"It’s very lamentable, unfortunate and frustrating for us to be in this predicament," said Raymond Cunningham, operations manager of the CE-Casecnan project, told the provincial board last Thursday.
The board summoned Cunningham to explain his company’s continued refusal to settle its supposed real property taxes of over P250 million since 2001, to the provincial government.
Cal-Energy, however, has insisted that it is the National Irrigation Administration’s obligation to pay the taxes based on their memorandum of agreement.
The provincial government has sent a final demand letter to Cal-Energy, threatening to auction off the CMIPP facilities and properties should it fail to pay the taxes.
"The commitment of our company is part of our core values to make all of us happy. Our (being in this predicament) is contrary to our corporate values," Cunningham said.
The $10.5-million CMIPP irrigates more than 300,000 hectares of farmlands in Central Luzon through a 36-kilometer diversion tunnel from Alfonso Castañeda town. It also generates at least 500 megawatts for the Luzon power grid.
Cal-Energy operates the CMIPP under a 25-year build-operate-transfer scheme forged during the Ramos administration.