29 June 2006
The Freedom from Debt Coalition urges the concerned authorities in the Masinloc deal to stop all shady transactions related to the privatization of this 600-MW power plant, one of the newer and profitable plants of Napocor. The coalition also supports any move to prosecute officials involved in these transactrions.
Tomorrow, 30 June 2006, is the second deadline for YNN Pacific Corporation which won the bid for Masinloc to give its $227 M downpayment for the power plant. If YNN Pacific Corporation – whose entire equity was recently bought by a Malaysian company Ranhill Berhad – still fails to deliver said payment, the government must no longer dilly-dally in withdrawing the $14-million bond. Enough time has been given for the company to make its initial payment. After this, the government and other proponents of privatization of the power industry must rethink where this privatization effort is heading to and if it really solves the woes in the power industry.
Also in relation to Masinloc privatization, the Energy Regulatory Commission should make public the power supply deal between Meralco and YNN Pacific Corporation. It has come to our attention that Resolution 21 was passed by the Commission in favor of YNN Pacific Corporation. This transaction will definitely have impact again on power rates that will be borne by the electricity consumers.
We cannot help but wonder why the government is allowing all these favorable deals for YNN Pacific Corporation to get Masinloc power plant at the expense of the people, the power consumers. Before Berhad came in this June, the Corporation has no financial capability at all to pay its bid of $561.74 million, not even less than half of it for the downpayment. And even until tomorrow, Berhad has yet to prove that it is financially capable of acquiring Masinloc. Unfortunately, assuming Berhad has the financial capability, it has no technical capability to run the plant. What Berhad has is an investment plan for Masinloc, where profit and not service is the usual primary objective.
Consumers have already been suffering so much from high power rates. We want a halt to this suffering. And privatization of Napocor and its power plants is not leading us to this. ##