Olongapo power debt addressed, says mayor

OLONGAPO CITY , Philippines   â€“ Mayor Rolen Paulino yesterday reiterated that his administration has addressed the city’s power debt amounting to P5 billion, amid apprehensions that Olongapo might suffer the same fate of Albay.

“We have already paid the minimum amount due and we have already agreed on a payment scheme,” Paulino told The STAR.

Paulino added that he has talked to Energy Secretary Jericho Petilla and they have agreed on the payment terms.

He said a power disconnection, which Albay experienced this week, would affect not only businesses but also hospitals.

Paulino said the city would pay P20 million a year to be deducted from its internal revenue allotment.

He said the power debt accumulated during the administration of former mayor Bong Gordon Jr.

During the Gordon administration, the city government, under an agreement with the Power Sector Assets and Liabilities Management Corp., must remit to PSALM some P500 million from the sale of assets of the city’s power distribution arm, the Public Utilities Department (PUD).

Gordon approved the sale of PUD assets to the Cagayan Electric Power and Light Co. (Cepalco) for P610 million last year.

Last July 2, the National Grid Corp. of the Philippines (NGCP) district chief Napoleon Viterbo confirmed that Olongapo would not suffer a power disconnection.

The PSALM and the NGCP earlier had issued two power disconnection notices to the city government.