By Carmencita A. Carillo, BusinessWorld

 

DAVAO CITY -- The Mindanao Development Authority (MinDA) will push for the re-filing and approval of the bill seeking to create the Mindanao Power Corp. (Minpocor), a government entity that will manage two major hydroelectric plants, in the next Congress.

 

“(The) Minpocor (proposal) has lapsed, but we are looking at re-filing this when the 17th Congress opens in June,” said Romeo M. Montenegro, MinDA director for investment promotions and public affairs.


Minpocor was contained in House Bill (HB) 2621, which was approved in May last year by the joint House of Representatives committees on energy, government enterprises and privatization, and Mindanao affairs.



The bill is a consolidation of HB 2621 sponsored by Rep. Celso L. Lobregat (1st District, Zamboanga City); HB 4883 by Rep. Rufus B. Rodriguez (2nd Distritct, Cagayan de Oro City) and Representative Maximo B. Rodriguez, Jr. (party-list Abante Mindanao, Inc.); and HB 676 by Rep. Edgardo R. Masongsong (party-list 1st Consumers Alliance for Rural Energy, Inc.).



Mr. Lobregat is running for reelection in May while the two party-listers are also on the Commission on Elections’ certified list of candidates.



Mr. Rodriguez, on the other hand, is not returning to Congress and is running for mayor of Cagayan de Oro City.



PRIVATE SECTOR SUPPORT


Mr. Montenegro said the proponents continue to enjoy the support of Mindanao’s private sector against the privatization of the Agus and Pulangi hydroeletric complexes, which currently supply more than half of the southern island’s power needs.



Sergio C. Dagooc, president of the Association of Mindanao Rural Electric Cooperatives earlier said they want the creation of Minpocor to protect consumers from high power rates, which is likely if the hydroelectric facilities are privatized.



Mindanao has lower electricity rates than Luzon and the Visayas since it gets cheaper power from the hydro plants. Data from the National Power Corp. (Napocor) show rates averaged P2.96 per kilowatt-hour (/kWh) in Mindanao, P4.55/kWh in the Visayas and P5.72/kWh in Luzon.



Minpocor is proposed as a government-owned and -controlled corporation that will take over the Agus and Pulangi, currently under the Napocor and Power Sector Assets and Liabilities Management Corp.

 


The Electric Power Industry Reform Act of 2001 provides for the privatization of all government-owned energy facilities, including the Agus and Pulangi, which are the only ones remaining under the government’s management.



In an earlier interview, Vicente T. Lao, chair of the Mindanao Business Council and Mindanao Electric Power Alliance, said while there will be new power sources in the island, mostly coal-fired plants, the rehabilitation of the two hydro complexes will help stabilize power rates.



“These power complexes are very important because the [electricity they generate] is sold at cheaper rates compared with those from privately run power plants,” Mr. Lao said.



The Agus and Pulangi, with a combined installed capacity of 982 megawatts, has been underperforming and requires major rehabilitation work that is initially estimated to cost at least P4.94 billion.



Mindanao business leaders passed a resolution supporting Minpocor’s establishment during the 24th Mindanao Business Conference in Dipolog City held September last year.



The resolution also called on the national government to exclude Lake Lanao, where the Agus complex sources its water, from the exclusive authority of the proposed new Bangsamoro Region.