LEGAZPI CITY, 25Aug2013 (PNA) – Two weeks after the public bidding for the operational management of the debt-ridden Albay Electric Power Cooperative, its interim board has approved the bid of San Miguel Energy Corp., an Aleco official said.
In a text message to the PNA on Sunday, Alvie Boral, Aleco public information officer, said the Aleco interim board has informed SMEC in its Aug. 23 letter that the company won the bidding for the concession to operate and manage Aleco.
The letter of the board led by Bishop Jose Baylon of the Diocese of Legazpi said SMEC had been considered and approved as the single highest rated and responsive bidder.
The issuance of the notice of award, however, will still depend on the outcome of the Sept. 14 referendum to determine whether the Aleco member-consumers will choose the private-sector-partnership (PSP) option or the coop-to-coop (C2C) scheme, Boral said.
The board’s letter was sent to SMEC for its information and conformation only, she clarified.
Last Aug. 7, the Aleco bids and awards committee conducted bidding at the Venezia Hotel for the cooperative’s management and operation but only the SMEC joined it.
The Manila Electric Co., Aboitiz Power and Renewable Energy Corp. and Lopez group of companies, which had earlier signified intention to join, backed out of the bidding as they did not agree with the terms of reference.
SMEC agreed to shoulder the P4-billion total debts of Aleco to several entities that include the Philippine Electricity Market Corp., P 1.4 billion; Power Sector Assets and Liabilities Management Corp., P 2.0 billion; Transmission Corp. of the Philippines, P 104.6 million; National Grid Corp. of the Philippines, P 55.8 million; and National Electrification Administration, P 200.6 million.
The privatization scheme for the power coop here was strongly opposed by a multi-sectoral alliance and leftist groups as they are pushing for a C2C management but the Aleco interim board is supporting the PSP option.
The PSP scheme is also supported by Albay Governor Joey Salceda, Albay representatives Grecon Lagman (1st District), Al Francis Bichara (2nd District), Fernando Gonzalez (3rd District) and Ako Bicol paty-list congressmen Rodel Batocabe and Christopher Co.
Whichever option wins in the Sept. 14 referendum will be adopted by the Aleco.
Lawyer Veronica Briones, Aleco project supervisor, said the selection process will be administered by PhilRica and One Care.
No background was given on the two entities.(PNA)