percent if surety bond.
“If the JV does not perform its obligation to deliver, then Napocor can garnish the performance bond,” he said.
The TCRI-PT Marsitero joint venture submitted the lowest bids for two coal supply contracts worth almost P1 billion. The joint venture’s offer was $109 per metric ton during the Feb. 12 bidding and $109.50 on March 5.
Napocor’s coal deals came under fire after reports came out linking incorporators Leslie and Ressie Ducut to new Energy Regulatory Commission chairperson Zenaida Ducut. The ERC chief has since denied the allegations.
In a related development, the National Association of Electricity Consumers for Reforms (Nasecore) has lauded Ducut for vowing to swiftly address the complaints of end-users against big groups like the Lopez-controlled Meralco.
Nasecore president Pete Ilagan said Ducut “stands at the threshold of making the ERC pro-consumer again after being subjugated for years by its past leaderships to serve the interests of Meralco.”
“We expect Chairman Ducut to immediately translate her words into action as the people, faced with the rising costs of basic commodities, services and transportation, can no longer stand being overcharged too by power distributors like Meralco,” Ilagan said.
The Nasecore official said Ducut can begin by working for the immediate refund of the P21.7-billion meter and bill deposits of Meralco customers, plus the four-percent differential increase in interest on these deposits, instead of giving Meralco five years to deliver the refund.
“She must go hard on Meralco, which has been acting like a spoiled brat in need of a sound spanking. Meralco is a recidivist, always looking for ways to subvert the law and put one over consumers.”