Arroyo wants power plant issue settled out of court

BACOLOD CITY — President Arroyo favors an out-of-court settlement on the ownership problem involving the 30-megawatt Maricalum power plant in Sipalay City, Negros Occidental.

"It is under litigation now so we have to work out, if possible, an out-of-court settlement if the owner is agreeable," she said during a media interaction here the other day.

She asked Environment and Natural Resources Secretary Mike Defensor to discuss the matter with the owner of the Maricalum mining firm, Teddy Bernardino, since "he is involved in the natural resources business."

The Maricalum power plant was left behind by the Maricalum mining firm which ceased operations a few years ago.

At present, its ownership is under litigation since the previous owner has accrued debts with the Asset Privatization Trust and the provincial government in the form of taxes.

The provincial government has submitted to the Department of Energy all the documents that would support its ownership claim.

If rehabilitated and put into operation, the power plant can supply half of the province’s power needs and provide an additional 30 megawatts to the Visayan grid. As a result, Negrenses can expect lower power rates.