Capitol, KSPC end ash deals

CEBU, Philippines - The Capitol is set to terminate the ashfill-related agreements the Capitol signed with KEPCO-SPC Power Corporation (KSPC) during the time of former governor now third district Representative Gwendolyn Garcia.

The Provincial Board yesterday passed a resolution sponsored by PB Member Grecilda Sanchez authorizing Governor Hilario Davide III to enter into and sign a termination agreement with KSPC

Sanchez said the provincial government and KSPC have jointly determined that it would be beneficial for both parties to terminate the agreements and have the firm pursue alternative ash disposal arrangements.

Sanchez also mentioned that the Province of Cebu and KSPC are both respondents in an environmental case filed by the Philippine Earth Justice Center, Inc. that is now pending before Branch 28 of the Regional Trial Court Branch 28 in Mandaue City.

“The CPG (Cebu Provincial Government) and KSPC have mutually come to an understanding for a termination agreement,” Sanchez said.

In May 2009, the Cebu provincial government signed a Memorandum of Agreement, where it allowed KEPCO to dump its fly ash into the Balili property in Tinaan, City of Naga for a term of at least 25 years, subject to extension.

Potential revenue from the coal ash arrangement is estimated at P48 million for each ton of ash dumped by KSPC, where the province will be paid $1.

There was also an agreement entered into in November 2009 where coal ash generated by KEPCO would be sold to cement factories to be used as additives.

The Balili resort property the province purchased in 2008 is currently the subject of a pending case before the Sandiganbayan. (FREEMAN)